Labor Radar 2026: Complete Guide to Updates

The beginning of 2026 demands heightened attention from managers. The Brazilian labor landscape is undergoing a period of transition, with new oversight requirements and structural decisions from the Superior Courts. To facilitate your planning, we have divided this material into what is already in effect and what is still awaiting definition.

Part 1: What has already been approved and will come into effect in 2026

1. Working on Holidays in Retail

The Federal Government has extended for another 90 days the mandatory collective bargaining for work on holidays in the retail sector, originally scheduled to take effect on March 1, 2026.

What changes in practice: Even with the extension, the rule is likely to come into effect soon. From then on, work on holidays will only be permitted with express authorization in a Collective Agreement (ACT) or Collective Bargaining Agreement (CCT) — individual contracts are not valid.

Who is impacted: Supermarkets, pharmacies, retailers, wholesalers, vehicle dealerships, gas stations, travel agencies, and similar businesses.

Exempt from: Hotels, restaurants, bakeries, florists, barbershops, vacation rentals, and pet grooming services.
Recommended action: Use this extra time to check if your collective bargaining agreement already covers work on holidays — and, if it doesn't, start negotiating with the union in advance.

2. Psychosocial Risks and Mental Health: Beginning of Fines

NR-01 – GRO / PGR

Managing mental health in the workplace is no longer just a recommendation.

Key Date: May 25, 2026
What changes: The adaptation period ends. From this date, the inspection authorities will begin to issue fines and penalties to companies that do not include in their Risk Management Program (PGR) the identification and prevention of risks such as: excessive stress, moral harassment, and work overload.

3. Hazard Pay for Motorcyclists

NR-16 – Annex 5

Starting April 3, 2026 , inspections in this area will be intensified. The existing rule stipulates that employees who habitually use motorcycles for deliveries, outside sales, or technical assistance are entitled to a 30% bonus on their base salary.

4. Redirecting Execution and the Understanding of the Supreme Federal Court

STF Topic 1232

The redirection of enforcement proceedings to companies within the same economic group that were not involved in the initial phase of the proceedings was the subject of debate in the Brazilian Supreme Court (STF). It was established that, as a general rule, redirection is not feasible if the company did not participate in the process from the beginning.

As an exception, the Brazilian Supreme Court (STF) ruled that redirecting labor enforcement proceedings to a third party who did not participate in the initial proceedings is permitted in cases of business succession (Article 448-A of the CLT) and abuse of legal personality (Article 50 of the Civil Code), provided that the legal procedures of the Incident of Disregarding Legal Personality (IDPJ) are respected.

Part 2: What is still pending — ongoing debate and decision.

Topics that are already well advanced in Congress or the courts, but which do not yet have a definitive effective date or final wording.

5. End of the 6x1 Schedule and Reduction of Working Hours

PEC No. 148/2015

Approved by the Senate's Constitution, Justice and Citizenship Committee in December 2025, the proposal will now go to the Plenary for a vote and subsequent analysis in the Chamber of Deputies. It is the issue with the greatest operational impact currently on the agenda. The proposal foresees a progressive reduction from 44 to 40 hours per week in the first year, and eventually to 36 hours, with two mandatory days off and no reduction in salary.

6. Paternity Leave: Gradual Implementation until 2029

On March 31, 2026, the government approved a law extending paternity leave from 5 to 20 days, with gradual implementation. The new legislation also creates paternity pay, a social security benefit that guarantees income during the leave—including for self-employed individuals, domestic workers, casual workers, and special insured individuals.

How the timeframe will be each year: 10 days in 2027 - 15 days in 2028 - 20 days from 2029 onwards.

Leave is guaranteed in cases of birth, adoption, or legal guardianship for adoption purposes, without prejudice to employment and salary. The law also guarantees job security from the time the employer is notified until one month after the end of the leave, and provides for an extension in case of hospitalization of the mother or baby.

What to prepare: The deadline still allows for organization, but planning needs to start now. Review HR policies and their impact on payroll—especially in smaller teams, where prolonged absences directly affect operations. Also pay attention to paternity leave: companies may pay this benefit with subsequent compensation, similar to maternity leave, which requires adjustments to payroll and HR processes.

7. Supreme Court Ruling on "Pejotização" (a term referring to the practice of hiring individuals as independent contractors to avoid labor laws)

Topic 1389

The Supreme Court will define the future of contracting through legal entities (companies). The debate involves the criteria that validate the contracting of services through legal entities and in what situations this practice can be characterized as fraud — with discussion about jurisdiction and burden of proof in proceedings that analyze the legality of civil or commercial service contracts.

The decision will have broad repercussions and should guide all processes in the country. Until the issue is definitively settled, the legal risk remains for companies that hire independent contractors under conditions that may characterize subordination and personal dependence.

8. IDPJ in Companies Undergoing Judicial Reorganization: Understanding Still Under Definition at the TST (Superior Labor Court)

The Superior Labor Court is still consolidating its position on opening the Incident of Disregarding Corporate Personality (IDPJ) in cases involving companies undergoing judicial reorganization. The central issue is defining the limits of the Labor Court's jurisdiction and the beginning of the Common Court's competence, seeking to reconcile the rules of Judicial Reorganization with labor legislation.

The debate involves two main points. The first is to assess whether the Labor Courts can analyze and decide on the disregard of the legal personality of companies undergoing judicial reorganization, even after the changes made to Law 11.101/2005 by Law 14.112/2020. The second is to discuss whether the existence of specific rules in the Judicial Reorganization Law prevents the application of the Minor Theory of disregard, requiring the more rigorous criteria foreseen in the Major Theory.

What should companies do now?

Given this scenario, four areas deserve immediate attention. Regarding holidays, the urgent step is to check if the current collective bargaining agreement already provides for work on holidays in March. Concerning mental health, it is necessary to review the Risk Management Program (PGR) and internal policies to include preventative measures against harassment and overload before May. In the field of contracts and labor risk management, it is recommended to review the structures for hiring service providers and conduct an internal mapping of functions that involve the habitual use of motorcycles. Finally, it is essential to monitor the progress of the Constitutional Amendment Proposal (PEC) on Working Hours for the planning of work schedules in 2027.

By Victoria La Maison