Brazil FGTS: New judicial rules and prescription periods

The Superior Labor Court (TST) has established new rules regarding judicial competence for FGTS (Severance Indemnity Fund) withdrawal lawsuits. Under the decision for 'Tema 32', the jurisdiction depends on the reason for the withdrawal request.

The Labor Court remains responsible for cases where the withdrawal is linked to the termination or suspension of the employment relationship, such as dismissal without cause, indirect rescission, or company extinction.

However, requests based on factors unrelated to the employment bond—such as serious illness, retirement, death of the holder, home financing, or public calamity—must now be handled by the common justice system (state or federal).

Additionally, regarding the statute of limitations, the Supreme Federal Court (STF) maintains that the period to legally claim unmade FGTS deposits is five years. Workers must also observe the constitutional two-year limit to file a labor lawsuit following the termination of their employment contract.