Jayme Petra de Mello Neto
Lawyer at Marcos Martins Advogados
STF rules that outsourcing of companies’ core business is constitutional
Last Thursday (30/08), after five sessions, the STF concluded the judgment of ADPF (Argument for Non-Compliance with Fundamental Precept) 324 and RE (Extraordinary Appeal) 958252, with recognized general repercussion, which deal with outsourcing.
These lawsuits dealt with the unconstitutionality of some points of Precedent 331 of the Superior Labor Court, which stated that it prohibited the outsourcing of companies’ core activities.
After deliberation, the STF ruled 7-4 that this position was unconstitutional, as it violated the principles of free enterprise, free competition and legal certainty.
This judgment will culminate in a favorable outcome for companies that are part of the more than 4,000 lawsuits filed in Brazil before the labor reform, and will apply only to cases that have not yet become final and unappealable.
This decision can still be appealed, which can be filed after the result of the judgment has been published.
