SELF-EMPLOYMENT AND INDIVIDUAL ENTREPRENEURSHIP: REGULATION AND SOCIAL PROTECTION IN BRAZIL

Abstract

Productive restructuring, the flexibilization of labor relations, and the increase in formal unemployment have driven many workers to seek alternatives through self-employment or the establishment of their own small businesses. In this context, an essential debate emerges regarding the limits between autonomy, social protection, and the legal regulation that should support this segment. Given this scenario, the present study aimed to analyze the regulation of self-employment and individual entrepreneurship in Brazil. The methodology consisted of a literature review, based on scientific articles, books, periodicals, jurisprudence, and current legislation. Data collection was carried out using databases such as Scielo, Google Scholar, among others, covering the period from 2020 to 2025. The results showed that in many situations, formalization as self-employed or as a MEI (Individual Microentrepreneur) can be used as a strategy to mask employment relationships, a phenomenon frequently associated with so-called "pejotização" (a term referring to the practice of forcing employees to become independent contractors through their own companies). Recent case law has demonstrated the courts' concern in balancing two central aspects: on the one hand, the need to recognize new forms of work organization and to encourage individual entrepreneurship; on the other hand, the obligation to preserve the principles of human dignity and the value of work. Thus, judicial decisions have sought to evaluate each specific case based on the elements that characterize the employment relationship, avoiding both labor fraud and the undermining of legitimate models of self-employment.