A panel of the Superior Labor Court (TST) formed a majority on Wednesday to recognize the employment relationship between Uber and its drivers, but the ruling was suspended after a request for further review.
So far, two out of three judges from the TST’s Third Panel have agreed that those providing services through the app should be classified as employees of the company.
After the majority opinion was formed, Judge Alexandre Belmonte requested a review of the case to analyze it further.
Currently, workers are considered independent contractors. If the employment relationship thesis is upheld, drivers would be entitled to labor rights such as paid vacation and 13th salary.
Labor law expert and attorney Cláudio Lima Filho commented that other panels have had different interpretations of similar cases, making this the first time the employment relationship has been acknowledged.
“This new ruling opens the door for the employment relationship thesis to prevail in future cases, creating legal uncertainty for app-based transportation companies,” Lima Filho explained.
“If the understanding that there is an employment relationship between Uber and its drivers becomes settled, it could complicate operations for companies in this sector in Brazil, increasing service costs for consumers,” he added. Lima Filho is a partner at Dias, Lima e Cruz Advocacia.
In a statement, Uber said it would wait for the vote of Judge Alexandre Belmonte before commenting on the decision. However, the company noted that evidence presented in the case was disregarded, with the judges basing their decisions “solely on ideological conceptions about the way Uber operates.”
The company reiterated its position that drivers on its platform are not employees but independent contractors.
“There are no targets to be met, no minimum number of trips required, no supervisor overseeing the work, no exclusivity required for contracting with the company, and no obligation to adhere to minimum working hours,” the company argued.
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