On December 15th 2023, it was published the decree-law amending the legal regimes of the Labour Compensation Fund (LCF) and the Labour Compensation Guarantee Fund (LCGF).
As already announced when the latest amendments to the Labour Code came into force on May 1st 2023, and as part of the Decent Work Agenda, only the identification of the LCGF is now mandatory and no longer the LCF, without prejudice to the fact that the obligations relating to LCGF have been suspended for the duration of the medium-term agreement to improve incomes, wages and competitiveness and, consequently, the obligation to make the monthly payments due to the LCGF.
With the entry into force of the referred Decree-Law, it is foreseen that the FCT will be converted into a closed accounting fund, made up of employers' global accounts to be used by the latter, with the purposes of:
a) Supporting the costs of and investments in employees' housing;
b) Support other investments made by mutual agreement between employers and employees' representative structures, namely kindergartens and canteens;
c) To finance the qualification and certified training of employees;
d) Pay up to 50 % of the compensation due on termination of the employment contract of employees included in the LCF.
It should also be noted that with the entry into force of the aforementioned Decree-Law, it is extinguished:
a) The obligation to adhere to and pay contributions to the LCF;
b) The obligation to adhere to the equivalent mechanism as an alternative to the LCF; and
c) Ongoing administrative offence proceedings and debts relating to overdue deliveries to the LCF, as well as any enforcement proceedings initiated and in progress with a view to the corresponding collection and default interest.
The changes to this legal regime come into force on January 1st 2024.
