Brazil’s Supreme Court is set to decide on regulatory framework on reforming Precedent 331 of the Labour Court, which forbids a company from outsourcing its core business to another company.

Brazil's government had previously announced that it would revamp the country's bureaucratic labour legislation and remove restrictions on outsourcing.

According to GT Marketing and Communications, outsourcing services is one of the most complex and controversial in the context of labor relations issues. 

If the bill is signed into law, it will dispel confusion hanging over outsourcing of labour, easing pressure on the country’s large companies struggling to remain competitive in Brazil’s current economic and political climate, reports Nearshore Americas.