As in much of the rest of the world, the gig economy in Brazil is rapidly expanding. A court ruling that paused ongoing proceedings over the legal status of freelancers and contractors may give companies a window in which they can establish (or improve upon) their platform-based outsourcing processes, says legal and corporate governance professional Camila Schon.
Platform-based outsourcing is expanding rapidly in Brazil, covering services from deliveries, telemedicine and legal consulting to software development and remote customer service. Its appeal lies in agility, flexibility and reduced costs compared to traditional arrangements. Scale, technology and digital intermediation are reshaping how companies structure their service chains.
The data confirms the trend. According to Brazil’s national statistics agency (IBGE), about 2.1 million Brazilians 14 and older were working through digital platforms in 2023. Between 2021 and 2024, this number grew by 48%, reaching 2.3 million, according to the Federal University of Paraná. This surge is driven by corporate demand for adaptable solutions and by professionals seeking more flexible contractual models.
For compliance professionals, risk managers, chief legal officers, chief compliance officers and board members, what looks like an efficient operational model comes with a complex set of labor and regulatory risks that can affect ESG indicators, corporate reputation and business sustainability.
A turning point came with a decision by Justice Gilmar Mendes of Brazil’s Supreme Federal Court (STF), suspending all legal proceedings nationwide related to the classification of individuals hired as legal entities (pejotização) until a full ruling expected in late 2025. The measure heightened legal uncertainty, calling for a preventive, strategic posture from companies relying heavily on platform-based models.
Traditional outsourcing, regulated by Law No. 13,429/2017, already required careful contractual safeguards and ongoing monitoring. In the platform economy, the challenges are amplified — fragmented relationships, blurred responsibilities among clients, intermediaries and providers and an absence of specific regulation. These gaps can result in disputes, inconsistent court rulings and unexpected costs.
Balancing Compliance and Creativity in the Gig Economy
What do companies need to know amid paradigm shift in the workforce?
Read moreDetailsInternational comparisons provide context. In 2024, the European Union approved a directive on platform work, establishing criteria to determine employment relationships and limiting companies’ leeway to classify providers as independent contractors. In the US, worker classification varies by state: California applies restrictive criteria, while others remain more flexible.
For multinationals operating in Brazil, this regulatory diversity demands harmonized internal policies and alignment with global compliance standards. Given the STF suspension, companies should treat this period as an opportunity for proactive compliance action:
- Risk assessment: The first step is a comprehensive legal and regulatory risk assessment before engaging platform-based outsourcing. This should cover labor, tax, data protection and related obligations, with outcomes reflected in contracts that clearly set out responsibilities, compliance obligations, audit rights, whistleblowing mechanisms and penalties for noncompliance.
- Due diligence: This should go beyond reputational checks to include the financial health, governance practices, cybersecurity, diversity and ESG alignment of partner platforms. Mature companies are already expanding this stage to include operational resilience and information security, especially where sensitive data is involved.
- Tracking compliance indicators: From the start of the outsourcing relationship, KPIs and monitoring systems should be implemented to track compliance, labor conditions and performance indicators. Whistleblowing channels must be accessible, secure and backed by clear investigation protocols. Most importantly, the active engagement of senior leadership and the board is essential, so that tone from the top not only acknowledges risks but prioritizes them in management.
- Audits: As outsourcing relationships mature, systematic audits and periodic reviews of contracts and policies become critical, particularly in light of regulatory changes and judicial decisions. Monitoring labor noncompliance rates, tax delays, incidents and complaints helps detect deviations before they escalate into crises.
- Training: Ongoing training for managers and stakeholders strengthens compliance culture and prepares teams to address emerging risks. Integrating diversity, safety and labor condition indicators into governance frameworks is not only an ethical imperative but also a way to safeguard value and reputation. Regular, transparent reporting to the board and to audit and risk committees reinforces accountability and ensures strategic alignment.
The STF’s procedural pause should be seen as a window of opportunity. This is the right time to revise contracts, insert more robust compliance clauses, define objective performance metrics and run financial and operational simulations for different post-ruling scenarios. Monitoring and due diligence efforts must be intensified, raising transparency and control standards across the entire service delivery chain.
In addition, companies should strengthen internal communication and training, ensuring broader awareness of risks and responsibilities. Preparing the organization for the post-decision environment means not only shielding it from liabilities but also positioning it to capture competitive advantages over less-prepared rivals.
Platform-based outsourcing has ceased to be merely an operational decision and has become a matter of governance and strategic risk management. Ignoring its legal and reputational complexity risks significant liabilities and value erosion.
The STF’s suspension serves both as a warning and an opportunity: Companies that integrate this issue into compliance programs, with robust due diligence, effective monitoring and alignment with risk appetite, will be better positioned to sustain, with integrity, the efficiency promised by the platform economy.
Camila Schon is head of legal & corporate governance and data protection officer at Tempo, a large services group based in Brazil. 
