Company received a labor claim: what to do in the first days to reduce losses

Has your company been served? See how we run employer-side labour defence in São Paulo — from the first hearing to enforcement.

A notice from the Labor Courts arrives by mail or through the electronic system. Your heart races, and the first reaction is usually the worst one: filing the document away "to look at later". In the Labor Courts, "later" can mean a missed deadline — and a missed deadline is expensive.

Labor proceedings have their own hearing, attendance and evidence rules. Starting promptly gives the company more time to locate documents and assess risk than reacting on the eve of the hearing, but does not guarantee success or a particular saving.

This article sets out the first steps: what to check in the notice, which documents to gather, whom to bring and which errors can aggravate a manageable case. One risk of ignoring the notice is default.

What is the deadline and what happens if the company fails to appear?

Check the hearing date, effective service and court orders. CLT art. 841 sets a minimum notice interval for the initial hearing; it is not a uniform five-day defense deadline. Non-attendance may trigger default and adverse presumptions about facts under art. 844, subject to statutory exceptions, including implausible allegations or those contradicted by the evidence.

CLT art. 847 allows a written defense through the electronic case system up to the hearing and provides for twenty minutes of oral defense if no settlement is reached. Check valid court directions on submissions and documents. Under art. 844, paragraph 5, the lawyer’s attendance allows the defense and documents to be accepted despite the company’s absence; it does not excuse attendance or remove every consequence of default. Report and document any serious impediment promptly; postponement requires a court decision.

Which documents must the company gather right away?

Documents matter, but witnesses, expert evidence, collective agreements and workplace health and safety records may also be needed. Preserve original files and complete communications; do not fabricate or alter records. Gather immediately:

• a) The employment contract and any amendments, or the services agreement, in the case of an independent contractor.
• b) Working-time records (time records), required at establishments with more than twenty workers, subject to applicable rules and exceptions (art. 74, § 2, of the CLT) — a central piece in disputes over overtime.
• c) Pay slips, receipts for vacation, the year-end bonus (13th salary) and severance amounts, and FGTS proof of payment.
• d) Communications (e-mails, messages, written warnings) that provide context for the relationship.
• e) Termination documents (the termination form/TRCT, notice, exit medical examination).

Complete, organized records help assess each claim and identify the evidence required. A services agreement with a legal entity does not by itself determine whether the relationship was employment.

Whom should the company bring to the hearing?

The company may attend through a manager or preposto who knows the facts; their statements bind the company under CLT art. 843, paragraph 1. The representative need not be an employee, under paragraph 3. Preparation means checking documents, understanding the hearing and telling the truth, never rehearsing a false account. Lack of knowledge can harm the defense.

The lawyer coordinates the defense, evidence and settlement discussions. Check witnesses, authority documents and, for remote hearings, the link, connection and location. The preposto represents the company and is not its witness.

Hypothetical example: the Trigo de Ouro Bakery and late preparation

Imagine Padaria Trigo de Ouro Ltda. receives a claim for overtime and severance. The owner sets the notice aside for two weeks and seeks guidance only shortly before the hearing. This is a hypothetical example, not a firm case or reported result.

In this scenario, some time records and receipts can still be found, but gaps remain. The company must assess how to obtain genuine records or other evidence without fabricating it. Starting sooner would allow more time to check periods and calculations; it does not establish that most of the claim would have been defeated.

The most common (and costly) mistakes

• Ignoring the notice or leaving it to the eve of the hearing — risk of default and admission.
• Failing to attend the hearing without valid justification.
• Bringing an unprepared corporate representative, who confirms damaging facts.
• Failing to keep time records and receipts — without documentary evidence, the defense weakens.
• Settling in a panic, without assessing the real risk of each claim.
• Mixing emotion into the defense, retaliating against the worker or pressuring witnesses instead of using a documented strategy.

Checklist: first steps upon receiving the claim

• Check authenticity, case number, receipt, the hearing date and format, claims and other court orders.
• Seek a labor lawyer immediately.
• Gather the employment contract, time records, pay slips, receipts and termination documents.
• Select and prepare the corporate representative who knows the facts.
• Carefully assess the risk of each claim and whether a settlement is advisable.
• Organize everything in the electronic case file within the deadline and confirm successful submission.

Frequently asked questions about a labor claim against the company

I received a labor claim. What is the first step?

Check the authenticity of the notice and the full case file, including the hearing, deadlines and court orders, and seek labor-law advice. Gather contracts, time records, payments and termination documents, and prepare the representative. Non-attendance may have serious consequences depending on the stage and CLT art. 844 exceptions, but does not automatically establish every claim.

What is the deadline for the company to defend itself before the Labor Courts?

CLT art. 847 allows a written defense through the electronic case system up to the hearing, alongside the statutory provision for oral defense. Check the procedure, court orders and effective service. The art. 841 minimum notice interval is not a uniform defense deadline: do not calculate it from the notice’s issue date alone or leave document preparation to the eve of the hearing.

Which documents should I bring to the labor hearing?

Gather employment or services contracts, time records, pay slips, vacation and 13th-salary payments, severance, FGTS records and relevant communications. CLT art. 74, paragraph 2, requires time records at establishments with more than twenty workers, subject to applicable rules. The claims may also require collective agreements, workplace health records, witnesses or expert evidence.

In São Paulo, where is my company's labor claim heard?

São Paulo state is divided between the 2nd and 15th Regional Labor Courts. The capital belongs to the 2nd Region; verify the municipality and court in the case file. Territorial jurisdiction follows CLT rules, not simply the company’s registered office. Check PJe and the notice for procedural directions and whether the hearing is in person or remote.

When should the company hire a lawyer in a labor lawsuit?

Seek advice when the notice arrives, before submitting a response or agreeing to a settlement. This allows time to check deadlines, preserve evidence, prepare representation and assess claims and settlement terms. An early start improves organization but does not guarantee success or any specific saving.

Reacting early helps organize the defense

A labor claim does not have to become a catastrophe. Using the first days to organize evidence, prepare representation and build a reasoned defense helps manage risk. The outcome depends on the facts, evidence and applicable law, not merely speed of response.

At Falchet e Marques Sociedade de Advogados, a firm in São Paulo (Av. Paulista), we act in the defense of companies in labor claims and in the preventive organization of documents and contracts — so that risk is managed, not discovered at the hearing.

Talk to our team on WhatsApp: +55 11 95901-1854 — received a notice from the Labor Courts? Send us the summons so we can review the deadline and the documents you will need.