The worker employed on a regime CLT may lose one of the benefits in case of unfair dismissal: a fine of 40% of FGTS. This is one of the measures provided for in the package of cost reduction measures prepared by the Ministry of Finance and Planning.
According to the O Globo newspaper, the government’s assessment is that this benefit added to unemployment insuranceultimately discourages staying in work, especially when the job market is booming.
The team working on the spending review package is targeting a cost reduction of R$30 billion to R$50 billion.
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One option being considered by the government is for part of the 40% fine paid by the employer to be used to “fund” unemployment benefits. In this sense, the government will spend less on unemployment benefits.
The government is also considering turning the fine for the worker into a tax for the company, as the intention of the policy is to punish the behavior of the employer who fires a lot. Thus, companies or sectors with a higher layoff rate will pay a higher tax rate.
