New Ordinance Redefines Rules for Work on Public Holidays in the Retail Sector

Earlier this week, Brazil’s Ministry of Labor and Employment (MTE) issued Ordinance No. 1,316/2026, amending Article 62 and Annex IV, Item “II – Retail” of MTP Ordinance No. 671/2021. The main change is the restriction of the permanent authorization allowing retail businesses to operate on public holidays without the need for collective bargaining.

Under the new rule, the permanent authorization for retail establishments to operate on public holidays without a Collective Bargaining Agreement (CBA) will apply only to the 15 activities expressly listed in Annex IV, set out below. All other retail activities will require a specific provision in a CBA in order to operate on public holidays.

Work on Sundays remains authorized by law regardless of the existence of a CBA, provided that the applicable municipal legislation is observed. Work on public holidays, however, remains subject to its own specific rules, summarized below.

15 Activities Expressly Listed in Annex IV

The revised wording of Item “II – Retail” now expressly authorizes the following activities to operate on public holidays without the need for a CBA:

• Sale of bread and biscuits;
• Retail sale of pharmaceutical products (pharmacies, including compounding pharmacies);
•  Flower shops and funeral wreath retailers;
•  Barber shops and beauty salons;
•  Fuel stations and retailers of lubricants and automotive accessories;
•  Retail sale of liquefied petroleum gas (LPG);
•  Bicycle and similar equipment rental businesses;
•  Hotels, restaurants, bars and similar establishments (lodging, prepared food and retail beverages);
•  Entertainment venues, including sports facilities with paid admission;
•  Open-air markets;
•  Doormen and elevator operators in residential buildings;
•  Travel agencies and vehicle and boat rental companies;
•  Retail businesses operating at fairs and exhibitions;
•  Commercial and hospital laundry services; and
•  Funeral service providers.

The list is exhaustive and does not allow for analogy or broad interpretation. Consequently, activities not expressly included do not benefit from automatic authorization to operate on public holidays and must rely on a CBA.

Article 4 reinforces this restrictive approach by requiring prior tripartite consultation before any amendment to the list.

The previous wording combined specific activities with the broader expression “retail in general,” which gave rise to uncertainty regarding the scope of the permanent authorization. The new Ordinance removes this ambiguity by establishing a closed list of authorized activities.

Where there is no representative retail union in the relevant locality, Section 2 of Article 611 of the Brazilian Labor Code (CLT) applies: the authority to execute the applicable CBA passes to the relevant federation, or, in its absence, to the corresponding confederation representing the category.

Any future amendments to Annex IV will continue to be subject to tripartite consultation (workers, employers, and the government), pursuant to MTE Ordinance No. 3,747/2023.

Article 5 revokes MTE Ordinance No. 3,665/2023. Ordinance No. 1,316/2026 was signed on July 21, 2026, published in Brazil’s Official Gazette on July 22, 2026, and became effective on the date of publication.

Practical Implications

• Activities not included in Annex IV: Operation on public holidays will now require a specific Collective Bargaining Agreement. In the absence of such an agreement, employers lack legal grounds to require employees to work on public holidays.
• Activities included in Annex IV: The listed activities remain permanently authorized to operate on public holidays without the need for collective bargaining.
• Sundays: Sunday work remains governed by Article 6 of Law No. 10,101/2000 and is unaffected by the new Ordinance.
• Immediate action: Companies should map the activities carried out at each establishment, review work schedules for public holidays, and verify the existence and scope of the applicable CBAs in each jurisdiction, particularly where operations span multiple locations or involve different business activities.
• Risk of non-compliance: Companies requiring employees to work on public holidays without the required authorization may be subject to labor inspections, judicial challenges to the validity of the work schedule, payment of double compensation for hours worked on public holidays, and other applicable penalties.

This client alert is intended for general informational purposes only and does not constitute legal advice. BVA’s Labor & Employment team is available to assess the impact of the new Ordinance on your business activities and the applicable collective bargaining agreements.