Brazilian Law Permits Binding Arbitration Clause For Job Involving Executives

Brazilian Congress recently approved a legislation-for the first time- authorizing the use of binding arbitration clause to resolve individual labor disputes.

Until recently, the Brazilian legislators were silent on the use of arbitration clause in cases involving individual disputes, while the Brazilian courts did allow arbitration clause in disputes involving labor unions against companies, but it prohibited the arbitration clause in disputes involving individuals.

The new legislation limits the use of employer/employee arbitration to cases involving company managers and executives.

Now managers and executives can include in their employment contracts clauses specifying that any labor dispute be dealt with through arbitration.