The FGTS rescission fine is one of the rights guaranteed to the Brazilian worker when a dismissal without just cause occurs. This topic generates many doubts among employees and employers about what penalties can be applied during the termination process.
The FGTS rescission fine is a specific obligation of the employer, who must pay 40% on the balance of all deposits made in the Service Time Guarantee Fund account of the worker throughout the entire period of the contract.
This penalty was created to protect the worker against arbitrary dismissals and guarantee additional financial compensation to the FGTS balance already available in the employee's account. The employer who dismisses without just cause must comply with this obligation along with the other severance payments.
For employers, non-payment of the rescission fine within the legal deadline can result in new labor fines and legal complications, making essential the knowledge of the obligations provided for in Brazilian labor legislation.
