New Understanding of the Brazilian Labor Courts in Ruling About Relationships Involving Brazilian & International Features

New Understanding of the Brazilian Labor Courts in Ruling About Relationships Involving Brazilian & International Features

Lately, we have been witnessing a new trend in the Brazilian Labor Courts when making decisions on disputes arising out of relationships involving Brazilian and international features, the most interesting ones being decisions that lift the consular and foreign institution immunities.

The first is about a labor claim filed against the Japanese Consulate General by a former employee, who claimed severance pay. The Superior Federal Court ruled that the Brazilian Labor Court is competent to hear this kind of conflict. The consulate cannot disrespect an employee's social rights. This decision changed the common understanding that the consular immunity was absolute.

The second refers to a foreign institution, the IADB (the Interamerican Development Bank). In this case, the Superior Labor Court adjudged likewise, the Brazilian Labor Court is competent to hear labor conflicts between a Brazilian employee and a foreign institution.

Another interesting decision regarding the Brazilian jurisdiction was published and refers to a labor claim brought by a former Argentine employee of Ibéria Líneas Aéreas de Espana against this company in Brazil, based on the fact that said employee had rendered services in Brazil.

In this case, the employee was hired in Buenos Aires, in 1961. In 1986 he was transferred to Brazil to work as a Manager. However, he was registered only in 1987. He worked in Rio de Janeiro for six years and returned to Argentina when his employment agreement was terminated. He claimed salary differences and the registration for the period that he worked in Brazil.

At the lower level court, the suit was dismissed without judgment on the merits. The judge understood that it was a matter within the Argentinean Labor Court's jurisdiction because his last working location was Buenos Aires. The Regional Labor...