Brazil approves constitutional amendment reducing standard workweek to 40 hours
Amendment will require companies to review work schedules, shifts and collective bargaining agreements, with potential financial and legal consequences
Subjects
Yesterday (October 14, 2026), the Brazilian Congress approved Constitutional Amendment Bill No. 221/2019, known locally as ‘PEC 6×1’. It reduces the country’s standard maximum workweek from 44 to 40 hours and increases the number of weekly paid days off (descanso semanal remunerado, or DSR) from one to two.
The final version of the constitutional amendment is identical to the version that was already approved in the House of Representatives. It is expected to have financial implications for all companies operating in Brazil, including those that already operate on a 40-hour workweek, and creates legal uncertainty in relation to issues such as time banks, 12-hour on/36-hour off shift schedules, and collective bargaining.
Below is a summary of the main practical impacts of the new rules.
What is set to change, and when?
The amendment takes effect in three distinct stages, meaning companies should pay close attention to the timeline:
- Immediate effects (upon publication): Employees with a university degree and monthly compensation of BRL 21,188.87 or higher may be exempted from the working-hour controls.
- 60 days after amendment is published: Employees become entitled to a second weekly paid day off; the maximum workweek drops to 42 hours; hours worked in excess of 40 per week may be offset through collective bargaining; the provisions of collective bargaining agreements and conventions on working hours and rest periods that are incompatible with the amendment will become null and void; and, as a rule, any work schedule other than the 5-day on/2-day off model must be established through collective bargaining, within the limits that the amendment sets.
- 14 months after amendment is published: The maximum workweek drops to 40 hours, marking the end of the transition period.
Increased costs
The constitutional amendment stipulates that working hours will be reduced without any reduction in employees’ pay. From a stricter interpretation of the new rule, it may result in:
- Higher monthly pay for salaried employees, representing an increase of approximately 10%;
- A significant increase in the cost of the DSR for commissioned employees and of the DSR on regular overtime, which may affect even companies that already operate on a 40-hour workweek. This higher cost would also flow through to other amounts that factor in the DSR calculation for commissions, such as vacation pay and the thirteenth annual salary payment;
- A higher rate for employees paid by the hour, which would increase the base for calculating overtime and other premiums.
There are arguments against this interpretation with respect to the pay of hourly and salaried employees. However, the principle in Brazil that labor law should be construed in favor of the employee may sway labor court rulings on the issue, so each company should assess its exposure and available defenses.
60-day deadline for collective bargaining and the ‘race to the unions’
60 days after the amendment is published, provisions of collective bargaining agreements and conventions on working hours and rest periods that are incompatible with the new rules will cease to have effects, and any work schedule other than the standard 5-day on/2-day off model will have to be negotiated through a collective bargaining agreement or convention.
This tight deadline is likely to trigger a race to renegotiate collective agreements with unions, since virtually every agreement currently in force may be incompatible with the new rules to some degree. Companies that act early will likely have more room to negotiate terms that suit their operations.
Legal uncertainty over hour offset arrangements
The approved version of the amendment raises legitimate questions about the validity of hour offset arrangements, such as time banks and 12-hour on/36-hour off shift schedules, agreed through individual agreements as permitted by Law No. 13,467/2017 (the Brazilian Labor Reform).
Even if negotiated with unions, schedules such as the ‘Spanish workweek’ (where an employee works 40 hours one week and 48 the next) risk being declared null and void, as Article 1 of the amendment provides that “exceptionally, a collective bargaining agreement (…) may establish an offset system that ensures, on average, two days of rest per week within a given calendar month.” Moreover, because the amendment does not define what counts as ‘exceptional’, Brazil’s labor courts may conclude that unions may negotiate such arrangements only in exceptional situations, such as those involving a small number of workers, a crisis, or some other reasonable justification.
For companies with telemarketing or call center employees, the new constitutional amendment may reduce the workweek from the current 36 hours to 30 hours. This is because of the additional DSR and the impossibility of spreading the remaining six hours across the five working days.
Until the labor courts and the Federal Supreme Court (STF) rule on these issues, there will be uncertainty about what may be agreed and how such agreements must be formalized. In this context, proactively reviewing existing hour offset arrangements is the main way to mitigate potential liabilities.
How should companies adapt to the new situation?
Now that the amendment has been approved, we recommend companies:
- Map working hours, schedules and shifts by department to identify affected employees;
- Identify employees who receive commissions, regular overtime or premiums calculated on the hourly rate;
- Review payroll parameters, including salary divisors, DSR deductions, premiums calculated on the hourly rate, and vacation scheduling;
- Open talks with the relevant unions immediately to revise collective bargaining agreements and conventions on working hours and rest periods within the 60-day deadline;
- Review employment contracts and individual agreements to determine whether any amendments are needed;
- Assess which employees may qualify for the exemption from working-hour controls.
Next steps
The issues above address only some of the amendment’s effects. Others may emerge depending on how each company structures working hours and rest periods and on the collective agreements that apply to it. Because these are constitutional provisions, any bill of law seeking to correct these effects will not eliminate the legal uncertainty created by the approved text.
Mattos Filho’s Labor & Employment practice is available to assist you in assessing how the new rules specifically affect your operations, as well as to provide support in negotiations with unions and in implementing the necessary measures within the deadlines set by the new amendment.