Assam Enacts New Legislation to Modernize Regulation of Shops and Establishments

The Assam Legislative Assembly recently enacted The Assam Shops and Establishments Act, 2022, which received the assent of the Hon'ble President of India on March 13, 2025, and was subsequently published for general information on March 21, 2025, coming into force immediately. This new Act, designated Assam Act No. III of 2025, serves as a comprehensive legal framework for the regulation of conditions of workers and employment across various commercial entities within the state. It applies to shops, commercial establishments, establishments for public entertainment or amusement, and other specified establishments, along with matters connected therewith and incidental thereto. The legislation introduces a mandatory online registration process for establishments employing five or more workers, requiring them to obtain a Labour Identification Number (LIN) within sixty days of opening. Establishments with fewer than five workers are mandated to provide an online intimation of their business commencement to the Chief Facilitator or an authorized Facilitator within the same timeframe. The registration certificate, issued online within fifteen days of application, remains valid for five years or until a change in ownership or business nature occurs, necessitating fresh registration. The Act also outlines procedures for renewal, intimation of changes, and closure of businesses, with penalties for contraventions, including fines up to fifty thousand rupees and additional fines for continuing contraventions.

The legislative intent behind the Assam Shops and Establishments Act, 2022, is to update and streamline the regulatory environment for employment conditions in the state, addressing the need for a more contemporary and robust framework. This new Act explicitly repeals the Assam Shops and Establishments Act, 1971 (Assam Act No. XXI of 1974), thereby replacing the earlier statutory provisions with a modernized approach. The previous legal position, while providing a foundational structure, was deemed to have statutory gaps and limitations in addressing the evolving nature of commerce and employment practices. The new legislation introduces significant amendments and new obligations, particularly concerning worker welfare, working hours, and enforcement mechanisms. Key provisions include a strict prohibition on discrimination against women workers in recruitment, training, transfer, promotion, or wages, alongside specific regulations for their working hours, generally restricting them between 6 a.m. and 9 p.m., with exceptions for night work under specified safety and consent conditions. The Act fixes working hours for adult workers at a maximum of forty-eight hours per week and nine hours per day, with a mandatory half-hour break after five continuous hours of work. Overtime work, defined as any hours beyond nine a day or forty-eight a week, must be compensated at twice the ordinary rate of wages, with a cap of one hundred and twenty-five overtime hours in a three-month period. The legislation also mandates a weekly holiday of at least twenty-four consecutive hours of rest for every worker. Furthermore, it introduces detailed leave provisions, including eight days of casual leave, earned leave calculated at one day for every twenty days worked (accumulable up to forty-five days), seven days of medical leave, and eight paid festival holidays annually. The legislation provided: “Whereas it is expedient to provide for the regulation of conditions of workers and employment in shops and commercial establishments and establishments for public entertainment or amusement or other establishment and matters connected therewith and incidental thereto in the State of Assam.” This underscores the comprehensive scope and purpose of the enactment. Welfare provisions are significantly enhanced, requiring employers to provide wholesome drinking water, separate restrooms, latrines, and urinals for men and women, first-aid facilities, and crèche facilities in establishments employing thirty or more women workers or fifty or more total workers. Canteens are mandated for establishments with one hundred or more workers. The Act establishes the roles of Chief Facilitator and Facilitators (officials appointed to ensure compliance and provide guidance), empowering them with inspection, advisory, and enforcement functions, including the ability to search and seize relevant documents. It also allows for 24-hour operation of shops and establishments in specific areas such as Municipal Corporation Areas, National Highways, Railway platforms, and Hospital premises, while maintaining worker protection standards. Offences under the Act, including those leading to accidents, carry substantial penalties, and a mechanism for compounding certain offences has been introduced.

Keywords: Assam Shops and Establishments Act, 2022, Worker Welfare, Employment Regulation, Labour Identification Number, Online Registration, Working Hours, Overtime, Leave Provisions, Women Workers, Facilitator, Assam Legislation

Geo Tags: India, Assam District: Not Applicable