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Many companies realize too late that labor enforcement has an implicit deadline for negotiation.

When the conviction becomes final without voluntary payment, installment payments are no longer a choice for the debtor and may depend on the creditor’s agreement. From then on, the process changes in nature.

This is because labor claims are not treated as ordinary liabilities. Severance pay, back wages, and contractual differences are considered alimony and are directly linked to the worker’s livelihood. For this reason, the enforcement phase is structured to promote rapid satisfaction of the claim, with little room for late financial adjustments.

It is in this context that the discussion about Article 916 of the Code of Civil Procedure arises. The provision allows for the installment payment of the debt by depositing 30% of the amount enforced and paying the balance in up to six installments, duly increased by monetary correction and interest.

Normative Instruction 39 of the Superior Labor Court recognizes the formal compatibility of the article with labor proceedings, although its practical application is controversial.

While the process is ongoing, even after the judgment, there is more room for agreements and negotiated solutions. Once the judgment becomes final, that margin closes. Without an agreement, enforcement actions continue, with a direct impact on the company’s cash flow and financial predictability.

Even so, there are alternatives before that point. Settlement or agreement approved in the trial phase remain the most effective routes. Securing the judgment with insurance or a bank guarantee can also serve as a tool for preserving liquidity, provided it is used at the right time.

Labor enforcement consolidates this change in logic. After the final judgment, the process ceases to be a space for decision-making and becomes an environment of forced compliance.

When the company reaches this stage without a defined strategy, the margin for adjustment is already reduced and the alternatives become dependent on factors beyond its control. In labor proceedings, the time available for negotiation usually ends even before enforcement formally begins.

By Pedro Chicarino