Labor lawyer fees in Brazil: contingency, contract and loser-pays

*In labor matters there are three types of attorney fees: contractual fees (agreed between you and your lawyer), contingency fees (a percentage of what you receive at the end) and loser-pays fees (sucumbência, paid by the losing party to the winning party's lawyer, from 5% to 15%).* Knowing the difference avoids surprises at the end of the case.

Quick summary

• Contractual: a fixed amount, in installments or per stage, set in a written contract.
• *Contingency (quota litis): a percentage of the financial gain; combined with loser-pays fees, it cannot exceed the benefit obtained by the client* (OAB Code of Ethics, art. 50 — the OAB is the Brazilian Bar Association).
• Loser-pays: 5% to 15% of the award, paid by the losing party (CLT, art. 791-A — the CLT is Brazil's Consolidated Labor Laws); they belong to the lawyer.
• Each OAB state section publishes a reference fee table.

The three types of fees

• Contractual — Who pays: the client · When: as set in the contract · Note: may be fixed or mixed
• *Contingency (quota litis)* — Who pays: the client, only if there is a gain · When: on receiving the amounts · Note: must be in cash and moderate
• Loser-pays — Who pays: the losing party · When: at the end of the case · Note: 5% to 15% (art. 791-A of the CLT); they belong to the lawyer (Law 8,906/1994, art. 23)

What the fee contract should include

1. Scope: which claim, against whom and up to which stage (first instance, appeals, enforcement).
2. Calculation method: fixed amount, contingency percentage or a combination, and on which base (gross or net amount).
3. Expenses: who pays court costs, expert fees, travel and copies.
4. Settlement: how the fee works if there is a settlement before judgment.
5. Termination: what happens if you change lawyers.

Loser-pays fees and free legal aid

Since the Labor Reform (Law 13,467/2017), anyone who loses claims can be ordered to pay attorney fees to the other party's lawyer. In 2021, in ADI 5766, the Federal Supreme Court (STF) ruled out charging these fees to free-legal-aid beneficiaries out of amounts obtained in the same or another case, for as long as they lack resources. See the guide Free legal aid in the Labor Court.

How to avoid surprises

• Ask for a written simulation: "if I receive R$ X, how much do I keep?".
• Ask whether the percentage applies to amounts the employer should already have deposited, such as FGTS (the Severance Indemnity Fund).
• Keep a copy of the contract and the power of attorney.
• In case of abusive charges, you can file a complaint with the OAB Ethics and Discipline Tribunal in your state.

Frequently asked questions

What percentage does a labor lawyer charge?

It is freely negotiated, observing the OAB section's reference table and the ethical limit: contingency fees plus loser-pays fees cannot exceed what the client receives.

Do loser-pays fees come out of my money?

No. Loser-pays fees are paid by the losing party to the winning party's lawyer. What comes out of your award is the contractual or contingency fee agreed with your lawyer.

Can I be ordered to pay the employer's lawyer?

Yes, on the claims you lose (art. 791-A of the CLT). For free-legal-aid beneficiaries, collection is suspended for as long as they lack resources, under the STF decision in ADI 5766.

Does the fee contract have to be in writing?

The law does not require it for the agreement to exist, but it is highly recommended and is the best way to avoid disputes.

Read more in this series

• How to find a labor lawyer: free, contingency, court-appointed or private
• Free legal aid in the Labor Court: who is entitled and how to apply (2026)
• Pro bono lawyer: what it is, who can get one and where to find one
• Labor Court: how it works and how to file a claim
• Index: complete guide to labor rights