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Constitutionality of outsourcing in company´s core activities has been recognized

The Brazilian Supreme Court on August 2018, recognized the Constitutionality of outsourcing to core activities, on terms of the amendment brought by Law No 13.467/2017, also known as by Labor Reform.

The Law No 13.467/2017, on the original proposal, authorized the outsourcing in both ancillary and core activities, however, after some changes introduced on the proposal, this became to anticipate the non-specific activity to outsourcing, which generated the maintenance (at the time) of the Superior Labor Court’s undestanding which was barred the outsourcing to core activities.

On the other hand, the Labor Reform (Law No 13.467/2017) authorized the outsourcing of company´s core activities, amendment confirmed by Brazilian Supreme Court on August 30th.

It is important to observe that according to this confirmation, the legal certainty to implementation by the outsourcing companies of core activities increase, as now their constitutionality have been declared.
As seen before, the outsourcing to core activities can be set up promptly to the companies, however, the company must consider that on your own responsibility in relation to the outsourced employees is subsidiary to the contracted company, as well as, must be attended all the legal requirements.

In conclusion, currently the outsourcing service understandings must obey the limitation in time set by the article 598 of Civil Code, in other words, the contracts can reach the maximum of 4 (four) years. In this regard, it should be noted that is proceduring on the Brazilian Senate a law project by Chamber No 195/2015, that intends to increase the limit time to rendering services agreement between companies (outsourcing), which had already been approved on Economic Affairs Committee, will now be submitted to Constitution, Justice and Citizenship Commission. If approved, the law project by Chamber No 195/2015 will change the Civil Code text, to authorize that the service agreement between the companies does not have any time limitation.

To any further assistance, consult our Labor area.

Laura Lanser Bloemer

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