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Outsourcing - often called terceiriza�o in Brazil - means hiring an outside company to provide services or personnel instead of performing those activities in-house. In Pompeu, as in the rest of Brazil, outsourcing is governed mostly by federal labor and social security law rather than municipal rules. Major changes introduced at the federal level in 2017 broadened the legal framework for outsourcing, and subsequent judicial decisions clarified how those rules apply in practice. Local enforcement and dispute resolution happen through regional bodies based in the state of Minas Gerais, but the national Consolidation of Labor Laws - CLT - and related federal statutes remain the primary legal sources.
Outsourcing can create legal and financial risks if not structured and managed correctly. You may need a lawyer when you are:
- Drafting or negotiating an outsourcing or subcontracting agreement to ensure clear allocation of responsibilities and protections.
- Conducting due diligence on a service provider before entering into a contract.
- Facing a labor claim from a worker seeking reclassification as your employee.
- Preparing for or responding to an inspection by labor authorities or the labor prosecutor.
- Handling nonpayment or bankruptcy of a service provider where your company might face joint liability.
- Structuring temporary work or agency arrangements that must follow specific statutory rules.
- Including outsourcing risk assessments in acquisitions, bids or corporate restructuring.
Key legal points to understand in Pompeu - which reflect national rules - include:
- Federal framework: The CLT remains the main law regulating employment. Laws passed in 2017 adjusted how outsourcing and intermediation of labor are treated, and courts have issued important rulings on those changes.
- Outsourcing versus temporary work: Outsourcing of services is different from temporary work regulated by a separate law. Temporary staffing agencies and temporary contracts follow specific rules and limits.
- Core-activity outsourcing: Current federal law and later judicial decisions permit outsourcing of both peripheral and core activities, provided the contractual arrangement is lawful and not used to mask an employment relationship.
- Liability: The contracted company is generally the formal employer, but the contracting company can be held jointly liable for labor and social security debts in many situations - for example, when the provider fails to pay labor obligations or when there is evidence of fraud or evasion.
- Social contributions and benefits: Outsourced workers remain entitled to protection under labor and social security rules - FGTS contributions, INSS contributions, occupational health and safety standards, and other labor rights must be respected by the employer of record.
- Local enforcement: Inspections, claims and lawsuits are handled by regional bodies in Minas Gerais - including the regional labor court (Tribunal Regional do Trabalho da 3a Regi�o) and the Ministério P�blico do Trabalho in the state. Municipal obligations such as local business licensing and municipal taxes also apply in Pompeu.
Outsourcing is contracting an external company to provide a service or personnel. Temporary work is a specific arrangement where temporary staffing agencies provide workers for limited periods under statutory rules. The legal regimes differ - temporary work is regulated by a dedicated law and has limits and formal requirements that do not apply in the same way to standard outsourcing contracts.
Yes. Since the federal legal changes and subsequent court decisions, outsourcing can be used for both peripheral and core activities if the arrangement is genuine and not used to disguise an employment relationship. You should document the nature of the services and maintain proper contractual and operational separation.
The service provider is normally the formal employer and primarily liable. However, the contracting company may be held jointly liable for unpaid wages, social security contributions and FGTS in many cases - especially if the provider is insolvent, if there was fraud, or if the contracting company exercised control over employment conditions. Good contracts and preventive measures help reduce but do not eliminate this risk.
Key steps include performing careful due diligence on providers, requiring regular proof of payments for wages, FGTS and INSS, including audit rights in contracts, using indemnity and guarantee clauses, and avoiding direct managerial control of the provider's workers. Maintaining clear operational separation and documentation of the contractual relationship is essential.
Important clauses include precise description of services, duration, price and payment terms, responsibilities for labor and tax obligations, insurance requirements, indemnities, audit and inspection rights, confidentiality and data protection, termination conditions, and dispute-resolution mechanisms. A lawyer can tailor these clauses to local risk factors and legal requirements.
Yes. Brazilian labor courts may recharacterize a relationship as employment when the worker provides personal services with habituality, remuneration and subordination to the contracting company. If reclassification occurs, the contracting company can be ordered to pay labor rights and social charges. Clear contracts and operational practices that avoid true employment-style control help reduce the risk.
Inspectors may request documents such as contracts, payroll, proof of FGTS and INSS payments, and workplace safety records. They can issue administrative fines and refer matters to the labor prosecutor. If you anticipate or receive an inspection, consult a lawyer quickly to prepare documents, respond to notices and negotiate penalties if appropriate.
There are limitation periods that affect labor claims. Commonly, an employee has a limited time after termination to file a claim - and labor claims are often restricted to a specific number of years of unpaid rights prior to the filing. Exact deadlines and the way limits apply depend on the circumstances. Consult a lawyer promptly to evaluate time limits that may affect your case.
Keep signed service agreements, invoices, proof of payment, payroll records from the provider, receipts or statements showing FGTS and INSS payments, proof of the providers corporate and tax regularity, records of audits or compliance reviews, service orders and operational records that demonstrate the provider controlled its own workforce.
Costs vary by the complexity of the matter and the lawyers experience. Common fee arrangements include hourly fees, fixed fees for contract drafting or reviews, and negotiated fees for litigation handling. For labor claims, contingency-type arrangements may be used in some cases, but terms differ. Ask potential lawyers for a written fee agreement that explains billing, estimated costs and any additional expenses.
The following organizations and bodies can provide information, oversight or referrals related to outsourcing matters in Pompeu and Minas Gerais:
- Ministério do Trabalho e Previd�ncia - national labor and inspection authority.
- Minist�rio P�blico do Trabalho - regional office in Minas Gerais for labor prosecutions and public interest cases.
- Tribunal Regional do Trabalho da 3a Regi�o - regional labor court covering Minas Gerais.
- Caixa Econ�mica Federal - responsible for FGTS administration.
- Instituto Nacional do Seguro Social - INSS - social security administration.
- Receita Federal do Brasil - tax and social contribution matters.
- Ordem dos Advogados do Brasil - Seccao Minas Gerais (OAB-MG) - for lawyer referrals and ethical guidance.
- Prefeitura Municipal de Pompeu - for local business licensing and municipal obligations.
- Local labor unions and employer associations - for sector-specific rules and collective agreements.
- SEBRAE - support for small and medium businesses on compliance and contracting best practices.
If you need legal help with outsourcing in Pompeu, follow these steps:
- Gather documents - collect existing contracts, invoices, payroll records, proof of FGTS and INSS payments, and any communications with providers.
- Conduct an internal review - identify risks, the structure of relationships with providers, and any pending claims or inspections.
- Seek a specialist lawyer - look for an attorney with experience in labor law, outsourcing and regional practice in Minas Gerais. Use OAB-MG referrals if needed.
- Prepare for your first meeting - bring documents, a clear timeline of events and a list of questions about liability, contract changes and compliance steps.
- Ask for a written engagement letter - confirm scope, fees and expected timelines before work begins.
- Implement recommended changes - update contracts, monitoring processes and compliance checks as advised to reduce future risk.
Getting timely legal advice can prevent costly liabilities and help you manage outsourcing in a way that meets legal requirements and business needs.
