FCT and FGCT

The FCT (Employment Compensation Fund) and the FGCT (Employment Compensation Guarantee Fund) are individual and mandatory membership funds, by the employer, for all new labour contracts celebrated under the Employment Code from the 1st october of 2013 (other than Labour Contracts celebrated with public entities referred in the Nrs. 1 to 4 of the 3º article of the Law 12-A/2008 of february 27 and very short term Labour Contracts, regulated in the 142º article of Employment Code). These Funds seek to ensure to workers the payment up to 50% of the compensation they're entitled to for labour contract ceasing (estimated as predicted in the 366º article of the Employment Code). The FCT is an individual capitalisation fund, that seeks to ensure the payment up to half of the payment of the due compensation for Labour Contract ceasing and replys up to the limit of the delivered amounts by the employer and eventual positive valorisation. Alternatively to FCT, the employer may adhere to an Equivalent Mechanism (ME). The ME is an alternative to FCT, chosen by the employer and managed by a private organization subject to the Portugal Bank or Portugal Assurance Institute supervision. The ME system is, genericaly, the same applyed to FCT, with a relevant difference: in contrast to FCT, the employer may opt for having some workers included in a ME and others in a different one, as long as thereof doesn't reuslt discriminatory practice reporting to any worker. The FGCT is a mutual fund, that seeks to ensure the necessary value to the covering of half of the compensation value due to Labour Contract ceasing, subtracted from the amount already payed by the employer to the worker. The FGCT adhesion opertes automatically with the employer's  FCT or ME membership. The employee may actuate the FGCT whenever the employer doesn't perform, totally or partially, the due payment, receiving the necessary value to cover half of the due compensation value, subtracted of the amount already payed by the employer to the worker. The deliveries are payed 12 times a year, monthly, between the 10 ant the 20 of the following month and respesct to 12 seniority and base retributions for each worker. The FCT value corresponds to 0,925 % of seniority and base retributions due to each worker. The FGCT value corresponds to 0,075 % of seniority and base retributions due to each worker covered by the FCT or ME. In case of labour contract ceasing that gives the right to the compensation estimated as prescribed in the Employment Code, the employer pays to the worker the full amount of the compensation value, with roght to FCT refund. In case of labour contract ceasing that doesn't determine the compensation payment obligation, the FCT refunded value reverts to the employer. At Domingos Salvador, the FCT and FGCT bond communication, alteration or ceasing and the relative monthly payment spils, is one of the services that we can render to your company. Consult us for further explanations. Images credits: freepik.com /dryicons.com