SDG 8: Decent Work and Economic Growth | SDG 9: Industry, Innovation, and Infrastructure | SDG 10: Reduced Inequalities
Union Territory of Delhi
The Delhi Shops and Establishments (Amendment) Bill, 2026, seeks to overhaul the 1954 Act to modernize labor regulations in the National Capital Territory. Following a five-minute clearance in the Assembly, the Bill introduces structural changes aimed at increasing economic flexibility and gender inclusion, though it significantly narrows the scope of legal protection for the city's workforce.
The Bill introduces several transformative yet targeted provisions:
Threshold for Applicability: The Act will now only apply to establishments employing 20 or more employees, exempting a vast majority of Delhi’s micro-enterprises and small shops from these statutory regulations.
Revised Work Hours: Daily working limits are increased from nine to 10 hours (inclusive of rest and lunch breaks). Weekly overtime limits are raised to 60 hours, with a new quarterly cap of 144 aggregate hours.
Women in Night Shifts: Women may now be employed during night hours (9 PM – 7 AM in summer; 8 PM – 8 AM in winter) subject to their written consent and employer-provided safeguards, including CCTV surveillance, secure transport, and a requirement that at least two women work together during these shifts. This codifies the 2025 permissions.
Child Labor Protections: The minimum age for employment in these establishments is raised from 12 to 14 years.
What is the ‘Threshold Applicability’ change in Section 3? It is a regulatory shift that limits the Act’s coverage to larger businesses. By inserting sub-section (5) into Section 1, the government has mandated that the protections regarding fixed work hours, rest intervals, and leave under this Act no longer apply to workers in shops with fewer than 20 employees. While intended to reduce the compliance burden on small businesses, it effectively removes the statutory safety net for the bulk of Delhi’s informal retail workforce.
Policy Relevance
The Bill aligns Delhi with the Union Government’s ‘Ease of Doing Business’ reforms while sparking a debate on the erosion of labor rights in smaller establishments.
Strategic Impact for Delhi:
Economic Liberalization: By raising overtime caps and allowing 24/7-style flexibility for larger firms, the Bill aims to position Delhi as a competitive retail and service hub.
Gender Inclusion vs. Safety: Legalizing night shifts for women with mandatory transport and CCTV protocols formally integrates women into the “night economy,” though enforcement of these safeguards remains a major policy challenge.
Deregulating the Informal Sector: The 20-employee threshold removes “Inspector Raj” for small shops but creates a two-tier labor market where millions of workers in smaller establishments lose their primary legal grievance mechanism.
Health and Welfare: The extension of the daily work-spread to 12 hours and 10-hour shifts places fresh emphasis on occupational health and the need for rigorous monitoring of rest intervals.
Relevant Question for Policy Stakeholders: How will the Labour Department ensure that the exclusion of establishments with fewer than 20 employees does not lead to 'artificial downsizing' where businesses split their workforce into multiple entities to avoid compliance?
Follow the full news here: Delhi Shops and Establishments (Amendment) Bill, 2026