Supreme Court rules on validity of intermittent contracts

16 December 2024 1 min read

By Juliana Nunes

At a glance

  • Use of intermittent contracts has increased since 2017's Labor Reforms.
  • These contracts provide businesses with a flexible employment model.
  • The Supreme Court has recently considered the validity of intermittent contracts.

Since the Labor Reforms in 2017, 'intermittent contracts' have been used by many companies as an alternative form to engage individuals.

Use of an intermittent contract makes it possible for employers to hire workers to provide services on a non-continuous basis, that is, with alternating periods of service provision and inactivity, fluctuating according to the company's demands. During any period of inactivity, the worker is not available to the employer and is free to provide services to other businesses.

However, recently, the validity of these arrangements has been challenged and the Supreme Court (STF) has analyzed the validity of intermittent contracts. On December 13, 2024,  STF handed down a decision on this matter and held that intermittent contracts are valid and constitutional.

As result of the decision of the STF, companies adopting intermittent contracts now have greater legal certainty that this type of contracting, which allows greater flexibility in labor management, is valid.