The Delhi government has introduced significant reforms to workplace regulation through the Delhi Shops and Establishments (Amendment) Act, 2026, marking one of the most notable updates to labour laws governing shops and commercial establishments in the national capital. The amendment modernises provisions of the Delhi Shops and Establishments Act, 1954, with the aim of improving ease of doing business while ensuring worker protections in a rapidly evolving service economy.
One of the most important changes introduced by the amendment is a new applicability threshold for businesses. Under the revised framework, the law will apply only to establishments employing 20 or more workers, a move expected to reduce compliance burdens on small and micro-scale businesses that previously fell within the Act’s regulatory scope. Officials say the change will allow smaller enterprises greater operational flexibility while focusing regulatory oversight on larger workplaces.
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The amendment also revises working-hour provisions. The maximum daily working limit has been increased from nine hours to ten hours, including rest intervals, while the weekly limit remains capped at 48 hours. At the same time, the law allows employees to work up to six continuous hours before a break, compared to the earlier five-hour limit. The “spread-over” period—the total time from the start to the end of a workday, including breaks—has also been extended from 10 hours to 12 hours, enabling businesses to manage work shifts more flexibly.
Another key feature of the reform is the revision of overtime provisions. The amendment increases the permissible overtime limit to 144 hours per quarter, although employers must continue to pay overtime wages as prescribed under labour regulations. Policymakers believe the revised rules will help businesses address seasonal or operational demands without violating labour standards.
In a move aimed at improving gender inclusivity in the workforce, the new law permits women to work night shifts across establishments, provided adequate safeguards are in place. Employers must obtain the employee’s consent and ensure necessary safety measures, including transportation and workplace security. The provision is intended to expand employment opportunities for women, particularly in sectors such as retail, hospitality, and information technology services.
The amendment also introduces changes relating to the employment of minors. The minimum age definition has been revised so that a “young person” is now considered to be between 14 and 18 years of age, aligning the legislation more closely with modern child-labour protections.
