Brazilian Relator Says Congress Cannot Cut Payroll Costs for 6x1 Work Shift End

Leo Prates (Republicanos-BA), the new relator of the constitutional amendment to end the 6x1 work schedule, said Congress lacks the power to reduce payroll costs ^[1].

This dispute over legislative authority could stall the proposed constitutional amendment, known as a PEC, which seeks to eliminate the 6x1 work schedule, a system where employees work six days and rest for one [1, 3]. Because ending this schedule would likely increase payroll costs for employers, the ability to offset those costs through tax reductions is a central point of contention.

Prates made the statement during an interview on April 30, 2024 ^[1]. He said, "O Congresso não tem poder para desonerar a folha de pagamentos," which translates to "Congress does not have the power to exempt the payroll" ^[1].

This position creates a friction point within the Brazilian government. Hugo Motta (Republicanos-PB), president of the Chamber of Deputies, previously commented on the matter. On April 7, 2024, Motta said the government had withdrawn a project of law to end the 6x1 schedule under a regime of urgency ^[2].

However, reports indicate a contradiction between Motta's statements and the executive branch. While Motta suggested the government had abandoned the urgent project, the executive branch has reportedly continued to study the possibility of sending an urgent bill to end the 6x1 schedule ^[2].

The disagreement highlights a divide between the legislative and executive branches regarding who holds the authority to manage payroll tax exemptions. Prates said such financial adjustments are the sole province of the executive, regardless of the legislature's desire to change labor laws ^[1].