The next 12 months are likely to bring significant developments in Brazil’s labour law landscape, driven by both political dynamics and evolving judicial and social expectations.
The number of labour claims (which fell significantly following 2017 fee reforms) is again on the rise, with news reports of over 2.3 million cases having been filed with the Labour Courts in 2025, an increase of 8.47% from 2024.
Many factors appear to be causing this increase, but most cite increased employment especially in the services sector which has traditionally suffered from high turnover rates. Our experience also suggests other factors including the use of AI by plaintiffs to reduce barriers to claims, persistent employer compliance gaps, workplace burnout, and a legal environment that favours employee-based litigation.
With elections in Brazil taking place in early October 2026, it is consequently little surprise that labour policy is taking centre stage.
Following a regional trend with similar changes in Mexico, Colombia and Chile, there are currently proposals before the Senate for a phased transition to a 5-day working week, with two weekly paid rest days and a reduction from 44 to 40 weekly working hours. This would reduce the current working week in Brazil from 6 working days followed by one rest day.
A reduction of working hours is just one aspect of the overall push to...
Executive Summary What’s new: The Seventh Circuit affirmed dismissal of an outsider’s qui tam action under the False Claims Act, outlining a potential path to dismissal where a relator lacks ins...