The Odisha Legislative Assembly took a significant step towards modernizing its labour laws and promoting gender equality on Wednesday. Lawmakers passed the Odisha Shops and Commercial Establishments (Amendment) Bill, 2025, which introduces sweeping changes aimed at reducing the compliance burden for businesses while ensuring worker welfare.
Key Reforms for Gender Inclusivity and Small Businesses
One of the most notable provisions of the bill is the removal of the restriction on women working night shifts in shops and commercial establishments. Labour Minister Ganesh Ram Singkhuntia stated that this move is designed to promote gender inclusiveness in the workforce. Women can now opt for night shifts by providing their written consent. However, this is contingent upon employers implementing specific safety, security, and dignity measures prescribed by the state government.
In a major relief for small entrepreneurs, the bill exempts establishments employing fewer than 20 people from the ambit of the Odisha Shops and Commercial Establishments Act, 1956. This means such shops will no longer be required to comply with the Act's provisions concerning registration and employment conditions. A universal rule, however, mandates all establishments to prominently display a signboard in the Odia language at the front of their premises, in addition to any other language they may use.
Revised Working Hours, Overtime, and Operational Freedom
The legislation also brings work hour norms in line with contemporary best practices and recommendations from bodies like NITI Aayog and the Department of Personnel and Training. The maximum daily working hours have been increased from 9 to 10 hours, while the weekly cap of 48 hours remains unchanged.
To help businesses manage fluctuating workloads and allow workers to earn more, the quarterly overtime limit has been substantially raised from 50 hours to 144 hours. Overtime wages are paid at double the normal rate, providing a significant earning opportunity for employees. The rules for rest intervals have been simplified, now permitting 6 hours of continuous work followed by a mandatory 30-minute break.
Furthermore, shops and commercial establishments have been granted the flexibility to operate 24 hours a day, 365 days a year. Previously, the opening time was set by government order, and establishments were required to remain closed for one day each week.
Implementation and Background
The bill, passed on Wednesday, will formally replace an ordinance that was promulgated on November 8 to implement these provisions on an immediate basis. Minister Singkhuntia emphasized that the overarching aim of the Odisha Shops and Commercial Establishments (Amendment) Bill, 2025, is to reduce the regulatory compliance burden while balancing the needs of business growth and worker protection.
This legislative overhaul marks a pivotal shift in Odisha's approach to regulating its commercial landscape, aiming to foster a more flexible, inclusive, and business-friendly environment in the state.
