Improperly hiring interns or apprentices in Brazil may result in the recognition of an employment relationship and additional labor-related costs for companies. A ruling by Brazil’s Superior Labor Court (TST) highlights the importance of complying not only with contractual formalities but also with the legal requirements applicable in practice.
Brazilian Superior Labor Court Upholds Recognition of an Employment Relationship
In a case reviewed by the Brazilian Labor Courts, a company initially hired a young woman as an apprentice and subsequently as an intern.
However, throughout the two-year period, she performed administrative duties similar to those carried out by regular employees.
After reviewing the circumstances, the Labor Court identified irregularities in both contracts and recognized a single, continuous employment relationship covering the entire period.
Brazil’s Superior Labor Court upheld the decision, concluding that the irregularities had been established during the proceedings and that the Court could not reexamine the evidence at that stage.
What Were the Irregularities?
Several issues were identified during the apprenticeship period, including:
- Working hours exceeding the legally permitted limits;
- Overtime work;
- Lack of adequate educational supervision.
During the internship period, additional irregularities were identified:
- Lack of effective supervision and evaluation by the educational institution;
- Insufficient evidence that the activities performed contributed to the student’s academic development.
These circumstances demonstrated that neither contract fulfilled its primary purpose of providing professional training and educational development.
The Importance of Proper Contract Management
Internship and apprenticeship contracts are important mechanisms for developing young professionals. However, they have different purposes and are subject to distinct legal requirements.
Internships are intended to allow students to connect their academic knowledge with practical work experience.
Apprenticeship contracts, on the other hand, aim to provide professional training through a combination of practical activities and structured learning.
Companies must therefore ensure that the duties actually performed are consistent with the objectives of each contractual arrangement.
Beyond signing the appropriate agreements, employers should maintain adequate controls over working hours, educational supervision, assigned activities, and required documentation.
What Are the Risks for Companies?
Failure to comply with the applicable legal requirements may result in the reclassification of the contractual relationship as regular employment, potentially leading to additional labor liabilities and costs.
The case reviewed by the TST demonstrates that having a formally executed internship or apprenticeship agreement is not sufficient to ensure compliance.
Companies must ensure that actual working conditions comply with Brazilian labor legislation and the educational and professional objectives of each type of contract.
How Can Companies Minimize Labor Law Risks?
To reduce the risks associated with hiring interns and apprentices, companies should implement appropriate monitoring and control procedures throughout the contractual period.
Key measures include monitoring working hours, reviewing assigned duties, ensuring proper educational or professional supervision, and maintaining the necessary documentation.
Regular reviews of these procedures help companies comply with Brazilian labor legislation and prevent potential labor liabilities.
How Can ORGATEC Help?
ORGATEC specializes in providing professional services to Japanese companies operating in Brazil, helping them understand and comply with Brazilian labor law requirements.
Our team is available to assist your company with the proper management of internship and apprenticeship contracts, supporting labor law compliance and helping minimize potential risks.
Contact ORGATEC to learn how we can support your business operations in Brazil.