State companies must justify dismissal of a public employee, STF decides

The Federal Supreme Court (STF) decided, by six votes to three, that public companies and mixed-capital companies must justify dismissals of employees hired through public competition. The trial concluded on Thursday (8).

With the STF’s decision, even in the case of dismissal without just cause, the reasons must be clearly indicated by the state company, in a formal act.

The ministers analyzed the appeal of five employees dismissed without just cause by Banco do Brasil in 1997. After defeat in the Superior Labor Court (TST), they appealed to the Supreme Court asking that the bank be ordered to reinstate them and pay compensation for the years not worked since the dismissal.

Although it was based on the analysis of this specific case, the STF’s decision has general repercussions, that is, it will apply to similar situations. But only in future cases, after the publication of the trial minutes. Therefore, the request from former BB employees was denied.

The ministers still have to establish the thesis of general repercussion, which should be done in a future session.

Minister Alexandre de Moraes, rapporteur of the case, had voted for the validity of the dismissal without just cause. According to him, motivation is not necessary to dismiss employees hired as CLTs.

Moraes pointed out that “the Constitution subjects the labor obligations of public companies to the rules of the CLT”, as is the case with private companies. The vote was accompanied by ministers Gilmar Mendes and Kássio Nunes Marques.

However, the dissenting vote of Minister Luís Roberto Barroso, president of the STF, prevailed. He argued that employees hired through a public examination have the right to know why they are being dismissed.

Barroso maintained, however, that the need to explain the motivation for the dismissal does not require an administrative process, cannot be confused with job stability and should not comply with the requirements for dismissal without just cause.

“Such motivation can consist of any reasonable basis, not requiring it to fall within the hypotheses of just cause in labor legislation,” he stated.

Barroso’s vote was followed by André Mendonça, Cármen Lúcia, Dias Toffoli, Cristiano Zanin and Edson Fachin. Luiz Fux did not participate in the session.

Although they followed Barroso, two ministers partially disagreed. André Mendonça, defended the appeal of the dismissed Banco do Brasil employees. And Fachin understood that it would be necessary to open an administrative process for the dismissal.