May 2022 - Brazil - Ministério Público Do Trabalho (MPT) / Ixia Gerenciamento de Negócio Ltda

Case Number: ACPCiv 1000272-17.2020.5.02.0059

Authority: The Regional Labor Court of the 2nd Region (São Paulo)

Parties: Ministério Público Do Trabalho (MPT) / Ixia Gerenciamento de Negócio Ltda

Subject: Qualification of the legal relationship between Ixia Gerenciamento de Negócio Ltda (platform) and its crow workers.

Summary of facts: Ixia Gerenciamento de Negócio Ltda is a crowd work company. Its workers are used to 'train' algorithms by performing various tasks. A worker, for example, had to listen to audio recordings and had to correct mistakes made by artificial intelligence. The MPT sued the company after concluding in an investigation that the relationship between the company and its crowd workers met the criteria for an employment relationship.

Legal question: Does an employment relationship exist between Ixia Gerenciamento de Negócio Ltda and their crowd workers?

Considerations: The judge found no signs of entrepreneurship. Economic activitiy and economic risk of the workers - independent from the company - could not be identified.

Ruling: The relationship between Ixia Gerenciamento de Negócio Ltda and its crowd workers is an employment relation. The company is also prohibited from hiring and keeping employees as individual micro entrepreneurs or self-employed. The company has to pay R$ 130 mil in collective moral damages.