It is crucial to distinguish outsourcing from “pejotização”, which occurs when a company fraudulently hires a worker as a legal entity (PJ) in order to reduce labor costs. Characteristics of this practice:
- Subordination: the worker is subject to the contractor’s orders.
- Non-occasional, continuous work for the company.
- Onerosity, receives remuneration for services rendered.
- Personality: the work is carried out personally, without the possibility of substitution.
When these elements are present, the Labour Court can recognize the existence of an employment relationship, characterizing pejotização as an illegal practice.
Want to know more? Click here and check out the article by Mariana Piva, Partner in our Labor practice, published by Jornal do Comércio.
