“Amid intensified regulatory and judicial developments in Brazil, authorities have sharpened their focus on compliance, governance, and risk prevention. Looking to 2026, employers should prepare for the Federal Supreme Court’s ruling on Theme 1389, which may set binding parameters for contracting via legal entities, and the full effect of Regulatory Norm No. 1 on psychosocial risk management within the workplace. To position effectively, companies should assess and map exposures, align HR frameworks to evolving standards, and enhance internal controls and reporting mechanisms.”
This past year marked a period of significant regulatory and jurisprudential activity affecting labor and employment practices in Brazil, with developments spanning worker classification, pay transparency, immigration facilitation for technical assignments, enforcement architecture, and protections for minors in the digital economy. Together, these changes underscore a sharpened focus by courts and the Ministry of Labor and Employment on compliance, governance, and risk prevention—particularly in areas prone to misclassification, unequal pay, and psychosocial harm. Looking ahead, 2026 promises further clarity and momentum: decisive rulings by the Federal Supreme Court are poised to reshape employer obligations and workforce strategies across sectors, with rulings expected on the full operationalization of psychosocial risk management obligations, an expanded inspectorate, adjustments to holiday work...
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