New employment contract termination term starts in November

Document is essential for withdrawing unemployment insurance and FGTS.

The mandatory use of the new Employment Contract Termination Term (TRCT) starts to take effect as of November this year, recalled the Ministry of Labor recalled this Monday (22).

The deadline for the use of the old document, without prejudice to the worker, ends on October 31, as determined by Ordinance number 1,057, of July 2012, informed the federal government.

"As of this date [November], Caixa Econômica Federal will require the presentation of the updated model for the payment of unemployment insurance and FGTS", added the Ministry of Labor.

The change in the document, according to the government, was aimed at "giving more clarity and security to the employer and the worker in relation to the severance payments paid and received at the end of the employment contract".

The document, reminded the government, is mandatory for contractual termination and "essential for workers to be able to withdraw unemployment insurance and the Severance Pay Fund (FGTS)".

Differences
Overtime, for example, is currently paid on the basis of different additional amounts, as provided by labor legislation, depending on the time the work was carried out, reported the Ministry of Labor.

In the old termination term, these amounts were added up and posted, without discrimination, by the total hours worked in a single field. In the new form, the information will be detailed, explained the government.

“In the new term, there are fields for the employer to enter each amount separately. This will give more security to the employer, who will protect himself from any questions in the Labor Court, and to the worker, because he will know exactly what he will receive. The change will also facilitate the conference work done by the homologating agent for the Employment Contract Termination Term ”, said the Secretary of Labor Relations of the Ministry of Labor and Employment (MTE), Messias Melo.

Homologation
Printed in two copies, one for the employer and another for the employee, the new TRCT comes with the Homologation Term (TH), for contracts with more than one year duration that require assistance from the labor union or the Ministry of Labor, and the Term of Discharge (TQ), for contracts that are less than one year in duration and do not require union assistance, the government reported.

The Homologation Terms and the Discharge Term, according to the Ministry of Labor, are printed in four copies, one for the employer and three for the employee, two of which are used by the worker to withdraw the FGTS and request the receipt of unemployment insurance.