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The Supreme Federal Court confirms Brazil's withdrawal from ILO Convention 158 and validates the possibility of dismissal without cause.

May 30, 2023

By: Rafael Mello and Israel Cruz

In a landmark decision, the Brazilian Supreme Court (STF) has validated Brazil's withdrawal from Convention 158 of the International Labour Organization (ILO). The decision was made in a trial that lasted 26 years, marked by several requests for review.

ILO Convention 158, from which Brazil withdrew in 1996 by decree of then-President Fernando Henrique Cardoso, prevents employers from firing employees without justification. The validation of the decree, in practice, allows Brazilian employers to continue to dismiss their employees without having to provide a reason.

However, the Supreme Court's decision included an important caveat. The majority of the justices decided that, from now on, any denunciation of international treaties by the President of the Republic, provided that these treaties have been approved by Congress, will require Congressional approval to produce effects on the domestic legal system.

This lawsuit was filed in 1997 by the National Confederation of Agricultural Workers (Contag). Contag argued that the presidential decree that withdrew Brazil from ILO Convention 158 was unconstitutional, since the government could not process and deliberate on the complaint without it being effectively discussed in Congress, which originally approved and enacted the Convention.

The majority, which included ministers and former ministers Nelson Jobim, Teori Zavaski, Dias Toffoli, Gilmar Mendes, André Mendonça and Nunes Marques, voted to dismiss the action, maintaining FHC's decree. However, these ministers also determined that future denunciations of international treaties by the President of the Republic will need to be approved by Congress to have effects on domestic law.

It is important to note that the ruling has not yet been published.

If you have any questions about the topics covered in this publication, please contact any of the lawyers listed below or your usual Mazzucco&Mello contact.

Rafael Mello

+55 11 3090-7304

rafael.mello@br-mm.com

Israel Cruz

+55 11 3090-9195

israel.cruz@br-mm.com

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