The Government Formalized the Labour Assistance Fund: How the New Compensation System Will Work
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12 Articles
The Labour Assistance Funds (FAL) have been in operation since November 2026. The instrument will change the redundancy payments by means of resources provided by employers and administered by the CNV.
The National Government regulated the Labour Assistance Fund (FAL), the system provided for in the Labour Modernization Act to finance the payment of severance payments through specific funds constituted by employers and administered under the supervision of the National Securities Commission (CNV). The measure was formalized by Decree 408/2026, published on Monday in the Official Gazette, which sets out the conditions for the operation of the s…
The measure was formalized by Decree 408/2026, which formalized the regime created by the Labour Modernization Act and established its operating framework. The system can be implemented through joint investment funds or financial trusts supervised by the National Securities Commission and will have specific tax benefits. Read more
The National Government formalized the regulation of the Labour Assistance Fund (FAL), a key tool provided for in the Labour Modernization Act. Decree 408/2026, published this Monday in the Official Gazette, established the operational guidelines for this mechanism that seeks to transform the financing of dismissal compensation in the private sector. What is it and how will the Labour Assistance Fund operate? The system is based on the creation …
The National Government put an end to the traditional system of compensation and regulated the Labour Assistance Fund, FAL, the mechanism provided for in the Labour Modernization Act to finance dismissals through employers' contributions; the measure was formalized by Decree 408/2026 published on Monday in the Official Gazette; the rule defines how the regime will operate, who will contribute and how compensation will be paid from November onwar…
It is a system provided for in the Labour Modernization Act; it also defined who should contribute, how the funds will be administered and when they will become operational. The National Government regulated the Labour Assistance Fund (FAL), one of the central points of the labour reform included in the Labour Modernization Act; the measure was formalized through Decree 408/2026 and establishes the operation of the new system to finance redundan…
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