The Brazilian Supreme Court (STF) has recognized alternative forms of work beyond the typical employment relationship governed by the Consolidation of Labor Laws (Brazilian legislation regulating labor relations). This approach upholds constitutional principles such as free enterprise and the right to work, practice a trade, practice a trade, or conduct any profession or economic activity.

While the STF acknowledges various work agreements – like service contracts, commercial representation agreements, and franchise contracts – the Labor Courts, at all levels, generally do not apply this approach, often recognizing these professionals as employees.

Consequently, companies increasingly turn to the Supreme Court to challenge Labor Court rulings. This has led to more complaints from companies, resulting in STF decisions overturning Labor Court rulings due to the lower courts’ failure to follow Supreme Court precedents.

In this legal context, companies are advised to exercise caution when establishing alternative work contracts.