In a recent decision, the Fourth Panel of the Superior Labor Court (TST) reformed the understanding of the Regional Labor Court of the 3rd Region (MG), allowing the presentation of a court bond policy with fixed insurance period, in order to replace the appeal´s deposit to pay labor costs.
The Regional Labor Court of the 3rd Region had dismissed the appeal of a large multinational in the food industry once the insurance period of the court bond policy presented by the multinational would end on May 2, 2022.
However, the Fourth Panel of the TST reversed this decision, understanding that the application of Article 899, § 11, of the CLT (Brazilian Consolidation of Labor Laws) cannot be restricted – this article provides that the appeal´s deposit can be replaced by a court bond – neither can impose limits that the legislator did not foresee, such as a court bond policy with an indefinite insurance period.
Moreover, this requirement is contrary to the provisions of Article 760 of the Brazilian Civil Code, which provides that the insurance policy must, necessarily, contains a clause with “the beginning and the end of its validity”.
Thus, the Justices of the TST concluded that, “due to the fact that, after the term of the court bond´s insurance period ends, another guarantee must be provided, but to require, beforehand, that the court bond does not have an end for its validity, restricts where the law has not restricted and contributes to the inefficiency of the legal provision”.
Source: TST 19/06/2020 – RR-10537-56.2016.5.03.0173
The insurance team of Costa Tavares Paes Advogados is available to provide any further information.