Just cause is the most severe penalty provided for by the CLT and is therefore an extreme, exceptional measure.
When applied methodically, it protects the business, reinforces management’s authority, and preserves the work environment. Poorly handled, however, it can lead to court reversals, awards of moral damages, and high costs. How to proceed? Rely on a well-structured internal process, assertive legal grounding, and robust evidence.
The CLT lists the hypotheses that may constitute just cause and justify termination for cause, such as dishonesty, repeated negligence, indiscipline/insubordination, breach of confidentiality, and intoxication while on duty. It is also essential to observe internal regulations and policies on the subject.
To substantiate just cause, companies should consider:
1.Sufficient gravity to terminate the employment relationship;
2. Consistent evidence and prompt response;
3. Proportionality (with graduated measures when appropriate);
4. Objective written communication (fact + rule violated, without adjectives).
When the company becomes aware – through a report or the detection of indicia – the situation must be investigated in partnership between Legal and the responsible functions (internal or external), aiming to build a technical, impartial, and auditable dossier:
1. Governance and scope: formal opening, definition of hypotheses (CLT typicity), risk assessment, and timeline;
2. Chain of custody: preservation of evidence with an audit trail;
3. Interviews and internal adversarial process: standardized script and opportunity to be heard;
4. Immediacy, proportionality, and equal treatment: timely response; graduated sanctions when the fact is not extremely serious; and consistent treatment;
5. Concluding report + legal opinion: objective narrative of the facts, breached provisions, and recommendation.
For a sound decision, keep internal codes and policies clear and up to date, anonymous reporting channels and an investigation workflow (Law 14,457/22 for companies with a CIPA), as well as periodic training.
In sum, just cause is exceptional and a last resort. With solid evidence, a prompt and proportionate response, and with Legal/Compliance and the responsible internal functions working together, the company strengthens the decision and minimizes risk.
