The fight for fair correction of the FGTS | ADI 5059

November 14, 2023

What is FGTS?

O Severance Indemnity Fund (FGTS) serves as a financial shield for workers dismissed without just cause. Currently, the correction mechanism for this fund triggers intense discussions.

What is the STF’s ADI 5090?

ADI 5090 is an action being processed by the STF whose main objective is to question the constitutionality of the FGTS monetary correction by the Reference Rate (TR). The argument presented is that the TR does not adequately correct the worker's values ​​compared to inflation. Above all, this causes harm to workers. Therefore, the use of TR as an index for monetary correction of the FGTS violates workers' property rights. This is because the TR does not preserve the purchasing power of deposits made in the Fund. In other words, it represents a kind of confiscation of the worker's savings.

How is the ADI 5090 trial going?

So far, the trial is 3-0 in favor of the workers. However, the judgment of ADI 5090 was postponed at the request of Minister Cristiano Zanin. The trial must resume within 90 days.

STF precedent

The Supreme Court has already established its position in similar cases. Specifically, in ADC 58 and 59, it declared the unconstitutionality of the TR in updating labor debts, opting for IPCA-E and Selic as substitutes.

Who can file a lawsuit?

Workers who have had their card registered can demand correction of the FGTS, using the judicial route for this purpose.

Is there a deadline to file the action?

There is no deadline for filing the action. However, it is speculated that the STF may limit the right of review to those who claim until the conclusion of the ADI 5090 trial. However, workers who have had their license registered can demand correction of the FGTS, using the judicial route for this purpose.

If you have any questions about this topic, please contact our team.

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