Delhi Shops and Establishments (Amendment) Bill, 2026: Decriminalizing Compliance, Extending Hours
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, marks a pragmatic evolution of the 1954 Act under Delhi’s Jan Vishwas framework, decriminalizing minor compliance issues while fine-tuning operational flexibilities for shops, commercial establishments, restaurants, and theaters across the National Capital Territory.
Passed in the Delhi Assembly’s winter session ending January 9, 2026, it replaces fear of imprisonment with proportionate civil fines, fostering a business-friendly environment without diluting essential labor protections like overtime pay or rest periods. This positions Delhi as a more competitive hub for retail and services, layered atop 2025 notifications that already enabled extended hours and night operations.
The Bill introduces several transformative yet targeted provisions:
Decriminalization of Minor Offenses: Converts jail terms (up to 6 months under old Sections 47–48) into graded monetary penalties (INR 1,000 for first offenses to INR 1 lakh for repeats) for 20+ technical violations, such as delayed registration, incomplete wage/leave registers, or failure to display certificates—entrepreneurs face notices and compounding options instead of criminal trials.
Extended Daily Work Hours: Raises the maximum daily limit from 9 to 10 hours (capped at 48 weekly), with double overtime wages mandatory beyond norms; supports rotational weekly offs and compensatory holidays, exempting compliant establishments from prior Sections 14–16 restrictions (excluding liquor outlets).
Enhanced Women’s Participation: Codifies 2025 permissions for night shifts (8 PM–6 AM), requiring employers to provide CCTV surveillance, dedicated transport, security personnel, lighting, and employee consent—aims to boost female workforce inclusion while prioritizing safety.
Simplified Adjudication and Compliance: Designates labor inspectors as adjudicatory officers for swift penalty imposition with appeals; retains existing registration processes (no new digital mandates) but eases “Inspector Raj” by limiting intrusive checks to substantive breaches.
Policy Relevance
Mirrors the national Jan Vishwas (Ease of Doing Business) Act, 2022, by rationalizing 40+ laws; Delhi’s version targets labor codes to align with Union initiatives, promoting uniform compliance across states.
Strategic Impact:
Economic Multiplier: 10-hour flexibility and decriminalization spur night-time retail/services, potentially adding thousands of jobs in a sector employing over 20 lakh, enhancing GDP via consumption.
Labor Welfare Balance: Strict fines (up to INR 1 lakh+) for violating overtime, offs, or safety norms protect workers; no rollback of minimum wages or leave entitlements.
Inclusive Growth: Night shift safeguards expand opportunities for women (targeting 20%+ workforce rise), driving urban safety upgrades like better lighting in markets.
Administrative Efficiency: Adjudicatory shifts decongest courts (handling 50,000+ labor cases yearly), enabling Labour Department focus on high-impact enforcement.
Relevant Question for Policy Stakeholders: How will the Labour Department monitor 'Split Shifts' and 'Overtime' in 10-hour workdays to ensure that larger establishments do not exceed the weekly 48-hour cap stipulated under Central labor codes?
Follow the full news here: Delhi Shops and Establishments (Amendment) Bill, 2026