Gandhinagar: The Gujarat Government is set to move Gujarat Bill No. 1 of 2026, titled the Gujarat Shops and Establishments (Regulation of Employment and Conditions of Service) (Amendment) Bill, 2026, in the State Assembly. Introduced by Labour, Skill Development, and Employment Minister Kunvarjibhai Bavaliya, the bill aims to modernize labor regulations and expand employment opportunities, particularly for women.

Doubling the Worker Threshold

A significant change proposed in the bill is the increase in the worker threshold for specific regulations under the Act. The amendment seeks to change the threshold from establishments employing “ten” or more workers to those employing “twenty” or more workers. This move is intended to provide greater flexibility for smaller businesses and shops across the state.

24-Hour Employment for Women

One of the most prominent features of the bill is the provision for women to work during night shifts. Under the amended Section 13, women workers may be permitted to work between 9 PM and 6 AM, provided they give their informed consent. However, this permission is strictly subject to the employer fulfilling several safety and welfare conditions, including:

• • Providing rest rooms and night crèches.
• • Ensuring separate toilets for women.
• • Protecting the dignity and safety of women and preventing sexual harassment.
• • Arranging transportation for women workers from the establishment to their residence.

The state government also retains the power to prohibit or regulate such employment in specific areas via official notification if deemed necessary for public interest.

Changes to Working Hours and Overtime

The bill introduces more flexible working hours to accommodate modern business needs. The maximum daily working limit is proposed to increase from nine hours to ten hours. Additionally, the limit for continuous work before a mandatory rest interval will be extended from five hours to six hours.

Regarding overtime, the bill proposes to increase the total allowable overtime hours for any worker in a single quarter from 125 hours to 144 hours. These changes are designed to help businesses manage peak periods more effectively while ensuring workers are compensated at double their normal wage rate for extra hours.

Retrospective Application and Legislative Context

Once passed, the Act will be considered to have come into force retrospectively from December 16, 2025. It officially replaces the Gujarat Shops and Establishments (Regulation of Employment and Conditions of Service) (Amendment) Ordinance, 2025, which was promulgated when the Assembly was not in session.

According to the “Statement of Objects and Reasons,” these amendments are crucial for improving working conditions, fostering gender equality in the workplace, and providing the freedom to operate businesses 365 days a year with simplified online registration processes. DeshGujarat