PGFN opinion warns of the impact of “pejotization” on Social Security funding

Last Monday, April 12, Minister Gilmar Mendes decided to suspend all proceedings related to the so-called “pejotização”. This measure is extremely dangerous, especially in a country that has been increasingly relaxing its labor laws and opening up loopholes for precarious employment relationships. Labor rights emerged in Brazil in a context of profound capitalist crisis, marked by the horrors of war and the impact caused by the Russian Revolutio…

The suspension of pejotization processes across the country may affect the Labor Courts, companies, and workers. Learn more

Prosecutor's Office: 'Such an artifice would annihilate the duty that binds qualified professionals to the payment of income tax' The post PGFN: pejotization has a harmful impact on revenue appeared first on Monitor Mercantil.

In an opinion sent to the Supreme Federal Court (STF), the Attorney General of the National Treasury (PGFN) warned that authorizing the so-called pejotization of workers may have “harmful consequences” on tax collection and the cost of Social Security. Pejotization occurs when a company hires a service provider as a legal entity for the purpose of masking an employment relationship. As a result, the worker and the contractor avoid paying labor c…

The issue came back to the fore with the decision of Minister Gilmar Mendes to suspend the progress of all lawsuits on the subject