In October 2025, Brazil’s Supreme Federal Court (STF) held a public hearing to examine pejotização a widespread yet controversial practice of hiring workers as legal entities instead of formal employees.The hearing brought together nearly 50 perspectives from labor unions, employers, regulators, legal scholars, and economists. At the heart of the debate: where is the line between autonomy and disguised employment, and who bears the consequences when that line is crossed?

 

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