Amendment To Gujarat Shops And Establishment Act: Relief For Small Businesses

Introduction

On 16 December 2025, the Government of Gujarat promulgated the Gujarat Shops and Establishments (Amendment) Ordinance, 2025 (“Ordinance”) (to access the Ordinance please click here) amending the Gujarat Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2019 (“Gujarat S&E Act”).

The Ordinance amends the existing threshold-based applicability, increased working hours and overtime limits, and night shifts for women, leading to a significant shift in regulating shops and establishments in the State of Gujarat.

Key Changes introduced by the Ordinance

1. Threshold based Applicability

The Gujarat S&E Act was earlier applicable to all the shops and establishments, employing 10 or more workers, for whom it was mandatory to apply for a registration certificate. Further, establishments employing less than 10 workers were subject only to a one-time online intimation and the provisions of Gujarat S&E Act were not applicable to such shops and establishments.

However, by virtue of the Ordinance, the threshold for applicability of the Gujarat S&E Act has now been raised to 20 workers from the existing 10 workers limit. Accordingly, only establishments that employ 20 or more workers are required to obtain a registration certificate under the Gujarat S&E Act and comply with the provisions given therein.

2. Hours of Work

The working hours and overtime threshold, via the Ordinance, has been revised as follows:

3. Amendment to night shifts for women employees

Under the Gujarat S&E Act, women were prohibited to work from 9pm to 6am, provided that the Inspector or any person authorized by him under the Gujarat S&E Act is satisfied that the conditions inter alia in relation to shelter, ladies toilet, protection from sexual harassment, transportation from the shop or establishment to the door step of their residence exists in such shop or establishment, are adhered to in such shop or establishment.

Now, the Ordinance has done-away with the discretion of the Inspector, and accordingly, women are permitted to work between 9pm to 6am, provided the prior consent of women worker is taken and the conditions mentioned above i.e. with respect to adequate shelter, ladies toilet, etc. are being provided.

Our Thoughts

The Ordinance, by doubling the applicability threshold from 10 to 20 workers, introduces much ease of compliance for smaller establishments, relieving them from the administrative burden of registration and periodic compliance under the Gujarat S&E Act. Further, by removing the requirement for Inspector-level discretion for night shifts for women, the Ordinance shifts the focus towards employee consent and encourages a more inclusive workforce while maintaining strict safety mandates.

In view of the Ordinance, it would be prudent that employers in the State of Gujarat should review their compliance practices to align with the revised provisions.

It is however pertinent to note that, the provisions of the amended Gujarat S&E Act may be in conflict with the Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code) that has come into effect from 21 November 2025, since the OSH Code specifies 8 hours as the normal working hours per day for all establishments with 10 or more non-managerial employees. In light of these conflicting provisions, it is to be seen how establishments in such States structure their daily working hours limits, given that under the Indian Constitutional framework, in case of any conflict between the Central legislation (i.e., the OSH Code) and State legislation (i.e., Gujarat S&E Act), the Central legislation prevails.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.