End of the 6×1 work schedule: How Constitutional Amendment No. 141/2026 impacts public contracts, concessions, and PPPs

Constitutional Amendment No. 141/2026 gradually reduces the maximum weekly working hours to 40 hours, expands paid weekly rest to two days, and prohibits any salary reduction. In addition to its general impacts on labor relations, the amendment establishes specific rules for contracts entered into with the public administration that involve the direct employment of labor, including public contracts, concessions, and public-private partnerships (“PPPs”).

Article 9 of the amendment establishes a differentiated regime for these contracts, making the application of the new working-hours rules subject to mechanisms to restore the economic-financial balance of the agreement and to specific transitional rules, as discussed below.

General transition of working hours.

As of December 16, 2026, the maximum weekly working hours will be reduced to 42 hours, and paid weekly rest will be expanded to two days, one of which should preferably be Sunday. As of December 16, 2027, the limit will further decrease to 40 hours per week. At no stage will salary reductions be permitted, including reductions to statutory minimum wage floors.

Scope.

Article 9 applies to contracts of the direct and indirect public administration of the Federal Government, states, the Federal District, and municipalities that were in force on October 16, 2026, and whose performance involves the direct employment of labor, including public contracts, concessions and permissions, PPPs, and other arrangements for collaboration with the private sector. The amendment does not define the scope of the expression “direct employment of labor,” leaving open, for example, the treatment of employees hired through subcontractors.

Application of the new working hours and deadline for contract amendments.

For these contracts, the reduction in working hours does not follow the general implementation schedule. It becomes effective on the date of the contractual amendment executed to preserve the economic-financial balance of the agreement, pursuant to the applicable legal regime, or, if no amendment is executed, on October 16, 2027, which is the final deadline for its formalization. Therefore, the absence of an agreement or delays in the administrative proceeding do not postpone the implementation of the new working-hours regime, but they may require the contractor to bear the associated costs until rebalancing occurs. An exception applies to contracts amended by December 16, 2026, as discussed below.

However, an important interpretative issue remains unresolved. Since the main section and paragraph 2 of Article 9 refer only to the reduction of working hours, it may be argued that the expansion of paid weekly rest to two days becomes effective for these contracts on December 16, 2026, regardless of the execution of a contractual amendment.

Contract amendments executed by December 16, 2026.

Contracts amended within the first two months will follow the amendment’s general implementation schedule, with the reduction of working hours and the expansion of paid weekly rest to two days taking effect as of December 16, 2026. The economic-financial assessment supporting the amendment must take into account both the 42-hour phase and the subsequent reduction to 40 weekly hours.

Economic-financial rebalancing is not automatic.

The amendment does not establish the procedure, calculation methodology, or form of compensation, all of which will depend on the applicable legal regime and the structure of each contract. For contracts governed by Laws No. 14,133/2021 and No. 8,666/1993, any request for rebalancing must comply with the applicable contractual amendment rules and the restoration of the contract’s economic-financial balance. Contracts entered into by state-owned companies must observe Law No. 13,303/2016 and the applicable contractual provisions. As for concessions and PPPs, the analysis must consider the risk allocation matrix and the contractual rebalancing mechanisms. In all cases, it will be necessary to demonstrate the actual impact, taking into account not only additional costs but also any factors that may mitigate them.

Points requiring immediate attention.

The timing of the execution of the contractual amendment has significant consequences. If executed by December 16, 2026, the contract must comply with the reduction in working hours and the increase in paid weekly rest as of the respective effective dates established by the amendment. If executed later, the reduction in working hours will take effect on the date of the amendment or, regardless of the amendment, on October 16, 2027. In light of these milestones, we recommend that affected parties immediately begin mapping potentially impacted contracts, reviewing cost spreadsheets and staffing schedules, and organizing the documentation required to demonstrate the economic impacts of the new constitutional framework.

In our view, the main challenge for contracting authorities and contractors will be reconciling the implementation of the new working-hours regime with the preservation of the contracts’ economic-financial balance. Although the amendment expressly recognizes the need for rebalancing, effective compensation will depend on a concrete demonstration of the impacts and the timely adoption of the appropriate contractual measures.

Access our alert on the end of the 6×1 work schedule.

Demarest’s Public and Regulatory Law and Infrastructure and Project Finance teams remain available to provide additional information and assist with compliance with the new rules.