By José Carlos Wahle, Firm: Veirano Advogados

A Sao Paulo Court has ruled in favour of giving protection against dismissal to workers in the IT sector.

On 28 August 2019, the Regional Labor Court of São Paulo gave its ruling in the collective proceeding to arbitrate a dispute around an unsettled collective bargaining agreement for 2019 applicable to data processing, computing and IT employees in the State of São Paulo. The core issue of the dispute was the annual salary adjustment, but the parties also disagreed over other collective provisions on employment and benefits. The court decided in favour of temporary protection for the workers against involuntary dismissal, counting from the date of judgment. The decision is silent on whether this protection would allow the employer to dismiss employees and indemnify them instead, but there are arguments to support it because such a provision aims at providing economic protection for employees.