On the 15th of December 2023, Decree-Law No. 115/2023 was published, amending the legal regimes of the Work Compensation Fund (FCT) and the Work Compensation Guarantee Fund (FGCT).
FCT:
In accordance with the established legal amendments, the FCT becomes a closed fund, constituted by the overall balance in the employer’s account (the obligation to join and make contributions to the fund definitively ceases). This overall balance is a merger of the individual accounts of each worker.
The value of the employer’s account balance can be mobilized at different periods, based on the available amount (The value can be mobilized between the last quarter of 2023 and December 31, 2026):
- For companies with an available balance up to €400,000, the mobilization of the value can be done up to two times.
- For companies with an available balance exceeding €400,000, the mobilization of the value can be done up to four times.
It is necessary to manage the number of allowed mobilizations because, after 2 or 4 mobilizations that do not total the account balance, the excess is forfeited in favor of the compensation funds.
Decree-Law No. 115/2023 brought changes to the possible purposes of utilizing the available balance:
- Financing of worker qualification and training.
- Support for costs and investments related to worker accommodation; ~
- Support for investments agreed with workers’ representative structures, or with them, notably daycare centers and cafeterias.
- Payment of up to 50% of the compensation for termination of contracts of workers included in the FCT.
To access the respective balance, the employer must request through the compensation funds portal, declaring under a commitment of honor:
- The amount they intend to mobilize.
- The purposes of the mobilization.
- The employer must previously consult the collective representation structures of the workers or proceed with prior communication to the workers, verifying the absence of reasoned opposition.
- If the purpose is to support other investments agreed with representative structures, the same agreement must be presented.
FGCT:
The changes brought by Decree-Law No. 115/2023, of December 15, regarding the Work Compensation Guarantee Fund are as follows:
- The suspension of communication of accession to the FGCT
- The suspension of incurring debts to the FGCT and the procedures for their regularization.