O unemployment insurance it’s the FGTS (Fundo de Garantia do Tempo de Serviço) are in the sights of the Group of Higher Labor Studies (GAET). In a recent study, experts suggested ending the 40% termination penalty on the FGTS, among other changes.
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While many workers fear that the benefits may run out, this is just a study. So far, the bill has not progressed and there is no sign that it will actually be evaluated by Congress.
Even so, discussions on the topic turned the yellow light on for many workers and experts. The main concern is that the proposal presented by the group created by the Minister of Economy, Paulo Guedes, will gain strength among members of the government.
What is the proposal?
The plan is to create a fund that would be held by employers’ deposits, but not in each worker’s name. The 40% fine on the FGTS balance for workers dismissed without just cause would be abolished.
The Worker Support Fund (FAT) would manage a single unemployment protection fund, with flexible access to the FGTS at any time, contrary to what happens today.
Odds of approval
As mentioned, the proposal faced a lot of resistance among workers and experts. In addition, Guedes even took a position against the reduction of FGTS collection.
For this reason, it is unlikely that it will be forwarded to the National Congress in the short term, especially in an election year. Without changes, the study should not get off the ground, and the 40% FGTS fine should be maintained, as well as unemployment insurance.