Labor liabilities: the invisible enemy that can cost millions to your company

Legal certainty is not just a competitive differential, but an essential pillar for the survival and sustainable growth of companies. In increasingly complex and regulated, where labor legislation constantly evolves and the number of complaints grows exponentially, any carelessness can result in millionaire liabilities and irreparable damage to business reputation.

who adopt a reactive stance, awaiting problems to solve them, can be more exposed to massive lawsuits, rigorous inspections and substantial financial losses. On the other hand, those who invest in structured preventive management tend to be more protected against disputes, optimize resources and strengthen relationships with their employees.

The legal department has a strategic role in preventing labor risksbeing able to act in the implementation of good practices, in compliance with the legislation and the mitigation of hidden liabilities. Thus, by adopting a more proactive stance, companies can significantly reduce their exposure to unnecessary risks.

Next, we explore some strategies that can contribute to strengthening companies’ legal certainty, helping to ensure financial protection, operational efficiency and a solid and safe corporate environment.

1. Review of collective contracts and agreements

The proper formalization of labor relations can be a determining factor to reduce future contests. To this end, the legal department may consider:

• Periodically review and update employment contracts, ensuring alignment with current legislation and more clarity regarding rights and duties.
• Accurately define aspects such as working hours, hours bank, teleworking and remuneration policies, avoiding ambiguities.
• Ensure that contracts are compatible with applicable collective rules, preventing conflicts with labor unions and inspections.
• Carefully evaluate the hiring of third parties and service providers to minimize risks related to the improper characterization of employment.

2. Good practices in journey management

Management of working hours can directly impact the volume of labor disputes. Some initiatives that can contribute to the mitigation of these risks include:

• Adoption of reliable electronic systems for time control, ensuring transparency and avoiding fraud.
• Respect for rest and food intervals, promoting compliance with the legislation and well-being of employees.
• Guidance of managers about the importance of the correct registration of the workday, avoiding unpaid overtime and future liabilities.
• Monitoring and review of journey flexibility policies, considering new work dynamics such as home office and hybrid work.

3. Training and Labor Compliance

Strengthening the culture of conformity can play a relevant role in preventing labor liabilities. Some practices that can be adopted include:

• Structure periodic training programs for managers and employees, addressing rights, duties and good labor practices.
• Develop clear codes of conduct, establishing guidelines for the prevention of bullying, discrimination and other inadequate conduct in the workplace.
• Create internal communication and ombudsman channels so that employees can report any irregularities safely and effectively.
• Perform frequent internal audits to verify the compliance of business practices with current labor legislation.

4. Agile Conflict Resolution

The way the company deals with labor conflicts can directly influence its legal certainty and reputation in the market. Some approaches that can be considered include:

• Implementation of structured internal mediation processes to resolve disputes before they become disputes.
• Prioritizing extrajudicial negotiations whenever possible, promoting balanced agreements and avoiding unnecessary wear.
• Constant monitoring of labor dispute indicators to identify recurring standards and adopt more effective preventive measures.

As observed, strategic management of labor risks can represent an important competitive differential for companies that seek sustainable action and prevention of financial losses. The legal department, by assuming an active role in the implementation of good practices, can help the company mitigate risks and promote a safer corporate environment.

The commitment to compliance with labor standards, coupled with a preventive culture and the adoption of good practices, not only reduces the company’s exposure to passives, but also strengthens its reputation, improves the corporate environment and drives business sustainability. Companies investing in a strategic approach to labor risk management are better prepared to face challenges, minimize financial impacts and ensure a long -term solid operation. Legal certainty is not a cost, but an foundation for sustainable growth. Companies that prevent today guarantee their solidity in the future.

*This text does not necessarily reflect the opinion of the young Pan.