There is no labor succession in judicial reorganization, TST rules.

The Sixth Panel of the Superior Labor Court (TST) unanimously decided this Thursday (May 7th) that there is no labor succession in the case of judicial reorganization. The ruling was given in the case of a professional from the city of Fazenda Vilanova (RS), who was claiming payment of severance pay from the company that acquired the company where she worked.

Initially hired by Santa Rita Comércio Indústria e Representação, the worker claimed that her contract was preserved when the company acquired Laticínios BG, which was part of the LBR Lácteos group. Some time later, Santa Rita entered judicial reorganization and had some of its units acquired by Lactalis do Brasil.

The court of the 2nd Labor Court of the city of Estrela (RS) had decided that the employer had transferred his contract to Lactalis, which did not constitute new employment — therefore, the successor company would be responsible for the entirety of the judgment. The Regional Labor Court of the 4th Region reached the same understanding.

An appeal reached the TST (Superior Labor Court), and the higher court ruled in favor of Lactalis, understanding that the company cannot be held liable for debts incurred before the acquisition of Santa Rita.

According to the rapporteur of the appeal, Minister Kátia Arruda, the Supreme Federal Court (STF) established in the judgment of ADI 3934 that "the successful bidder is not responsible for the debtor's obligations in the case of the sale of branches or isolated production units that occurred during the course of judicial reorganization." (Information from the press office of the Superior Labor Court.)

RR-20218-39.2016.5.04.0782

Source: Conjur