Smart people management: how fashion brands can avoid labor lawsuits

The fashion industry employs a wide range of professionals — from seamstresses and stylists to models and creative directors. Behind every collection, there is a network of labor relations governed by Brazilian labor law (CLT) and the Labor Reform (Law No. 13.467/2017).

To avoid costly disputes, fashion brands must adopt preventive and compliant labor practices from the very beginning.

1. Formalize all employment and service contracts

Informality remains one of the main causes of labor lawsuits in fashion.

Freelancers, models, and designers should have written agreements defining responsibilities, compensation, and termination conditions. Under Article 442 of the CLT, temporary and service contracts are allowed, provided they are properly documented.

2. Correctly classify the type of relationship

Not every worker is an employee — but to avoid misclassification, the relationship must not include personal service, regularity, subordination, and payment (Article 3, CLT).

A specialized legal advisor ensures that the correct structure is used to prevent claims of disguised employment.

3. Meet all labor and social security obligations

Fashion businesses must comply with wage payments, FGTS, INSS, and workplace safety regulations (NR standards).

This is particularly important for production environments such as sewing and cutting facilities.

4. Implement labor compliance policies

Internal policies, training, and reporting channels create a safe and transparent work culture.

In fashion, brand image and reputation are directly affected by how employees and collaborators are treated.

5. Work with a fashion law specialist

A specialized legal team ensures your brand operates with compliance and foresight by:

• Drafting and reviewing creative and labor contracts;

• Structuring compliance and HR policies;

• Ensuring LGPD (data protection) compliance in labor relations;

• Managing legal and reputational risks.

A well-managed legal structure doesn’t just prevent lawsuits — it safeguards the people and principles that define your brand’s identity. Our team is ready to help you with these questions.