Using the Central Bank electronic system to access individual bank accounts, Labour Courts in Brazil are increasingly blocking funds from bank accounts of partners and officers of companies involved in labour litigation as a mechanism to guarantee the payment of compensation awarded to claimants. The blockage of partners' and officers' bank accounts is typically used in cases where the defendant entities have no means to pay the award, have ceased operations or cannot be found. The article discusses the legality of the blockages and comments on cases in which they have been abusively used by the Courts.

26 July 2008



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