STF rules that employers can fire employees without just cause

The plenary session of the Federal Supreme Court (STF) validated the 1996 presidential decree that withdrew Brazil from ILO (World Labor Organization) Convention 158, which prohibits dismissals without just cause in adhering countries.

The trial of the Direct Action of Unconstitutionality (ADI) 1625, which questioned the presidential veto, was prolonged for 26 years in the Supreme Court, going through several plenary sessions, and only concluded last Friday night, May 26, when by a majority vote, it was validated that justification for dismissal without just cause is unnecessary, thus allowing, as already happens, employers to dismiss their employees without giving reasons.

By a majority of 6 votes to 5, the Court upheld the constitutionality of the decree and, in practice, none of the procedures that are already adopted for dismissals, supported by the Federal Constitution and the CLT, will be changed, maintaining the practice of dismissing employees, when without just cause, without showing the cause of the dismissal.

In practice, failing to state the reason for dismissal, a requirement of ILO Convention 158, which states that the cause of termination should be based on questions about the employee’s behaviour or technical ability, or the economics of the business, is to guarantee the employer’s autonomy over decisions regarding the running of the company, which obviously includes the unmotivated and unquestionable dismissal of one or other employee, since for reasons other than those that characterize just cause, indicated in article 482 of the CLT, they are no longer suitable for that organization.

Maintaining the veto of convention 158 means maintaining the autonomy of the business and the employer’s directive power, which will no longer be obliged to adopt procedures that validate dismissal without just cause, nor will it run the risk of the decision being confronted by an appeal lodged by an employee who is unhappy with the breach of contract, possibilities authorized by the vetoed international contract.

It is important to say that the justification provided by ILO Convention 158 should not be confused with the grounds for dismissal for just cause listed in article 482 of the CLT, which arise from improper actions by the employee (acts of improbity, bad procedure, carelessness, etc.), a modality that is still in force.

Therefore, for now,with regard to hiring and firing (with or without just cause), things remain the same as they were before, since the veto on ILO Convention 158 has been upheld.

To remember the case, go here.

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