IPCA-E - Monetary restatement index of labor judicial debt

On December 5, 2017, the Second team of the STF (Federal Supreme Court) dismissed action 22,012 filed by FENABAN (National Federation of Banks) against a decision of the Superior Labor Court (TST) that determined the adoption of the IPCA-E (Special Extended Consumer Price Index) in place of the TR (Referential Rate) for the updating of judicial labor debt.

Despite the STF decision, the Labor Reform that changed the CLT as of November 11, 2017, included paragraph 7 to article 879, determining the updating of the credits resulting from judicial conviction using the TR (Referential Rate) published by the Central Bank of Brazil.

It is noteworthy that the updating of the credits resulting from judicial condenation in the labor ambit is quite controversial, due to different understandings either by the simple interpretation of the Law or by the judicial decision.

Through its specialized team, RSM follows legislative, labor and social security changes and is ready to support its clients in compliance with the new legislation approved.


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Leonardo Biar
Partner | Head of Labor and Social Security Areas
[email protected]