Court suspends injunctions of meal and food voucher companies against government decree
The TRF-3 court suspended favorable injunctions for major meal and food voucher companies against a government decree.
On October 24, Carlos Delgado, president of the TRF-3 (Regional Federal Court of the 3rd Region), ruled in favor of the Brazilian Union, suspending injunctions that benefited major companies in the meal and food voucher market. This legal action was sparked by a request from the AGU (Attorney General's Office), which filed a lawsuit in TRF-3 on February 9, aiming to overturn judicial decisions that had previously provided these companies with a suspension of the government's decree issued by President Lula, which introduced regulatory changes regarding meal and food vouchers.
The primary companies impacted by this decision include VR Benefícios, Pluxee Benefícios, and Vegas Card do Brasil. An additional key player in the sector, Alelo, had previously seen its injunction rejected. In justifying the suspension of these injunctions, Judge Delgado asserted that they posed risks of regulatory fragmentation and instability, as well as exceeding the bounds of individual litigation. Furthermore, he highlighted that maintaining these measures could threaten the stability of the PAT (Worker's Food Program), indicating the broader implications of the ruling on public policy concerning worker benefits.
This decision is crucial as it reflects the judiciary's role in balancing private business interests against regulatory frameworks aimed at ensuring fair practices and considerable protections for workers. It emphasizes the importance of maintaining cohesive regulations in the food and meal voucher sector, which is significant in supporting workers in Brazil, especially amid fluctuating economic conditions following the pandemic.