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Find Out What Rights You Have When Working on Holidays of December 25 and January 1: Double Pay or Compensatory Time Off, Extras Provided in the Collective Agreement, Limits for Optional Points and When It Is Possible to Demand Compensation and Fines in Labor Court for Serious Disrespect to Labor Laws.
On the national holidays of December 25, Christmas, and January 1, Universal Brotherhood Day, those who choose to work are not just doing the company a favor: they have rights guaranteed by labor legislation that must be respected and properly paid.
In sectors such as health, transportation, commerce, and services, where it is impossible to stop completely, the Consolidation of Labor Laws (CLT) and MTE Ordinance 3,665/2023 provide for specific rules for working on holidays, ranging from double pay or compensatory time off to additional benefits defined in the Collective Labor Agreement.
Christmas and New Year Holidays: What Does the CLT Say
According to Brazilian legislation, December 25 and January 1 are national holidays, and the general rule is to grant time off on these days.
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Those who work with a formal contract under the CLT are entitled to a break, except when the activity needs to maintain operations, such as happens with hospitals, transportation, commerce, and various essential services.
In these cases, work is allowed, but compensation can never be ignored. The employer must choose between paying double for the day or granting compensatory time off on another day, respecting what is stipulated in the collective agreement or collective bargaining of the category.
Double Pay, Hour Bank, and Compensatory Time Off
When an employee works on December 25 or January 1 and does not receive time off at another time, it is expected that the holiday pay is given at double the rate, with an additional 100 percent for that specific day.
If the company chooses to grant compensatory time off, the holiday becomes remunerated at the normal rate, since the break will be taken on another date.
In many categories, it is also possible to use an hour bank to register these compensations, always in accordance with the collective agreement.
Depending on the text of the Collective Labor Agreement, the rights may go beyond double pay, with provisions for payment greater than 100 percent, transportation allowances, and meal concessions for those working on the holiday.
What Changes with the MTE Ordinance 3,665/2023
With the entry into force of the MTE Ordinance 3,665/2023 this year, any activity wanting to operate on holidays must be authorized in the Collective Labor Agreement.
This means that the company cannot simply decide to open on holiday dates without observing what has been negotiated with the workers’ union.
In practice, this ordinance reinforces the importance of collective bargaining and further binds the compliance with the rights of those working on holidays, including Christmas and New Year.
If the agreement does not allow for operations, the opening of the establishment may be considered irregular.
Optional Points on December 24 and 31: Are They Holidays or Not
The days before Christmas, December 24, and New Year’s Eve, December 31, are not holidays, but optional points from 2 PM onwards.
For those working in the private sector, the decision to release or not the employees remains with the employer.
For public servants, these optional points are treated, in practice, as if they were holidays, and working on these days is generally not allowed, following the public service rules.
Therefore, it is important to differentiate clearly: the holiday is December 25 and January 1, with clear rules for payment and compensation; December 24 and 31 have different treatment, especially for those who are not public employees.
Fines, Compensation, and How to React If Your Rights Are Ignored
Workers who work on holidays without receiving the due compensation, whether through double pay or compensatory time off, can appeal to the Labor Court to seek compensation.
If the company does not fulfill what the legislation and the collective agreement stipulate, it can be ordered to pay retroactive amounts and other benefits.
Moreover, the employer who disrespects the rules regarding work on holidays and optional points is subject to fines imposed by the Ministry of Labor, which oversees compliance with labor legislation.
Therefore, knowing clearly what your rights are is essential to demand what is provided by law and to avoid losses whenever there is a schedule to work during Christmas or New Year.
Freelancers and PJ: When Rights Are Different
For those working as freelancers or as a Legal Entity, without a formal link under the CLT, the situation changes significantly.
These professionals do not automatically have the same rights granted to employees with formal contracts, such as vacation, 13th salary, or specific holiday pay.
In the case of freelancers and PJ, breaks, additional payments for working on Christmas or New Year, and any compensation for holidays depend on the contract signed between the parties, which needs to clarify what will be paid in each situation.
Therefore, before accepting a one-time service or a continuous contract to work on dates like December 25 or January 1, it is worth checking if the rights and obligations are well described in the document regulating the relationship between the professional and the client.
And you, if scheduled to work on Christmas or New Year, already know how to check if your rights are being respected?
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