Significant New Decision from Labor Court in Brazil Affects Expatriates


Significant New Decision from Labor Court in Brazil Affects Expatriates


The Brazilian Superior Labor Court acknowledged the right of a Brazilian employee to receive the same amount of salary of a foreign colleague that performs an analogous activity. The salary equation request had been denied over a lawsuit in a lower labor court and in a state’s appeal court, based on the fact that the Brazilian Federal Constitution provides for the principle of equality between foreigners and Brazilians and, for that matter, the salary equation involving Brazilian and foreign employees should only be granted when the activities performed by the employees are exactly the same (and not only similar). However, the Superior Labor Court understood that a specific provision of the Brazilian Labor Law should be applicable to the case. Such provision establishes that the employer may not pay a lower salary to a Brazilian performing analogous activities performed by a foreign employee.

(RR 443696/1998)