In an impactful decision, the Superior Labour Court (TST) established that the rules established by the Labour Reform (Law No. 13,467/2017) have immediate application to employment contracts signed before its entry into force. The understanding was established in the judgement of a repetitive appeal, which obliges all instances of the Labour Court to follow this decision in similar cases.

---

The Decision Context

The labour reform, which came into force on 10 November 2017, introduced significant changes to the Consolidation of Labour Laws (CLT), altering aspects such as hours in itinere, intra-day breaks and bonuses. One issue that had been causing controversy was the applicability of these changes to labour contracts signed before the law was enacted. The central question was whether the rights acquired under the previous rules would be maintained or whether the contracts would have to adjust to the new legislation.

---

The Case Judged by the TST

The judgement that gave rise to the binding ruling involved a worker who claimed payment for hours in itinere, the time spent travelling in transport provided by the employer. Before the reform, this time was considered at the employer's disposal and should be paid. However, the company claimed that the Labour Reform had extinguished this right, arguing that existing contracts should be adapted to the new rules.

In the judgement, the TST analysed whether the conditions established before the reform constituted acquired rights or whether they would be governed by the new regulations. According to the rapporteur of the case, Minister Corrêa da Veiga, the application of the changes is related to the mandatory legal regime, which does not depend on the will of the parties and can therefore be altered by subsequent legislation.

---

The Thesis Established by the TST

By a majority vote, the Court established the following thesis:

"Law No. 13,467/2017 has immediate application to ongoing employment contracts, regulating the rights arising from the law whose triggering events have taken place since its entry into force."

This means that although the contractual rights established before the reform will be preserved until 10 November 2017, the triggering events occurring after that date must be subject to the new rules.

---

Impacts on labour rights

The decision is not limited to hours in itinere. Other rights extinguished by the Labour Reform are also covered by this understanding. Some examples include:

• 15-minute rest before overtime for women: Repealed by the reform.
• Intra-day break: Amended, allowing reduction by collective agreement.
• Incorporation of function bonus: Extinguished after ten years' continuous service in the post.

The immediate application of the new rules means that employers must review internal practices and policies to ensure compliance with current legislation.

---

Repetitive Appeal Judgement

The decision was made in the context of a repetitive appeal, which makes it mandatory for all instances of the Labour Court. This provides greater legal uniformity and predictability, reducing the number of divergent interpretations in regional and local courts.

---

Implications for Companies and Employers

For employers, the decision reaffirms the need to adapt labour practices to the changes introduced by the reform, even in relation to contracts signed before 2017. This requires:

1. Review of Existing Contracts: Make sure contracts are aligned with the new rules.
2. Adaptation of Internal Policies: Implement adjustments to policies relating to working hours, breaks and bonuses.
3. Legal Monitoring: Monitoring judicial and regulatory decisions to mitigate labour risks.

---

How TWS Consultancy Can Help

The immediate application of the changes brought about by the Labour Reform to old contracts requires careful analysis and specialist support to avoid labour liabilities. A TWS Consultancy offers:

• Contractual Audit: Review of contracts and internal policies to ensure compliance with the Labour Reform changes.
• Legal and labour consultancy: Guidance on the interpretation of the TST decision and its impact on the corporate environment.
• Team training: Training for managers and HR teams on the new rules and their practical application.
• Labour Risk Management: Identification and mitigation of possible points of legal vulnerability.

With our experience, we help companies navigate legal changes safely, avoiding litigation and unnecessary costs.

---

Reference Sources

1. Law No. 13,467/2017: Planalto Portal
2. TST decisions: Superior Labour Court
3. Labour Reform - General Analysis: Federal Accounting Council

The TST's decision reinforces the importance of companies and employers keeping up to date with changes in labour legislation. Count on TWS Consultancy to guide and protect your business!