Out-of-court agreement and Resolution of the National Council of Justice no. 586, of 9/30/2024

examination of the constitutionality of this regulatory act

Abstract

On September 30, the National Council of Justice approved Resolution 586, with the aim of reducing litigation in Labor Courts by allowing broad, general, and irrevocable settlement when out-of-court agreements are ratifed by labor judge. However, the National Council of Justice’s “Justice in Numbers” report, used in the reasons for the Rapporteur’s vote, shows that high litigation is not exclusive to Labor Courts, being even higher in State Courts. In addition, there are serious questions about the constitutionality of this regulatory act. The aim of this brief paper is to analyze the following questions: (i) Does the National Council of Justice have the authority to issue a regulatory act of this magnitude? (ii) Could the National Council of Justice impose on labor judges how to interpret the rules of the Consolidation of Labor Laws on the subject? (iii) Are there other procedural mechanisms for adopting precedents to standardize case law on the subject? (iv) Does the broad, general, and irrevocable settlement when ratifying an out-of-court agreement violate the fundamental guarantee of access to justice? (v) Is the labor judge now obliged to approve the out-of-court agreement? (vi) What are the new aspects of this resolution, if it is applied in practice?