New rules for the insurance bond

The president of the Superior Labor Court (TST) and Superior Council of Labor Justice (CSJT), Justice Maria Cristina Peduzzi, and Justice Aloysio Corrêa da Veiga (Head of  Labor Court’s Internal Affairs), signed on May 29th, the joint act TST.CSJT.CGJT n. 1/2020, providing for new rules for the use of insurance bond in replacement to the appeal bond and the judicial deposits.

The new act changed the previous rules of the Superior Labor Court about this matter, to adapt the Court procedures to the decision issued by the Plenary of the National Council of Justice (CNJ) on March of this year, which suspended the articles 7th and 8th, both from the joint act n°. 1/2019, of the Superior Labor Court, as those articles prevented the replacement of the cash warranty or appeal bond for the insurance bond, despite the legal provisions authorizing this procedure, as provided in the article 882, of the Labor Code, with wording included by the Law n. 13.467/17 (Labor Reform).

There are no doubts that the insurance bond aims to ensure the payment of awards granted by the Labor Court and as of the labor reform, they should have been accepted in replacement to the appeal bond and the collection warranty in labor lawsuits, insofar as it equates to money.

Thus, in view of the decision and the issuance of the normative act of the Superior Labor Court, the replacement of the appeal bond or judicial deposits by the insurance bond shall be accepted by the Judges.

Our labor team is available to assist you in reviewing the impacts of this recent decision.