Mass layoffs in Brazil: must the union take part? Rules for collective dismissal and lay-off

In 2022, the Federal Supreme Court (STF) ruled that mass dismissal of workers requires prior union involvement — meaning the employer must open dialogue with the union before the dismissals, although it does not need the union's authorization (Theme 638). Since 2017, the CLT has said that collective dismissals do not depend on a collective agreement (art. 477-A), but the STF ruling now requires prior negotiation.

Quick summary

• STF, Theme 638 (2022): prior union involvement is required for mass dismissals.
• No union authorization is needed, but prior dialogue is.
• Each worker receives the amounts for dismissal without cause — see Severance pay.
• Alternatives: lay-off (contract suspension for training), negotiated reductions, voluntary redundancy program.
• A voluntary redundancy program (PDV) approved in a collective rule may give a full release of the contract (art. 477-B of the CLT — Brazil's Consolidated Labor Laws).

Lay-off: contract suspension for training

Art. 476-A of the CLT allows the contract to be suspended for 2 to 5 months so the worker can take a training course, provided it is in a collective agreement and the employee agrees. During this period, the worker may receive the professional training grant, paid from the Workers' Support Fund (FAT), and the employer may pay a compensatory allowance.

PDV: read before joining

Voluntary redundancy programs usually offer extra amounts. But if approved in a collective agreement, joining may give a full release of all contract rights, unless expressly reserved. Before joining, calculate what you could still claim — overtime, differences, supplements.

If you were affected by a mass dismissal

1. Check whether the union was called to negotiate beforehand.
2. Check that amounts are paid within 10 days.
3. Apply for unemployment insurance — see Unemployment insurance 2026.
4. If you have job security (pregnancy, accident, CIPA), a collective dismissal does not remove that protection — see Job security.
5. Contact the union or the Public Labor Prosecutor's Office (MPT) if the employer ignored negotiation.

Frequently asked questions

How many dismissals make it a mass dismissal?

The law sets no number. The collective impact, common cause and volume relative to the workforce are assessed.

Is a mass dismissal void without the union?

The lack of prior dialogue may lead to court challenges, including by the union and the MPT.

Read more in this series

• Severance pay: what you receive for each dismissal
• Unemployment insurance 2026
• Employer bankrupt or in judicial reorganization
• Right to strike
• Index: complete guide to labor rights