Brazil's STF sets free labor justice access at R$ 5,000 income limit
The Supreme Court ruled that a self-declaration of poverty is no longer sufficient for legal aid. Workers earning up to R$ 5,000 in monthly income will automatically qualify. Higher earners must now prove they cannot afford court costs.
Brazil's Supreme Federal Court (STF) established a fixed annual income ceiling of R$ 5,000 for free access to labor justice. The decision, issued by a majority of the justices on May 3, rejects the previous rule allowing self-declaration of poverty as adequate grounds. Previously, the Tribunal Superior do Travail granted aid based solely on a worker's own statement, often without verifying actual financial status. The STF overturned this practice and requires individuals earning above R$ 5,000 to provide proof of insolvency to cover procedural expenses. This ruling invalidates specific clauses in the Consolidation of Labor Laws (CLT) that tied eligibility to 40% of the minimum pension benefit cap (R$ 3,262.96). The court stated that self-declaration had created bizarre situations and aims to better direct resources to those who genuinely need them. Industry groups argued earlier that the old rule was not being respected because of the TST's broad interpretation. The Consif Confederation successfully sought the end of simple self-declarations, though some entities still prefer the 40% pension link.
