Business · Companies · 4 hrs ago
Casas Bahia agrees to pay 4,300 laid-off workers R$7,500 each
Casas Bahia will pay R$7,500 to each of 4,300 workers dismissed by the Brazilian retailer in August.
The deal also covers severance payments, including notice pay, unpaid wages and other benefits.
The layoffs took place across Brazil during a company restructuring, with most affected workers in São Paulo city.
The unions challenged the dismissals because the company had not negotiated with them beforehand, as required under Brazil's Supreme Court's established position on mass layoffs.
The agreement ends the court case and removes plans to reinstate the workers, after Casas Bahia said it could not bring them back.
Some payments depend on approval and release of funds through the company's judicial recovery process.
For future mass layoffs, Casas Bahia must notify unions in writing at least 72 hours in advance and give the reasons, scope and expected timing.
Casas Bahia agreed to pay R$7,500 each to 4,300 workers laid off in August.
The agreement also provides for severance payments and union involvement in future mass layoffs.
It was reached with unions through a conciliation process mediated by Brazil’s Labour Prosecutor’s Office.
The deal ends the legal action and means the workers will not be reinstated.
- Who
- Casas Bahia and unions representing workers laid off by the retailer.
- What
- The company agreed to pay R$7,500 to each of 4,300 workers, in addition to severance entitlements.
- When
- The agreement was reached on October 15, 2026.
- Where
- The agreement was reached through conciliation in Brasília and covers workers across Brazil.
- Why
- The unions challenged the mass layoffs, which they said took place without prior negotiation; the agreement resolves the legal dispute.
Casas Bahia
Unions representing the laid-off workers
Reinstatement
Casas Bahia
The company said it lacked the financial and operational capacity to reinstate the workers.
Unions representing the laid-off workers
The unions challenged the dismissals in court, which ordered the workers reinstated.
Prior negotiation
Casas Bahia
Not stated.
Unions representing the laid-off workers
The unions’ legal action argued that the mass layoffs required prior negotiation with unions.
Casas Bahia carried out the mass layoffs during a company restructuring.
A labour court annulled the dismissals and ordered the workers’ reinstatement.
Casas Bahia and the unions reached an agreement through conciliation, ending the legal action.
- Workers covered
- 4,300
- Payment per worker
- R$7,500
- Dismissal period
- August 13–16
- Agreement date
- October 15, 2026
- Future mass layoffs
- Unions must receive written notice at least 72 hours in advance
What people are saying
This agreement is the result of a collective effort and represents a victory for the workers, who will be able to receive their rights without prolonging a legal dispute