Labor Compensation Fund (FCT): How to Use Accumulated Balances to Fund Your Team's Training

The Labor Compensation Fund (FCT) was originally created to guarantee partial payment of severance pay when employment contracts end. However, the changes introduced by the Decent Work Agenda ended companies' mandatory contributions and set new rules for using the accumulated funds.

Today, the capital held in this fund can be redeemed by organizations for specific investments. One of the smartest and most profitable authorized uses is precisely funding employees' vocational training, which lets you put that capital back into your business's productivity.

For companies with accumulated FCT balances, this is the ideal opportunity to upskill their teams and meet their legal training obligations, with no impact on current cash flow.

⚠️ Watch out for the deadline to request reimbursement

Companies only have until December 31, 2026 to access and apply to use their FCT balances.

After this date, unclaimed or unused amounts will be permanently transferred to the Labor Compensation Guarantee Fund (FGCT) and will no longer be available to companies.

How do you put this process into practice?

Using the balance requires submitting an application on the official FCT platform. The company must link the application to the intended training courses and ensure that the training provider meets the certification requirements set by law.

. Alves & Rasteiro is a certified training provider and is ready to support your company throughout this process. We help your organization to:

• Identify training needs.
• Structure the right training plan.
• Ensure the training is delivered in compliance with the legal requirements.

Talk to us and plan your team's training with your FCT balance.