Companies that employ workers with contracts lasting less than 60 days will be exempted to register in Labor Compensation Funds (FCT) and Labor Compensation Guarantee (FGCT) and making their discounts. The proposal was made by the Government on Tuesday during a meeting of the Permanent Commission for Social Dialogue, approaching the demands of employers who argued that the contracts up to three months should stay out of this obligation.
The changes, which were the subject of agreement between the employers and the UGT, go further than the draft Decree-Law that was on the table at the beginning of the meeting and pointed to only be exempted discounts the lower term contracts to a month.
“It is improvements that ensure the protection of workers, but also a reduction in procedural costs the companies themselves,” said Minister of Employment and Social Security, Pedro Mota Soares , welcoming the agreement.
As you would expect employers’ confederations left the meeting satisfied. “I leave here satisfied. We define terms, limits, clarified the reporting deadlines, getting set 60 days for the same communication. They also set 60 days to start off for the Fund. We managed to get an agreement that seems positive,” he said president of the Business Confederation of Portugal (CIP), António Saraiva.
Industry, trade and agriculture advocated that all contracts up to three months should be exempted from the obligation to register and to deduct the funds due to bureaucratic costs that these procedures entailed for companies and were much higher than the value rescued when the contract ceased. The government finally agreed to go up to two months, a significant advance over the 15-day limit now required by law.
On Monday, speaking to PUBLIC, UGT said that he accepted only expand duration of contracts exempt from discounts for the FCT and the FGCT if these contracts must be recorded in the back.
This claim turned out to fall, with the condition that there will be a biannual evaluation to ensure that these 60 days “will just figure as long as necessary for employers to adapt to the bureaucratic procedures,” explained the president of the central, Lucinda Damaso.
The CGTP, who missed the Agreement, considers that the amendment “causes an emptying “of funds.” If we consider that more and more companies are hiring workers in precarious regime and today here is restricted the scope of background, we have to conclude that the fund does not cover almost anyone, “warned Joaquim Dionysus, the executive committee of CGTP.
The compensation funds were created in 2013 (following the reduction of redundancy payments) and cover all new contracts since October this year, forcing companies to discount 0.925% of salary for the FCT and 0.075% for FGCT. The aim is to guarantee payment of at least 50% of the amount of compensation to which workers are entitled when the contract ends. The now agreed changes apply only to contracts signed after the entry into force of Decree-law.
76 million for check-forming
Also on Tuesday, the minister confirmed that the check-formation covers 35 hours of mandatory training that companies have to give workers, such as PUBLIC reported.
After the meeting with the social partners, Mota Soares announced that the measure will have a budget of 67 million euros by 2020, 60 million euros financed by the State Budget (OE) and seven million euros for the new Community Support Framework. The aim is to cover “predictably” about 35 000 unemployed and 180 thousand active employees.
“We want to pass the worker, the unemployed or the company itself to choose their training process. That is, are not subject exclusively to the training offer that is. Passes to have a capacity of choice by the worker himself, by himself unemployed or by the company itself, “he said.
This support covers 35 hours of mandatory training prescribed by law and are a responsibility of the company. “You can pay, there is no question about that matter because it’s always qualifying a worker. The contributions paid by workers to Social Security, a part is always to training,” he confirmed the minister.
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