São Paulo Labor Court Nullifies Stone Layoffs, Orders Immediate Reinstatement

Overview

• Judge Rita de Cássia Martinez declared the March 10 dismissals void for lack of prior negotiation with the union and ordered the rehiring of the affected workers.
• Stone faces a daily fine of R$500 per dismissed worker if it fails to reinstate them, and a R$10,000-per-worker penalty for any future collective cuts without union participation.
• Sindpd-SP, supported by Fenati, filed the collective action seeking nullification of the cuts, reinstatement, and damages of five salaries per worker plus at least R$10,000 per worker in collective moral damages.
• Stone characterized the cuts as a targeted efficiency adjustment within an ongoing simplification effort and said operations remain normal with no impact to customers or partners.
• The layoffs affected several hundred employees—reports cite about 370, roughly 3% of headcount—took place shortly after the Linx sale to Totvs and followed a quarter with R$707 million in profit, while the union alleges protected workers were among those dismissed.