Understanding CAGED: Obligations and Procedures for Companies

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If you work in HR or are registered under the CLT, you have probably heard of the acronym CAGED, which stands for the General Registry of Employed and Unemployed Workers. However, even though you have already come across this term, it is common for people not to understand what it means or what its function is for companies and employees.

To help you with this, in this content we will explore CAGED in detail, from its definition and importance to the necessary procedures and penalties related to its non-compliance. Continue reading and learn everything about the subject!

Introduction to CAGED
As mentioned previously, this is the acronym commonly used to refer to the bulgaria whatsapp list General Registry of Employed and Unemployed Persons. It is a system of the Ministry of Labor and Employment whose main objective is to record the admissions and dismissals of employees registered under the CLT regime .

It was created to provide statistical information on the labor market and is used to control and monitor the balance of formal jobs in the country. Therefore, it is used by the government for statistical analysis of the labor market, formulation of public policies, and payment of unemployment insurance . In addition, it is an important indicator of the country's economic scenario, showing trends and variations in job creation and unemployment in the national territory.

It is important to highlight that every company that hires through the Consolidation of Labor Laws is required to inform CAGED of all admissions and dismissals of employees who have a formal employment contract, as well as any internal movements, such as transfers and temporary absences.

Importance of CAGED for companies
Although it may seem like just another task in the HR team's routine, declaring information to CAGED also brings benefits to companies. Check out some of them:

Legal obligation: we cannot fail to mention compliance with legal obligations as the first point of importance for the company. By declaring correctly, the organization is not subject to penalties and fines.
Market statistics and analysis: The CAGED system provides statistical data and analysis on the labor market, allowing companies to have a broader view of the economic scenario. This can be useful for predicting trends, understanding labor market dynamics, and making strategic decisions.
Access to social and labor benefits: CAGED is used by the government to pay benefits such as unemployment insurance. Therefore, ensuring the accuracy and timeliness of information can be crucial to ensuring that employees have access to these benefits when needed. In addition, it can also improve the organization's image in the market.
Strategic planning: CAGED data can be useful for strategic human resources planning within the company. The information can help identify hiring and firing patterns, analyze employee turnover, and adjust talent recruitment and retention strategies.
Who Should Declare CAGED?
Any company that hires employees under the CLT regime must declare the movements of these employees to CAGED. Thus, we can cite as organizations that fit this obligation:

Employers in general;
Public bodies;
Non-profit entities.
Remember that if the company does not hire under the CLT, it is not necessary to make the declaration, since it only refers to formal employment. In addition, if there are employees hired under another form, such as PJ, it is not necessary to declare the movements of these professionals.

Situations that require the CAGED declaration
Among the situations that require the CAGED declaration to be made are:

Hiring employees: whenever a new professional is hired under the CLT regime, the company must declare the admission to CAGED.
Dismissal of professionals: when an employee is dismissed or has their contract terminated, the organization has a legal obligation to declare this.
Transfer of employees: if an employee under the CLT is transferred to another branch, unit or location of the same company, this change must be reported to CAGED.
Internal movements: all changes in position, salary, temporary suspension and return to work after a period of leave or other situations must also be reported to the body.
Service providers: service providers that hire under the CLT must also declare employee movements in CAGED.