The Chamber of Deputies of the Brazilian Congress approved a proposed Constitutional Amendment (PEC 221/19) (“Amendment”) that, if implemented, will establish a 40 hour work week over five working days with two paid days of rest. The proposed Amendment now proceeds to the Federal Senate for debate.
Given the impact on employers across Brazil, the Amendment provides for gradual implementation. Sixty days after taking effect, employers must provide two paid rest days per week and reduce the work week to 42 hours. The 40-hour workweek will become mandatory fourteen months after the Amendment becomes law.
The Amendment also establishes certain protections for workers. For example, employers are prohibited from reducing salaries due to the reduction in working hours. Union labor is also affected. In the event collective bargaining agreements do not reflect the new framework, such agreements will become invalid after the expiration of the implementation period. Certain flexibility is allowed in collective bargaining related to key industry sectors including transportation, security, healthcare, and sanitation. For these key sectors, special work schedules are permitted to reflect regular shift patterns. For example, a 12 hour per day, 36 hour work week would be allowed as long as two weekly paid rest days are maintained over the course of a month.
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