In October 2026, Brazil’s Congress voted to approve a constitutional amendment, ushering in historic changes to the country’s labour framework. The legislation phases down the national statutory weekly working-hour cap from 44 hours to 40 hours and formally bans the traditional 6×1 work schedule with only one rest day per week. More than 30 million workers are expected to benefit from the reform. Championed by the Lula administration, the bill cleared the Chamber of Deputies back in May and passed the Senate vote on 15 October with a landslide result of 75 in favour and 1 against.

I. Details of Brazil’s Labour Reform: Phased Working-Hour Reduction and the End of the Six-Day Workweek

The core objective of this amendment is to abolish Brazil’s long-standing single-rest-day work regime. Companies will no longer be legally permitted to operate on a six-day working pattern. The weekly hour cap will be rolled out in stages: within the 60-day transition window following promulgation, the weekly limit will drop from 44 hours to 42 hours. Fourteen months after the amendment takes effect, the ceiling will be further lowered to 40 hours per week.

The reform mainly benefits labour-intensive service sectors such as retail, catering and hospitality, where large numbers of low-wage workers are directly affected. Approximately 16 million workers had previously worked six days a week for a long time. The strain on personal life brought by the permanent six-day schedule will gradually ease as the new rules come into force.

II. Direct Impacts on Chinese Enterprises Expanding into Brazil

1. Rising labour costs and mandatory restructuring of shift rosters

The old six-day working model can no longer be maintained. To sustain existing output, enterprises have two viable options: Option A: Recruit additional staff to cover the labour gap, which increases spending on recruitment, social contributions and onboarding training. Option B: Rely on overtime pay. Brazilian overtime carries a statutory premium. Any residual labour demand covered by overtime will substantially raise payroll expenses. Many Chinese-owned warehouses, factories and retail stores previously relied on six-day rosters to sustain production capacity and opening hours. This operating model is no longer viable. The Chinese-style approach of “single rest day plus time off in lieu” cannot be applied, as Brazil’s labour legislation does not recognise such compensatory leave arrangements.

2. Higher compliance pressure for EOR / Employer of Record arrangements

Numerous small and mid-sized overseas enterprises hire local Brazilian staff via EOR services. This constitutional amendment updates the labour rules governing EOR arrangements: shift planning, attendance tracking, working-hour logs and overtime approvals must all align with the new law. Companies need to audit their service providers to verify:

• Updated employment contract templates;
• Attendance systems capable of automatically enforcing weekly hour caps and blocking 6-day scheduling;
• Risk-mitigation frameworks for labour disputes. If an EOR provider fails to update contractual terms in a timely manner, legal liabilities may flow back to the beneficial overseas enterprise.

3. Disruption to supply chains and production planning

Manufacturers and cross-border e-commerce fulfilment centres face the most notable disruption.

• Production line rotations must be adjusted as early as the short-term 42-hour transition phase.
• The permanent 40‑hour cap paired with the ban on six-day workweeks compresses continuous production windows.
• Old production plans that depend on overtime during peak order seasons are no longer feasible. Companies need to build up manpower buffers in advance or adjust delivery lead times.

4. Elevated risk of labour disputes

Public opinion surrounding the reform strongly favours workers, and employee willingness to file claims has grown markedly. Working hours, rest days and overtime compensation are among the most frequent causes of labour litigation in Brazil. Common pitfalls for Chinese operators include verbal working-hour agreements, incomplete attendance records, substituting performance bonuses for overtime pay, and disguised six-day arrangements via contract splitting or outsourcing structures. Such practices are highly likely to be deemed unlawful circumvention and may trigger class-action claims.

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