The First Panel of the Regional Labor Court of the Second Region refrained from homologating an out-of-court settlement with a total release clause of the employment contract based on the grounds that, in the words of regional rapporteur Daniel de Paula Guimarães, ‘although the out-of-court settlement presupposes the convergence of interests of the applicants, only the amounts and values stated therein can be discharged.’
However, Minister of the Superior Labor Court, Douglas Alencar Rodrigues, overturned the decision and recognized the validity of the out-of-court settlement entered into by the parties, without reservations.
According to the ruling, the minister emphasized that the Labor Court should homologate out-of-court settlements for total release of the employment contract, provided that the legal requirements for such (Article 104 of the Civil Code) are observed and there are no defects capable of annulling the legal transaction (Articles 138 to 166 of the Civil Code).
The decision thus reinforces the autonomy of the parties’ will.
The minister pointed out that ‘The law did not leave room for the Judiciary, acting on behalf of the parties, to question the transacted items, the reciprocal counterparts, or the conditions for full settlement, under penalty of conferring a litigious character on the voluntary procedure, which was intentionally avoided by the interested parties when submitting the out-of-court settlement for homologation.’
(1000343-39.2022.5.02.0062)
