Flash News NA 28/02/2024
Amends to the legal regimes of the Labour Compensation Fund and the Labour Compensation Guarantee Fund in Portugal
The legal regimes of the Work Compensation Fund (FCT) and the Guarantee Fund for Work Compensation (FGCT) have changed with the publication of DL 115/2023, of December 15th.
Regarding the FCT, the changes are profound, highlighting the definitive cessation of some of the employers' obligations, including making deliveries to the Fund, the extinction of employers' debts to the FCT and the change of the purposes for which it can be mobilized. Following these changes, the Fund will no longer be structured around individual registration accounts per employee, which will merge into a single global account per employer.
What are the main impacts of this Decree-Law?
The FCT becomes a closed Fund, definitively ceasing both the obligation to register new employers and insert new employment contracts, the obligation to update existing contracts, and the obligation to make deliveries to the Fund.
The Fund's purpose of ensuring the reimbursement of up to 50% of the compensation due upon termination of the employment contract of workers included in the FCT is maintained, but this purpose is combined with financing the qualification and certified training of workers, support for costs and investments in workers' housing and support for other investments of mutual interest for employers and workers, namely refectories and daycare centres.
How does the employer know how much of the Fund they hold?
The number of FCT participation units held by the employer will be subject to consultation, at any time, on the Compensation Funds at www.fundoscompensacao.pt , as soon as the procedure for merging the individual accounts into a single one employer's global account is completed. The value in euros of the employer's global account is, always, the result of the product between the number of participation units held and their unit value.
Can the employer at any time request reimbursement of the entire capital held with the FCT?
Until 31/12/2026, the employer may request reimbursement of part, or all of the capital held with the FCT, as long as it is for the purposes set out in the law and the conditions imposed therein are met.
Can a refund request be made for one or more of the purposes?
A reimbursement request may include funds intended for one or more of the purposes set out in the law and there are no quantitative limits on the amount to be reimbursed, other than, of course, the value of the employer's global balance.
Source:
DL 115/2023, de 15’Dez – FAQ - Fundos de Compensação (fundoscompensacao.pt)
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