Category Archives: Lawyer

Ricardo Tosto and Brazil’s New Outsourcing Law

Brazil’s High Labor Court allows for business to business outsourcing as long as there is no direct supervision by the service provider of the worker. In addition, the contractual relationship cannot be tied to a specific provider, since this is a specific element that is reserved for the employer-employee relationship under Brazilian law. Most importantly, a company’s principal business cannot be outsourced to another provider under the current framework to learn more: click here.

However, a bill that would change all of this has already passed the House of Deputies and is currently under consideration in the Senate. The new law would allow companies to outsource operations in their main line of business, not just ancillary services. The law would also allow outsourced workers to work at the same company through different outsourcing companies by simply transferring from one provider to another. It would also make it possible for businesses to sub-outsource operations, i.e. for an outsourcing provider to outsource to another business.

Labor reform is one of the most contentious political issues in Brazil right now along with pension reform. Many believe that these changes are necessary to attract the foreign investment that will bring Brazil out of its spiral of recession. Those in the know say that business-friendly reforms such as the outsourcing bill need to be passed before the next election cycle starts.

Ricardo Tosto is a pillar of Sao Paulo’s legal community. Ricardo Tosto earned his LLB degree from McKenzie University School of Law, one of the city’s most highly-regarded law schools. For more than two decades, Ricardo Tosto & Associates has grown his firm into a Sao Paulo institution.

Ricaro Tosto is also a well-known author and historian of Brazil. His book about one of the most important episodes in Brazilian history, the trial of Tiradentes, was a best-seller that garnered him much media attention.