A ruling from the 4th Labor Court of the state of São Paulo made significant waves in the legal community in September 2023. This is because the judge ordered Uber to employ, as regular employees, all active partner drivers on its platform, as well as pay BRL 1 billion in collective moral damages. The decision was rendered in a public civil action brought by the Labor Public Prosecutor’s Office.

The legal authority stated that evidence in the case records demonstrates that Uber acted with the intention of evading labor, social security, health, and welfare laws. The judge has granted a deadline of six months, after the res judicata (final and biding decision), for the company to formalize the employment contracts for all partner drivers. Furthermore, the judge mandated that all future hires should follow this directive. Uber has already filed an appeal against this decision.

The Superior Labor Court (TST), the highest court for labor matters, has issued divergent rulings concerning the recognition of employment relationships for app-based drivers and deliverers.

Some panels within the TST believe that the relationship between Uber and its partner drivers is that of autonomous contractors. They argue that the company’s sole function is to connect passengers with drivers, charging a percentage from the driver for facilitating this service. According to this view, there is no hierarchical relationship between the parties involved.

On the other hand, other panels within the TST believe that there is an employment relationship between the drivers and the company. They argue that Uber has labor responsibilities as it generates profits, establishes managerial authority, and oversees the work of the drivers.

There are currently no judgments on this matter from the Federal Supreme Court (STF).