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TST states that guidelines and results for service providers do not imply an employment relationship

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By Daniel Rangel

The 4th circuit of the Superior Labor Court (TST) recently decided that the fact that companies establish guidelines and measure the results of service providers does not imply the existence of an employment relationship.

For the analysis of this case, the TST took into consideration the structural subordination, which occurs when the service provider is inserted in the business dynamic, has established guidelines for its activities, with measurement of results, but does not submit to the directive, supervisory power, disciplinary and regulatory requirements.

According to the TST’s understanding, when the prerogative of the employer’s powers is not verified in the relationship (directive, supervisory, disciplinary and regulatory power), the existence of legal subordination, which would characterize the employment relationship, cannot be presumed.

The Superior Labor Court’s decision was unanimous.

With this judgment, the concept that the Brazilian legal system allows the hiring, by companies, of service providers (self-employed or “PJ’s”) is reinforced, as long as there is no legal subordination in the relationship.

Click here to access the content of the judgment