On July 21, 2026, the Ministry of Labor and Employment (MTE) published MTE Ordinance No. 1,316/2026, which amends MTP Ordinance No. 671/2021 and repeals MTE Ordinance No. 3,665/2023, establishing new rules for the operation of retail businesses on holidays. From now on, the opening of stores on these days will depend on authorization provided for in a Collective Bargaining Agreement (CBA) or Collective Labor Agreement (CLA), negotiated between employer/company unions and unions representing workers. For activities that have lost their permanent authorization—previously provided for in MTP Ordinance No. 671/2021—a unilateral decision by the employer is no longer sufficient to authorize operations. Below, we summarize the main points of the new regulation.
To Whom It Applies
The new MTE Ordinance No. 1,316/2026 This applies to businesses in the general commerce sector, including retailers and wholesalers—such as supermarkets, street-level stores, shopping centers, and department stores—whose operation on holidays is not covered by the permanent authorization provided for in the regulation itself (see the list of exempt sectors below). For these activities, opening on holidays will only be lawful if expressly provided for in a Collective Bargaining Agreement (CBA) or Local Collective Bargaining Agreement (LCBA) signed with the relevant labor union.
Previous Rule vs. Current Rule
The requirement for collective bargaining regarding work on holidays is not unprecedented, as it was already included in MTE Ordinance No. 3,665/2023, whose effective date had been repeatedly postponed since its publication in November 2023, which kept the issue in a state of uncertainty and raised concerns regarding legal certainty for companies and unions.
The new Administrative Order, issued in July 2026, is not merely a one-off amendment to the 2023 regulation: it is a new regulation that fully replaces the previous one and stems from a formal agreement between employer and employee representatives, which gives it definitive status and immediate legal validity.
| Previous Rule | Current Rule |
| For most commercial activities, MTP Ordinance No. 671/2021 granted permanent authorization to operate on holidays, making a unilateral decision by the employer sufficient in such cases. | The permanent authorization is revoked for various sectors of commerce and is now limited to 15 (fifteen) activities (Annex IV, item II). For the remaining sectors, a unilateral decision by the employer is no longer sufficient; express authorization through collective bargaining is required for opening a business. |
| Many companies whose activities were included in the segments permanently authorized by MTP Ordinance No. 671/2021 operated under individual agreements entered into directly with their employees. | Individual agreements are no longer sufficient; collective bargaining is required, with the participation of the union representing the workforce. |
| Lack of uniform rules regarding compensation, shifts, and premium pay for work on holidays. | Work schedules, compensation, payment of additional benefits, and other benefits are now subject to collective bargaining for sectors without permanent authorization. |
| This rule applies only to holidays. | As is: The new ordinance governs only operations on holidays. |
❓What about working on Sundays…
Sunday work in the retail sector remains permitted under the rules already established by law, as governed by Articles 67 and 68 of the CLT, which guarantee every employee a weekly rest period of 24 consecutive hours, preferably on Sundays, and making Sunday work subject to prior authorization from the competent labor authority; specifically for the retail sector, this is governed by Article 6 of Law No. 10,101/2000, which authorizes retail businesses to operate on Sundays, subject to municipal legislation, with the guarantee of paid weekly rest coinciding with Sunday at least once every three weeks, subject to exceptions provided for in collective bargaining agreements.
What Changes for Businesses
Retail businesses covered by the regulation must, before making any decision regarding operations on holidays, verify whether their collective bargaining agreement contains express authorization to do so, with clear rules regarding:
- double pay or compensatory time off;
- specific additional pay for working on a holiday;
- different work schedules.
If the collective bargaining agreement (CBA) stipulates that compensatory time off is mandatory, the company may not unilaterally substitute it with double pay. In the absence of an express provision in the CBA authorizing operations, if the company has not negotiated a special collective agreement (ACT), it may not legally open its doors on a holiday.
The Ordinance also addresses the situation in municipalities or regions where there is no union representing the relevant occupational categories. In such cases, negotiations must comply with the general rules of the CLT for the conclusion of collective bargaining agreements and, specifically, the provisions of Article 611, paragraph 2, of the CLT: in the absence of a representative union at the local level, the authority to negotiate and enter into a collective bargaining agreement is transferred to the federation representing the respective economic or professional category and, in the absence of such a federation, to the corresponding confederation.
In addition to authorization under a collective bargaining agreement (CBA), opening on holidays must also comply with applicable municipal legislation, pursuant to Article 6-A of Law No. 10,101/2000: “Work on public holidays is permitted in general commercial activities, provided that it is authorized by a collective bargaining agreement and complies with municipal legislation.”
Pursuant to Article 30, subsection I, of the Federal Constitution, municipalities have the authority to legislate on matters of local interest and may enact their own regulations regarding the operation of businesses on holidays, including restricting or imposing conditions on their opening hours. It is therefore recommended that the company also review the municipal legislation applicable to the location of each establishment.
Sectors with permanent authorization
The new rule does not apply to the following 15 (fifteen) activities, which have permanent authorization to operate on holidays, regardless of any provisions in the Collective Bargaining Agreement, as set forth in Annex IV, Item II (“Commerce”), of MTP Ordinance No. 671/2021, as amended by MTE Ordinance No. 1,316/2026:
- Bakeries (selling bread and cookies);
- Entertainment venues and sports facilities that charge an admission fee;
- Pharmacies and pharmaceutical products, including compounding of prescriptions;
- Open-air markets;
- Flower and wreath shop;
- Doormen and concierges in residential buildings;
- Barbershops and beauty salons;
- Travel agencies and car and boat rental companies;
- Gas stations, lubricants, and automotive accessories;
- Retail sales at fairs and exhibitions;
- Retail sale of liquefied petroleum gas (LPG);
- Laundries and hospital laundries;
- Rental of bicycles and similar equipment;
- Funeral services;
- Hotels, restaurants, bars, and similar establishments.
⚠️Each company must confirm the classification of its business activity and the terms of the applicable collective bargaining agreement with the employers’ association and the union representing its professional category.
Consequences of Noncompliance
Any company that remains open on a holiday without the corresponding authorization in its collective bargaining agreement (CBA) or local collective agreement (LCA) is subject to:
- Notice of Violation issued by Labor Inspectors, with the imposition of an administrative fine;
- Labor liabilities, given the risk of labor lawsuits being filed by employees who have worked without receiving proper compensation;
- A regulatory fine for noncompliance with the Collective Bargaining Agreement (CBA) or the Collective Labor Agreement (CLA) itself, when work is performed in violation of the rules set forth therein.
The new Administrative Order reestablishes collective bargaining as a central tool for regulating business operations on holidays, bringing to an end a period of regulatory uncertainty that began in 2023.
Companies need to review, with the support of their legal and human resources departments, the terms of the collective bargaining agreements applicable to each category and unit, in order to align their work schedules and internal policies with the new requirement, seeking union negotiation through an ACT if no such negotiations have taken place on the matter.
The Labor Law Team at the law firm Araújo e Policastro Advogados is available to answer any questions.
Authors:
Ana Lúcia Pinke Ribeiro de Paiva – apinke@araujopolicastro.com.br
Alexandra Rosman Scaramel – ascaramel@araujopolicastro.com.br