News 16 Apr 2025 · Brazil

What is “Pejotização”? Understand Why Gilmar Mendes Suspended Cases in the Supreme Court

Lawsuits will remain on hold in the courts until the Supreme Court reaches a consensus; see the consequences and what will be discussed

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The Federal Supreme Court has suspended all legal proceedings that question the legitimacy of service contracts involving legal entities (PJ). The decision, signed by Justice Gilmar Mendes, halts the cases until the matter is judged with general repercussion. According to Luiz Eduardo Amaral de Mendonça, labor law attorney at FAS Advogados: “If there is no vulnerability, the courts understand that the parties are free to contract.”

Read the full article in Folha de São Paulo.