Approved by Joint Ordinance SEPRT/RFB 33, of 6th October 2022, the new version S-1.1 of eSocial brings a new obligation to declare data pertaining to labour claims and settlements.

In summary, final decisions and/or settlements reached in labour claims, as well as out-of-court settlement agreements entered into as from 1st April 2023, will have to be mandatorily disclosed by employers/payers by the 15th day of the month following that of each event.

Four new events were created in e-social, two of which are mandatory for companies/payers of labour claims or judicial or extrajudicial settlement agreements, not including those arising from a decision rendered by the Federal Courts or Common Justice.

1. Code S-2500:

Under this code, the employer or payer of the award or settlement (even if in the capacity of joint and several or secondary debtor), must input the data identified below:

(a) qualification data of parties and case number;

(b) status of the relationship: (i) recognition of employment relationship, (ii) non-existence of employment relationship, and (iii) change in the period of the employment relationship of a worker previously declared on e-social;

(c) reinstatement of an employee;

(d) consequential remuneration effects (if any) with regard to FGTS and social security contribution;

(e) period covered by the court decision/settlement, regardless of the existence of remuneration effects during the entire period;

(f) the amount of the calculation basis for social security contributions and third-party contributions relating to compensation payments resulting from the decision (final and unappealable court decision) or the judicial or extrajudicial settlement, individualized by month of accrual;

(g) FGTS calculation basis, per month of competence, even if the parties have compromised in this regard.

2. Code S-2501:

Installments having a salary nature posted under event S-2500 above and that result in the payment of social security contribution and/or income tax must be posted under code 2501.

If there is no social security contribution or withholding income tax payable, there is no need to input information under this event.

If installment payments are to be maid, each payment must be entered under code 2501.

An S-2501 event must be lodged for each labour claim, regardless of the number of workers who figure as plaintiffs.

The deadline for transmitting information in this event is the 15th day of the month following that in which each payment is made.

The information entered under event S-2501 will result in debt acknowledgment under the specific DCTFWeb and issuance of the corresponding DARF (federal payment slip).

3. Code S-3500

Information that may have been mistakenly provided under events S-2500 or S-2501 may be excluded by the employer/payer by means of an exclusion entered by the party declaring the event under event S-3500 – in eSocial.

4. Code S-5501

eSocial will issue a report of the taxes calculated in accordance with the information provided under event S-2501.

It is important for law firms handling labour claims to have a very close relationship with their clients in order to establish an adequate flow of information to be extracted from such labour claims and settlements and inputted onto eSocial in a timely manner.

Furthermore, since the submission of information onto eSocial is a means to comply with employment and tax obligations, it is important to note that noncompliance may trigger the imposition of administrative fines contemplated by employment and social security laws by the administrative authorities.

Montgomery & Associados is at your disposal for any additional clarification in relation to the topic at hand.