STF declares the unconstitutionality of TST Precedent 450

The STF declared unconstitutional TST Precedent No. 450, which states that the payment of vacations after the deadline subjects the company to the payment of double vacation pay, including the constitutional third.

Precedent No. 450 of the TST:

HOLIDAYS. ENJOYMENT AT THE PROPER TIME. PAYMENT AFTER THE DUE DATE. DOUBLE PAYMENT DUE. ARTS. 137 AND 145 OF CLT.
The payment of double vacation pay, including one-third vacation, is due, based on article 137 of the CLT, when, even if taken at the proper time, the employer has failed to meet the deadline provided for in article 145 of the same law.

The decision has a direct impact on labor relations, because there will no longer be a normative precedent authorizing the Judiciary to order companies to pay double vacation pay, including the third part of the constitutional salary, for having paid vacation outside the legal period of 2 days before the start of the respective period.

The STF cancelled the precedent because it held that it is not up to the judiciary to give an extensive interpretation of rules that impose penalties.

The labor legislation provides for double vacation pay exclusively in the case of not granting vacation within 12 months since the right was acquired (art. 137 of the CLT).

The STF's decision, handed down in ADPF 501, occurred in a plenary session on 08/08/2022 and has not yet become final.

For more information, contact our office's Labor team([email protected]).