Casas Bahia ordered to reinstate employees following TST ruling

The Superior Labor Court (TST) has upheld an injunction suspending collective dismissals at Casas Bahia that were conducted without prior negotiation with labor unions. Justice José Roberto Freire Pimenta ruled that the retailer must temporarily reinstate employees dismissed during this period. The company has five days to reintegrate workers into the payroll and 48 hours to reactivate health plans and other assistance benefits.

The decision follows Supreme Federal Court (STF) jurisprudence, which requires union mediation in collective dismissal processes to ensure transparency and the discussion of alternatives. While the ruling does not prevent future layoffs or mandate the reopening of closed stores, it requires that the company negotiate with unions before any future collective dismissals.

Casas Bahia, currently in judicial recovery, faces significant financial pressure due to high debt, which has reached R$ 17.3 billion, high interest rates, and digital competition. The company has recently closed nearly 300 stores and dismissed approximately 3,000 employees.

Separately, the group is conducting online auctions of various products, including electronics and appliances, through platforms like Nosso Leilão and Kwara. These auctions feature significant discounts and are linked to the company's technical assistance turnover and logistics operations rather than the closure of physical stores.