Impact of Covid-19 on Labor Justice

Ariadne Fabiane Velosa
Lawyer at Marcos Martins Advogados

The Covid-19 pandemic has led to changes in labor justice, as well as in labor relations both in Brazil and around the world.

The number of labor complaints registered by the Regional Labor Court of the 15th Region (TRT-15), located in Campinas/SP, has increased by 13% in the last two years, according to data from the agency’s Research and Statistics Coordination . Of these, at least 50% are related to non-payment of severance pay by employers. According to the president of the institution, the crisis is the main reason for the growth and it is possible that there will still be repercussions in the coming years.

Furthermore, the survey carried out by the Superior Labor Court showed that, up until April, the country registered 1,457 labor lawsuits in the Labor Courts with the subject of Covid-19. This shows that employee lawsuits claiming severance pay, such as prior notice and a 40% FGTS fine, are related to the disease caused by the coronavirus.

The Superior Labor Court points out that the data is partial, given that as of May 27, 2020, the last survey, only 15 of the 24 Regional Labor Courts had sent the statistical data.

The data shows that in January there were already 55 lawsuits in the Labor Courts related to the pandemic. However, the increase occurred in April, with 1,117 cases. It should be noted that the Judicial Regions with the highest number of lawsuits in total are Minas Gerais, Rio de Janeiro and Campinas (SP).

Thus, according to data from the Superior Labor Court (TST), although the total number of first instance lawsuits fell by 26% in April compared to March, claims related to the disease rose by 527% in the same period of comparison.

The provisional measure 927/2020 issued by the President of the Republic established in its article 29 that Covid-19 was not an occupational disease, except upon proof of a causal link. In addition, article 31 suspended the work of labor inspectors for 180 days.

However, representative organizations and parties filed direct actions of unconstitutionality (ADIs) against the Provisional Measure in the Federal Supreme Court, which declared the rules unconstitutional.

Thus, the interpretation that Covid-19 can be characterized as an occupational disease has caused enormous concern for companies and is expected to generate even more lawsuits.

In addition to the economic impact, the growth of Covid-19 in Brazil has led to intense legal debate.

One of the issues that generated a lot of controversy in the period was the claim based on article 486 of the CLT to justify employers passing on part of the costs of layoffs to municipal and state governments, which is still being debated in the courts. In addition to this, other controversies generated by the Provisional Measures are also the subject of discussions in the courts and among labor law scholars.

Therefore, in order to reduce the impact of the pandemic on labor relations, which will be reflected in the Labor Courts, employers will need to be aware of all the legislation and recommendations issued, as well as creating general measures related to good hygiene and conduct practices, as well as spreading unity and solidarity with the team as a whole, understanding the exceptions, looking for the best way to sustain their business, respecting the peculiarities of each one in order to face the crisis triggered by the coronavirus together.

Questions? Talk to our lawyers and get advice.

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