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Labor Court Ruling Recognizes Proportional Vacation Pay in Just Cause, Citing ILO Convention 132, and Signals Significant Change for Terminations Across the Country
The Labor Court issued an unprecedented ruling: even in cases of dismissal for just cause, the employee is entitled to receive proportional vacation pay. In the case reviewed, the 3rd Chamber of the TST applied ILO Convention 132 and dismissed the traditional understanding that denied payment, opening a precedent with a direct impact on the calculation of severance pay.
According to the process report, a warehouseman from Rio Grande do Sul, dismissed for just cause, obtained in court the right to proportional vacation pay. The Labor Court rejected the company’s appeal and, by the vote of Minister Alberto Balazeiro, recognized that international human rights standards — such as Convention 132 — should prevail when they provide more favorable protection to the worker.
What Exactly Changed According to the Labor Court
Up until now, the usual practice was to pay only the salary balance and any accrued vacation, denying proportionality when dismissal was for just cause.
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With the ruling, the Labor Court validates proportional payment, aligning itself with the text of ILO Convention 132, which makes no distinction regarding the form of dismissal.
The prevailing vote observed that Article 146 of the CLT and Summary 171 of the TST — the basis for denying proportional vacation pay in cases of just cause — must be overcome when confronted with an international human rights treaty currently in force in Brazil.
This legal reasoning represents a turning point, as it grants protective hierarchy to ILO guarantees on vacation matters.
How the Ruling May Affect Companies and Workers
For workers, the severance may increase: those close to completing a new accrual period (for example, 1 year and 5 months of contract) may receive the proportional fraction in addition to any accrued vacation, even in cases of just cause.
In practice, more funds enter the settlement and reduce the “gap” between the time actually worked and what was compensated.
For companies, the risk of labor liabilities increases if proportionality is not paid administratively.
The trend is for increased litigation until the understanding is consolidated — either through internal uniformity in the TST or potential regulatory adjustments.
Adjusting HR routines and calculation systems becomes prudent to reduce disputes and later costs.
The Legal Basis Invoked by the Labor Court
The central foundation is ILO Convention 132, incorporated into Brazilian law, which guarantees paid annual leave without restricting the right based on the method of exit.
The Labor Court emphasized that international human rights treaties should guide the interpretation in favor of the employee, especially when the domestic law is less protective.
This control of conventionality has already appeared in other labor issues and reinforces the idea that the ILO acts as a civilizational floor in labor relations.
By applying Convention 132, the TST signals harmonization with international standards, strengthening predictability and legal security in the medium term.
What Counts Now in the Calculation of Severance
In the scenario outlined by the ruling, the company must:
Pay the salary balance and any accrued vacation, if applicable;
Pay proportional vacation (1/12 per month worked in the new accrual period), even in cases of just cause;
Add 1/3 constitutional on the vacation amounts due.
Attention: other typical rights of dismissal for just cause (such as 40% FGTS fine, notice pay, and FGTS withdrawal) do not apply — the ruling specifically affects proportional vacation pay.
This prevents expansive interpretations and maintains consistency in just cause sanctions with the minimum non-disposable safeguarded by Convention 132.
What to Observe Moving Forward
For employers, mapping recent cases of just cause and recalculating proportional vacation can reduce risk.
Training HR/payroll teams and adjusting payroll systems helps to comply with the new guidelines without surprises.
Clear internal policies regarding terminations and the verification of accrual periods minimize disputes.
For workers, keeping pay stubs, time cards, and TRCT facilitates proof of the proportional period.
Consulting a lawyer may indicate whether it is worth negotiating administratively or filing a claim.
On both sides, keeping up with new rulings and any eventual uniformizations from the TST will provide predictability.
The ruling from the Labor Court represents concrete change: proportional vacation pay is now due even in cases of just cause, under the auspices of ILO Convention 132.
Companies gain predictability if they adapt now; workers have a reinforced right to seek the supplemental severance payment.
This issue is likely to consolidate, and those who take the lead in adjustments reduce conflict and cost.
In your view, does the Labor Court make the right call by guaranteeing proportional vacation even in cases of just cause, or could this encourage abuses? If you work in HR, how do you plan to adjust calculations? And if you are a worker, have you been in a similar situation? Share in the comments — your experience helps guide those living through this change now.
Gostei, mas seria melhor se vale-se também para a multa de quarta por cento do FGTS, pois ele e que prejudica mas nós trabalhamos quando e demitido por justa causa.
Maus uma vez o médioe pequeno empresário pagando a conta uma vergonha só direitos…e a vida do pequeno e médio vai ladeira abaixo essa e a justiça do trabalhador..
Fui demitido por justa causa, devido a ter um cargo de confiança a nova gestão decidiu que o que eu fazia era errado. Mesmo tendo altonomia dado pela antiga gestão.
Isso já fazem 05 anos.
Eu tenho direito ??
se vc saiu da empresa a mais de 5 anos, não tem direito de pleitear tal direito na Justiça do Trabalho, pois o prazo para ingressar com reclamatória trabalhistas é de 2 anos após o termino do contrato.