MTE Regulates Work on Holidays in the Retail and Commercial Sector and Reinforces the Importance of Collective Bargaining

On July 22, 2026, the Ministry of Labor and Employment issued Ordinance No. 1,316/26, introducing significant changes to the regulation of work on holidays within the retail and commercial sector and emphasizing the requirement of prior authorization through collective bargaining agreements. Consequently, Ordinance No. 3,665/23—whose effective date had been repeatedly postponed and which amended provisions of Ministry Ordinance No. 671/21—was revoked.

The new ordinance also clarifies that certain activities—either due to their essential nature or traditional continuous operation—are exempt from prior negotiation with trade unions. Pharmacies, hotels, restaurants, bakeries, and gas stations are among the examples listed in Annex IV of Ordinance No. 671/21. Conversely, the rules regarding work on Sundays remain unaffected and continue to be governed by Law No. 10,101/00 and the Consolidation of Labor Laws (CLT).

In practice, this measure requires commercial sector companies to pay greater attention to the provisions of the collective bargaining agreement applicable to their specific category, as well as to collaborate more closely with employer unions. This approach ensures that authorization for holiday work is duly included in future collective negotiations, as employer unions are responsible for representing businesses before employee unions.

Therefore, companies are advised to verify whether their business activity falls under permanent authorization exemptions or if an existing collective agreement permits operations on holidays, thereby mitigating the risk of administrative notices of violation and labor liabilities.

Beyond a mere regulatory modification, the Ordinance reaffirms the importance of collective bargaining as a fundamental instrument for regulating labor relations in the commercial sector. In light of this scenario, companies should review their collective agreements and assess internal procedures in advance to ensure holiday operations comply with current legislation—prioritizing proactive labor compliance and mitigating the risk of administrative inquiries or judicial lawsuits on the matter.