Following successive postponements, the Ministry of Labor and Employment has issued new regulations governing retail operations on public holidays. The measure brings to an end a series of extensions initiated under MTE Ordinance No. 3,665/2023 and changes how certain companies may operate on these dates.

In practice, the main change is that retail businesses operating on public holidays will, as a general rule, require authorization under a Collective Bargaining Agreement (CBA) negotiated between the workers’ union and the employers’ association representing the relevant category.

What prompted the change?

The discussion began with the publication of MTE Ordinance No. 3,665/2023, which already established the need for collective bargaining to authorize retail operations on public holidays.

However, following objections from the retail sector and some members of the National Congress, its effective date was postponed several times. Initially scheduled for March 2024, it was moved to January 2025, then to July 2025, and later to March 2026.

The new ordinance replaces the previous regulations and brings this period of postponements to an end.

What changes in practice?

Under the new regulations, opening retail businesses on public holidays will no longer depend solely on the employer’s decision.

As a general rule, express authorization must be included in a Collective Bargaining Agreement entered into by the unions representing the relevant business sector and its employees.

This means that a unilateral decision by the company or a simple individual agreement with an employee will no longer be sufficient to authorize operations on public holidays for activities covered by the new rule.

Which activities remain permanently authorized?

Not all sectors have been affected by the change.

Activities that already have permanent authorization to operate on public holidays will remain exempt from the requirement for a specific Collective Bargaining Agreement, including:

• pharmacies;
• gas stations;
• hotels;
• restaurants;
• barbershops and beauty salons;
• laundries;
• funeral services;
• travel agencies;
• car rental companies;
• among other essential or continuously operating activities.

Which companies will need to comply with the new rule?

The collective bargaining requirement will mainly apply to:

• supermarkets;
• street-front stores;
• shopping malls;
• retail businesses in general.

In these cases, the Collective Bargaining Agreement applicable to the relevant category must contain a provision authorizing operations on public holidays for the business to open legally.

Another important point is that municipal legislation will continue to apply. The new ordinance does not override local laws that establish their own rules or more restrictive requirements regarding retail operations.

Key considerations for companies

The new regulations require particular attention from retail companies.

Retail chains, supermarkets, and other establishments covered by the rule will need to negotiate—or review—their Collective Bargaining Agreements to ensure that they expressly authorize operations on public holidays.

The absence of such authorization may result in administrative penalties and legal challenges concerning the opening of the establishment.

In addition, older clauses that broadly authorized operations on public holidays may need to be updated to comply with the new requirements.

Another matter that warrants attention is the role of unions, which will now participate directly in negotiating the conditions under which businesses may operate on these dates. This issue had already been under discussion during the implementation process of MTE Ordinance No. 3,665/2023.

Planning becomes even more important

More than a change in labor regulations, the new rules require companies to plan carefully.

Reviewing current Collective Bargaining Agreements, monitoring union negotiations, and complying with municipal legislation are measures that can help reduce risks and provide greater legal certainty when determining whether businesses may operate on public holidays.