Former Casas Bahia Employees May Face Deductions from Severance Payments; Understand How Payments Work

Judicial reorganization proceedings can have significant impacts on the management of labor liabilities and on companies’ restructuring strategies.

In an article published by Folha de S.Paulo on Casas Bahia’s judicial reorganization proceedings, our specialists explain how the process may affect the payment of severance amounts and labor claims. Although employees’ rights under applicable labor legislation remain protected, claims existing as of the date the judicial reorganization petition was filed become subject to the terms and conditions established under the reorganization plan.

The case highlights the importance of companies conducting restructuring processes with careful planning, effective management of labor liabilities and a strong focus on legal certainty.