STF overturns decisions that recognized a link with an insurance company – 10/01/2024 – Panel SA

The STF (Supreme Federal Court) revoked two decisions handed down by the Regional Labor Court of the 9th Region (TRT-9), in Paraná, which recognized employment relationships in franchise contracts between brokers and the insurance company Prudential do Brasil.

Ministers André Mendonça and Alexandre de Moraes highlighted that the decisions of the Paraná TRT failed to comply with jurisprudence established by the Supreme Court itself, which has already confirmed the constitutionality of outsourcing core or means activities.

Furthermore, franchise and insurance brokerage laws maintain their own rules. In legislation, an employment relationship is not recognized as a formal relationship.

In both cases, the decisions favor Prudential. According to the company, 26 complaints of this type have already been judged by the STF alone, in addition to there being another 40 decisions by the TST (Superior Labor Court) recognizing the business nature between the franchisor and franchisees.

The case analyzed by Mendonça involved a broker who worked in a Prudential franchise and claimed an employment relationship because he reported to direct superiors.

In the process, the TRT of Paraná accepted the narrative that there was a formal relationship of subordination and that the local Prudential established a “simulated franchise contract, with the aim of circumventing labor law”.

The STF judge stated that, even if the broker had narrated facts, the common court should judge the case, not the labor court.

Furthermore, previous Supreme Court judgments had already pointed out that economic agents have the freedom to formulate business strategies to obtain economic and competitive efficiency. The Court has also established what the worker’s vulnerability conditions and capacity for consent would be.

Idiana Tomazelli (interim) with Diego Felix

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