Brazil Implements New Rules Mandating Collective Bargaining for Holiday Work in Commerce

The Brazilian government led by President Luiz Inácio Lula da Silva has finalized new regulations on holiday work in the commerce sector, restoring a framework similar to pre-2021 rules. According to the decree to be officially published on September 22, holiday work will only be allowed following collective negotiation agreements between employers and employees. This marks a reversal of the more permissive 2021 regulation, which had allowed unrestricted holiday work in various sectors, a move that was widely contested.

However, the new rules provide exemptions to certain essential sectors — including pharmacies, beauty salons, gas stations, and open-air markets — which can operate on holidays without collective bargaining, though they must still comply with Brazil’s Consolidation of Labor Laws (CLT).

Ivo Dall’Acqua, president of the São Paulo Federation of Commerce, highlighted that the new portaria ensures legal certainty in labor relations and preserves collective negotiation as a vital balancing tool between employers and workers. Furthermore, any future modifications about which sectors may operate on holidays will require consultation with a tripartite committee of government, employers, and workers' representatives.

These changes aim to strengthen workers' rights and clarify the legal framework surrounding holiday labor, following three years of debate. The decision reemphasizes the importance of collective agreements in determining holiday work conditions while maintaining operational flexibility for essential services.