The Severance Indemnity Fund (FGTS), known by the acronym, is a right guaranteed to Brazilian workers governed by the Consolidation of Labor Laws (CLT). Created to protect workers in the event of unfair dismissal, the FGTS is a mandatory deposit fund composed of a percentage of the employee's salary.
What is the FGTS?
The Severance Indemnity Fund (FGTS) was established by Law No. 5,107/1966 and is currently regulated by Law No. 8,036/1990. It functions as a form of compulsory savings, where employers are required to deposit monthly an amount equivalent to 8% of the employee's salary in an account linked to the FGTS at Caixa Econômica Federal.
Funds deposited in the FGTS are used for various purposes, such as financing housing programs, basic sanitation, and urban infrastructure. Furthermore, workers can withdraw the balance from their FGTS account in specific cases, such as unfair dismissal, retirement, home purchase, and others.
Employee FGTS discount: is it possible?
The main question that arises among workers is whether the employer can deduct the FGTS directly from the employee's salary. It is important to clarify that, according to Brazilian law, the FGTS cannot be deducted from the employee's salary under any circumstances.
The FGTS deposit is the sole responsibility of the employer and cannot be transferred or passed on to the employee. Failure to comply with this obligation subjects the employer to severe penalties, including fines and administrative sanctions.
Specific situations and possible questions
Amid the complexities of labor relations, specific situations arise that require detailed clarification. Interns, apprentices, and temporary workers, for example, frequently question their rights regarding the FGTS (Unemployment Fund for Severance Indemnity).
Brazilian labor law clearly defines the conditions under which FGTS must be deposited, but these categories have their own peculiarities. Similarly, domestic workers face different scenarios, as the mandatory FGTS deposit for this category was established more recently.
This segment explores these nuances, offering in-depth understanding and answers to common questions that permeate these specific circumstances.
Interns and temporary workers
In the case of interns, apprentices, and temporary workers, the employer is not required to deposit FGTS funds. These categories of workers are not entitled to FGTS funds, as they do not fall under the definition of a worker under the CLT.
Domestic workers
For domestic workers, the FGTS is also not mandatory. The mandatory FGTS deposit for domestic employees was only established by Complementary Law No. 150/2015.
Agreement between employee and employer
Under no circumstances may there be an agreement to deduct FGTS (Unemployment Fund for Severance Indemnity) from an employee's salary. Any such attempt constitutes a violation of labor laws and must be reported to the appropriate agencies, such as the Public Prosecutor's Office of Labor and the Regional Superintendence of Labor.
Consequences of the employer not depositing the FGTS
Failure by an employer to comply with the FGTS deposit obligation entails several legal and financial consequences. Among them, the following stand out:
- Administrative fine: The employer is subject to an administrative fine, the amount of which may vary depending on the severity of the infraction and the number of workers affected.
- Retroactive collection: The employer must make retroactive collection of amounts not deposited, plus monetary correction and interest.
- Legal action: The worker can file a lawsuit to guarantee the FGTS deposit and seek compensation for the damages caused.
How can I check if the FGTS is being deposited correctly?
Workers can check whether their FGTS is being deposited correctly by accessing the statement provided by Caixa Econômica Federal. This statement can be viewed online on the Caixa website using their NIS (PIS/PASEP) number and a password registered by the worker.
If the worker identifies any irregularity in the FGTS deposit, he/she must immediately notify the employer and, if the situation is not regularized, seek guidance from the competent bodies.
A fundamental right of workers
The FGTS (Fund for Severance Indemnity Fund) is a fundamental right of workers governed by the CLT (Consolidation of Labor Laws), and its deposit is the sole obligation of the employer and cannot be deducted from the employee's salary under any circumstances. Brazilian labor law protects workers against any attempt to circumvent this rule, ensuring mechanisms to ensure compliance with this obligation.
Therefore, it is essential that workers know their rights and are aware of the regularity of FGTS deposits, using the available resources to monitor this important labor guarantee.
See also: When can I withdraw my FGTS withheld? See information
June 20, 2024
Graduated in Literature – Portuguese/English, and creator of the website Successful Writer, seeks to expand everyone's knowledge with relevant information on a variety of topics, as a writer. At Vaga de Emprego RJ, she provides opportunities and tips on the job market.