Brazil: The Federal Supreme Court Schedules Public Hearing to Discuss the Legality of Hiring Independent Contractors

The Federal Supreme Court has scheduled a public hearing for October 6, 2025 regarding the legality of hiring independent contractors as either self-employed workers or through their legal entities.

After ordering the suspension of all labour claims that discuss the hiring of independent contractors as self-employed workers or through their legal entities (“Theme 1389”) in April this year, the Federal Supreme Court (“STF”) scheduled a public hearing for October 6, 2025 to discuss the matter.

The public hearing will convene various stakeholders, including union representatives, judges, tax auditors, and state representatives to discuss critical data pertaining to this hiring model that impacts a significant number of workers in Brazil.

Following the public hearing, the STF will schedule the judgment, which has general repercussion, meaning that the decision on the merits to be issued by the STF will have to be observed by all courts when deliberating on similar cases.

This matter is of significant importance for businesses as it may affect not only their hiring practices but their labour liabilities.

Key Action Points for Human Resources and In-House Counsel

• Monitor the outcomes of the STF’s decision closely as this will shape future practices; and
• Review hiring practices and existing contracts with independent contractors based on the outcome of the STF’s decision.