Post by xyz3700 on Feb 26, 2024 22:49:35 GMT -6
Recently, the TST ruled that the mere existence of common partners does not characterize an economic group for the purposes of joint and several liability in labor convictions. Originally, the TRT-2 had maintained the 1st degree decision because it understood that the corporate identity and the fact that the companies had the same address would be sufficient for this characterization. The TST dismissed the company's conviction for violating article 2, paragraph 2, of the CLT, applying the court's peaceful jurisprudence, which advocates the need to prove the hierarchical relationship between the companies or effective control exercised by one of them. Although a certain inclination towards concentration could already be seen at the end of the 19th century, economic groups effectively emerged in the 20th century, with greater strength after the Second World War, based on a movement aimed at managing productivity and reducing costs.
Societies began a process of reorganization into macrostructures, because the old corporate structures, based on previous models, became obsolete and insufficient to meet new demands. Scholars in the field explain that economic groups are primarily characterized by vertical organization and unity of control and administration policy, so that, although independent, controlled companies are Chinese Malaysia Phone Number List subordinated to the power to direct activities exercised by the controlling company. According to article 265 of Law 6,404/76, the characterization of an economic group requires that there has been an agreement between the controlling company and its subsidiaries, so that they are compelled to combine resources or efforts to achieve their respective objectives or to participate in common activities or undertakings.
The labor reform modified the wording of article 2, paragraph 2, of the CLT, with the aim of adapting the legal text to the pacified understanding of the TST regarding the concept and characterization of the economic group. Although the higher court had already established an understanding on the topic, doctrinal and jurisprudential divergence (within the scope of ordinary courts) persisted. In the additive amendment that included the provision in the bill, it was clarified that the insertion was essential to guarantee legal security for individuals, replacing the dubious wording of the original text with one compatible with the TST's guidance. The legislator's intention was, therefore, to incorporate this understanding into the legal text, also adding paragraph 3, which imposes the need to prove the effective control of a company over others , with the explicit purpose of guaranteeing greater legal security in labor relations.
Societies began a process of reorganization into macrostructures, because the old corporate structures, based on previous models, became obsolete and insufficient to meet new demands. Scholars in the field explain that economic groups are primarily characterized by vertical organization and unity of control and administration policy, so that, although independent, controlled companies are Chinese Malaysia Phone Number List subordinated to the power to direct activities exercised by the controlling company. According to article 265 of Law 6,404/76, the characterization of an economic group requires that there has been an agreement between the controlling company and its subsidiaries, so that they are compelled to combine resources or efforts to achieve their respective objectives or to participate in common activities or undertakings.
The labor reform modified the wording of article 2, paragraph 2, of the CLT, with the aim of adapting the legal text to the pacified understanding of the TST regarding the concept and characterization of the economic group. Although the higher court had already established an understanding on the topic, doctrinal and jurisprudential divergence (within the scope of ordinary courts) persisted. In the additive amendment that included the provision in the bill, it was clarified that the insertion was essential to guarantee legal security for individuals, replacing the dubious wording of the original text with one compatible with the TST's guidance. The legislator's intention was, therefore, to incorporate this understanding into the legal text, also adding paragraph 3, which imposes the need to prove the effective control of a company over others , with the explicit purpose of guaranteeing greater legal security in labor relations.