The Brazilian Federal Supreme Court lifts suspension of cases involving independent contractors before Labour Courts

The Brazilian Federal Supreme Court has cleared the way for lower courts to resume adjudicating labour disputes involving independent contractors while awaiting a final and binding ruling in Theme 1389.

 

The Brazilian Federal Supreme Court (STF) has authorised the resumption of labour disputes involving independent contractors. The decision marks an important procedural development in a debate that is highly relevant to companies operating in Brazil and remains under review by the STF in Theme 1389 (ARE 1.532.603).

To recap, in April 2025, the STF issued a decision suspending all labour claims involving alleged employment relationships pending a final and binding ruling on the legality of engaging independent contractors. As a result, if an independent contractor filed a labour claim seeking recognition of an employment relationship, the labour claim was required to be immediately suspended until the STF issued its final decision on the matter.

More recently, in June 2026, the STF lifted the suspension of these proceedings, allowing cases to resume before the Labor Courts and Regional Labor Courts, including the production of evidence, hearings, and the issuance of judgments. However, under the new ruling, once the evidentiary phase and trial court proceedings have been completed and a judgment has been issued, the cases must again be suspended pending the STF’s final decision on the issue.

Nevertheless, the resumption of labour claims does not eliminate the legal uncertainty surrounding the matter, as the STF has yet to issue a final ruling on Theme 1389. Consequently, the key legal questions regarding the classification of independent contractors and the validity of these arrangements remain unresolved.

The STF’s decision may also suggest that a final judgment in Theme 1389 is drawing closer. Once issued, the ruling is expected to provide much-needed guidance on the validity of alternative contracting arrangements in Brazil and to clarify the jurisdictional and evidentiary standards applicable to disputes involving alleged worker misclassification.

Key Action Points for Human Resources and In-House Counsel

• Prepare for a potential increase in litigation activity, as labour disputes involving independent contractors may now move forward through the evidentiary phase and receive first and second instance decisions;
• Reassess pending disputes, including litigation strategy and evidence preservation, while awaiting the STF’s final ruling; and
• Monitor developments in Theme 1389, as the STF’s final decision may significantly impact the legal framework governing independent contractor arrangements in Brazil and require adjustments to existing contracting models.