Brazil moves to shorten the workweek: what it could mean for employers

Brazil’s House of Representatives has approved a proposed constitutional amendment (PEC 221/2019) that would cut the maximum workweek from 44 to 40 hours and guarantee a second day of paid weekly rest. The bill still needs Senate approval and may change, but if it passes broadly in its current form the impact on employers will be significant.

What is proposed

• Shorter week: the 44-hour maximum falls to 40 hours;
• More paid rest: a second guaranteed day of paid weekly rest, where workers have one today. This will impact the cost of payroll even for companies with a 40 hours workweek;
• No offsetting pay cuts: employers could not reduce pay to absorb the shorter hours, so for hourly and shift workers the change operates as an effective pay increase;
• Phased in: an interim 42-hour cap takes effect first, with the full 40-hour cap following about a year later, counted from publication;
• Narrow carve-out: certain high-earning employees with university degrees would be exempt from working-time and time-tracking rules, though still entitled to the two paid rest days.

Why it matters

The text leaves key questions open, and ambiguous labor rules in Brazil are generally interpreted in the employee’s favor. The main concerns:

• Cost: fewer hours for the same pay, plus a second paid rest day, raise payroll costs and change how pay and overtime are calculated;
• Working-time flexibility: common arrangements such as hour-banking could be restricted or challenged as incompatible with the new limits;
• Collective agreements: existing union agreements on hours and shifts may lose effect, fully or in part, once the amendment takes hold;
• Litigation: if the current wording survives, these questions will be resolved through the labor courts and ultimately the constitutional court, creating a period of uncertainty.

What companies can do now

Even before final approval, employers can prepare:

• Model the cost impact: of fewer weekly hours and the additional paid rest day on payroll and overtime;
• Map exposure: across current schedules and union agreements to identify which arrangements would become non-compliant or lose validity;
• Review contracts and policies: on working time and compensation, and prepare amendments where needed;
• Decide on the exemption: for eligible senior employees, weighing whether removing them from time-tracking suits the organization.

Next steps

The amendment now moves to the Senate. Its ultimate effect will vary by company, depending on shift patterns, working-time arrangements, and the union agreements in place.

Our Labor & Employment team is monitoring the Senate proceedings and can help assess the impact on your business.