When a worker decides to resign from their job, one of the concerns that arises is the fate of the Severance Indemnity Fund (FGTS) that was accumulated during the period of employment at the company. 

The FGTS (Severance Indemnity Fund) is a right guaranteed to workers governed by the Consolidation of Labor Laws (CLT) and has specific rules regarding its use and withdrawal. 

What is the FGTS?

The Severance Indemnity Fund (FGTS), created in 1966, is a financial reserve designed to protect workers in cases of dismissal without just cause, among other specific situations. 

Monthly, the employer deposits an amount equivalent to 8% of the employee's salary into an account linked to the FGTS (Brazilian Severance Indemnity Fund) at Caixa Econômica Federal (Brazilian Federal Savings Bank). This fund is adjusted for inflation and earns interest, serving as a form of forced savings for the worker.

FGTS situation in case of resignation.

When an employee decides to resign, the situation regarding the accumulated FGTS (Brazilian severance fund) is not the same as in cases of dismissal without just cause. In the case of resignation at the employee's request, they are not entitled to withdraw the full amount immediately after leaving the company.

What happens to the withheld FGTS (Brazilian employee severance fund)?

The FGTS (Brazilian severance pay fund) withheld due to resignation remains deposited in the worker's linked account at Caixa Econômica Federal (Brazilian federal savings bank). This amount remains available and follows the general rules for FGTS withdrawals established by current legislation.

Possibilities for withdrawing FGTS funds after resigning from your job.

Although it's not possible to immediately withdraw FGTS funds after resigning, there are some specific situations in which the worker can access the resources:

  • Buying your own homeThe worker can use it to buy a property, whether new or used, paying off or reducing the outstanding balance or paying part of the installments.
  • Death of the workerIn the event of the death of the account holder of the FGTS (Brazilian Severance Indemnity Fund), the dependents are entitled to withdraw the funds.
  • Serious illnessIn cases of serious illnesses, such as cancer, HIV, and other conditions specified by law, it is possible to withdraw funds from the FGTS (Brazilian employee severance pay fund).
  • RetirementUpon retirement, workers can withdraw the total balance from their FGTS (Brazilian employee severance fund).
  • Inactive accountIf a worker goes three years without any deposits being recorded in their linked account, they can request a withdrawal of the balance, even if they don't meet the above criteria.

How to access your FGTS (Brazilian severance fund) after resigning from your job.

To access accumulated FGTS funds after resigning from their job, workers must be aware of the procedures and documentation required for each specific withdrawal situation. 

Typically, access to these resources requires the presentation of documents that prove the need or eligibility under the cases permitted by law.

Alternatives to withdrawing FGTS funds

If the employee does not meet any of the criteria that allow withdrawals after resignation, they may choose to leave the funds invested in the linked account. 

The FGTS (Brazilian Severance Indemnity Fund) continues to accrue interest and is adjusted for inflation, functioning as a financial reserve for potential future needs.

Knowing your rights

The Severance Indemnity Fund (FGTS) accumulated by a worker who resigns remains linked to their account at Caixa Econômica Federal. 

Although you cannot withdraw it immediately, there are several legal ways to access these funds, such as buying a home, in cases of serious illness, retirement, and others. 

It is important for workers to know their rights and how to use their FGTS (Brazilian severance pay fund), thus ensuring conscious and secure financial management of their resources.

See also: Security guard jobs: 6 companies hiring

July 5, 2024