Casas Bahia agrees to payments for 4,300 dismissed employees — The Rio Times

In Brazil, the home appliance and furniture retail chain Casas Bahia reached an agreement with trade unions and the labor prosecutor's office concerning approximately 4,300 employees who were dismissed in August. Each of them is to receive compensation of 7,500 Brazilian reais, in addition to unpaid wages, payments in lieu of notice and other amounts due, The Rio Times reports.

Terms of the agreement

The agreement was concluded on October 15 at the Labor Justice Conciliation Center in Brasília, with the participation of the Ministério Público do Trabalho, Brazil's labor prosecutor's office. According to the agency, employees will also be paid wages for August 17, 18 and 19, compensation amounting to 40% of the accumulated balance in the FGTS fund, as well as due vacation pay, the 13th salary, commissions and bonuses.

The CNTC trade union confederation stated that the 7,500-real compensation will be paid without tax and social security deductions. Separate compensation is provided for employees with special employment protection, including pregnant women.

Dismissals and future layoffs

Casas Bahia dismissed employees between August 13 and 16, around the time the company filed for judicial restructuring. The labor prosecutor's office claims that the employer did not negotiate with trade unions before the dismissals. On August 18, a labor court overturned the dismissals, but the company said it was unable to reinstate the people.

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The agreement ends the court case without returning the employees to their positions. The agreement cancels the August dismissals, and August 19 was set as the date for calculating the payments due.

Going forward, Casas Bahia must notify trade unions in writing at least 72 hours before any collective dismissal, stating its reasons, the number of employees and the time frame. A fine of 1,000 reais for each employee, but no more than 1 million reais, is provided for violating this requirement.

Part of the funds for compensation and payments is to be allocated within the company's judicial restructuring after court approval. No specific payment date was disclosed.