Brazil's Superior Labor Court Allows Pension Seizure to Settle Labor Debt

The Third Panel of Brazil's Superior Labor Court (TST) authorized the seizure of a portion of the retirement pension of a company owner from São Caetano do Sul, São Paulo, to satisfy unpaid wages and termination benefits owed to a former employee. The ruling applies the binding thesis Tema 75, which permits pension garnishment provided the amount does not exceed 50 % of the net benefit and at least a minimum wage is preserved for the debtor.

The decision overturns a prior denial by the Regional Labor Court (TRT‑2), which had considered pension benefits generally exempt from seizure except for alimony. The TST’s interpretation treats labor credits as having an alimentary nature, allowing the same protective measures used for family support obligations. The court emphasized that the limits set by Tema 75 must be respected in any similar case, aiming to ensure legal certainty and uniformity across the Brazilian labor justice system.