Brazil began requiring collective bargaining agreements for retail businesses to operate on holidays starting June 1, 2026 [2].
This shift moves the power to determine holiday work schedules from individual employers to negotiated agreements between unions and business owners. The change aims to protect worker rights and prevent employers from making unilateral decisions regarding holiday shifts.
The regulation is established under Portaria nº 3.665/2023 [1]. Under this rule, retail establishments, including supermarkets, shops, shopping malls, pharmacies, and dealerships, must secure authorization through a collective convention negotiated with unions to remain open during holidays [1], [3].
While the rule applies broadly to the retail sector, essential services remain exempt and may continue to operate without these specific negotiated agreements [1]. The measure follows a period of multiple postponements before finally taking effect earlier this month [3].
Employers and workers are currently adapting to the new framework. Business owners must now renegotiate work scales and compensation packages with labor representatives to ensure legal compliance [1], [3]. Failure to secure these agreements could result in retail closures during national holidays, as the previous system of employer-led scheduling is no longer valid.
The Ministry of Labour and Employment said the ordinance ensures that the conditions for holiday labor are defined through a democratic negotiation process [1], [3]. This process is intended to balance the economic needs of the retail sector with the labor rights of the workforce across the national territory [3].
“Brazil began requiring collective bargaining agreements for retail businesses to operate on holidays.”
This regulatory shift represents a significant strengthening of union influence in the Brazilian labor market. By removing the ability for retail owners to unilaterally decide holiday hours, the government is prioritizing collective labor protections over business flexibility. This may lead to more frequent retail closures on holidays if unions and employers cannot reach consensus on pay and scheduling.
