Terminating FGTS withdrawals: How to get the most out of them when you lay off workers

Terminating FGTS withdrawals: How to get the most out of them when you lay off workers

In a scenario characterized by economic uncertainty, ending the FGTS withdrawal represents a lifeline for many workers facing the specter of unemployment. The Time in Service Guarantee Fund (FGTS) was created as a mechanism to protect employees and, over time, accumulates an amount that can be crucial in times of need.

The contribution policy stipulates that employers deposit 8% of the employee's salary each month into the FGTS account, without this implying a deduction from the employee's salary. This reserved amount is intended to support the worker in various situations, such as purchasing his own home, cases of serious illness, purchasing orthopedic devices and prosthetics, and most importantly, in cases of unfair dismissal.

How does FGTS withdrawal termination work?

Terminating FGTS withdrawals: How to get the most out of them when you lay off workers

When a worker is dismissed without a legitimate reason, he has the right to withdraw the entire balance deposited in his FGTS account, in addition to receiving a termination penalty of 40% of the total accumulated amount, paid by the employer. Not only does this measure benefit the worker at the time of dismissal, but it acts as a kind of economic buffer, providing financial breathing room while searching for a new job opportunity.

Step by step to request withdrawal and cancellation

The FGTS withdrawal process is completely simplified:

  1. In the event of dismissal, the employer is responsible for reporting the termination of the contract to the eSocial electronic registration system.
  2. Caixa Econômica Federal is automatically notified and provides the worker with a digital key to withdraw.
  3. Withdrawals can be made directly to a bank account linked to the FGTS application, at a Caixa ATM or at lottery outlets, depending on the user's preferences.
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The option to terminate withdrawal by agreement, although it involves a smaller termination penalty (20%), still represents a decisive advantage for the worker, allowing access to up to 80% of the FGTS balance.

Documents required for FGTS withdrawal

For those who choose to withdraw in person, required documents include:

  • Personal identification document with photo;
  • CPF, PIS/PASEP, NIS or NIT number;
  • Labor and Social Security Card (CTPS); or
  • Documentation relevant to the formal termination, if applicable.


Ending the FGTS withdrawal not only symbolizes a tool to protect workers in sensitive moments of their careers, but also reflects the social commitment of labor policies, which aim to reduce negative impacts and enhance the economic well-being of the individual. With proper information and planning, it is possible to maximize the benefits provided by this resource.

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About the Author: Camelia Kirk

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