STJ recognizes the jurisdiction of the reorganization court to rule on the existence of corporate succession of labor obligations

Priscilla Folgosi
Lawyer at Marcos Martins Advogados

The 2nd section of the STJ recognized the jurisdiction of the judicial reorganization court to rule on the existence of corporate succession in relation to labor obligations in a case involving the sale of a production unit.

The case involves the sale of an isolated production unit (UPI) of the Sifco Group, in the respective judicial reorganization process. In the case, the labor court ordered the reinstatement of a stable employee who had not been transferred to the successor company.

A conflict of jurisdiction was raised on the grounds that the judicial reorganization process, both in the notice of sale of the UPI and in the approval of the sale, stated that it would not contemplate the transfer of 268 employees, including the plaintiff, as well as a literal violation of Law 11.101/05, which provides that there is no business succession in the event of a judicial sale.

The 2nd Section of the STJ, by a majority, decided that the reorganization court has jurisdiction to decide whether or not there is corporate succession of labor obligations in the case of the sale of an IPU.

This decision is of the utmost importance, as it reaffirms the absence of succession provided for in special legislation, guaranteeing the legal certainty necessary for the viability of disposals carried out by companies undergoing reorganization.

Marcos Martins Advogados is available to assist you with the reorganization process, as well as with other matters related to the business and corporate environment.

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