Pejotization in Brazil: Impacts on Labor Relations and on the Sustainability of the General Social Security Regime

Abstract

The article analyzes the practice of pejotization in Brazil and its legal and socioeconomic effects on labor relations and the sustainability of the General Social Security System (RGPS). The research starts from the following problem: to what extent does pejotization, when used to mask an employment relationship, impact labor relations and compromise the sustainability of the General Social Security System (RGPS)? It is hypothesized that pejotization, although it may appear as a legitimate contractual form in specific situations, is widely used as a mechanism to circumvent labor legislation, transferring risks to the worker and reducing contributions to the social security system, which weakens social protection and the financial balance of the pension system. The general objective is to analyze the impacts of pejotization on labor relations and the sustainability of the RGPS. Specific objectives include: (i) defining the concept of pejotization and distinguishing it from legitimate civil/business contracting; (ii) discuss its effects on labor rights and the dynamics of legal subordination; (iii) investigate the social security repercussions, with an emphasis on the collection and financing of social protection. This work proves relevant to legal professionals by systematizing criteria for identifying fraudulent outsourcing and its effects on labor and social security spheres. It contributes to legal science by integrating the labor and social security discussion from a critical perspective. In addition to presenting social relevance, it highlights the risks of precariousness and erosion of the financing of the social security system, especially with regard to the sustainability of the General Social Security Regime. This is a qualitative theoretical research, based on bibliographic and documentary review, with a planned duration of six months.