By Brazil Stock Guide – Brazil’s highest labor court, the 7th Panel of the Tribunal Superior do Trabalho (TST), has ruled that Telefônica Brasil (VIVT3) must pay R$ 1.5 million to a systems analyst who developed software for the company over a span of 36 years, resulting in substantial profits. The decision comes after the court rejected an appeal from the telecommunications giant, which sought to overturn the ruling.
The analyst, who had been responsible for creating several innovative programs, argued that his work led to significant financial returns for Telefônica. One of the programs alone was sold to eight companies for a total of around R$ 23 million. Despite leaving the company, the analyst’s software continued to generate revenue for Telefônica, prompting his claim for compensation, according to Valor Econômico.
Initially, the court of first instance ordered Telefônica to pay R$ 3.12 million as “fair remuneration” for the software. However, the Tribunal Regional do Trabalho de Minas Gerais (TRT-MG) reduced the amount to R$ 1.54 million, asserting that the software was developed as part of the analyst’s personal contribution, not within the scope of his contractual duties.
In the TST ruling, Minister Agra Belmonte, who acted as the rapporteur, referenced the Software Law (Law 9.609/1998) to determine that, under certain circumstances, software developed during employment can be owned by the employer. However, in this case, the minister noted that the software’s development was not directly related to the analyst’s contract and thus, he had a legitimate expectation for financial compensation.
“While the programs were consistent with his contracted duties, the undeniable economic return for the company warrants a compensation for the employee,” said Belmonte. He emphasized that after 36 years of accepted creations, the analyst rightfully expected remuneration. “It would not be fair for the company to benefit from high profits without any additional compensation to the analyst,” he added.
The TST decision upheld the R$ 1.5 million amount based on a market remuneration range of 3% to 7% of the financial benefit generated by the software, as supported by a technical opinion. The only dissenting vote came from Minister Evandro Valadão.