Brazil Court Orders Retailer Casas Bahia to Rehire Workers
A labor judge in Brasilia suspended Casas Bahia's August mass layoffs and gave the retailer five days to restore the contracts. A day later, a Sao Paulo court granted only part of the creditor protection it sought. The post Brazil Court Orders Retailer Casas Bahia to Rehire Workers appeared first on The Rio Times .
Brazil's top furniture retailer, Casas Bahia, has been ordered by a Brasília court to rehire over 1,900 workers who were laid off last month. The judge suspended the effects of the mass layoffs and ordered the contracts and benefits of the dismissed staff to be restored within five days. This ruling came on the heels of the retailer's filing for court protection from creditors, leaving the company with two urgent matters to address.
The labor judge found that the company failed to consult with unions before the mass dismissals, a requirement under Brazil's Supreme Court precedent Tema 638. If the company fails to meet the deadline, it faces a daily fine of R$500 (approximately US$97) per worker, with a cap at ten months' pay. The court's decision does not yet admit the company's plan for reorganization, leaving its broader debt restructuring still pending.
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