On September 30, 2024, the Brazilian Justice Council (CNJ) took a decisive step toward reducing the volume of cases in Labor Courts by approving Resolution No. 586/24.
The big innovation? The regulation states that, for extrajudicial settlements approved with a broad, general, and irrevocable release clause, it will no longer be possible to file new labor claims on the same issues.
This reinforces the original intent of the Labor Reform, ensuring final and definitive agreements.
Until now, many settlements limited the scope of agreements, leaving room for new lawsuits, even when the parties had agreed to a full release. With this Resolution, partial approval of agreements is prohibited, which increases legal certainty. It is worth noting that, during the first six months of the Resolution’s validity, these new rules will only apply to agreements above 40 minimum wages.
What does this mean for companies?
The opportunity to avoid long and costly labor liabilities, save time and resources, and manage disputes with much more certainty. With increased transparency and legal security in extrajudicial settlements, companies can adopt a more efficient strategy for conflict resolution and safeguarding their financial health.
The execution of settlements has always been a core principle of Labor Courts, and this measure seeks to restore confidence in extrajudicial methods. Now, an agreement can mean the definitive closure of a dispute. This move, in addition to providing reassurance, strengthens business sustainability and gives companies greater control over their labor relations.
