STF decisions approve the employment of legal entities

Recent STF decisions may increase the use of employment of legal entities organized by professionals who perform intellectual activities, earning high remuneration. According the information provided in the Valor Econômico portal, reporting judges are concluding that such practice is a permitted form of outsourcing.

The employment of legal entities is used to describe the act of maintaining employees through the creation of companies by the employees. “Insufficient”, on the other hand, refers to a term used as reference to an employee with financial or intellectual shortfall eligible for assistance.

Valor mentioned a trial held by the 1st Panel. The procurement of physicians as legal entities was analyzed, in which the Supreme Court stated that such procurement should be disregarded if used to camouflage an employment relationship.

The prevailing current also emphasized that teachers, artists, narrators and other professionals with high level of education who do not fit into the insufficient category may also enter this model of admission legally.

Written by Marcos Ferreira, Content Assistant at Drummond advisors

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