The volume of claims filed in Brazil’s Labor Courts continues its upward trajectory and is projected to reach its highest level since the 2017 Labor Reform in 2025. This surge is primarily driven by the services sector.
In 2024, approximately 2.1 million lawsuits were filed—the largest total since the Reform’s enactment. After a post-Reform low of 1.7 million in 2018 (down from a pre-Reform peak of 2.7 million in 2016), filings have resumed steady growth. The trend accelerated in the first half of 2025, with roughly 1.15 million lawsuits filed, compared with 1.04 million during the same period in 2024. If this pace continues, filings are projected to exceed 2.3 million by year-end.
The services sector has become the central driver of this growth. In 2024, it accounted for over 550,000 cases (about 26.6% of new labor lawsuits)—the highest recorded figure for the segment. This shift follows the post-pandemic recovery and expansion of service activities, which displaced the industry sector as the largest source of new filings (a position industry held until 2021).
One key driver for the increased litigation was a 2021 ruling by the Federal Supreme Court (STF) that removed the requirement for workers eligible for court fee waivers to pay court-awarded fees. This decision significantly lowered financial barriers to accessing justice, encouraging individual filings.
The Superior Labor Court (TST) notes that the rise may also reflect a return of filings to pre-pandemic levels following the sharp drop caused by health restrictions and the economic slowdown. Corroborating this trend, the General Register of Employed and Unemployed Persons (Caged) reported that the services sector generated the most jobs in 2024, with a net gain of over 900,000 positions, which naturally correlates with an increase in potential labor disputes.
This persistent upward trend is expected to continue, prompting companies to urgently strengthen their preventive management of labor liabilities and intensify the use of consensual dispute-resolution mechanisms, such as conciliation and mediation.
Glossary
Labor Courts – Brazil’s specialized labor judiciary that hears employment disputes nationwide (first-instance Labor Courts, Regional Labor Courts, and the Superior Labor Court).
2017 Labor Reform – Law No. 13,467/2017 that overhauled Brazil’s labor framework (CLT), altering procedures and incentives for litigation, including cost and fee rules.
Court fee waivers – Benefit under Brazilian procedural law that exempts eligible workers from paying court costs (and, in certain circumstances, court-awarded fees).
Court-awarded fees – Amounts set by the court and payable by the losing party to the prevailing party’s counsel (Brazil’s “sucumbência” model).
Superior Labor Court (TST) – Brazil’s highest labor court; harmonizes nationwide labor jurisprudence and guides lower labor courts.
General Register of Employed and Unemployed Persons (Caged) – Federal registry tracking formal hires and separations, widely used as an official labor-market indicator.
