Businesses with operations in Brazil may need to reassess staffing models, work schedules, overtime exposure, and labor costs if Proposed Constitutional Amendment (PEC) No. 221/2019 is enacted. The proposal would reduce the maximum workweek from 44 to 40 hours and require companies to structure working hours over five days, with two paid weekly rest days.

The Chamber of Deputies approved the proposal in two rounds of voting. It now moves to the Federal Senate, where it must also pass two rounds of voting before it can be enacted.

If enacted, companies will have 60 days to transition to the new model. During the initial transition period, the maximum workweek will be reduced from 44 to 42 hours over five working days. After 12 months, it will be reduced to 40 hours – eight hours per day, five days per week, with two consecutive days off – without any reduction in pay.

From a business perspective, the proposal may require employers to reassess:

• payroll costs, particularly where additional staffing may be needed
• work schedules, shifts, and staffing models
• overtime exposure and timekeeping practices
• current collective bargaining agreements
• the impact on continuous operations, rotating shifts, 6×1 schedules, and labor-intensive businesses

Companies with operations in Brazil should monitor the proposal’s progress in the Senate and begin a preliminary assessment of the potential labor, operational, and financial impacts if the measure is enacted.