Costs of labor lawsuits exceed the GDP of nine states – 05/07/2023 – Panel SA

Labor lawsuits from five Brazilian states cost companies from five states BRL 94.5 billion. The value is equivalent to more than twice the GDP of Sergipe and exceeds all the wealth generated in eight other states.

This is what reveals a study by Neoway, a data intelligence company, based on information from the country’s justice systems.

Currently, around 1 million Brazilian companies respond to at least one labor lawsuit.
São Paulo concentrated 64% of the actions, and the procedural costs reached approximately R$ 61 billion, almost the equivalent of the GDP of Alagoas.

Next in the list are Rio de Janeiro (R$ 13.4 billion), Minas Gerais (R$ 9.5 billion), Rio Grande do Sul (R$ 5.4 billion) and Bahia (R$ 5.2 billion).

Despite the leadership in values, São Paulo lags behind Rio de Janeiro in the number of lawsuits — around 4.7 million, in Rio, compared to 345 thousand.

The most common causes involve compensation claims for moral damages, contestation of prior notice, and claims for additional overtime.

Still according to the study, retail companies are the most sued, concentrating 41% of the processes.

With Diego Felix

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