Hour bank in Brazil: rules, compensation deadlines and what to do

*An hour bank (banco de horas) is a system in which overtime is not paid in cash but compensated with time off or leaving early. Compensation must happen within 6 months (written individual agreement) or within 1 year (collective agreement); anything not compensated in time must be paid as overtime.*

Quick summary

• Written individual agreement: compensation within 6 months (CLT, art. 59, §5 — the CLT is Brazil's Consolidated Labor Laws).
• Collective agreement: compensation within 1 year (art. 59, §2).
• Same-month compensation: can be done by individual agreement, implied or written (art. 59, §6).
• Daily limit: the working day cannot exceed 10 hours.
• On dismissal: uncompensated hours are paid as overtime (art. 59, §3).

The three types

• Same month — How: individual agreement, implied or written · Compensation deadline: within the month
• Half-yearly bank — How: written individual agreement · Compensation deadline: up to 6 months
• Annual bank — How: collective agreement · Compensation deadline: up to 12 months

How to track your hour bank

1. Ask for the hour-bank statement every month — positive and negative balance.
2. Compare it with your own record of actual hours.
3. Check the deadlines: note when each hour was added and by when it must be compensated.
4. Ask in writing for the time off or payment when the deadline is approaching.
5. Keep the documents: signed agreement, statements and messages.

When the hour bank can be invalidated

• The agreement required for that type is missing.
• Regular overtime far above what is compensated, where the bank becomes a way of not paying.
• Working days of more than 10 hours.
• No clear control of the balance.

In these cases, the Labor Court can order the hours to be paid as overtime. See TST Precedent 85 (the TST is the Superior Labor Court) and the guide Overtime.

The end of 6x1 and the hour bank

With Constitutional Amendment 141/2026, weekly working hours decrease. Compensation agreements and collective agreements may be revised to fit the new hours; follow what the union negotiates.

Frequently asked questions

Can the employer impose an hour bank without an agreement?

No. Each type requires the kind of agreement provided by law (individual or collective).

I was dismissed with hours in the bank. Do I get paid?

Yes. Uncompensated hours must be paid as overtime, with the supplement, in the severance pay.

What if I have a negative balance?

Deductions for a negative balance depend on what the agreement says; check the document and the category's collective agreement.

Read more in this series

• Overtime: how to calculate it, limits and how to claim unpaid hours
• End of the 6x1 schedule: what changes in working hours and when
• CLT worker rights: complete guide
• Severance pay: what you receive for each type of dismissal
• Index: complete guide to labor rights