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Superior Labor Court rules partial ratification of extrajudicial agreements impossible

11/11/2019

Last Wednesday (11.09), the Superior Labor Court (TST) ruled that it is impossible for the Labor Court to partially ratify extrajudicial agreements entered into between employers and employees. Since Law 13,467 / 2017 came into effect (Labor Reform), extrajudicial agreements have been one of the innovations used most frequently by companies and their employees. In concrete cases, many Judges refuse to fully ratify the extrajudicial agreement, especially clauses granting full release from the employment agreement (meaning that the employee can not file a dispute after the extrajudicial agreement is paid).

As mentioned in the ruling, it is not up to the Judge to discuss the conditions of an extrajudicial agreement, but only whether it fulfils the legal requirements, deciding whether or not to ratify the agreement. The ruling is not binding on other Chambers of the TST or the Regional Labor Courts, but reflects a favorable precedent over the legal certainty that extrajudicial agreements aim to bring to companies and their employees.

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