Brazil's Supreme Court limits free access to Labor Justice

The Brazilian Supreme Federal Court (STF) has ruled that a self-declaration of poverty is no longer sufficient to obtain free access to Labor Justice. By a majority vote, the ministers established that legal aid benefits will be automatically valid for individuals earning up to R$ 5,000. For those earning above this threshold, proof of insufficient resources to cover procedural costs will be required.

The decision overturns a section of the Consolidation of Labor Laws (CLT) that previously guaranteed free justice to those earning up to 40% of the Social Security ceiling (R$ 3,262.96). The court also struck down a previous understanding from the Superior Labor Court (TST) that allowed for free justice based solely on self-declaration.

Justice Gilmar Mendes, who led the vote, stated that the goal is to increase systemic effectiveness by directing benefits to those who truly depend on them, noting that self-declaration had led to “truly absurd situations.” Justice Luiz Fux added that the previous practice caused a judicial overload that ultimately hindered those in genuine need of legal assistance. The R$ 5,000 threshold is based on the current Income Tax exemption limit and will be adjusted according to future tax table updates or the IPCA inflation index.