Odisha Ordinance Amends Shops and Commercial Establishments Act, Allows 24x7 Operation and Revises Working Conditions

The Governor of Odisha promulgated The Odisha Shops and Commercial Establishments (Amendment) Ordinance, 2025, on November 5, 2025, which was subsequently published in The Odisha Gazette on November 8, 2025. This Ordinance, designated Odisha Ordinance 3 of 2025, came into force immediately upon its promulgation. The legislative action was necessitated by the Legislative Assembly of the State of Odisha not being in session, with the Governor deeming immediate amendment to the Odisha Shops and Commercial Establishments Act, 1956 (Odisha Act 30 of 1956), as essential. The Ordinance introduces significant changes affecting employers and employees across commercial establishments in the state.

A key alteration is the scope of the principal Act, which now, with the insertion of sub-section (2-a) in Section 1, applies to establishments employing twenty or more employees, with an exception for sub-section (2-a) of Section 4. The Ordinance mandates that employers of establishments with twenty or more employees must apply for and obtain a registration certificate within six months of commencing business. This process, outlined in the substituted Section 4, requires applications to be made in a prescribed form and manner with a specified fee. An Inspector is required to issue the registration certificate within seven working days; failure to do so results in the certificate being deemed granted. Furthermore, the Ordinance revises daily working hours, substituting "nine hours" with "ten hours" in Sections 7 and 8. It also stipulates that the total number of hours of work, including overtime, shall not exceed twelve hours in any day, and increases the permissible overtime hours from fifty to one hundred and forty-four. The legislation provided: “Every establishment in the State may remain open 24x7 subject to the condition that every employee shall be given overtime wages as per Section 8 and one day weekly holiday as per Section 12. The employees shall be provided access to washroom, drinking water facilities, seating facilities and other basic amenities.” This provision, introduced by the substituted Section 11, allows for continuous operation while safeguarding employee welfare through mandated overtime pay, weekly holidays, and essential amenities. Section 9 was also substituted to ensure that an employee's period of work does not exceed six continuous hours without an interval for rest of at least half an hour.

The legislative intent behind the Ordinance is to modernize the regulatory framework governing shops and commercial establishments in Odisha, addressing contemporary operational needs and employee welfare standards. The earlier legal position, established by the 1956 Act, was perceived to have limitations regarding operational flexibility, particularly concerning extended working hours and the employment of women during night shifts. The Ordinance aims to bridge these statutory gaps by allowing establishments to operate 24x7, thereby potentially boosting economic activity and employment opportunities. It introduces new obligations for employers, such as mandatory registration for larger establishments and the provision of basic amenities, while also enhancing employee rights concerning working hours, rest intervals, and weekly holidays. The substituted Section 12 clarifies that establishments may remain open for 365 days a year, provided every employee receives a weekly holiday of at least twenty-four consecutive hours of rest, with provisions for compensatory leave if a holiday is denied and protection against wage deductions. Significantly, the Ordinance prohibits the employment of adolescents during night hours through a substituted Section 23. However, it introduces a new Section 23A, empowering the State Government to allow the employment of women employees during night with their written consent, subject to prescribed conditions ensuring their safety, security, and dignity. These amendments reflect a policy rationale to balance business operational demands with robust protections for the workforce.

Keywords: Odisha, Ordinance, Shops and Commercial Establishments, Labour Law, Working Hours, 24x7 Operation, Employee Welfare, Women Employment, Registration Geo Tags: India, Odisha District: Not Applicable