O Time and Service Guarantee Fund (FGTS)), came into force on January 1, 1967 and was conceived by Roberto Campos, Minister of Planning, in the government of Marechal Castello Branco Campos. This still in the Military dictatorship.
To put into practice, two articles of the Consolidation of Labor Laws (CLT) are no longer valid. One was the indemnity of one month's salary per year of work in cases of unreasonable dismissal, and the second was the worker's stability in a job that had been working for at least ten years.
Several arguments were made to the people to convince them that the FGTS was a good idea. They claimed stability for the employee, mainly due to the possibility of receiving a fund even if the dismissal was without just cause.
Index
- What is FGTS?
- Who is entitled to the FGTS?
- FGTS inactive x active
- FGTS withdrawals
What is FGTS?
The FGTS was created thinking of workers who were fired without just cause. For this, a Caixa account, with the name of each employee, must be created linked to the employment contract.
Then, at the beginning of each month, employers deposit in this account the amount corresponding to 8% of the employees' salary. The total of these amounts deposited monthly belong to the workers and thus constitute the FGTS.
Who is entitled to the FGTS?
It is important to know that the FGTS cannot be deducted from the salary, as it is a employer's obligation. The workers who are entitled to the FGTS are:
- Rural workers;
- Temporary workers;
- Intermittent workers;
- Individual workers;
- Saddler workers;
- Professional athletes;
- Housekeeper;
- Non-employed director can also be assimilated to other workers under the FGTS regime.
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FGTS inactive x active
the withdrawal of FGTS inactive it was a government measure to stimulate the country's economy. This with accounts linked until December 31, 2015.
From the moment the employee resigns or is fired for just cause, the account becomes inactive, but still carries the employee's name and earns interest.
Thus, workers who resigned or were fired for just cause and who were not able to withdraw previously, had the right to withdraw FGTS.
Cases may appear where the account appears with the active FGTS. This happens because the employer has not contacted Caixa to register the end of the employment relationship.
To solve this, it is necessary to go to a Caixa branch and present the termination of employment between the company and the worker, in addition to the low in the work permit.
FGTS withdrawals
In 2017, the Temer government announced that those who were dismissed or resigned for just cause until December 31, 2015, would have the right to withdraw the inactive FGTS. This was a novelty, as this withdrawal could only be carried out 3 years after the dismissal.
That is, those who were employed and those who had several inactive accounts would have the right to withdraw the inactive FGTS in 2015. Withdrawals started on March 10, 2017 and lasted until July 14, 2017.
Jair Bolsonaro's government also announced the FGTS withdrawal process in 2019. But this time, FGTS active and inactive. Those who withdraw the money still have the right to withdraw the FGTS in case of unfair dismissal.
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