The Brazilian Ministry of Labor and Employment (“MTE”) described the Length of Service Guarantee Fund Digital (“FGTS Digital”) as “a set of integrated systems that will manage the various processes related to fulfilling the FGTS payment obligation.” According to the MTE, the purpose of this new system is to “promote procedural and technological solutions that facilitate compliance with this obligation and ensure that the amounts owed to workers are effectively individualized in their linked accounts.”
FGTS Digital is regulated by MTE Ordinance No. 3,211, of August 18, 2023 (“MTE Ordinance No. 3,211/2023”), which provides for its implementation in two stages: (a) production environment and limited operation, followed by (b) production environment and effective operation.
Production Environment and Limited Operation
The first stage concluded on January 15, 2024 and served as a testing phase, in which companies were able to check the information that was being declared, and verify whether the data declared in eSocial reflects how it should appear in FGTS Digital.
Production Environment and Effective Operation
With the end of the first stage, preparations began for the implementation of the second stage, which was to begin on January 1. However, due to requests presented to the MTE by several employers—who asked for more time to adjust internal processes—its launch was postponed until March 1, according to the schedule published by the MTE in its Notice No. 4/2023.
What Changes with the Start of the Second Stage?
The second stage will bring mandatory obligations for companies, notably the requirement to keep data updated with the Brazilian Federal Revenue, considering that MTE Ordinance No. 3,211/2023 provides (in Article 5, §4) that information entered in the Brazilian Federal Revenue will be considered valid, for tax acts that may be carried out due to the implementation of FGTS Digital.
The payment slips currently issued by the Conectividade Social system are currently due on the seventh day of the month following their reference date. The new system will change the FGTS collection deadline to the 20th day of the following month.
In addition, employers must use the FGTS Digital slip (“GFD”) for events arising from triggering events occurring from March 1, 2024, the effective date of the second stage of the MTE schedule.
GFD payment will be exclusively handled through Pix (the Brazilian instant payment platform), and the barcode will be replaced by QR code.
FGTS Digital will also have a direct impact on the FGTS Certificate of Regularity (“CRF”), which is mandatory for companies which want to participate in public bidding processes, transfer their domicile abroad, or obtain exemptions and government subsidies, among other services. According to the FGTS Digital Guidance, the CRF will now utilize automatic validation, and a certificate will only be issued after the analysis of all pending issues related to the company’s corporate group.
Importantly, it will still be possible for qualified third parties to access the FGTS Digital , exclusively through a mandate generated by the Electronic Power of Attorney System integrated into the FGTS Digital, which must observe certain rules.
Main Benefits
Among the benefits that come with the implementation of the new system, the MTE highlights: (i) reduction of costs and bureaucracy; (ii) process automation; (iii) greater security, integrity, and reliability of the data retained in the system; (iv) increased transparency and control of procedures; (v) faster issuance of slips and individualization of workers’ payment statements; (vi) integration of environments, and assistance in information management; and (vii) faster deposits and minimization of delays, through Pix.
Conclusion
Examining the particularities of MTE Ordinance No. 3,211/2023, it appears that, beyond the implementation of mandatory tools for those responsible for FGTS collections, it also accounts for automation and the consequent acceleration of the government's inspection processes, which will have access to information in real time. Thus, while it was already essential to enter information correctly in eSocial, companies now have an urgent need to review the data that was entered into the system and observe the new FGTS Digital rules. Possible conflicts or inconsistencies may ultimately have negative effects, such as lawsuits, infractions notices and fines.
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