The Federal Supreme Court (STF) ordered on Thursday, May 25, national suspension of the processing of all labor executions related to the issue controverted in Topic 1.232 of the General Repercussion Issues Management, pending definitive judgment of the extraordinary appeal.

Extraordinary Appeal 1.387.795 (RE 1.387.795) is the leading case, handled  by the labor law practice of Machado Meyer.

The subject under discussion is whether it is possible to include a company belonging to an economic group that did not take part in the trial phase as a defendant in the labor execution phase.

The decision handed down by Justice Dias Toffoli was based on the grounds presented in writing in the case, in which Machado Meyer was able to demonstrate, in the words of Justice Toffoli, "relevant grounds that call attention to the situation of dissenting case law in multiple labor claims that convey a matter pertaining to the subject, notably as to the application (or not), in the labor field, of article 513, paragraph 5, of the current Code of Civil Procedure - which provides that it is not possible to enforce a judgment against a co-liable party that did not participate in the trial phase."

The gravity of the situation was highlighted in the Justice's decision, since, in innumerous proceedings in the labor execution phase, the assets of companies that did not participate in the trial phase have been seized. In this manner, despite supposedly being part of an economic group, the company did not have the opportunity to, at least, respond previously regarding the specific and precise requirements that indicate it is (or is not) part of an economic labor group - which is only provided after the judicial bond, in a motion to stay execution.

Based on these arguments, one applies the provisions of article 1,035, paragraph 5, of the CPC, to suspend the processing of all labor executions proceeding in the national territory and dealing with the matter discussed in Topic 1,232.

The national suspension of proceedings is justified for reasons of legal security, stabilization of case law, equal protection, exceptional social interest, and procedural economy. The non-suspension of cases has triggered successive conflicting decisions in the non-plenary bodies of the Labor Courts. This situation aggravated the legal uncertainty, which had been spreading due to divergent case law on the merits of the matter.

Thus, the STF stops the proliferation of conflicting decisions that have caused harmful effects to legal and economic relations in the country. The order is that all bodies of the labor court system are to be informed of the decision.