On 8 June 2022, the Supreme Court decided, in a claim that analysed the dismissal of 4,000 employees of one the biggest Brazilian companies, that the intervention of the unions is necessary for mass dismissals of employees.
According to the Plenary of the Supreme Court, union intervention prior to dismissal is crucial and an essential procedural requirement for the mass dismissal of workers, however this does not mean that the union need to authorize the dismissals or that collective agreements are mandatory. The Supreme Court decision means that an employer needs to open a dialogue with the unions in order for a mass dismissal to be valid.
Employers should be aware that there is no exact definition in legislation of the number of workers that add up to a collective dismissal. Therefore, there are several factors that can influence a judge's understanding of the recognition and validity of a mass dismissal.
The Supreme Court decision is considered a ‘general repercussion’ decision, which means that its understanding should be applied to all other similar cases, and in all instances, that are being held before the Brazilian Courts.
More to explore
Status quo of the planned law on collective bargaining agreements (Tariftreuegesetz)
