Employers Face Liability for Unjustified Background Checks in Brazil

Brazil is one of the most litigious countries in the world for employment-related disputes, with millions of labor claims filed each year. In this environment, even routine HR practices can trigger lawsuits — and a recent ruling from the Superior Labor Court (TST) underscores the risks of conducting unjustified background checks.

In a unanimous decision, the TST ordered Intercement Brasil SA to pay R$100,000 in moral damages for conducting credit and criminal background checks on job candidates where the information was not directly linked to the role. The Court emphasized that such practices violate candidates’ privacy.

The case arose after a driver candidate was allegedly rejected due to financial restrictions after conducting credit background check, despite passing admission exams. The TST ruled that the act of collecting sensitive information without objective job needs constitutes a violation.

Implications for Employers in Brazil:

• Background checks must be strictly connected to the job. Roles involving security, transportation of valuables, or legally regulated functions may justify inquiries.
• Routine or unjustified checks are prohibited. Companies accessing candidates’ private data without justification might face liability.
• Penalties can be significant.
• High litigation risk: In Brazil’s highly litigious labor environment, rejected candidates and the Labor Prosecutor’s Office may pursue lawsuits aggressively.

The TST decision highlights the need for companies to audit recruitment practices. HR teams must ensure compliance with privacy protections, eliminate unnecessary screening criteria, and document the justification whenever background checks are used. In Brazil, missteps in hiring processes are not just procedural errors—they carry real financial and reputational risks.