Mirella Pedrol Franco, from Granito Boneli Advogados, analyzes the impact of the change on companies

Since last Tuesday (August 1st), Ordinance 3,665/2023 has been in force, altering the rules for work on Sundays and holidays in the commerce and service sectors. The main change is the requirement for collective bargaining to allow work on holidays, thereby revoking the previously automatic permissions.

Mirella Pedrol Franco, head of the labor law division at Granito Boneli Advogados, explains that the new rule represents progress in protecting labor rights but brings operational challenges for companies.

“The requirement for collective bargaining demands time, resources, and heightened attention from HR and personnel departments to ensure compliance with the agreements reached,” she states.

In addition to the impact on personnel management, the measure may increase operational costs due to additional pay, overtime, and the need to adjust schedules and logistics.

“Supermarkets, pharmacies, and butcher shops, for example, may only operate on holidays if there’s a collective agreement or specific municipal legislation, which could directly affect their revenue,” Mirella notes.

The ordinance also provides that in some cases, non-essential businesses must request authorization from the Ministry of Labor and Social Security to operate on holidays, increasing bureaucracy and legal uncertainty.

Despite the obstacles, the lawyer sees this change as an opportunity to improve people management and strengthen relations with unions.

“It can be a strategic moment to strengthen dialogue and establish more structured and secure labor relationships.”

In practice, Ordinance 3,665/2023 revokes the automatic authorization for many retail segments to operate on holidays. Work on Sundays remains permitted, as long as the rules of the CLT are followed, such as weekly paid rest (DSR) and shift rotation, without the need for special authorization. Holiday operations, however, now require a collective agreement or specific municipal legislation. Individual authorizations are no longer valid. Street markets are the only exception, remaining allowed to operate without the need for collective bargaining.

As for time off, shift schedules, and time tracking, double pay is mandatory if holiday work is not compensated in the same week. Compensation can be arranged through a time bank, provided it is established in a collective agreement. Work schedules must ensure weekly rest and adhere to union agreements, and time tracking must be done using approved electronic systems.

The lawyer emphasizes that to comply with the new regulation by July 2025, companies must begin negotiations with unions to authorize work on holidays.

“In addition, it’s essential to review contracts, schedules, and internal policies; adjust time tracking systems to the new requirements; check applicable municipal laws; request authorizations from the Ministry of Labor and Social Security when necessary; train HR and legal teams; and communicate these changes to employees,” she details.

Failure to comply with the ordinance may result in administrative fines imposed by the Ministry of Labor, lawsuits requiring double payment for holiday work without legal support, invalidated shift schedules, and the creation of labor liabilities. The regulation applies to all existing employment contracts, including older ones, requiring companies to update their practices before the regulation’s effective date. The collective bargaining requirement applies to companies of all sizes, including micro and small businesses, for whom compliance may be more costly and bring additional challenges.