Shops and Businesses in Gujarat can now remain Open 24X7

‘Gujarat Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2019’ came into force from May 1. It allows that shops, commercial establishments and businesses running in state can now remain open round the clock (24X7). The act was passed by state Assembly in February 2019, but was notified on occasion of Gujarat’s foundation day, 1 May 1960.

Key Highlights: Gujarat Shops and Establishments (Regulation of Employment and Conditions of Service) Act 2019

  • It replaces ‘Gujarat Shops and Establishments Act of 1948’ which prohibited shops and other businesses from remaining open between 12 am to 6 am.
  • Now shops and commercial establishments employing less than ten persons will need no registration and those employing more than 10 workers will require one-time registration with no need for annual renewal
  • Working hours for women employees can be only between 6 am and 9 pm. It could be relaxed if after considering safety issues authorities make a written request.

Benefits

  • Increase Employment: In Gujarat about seven lakh shops and businesses employ less than ten persons and generate direct employment of about 10-12 lakh persons. As per new law they do not require registration.
  • Overtime Perks: Employees working overtime will get paid twice their pay, against one and half time under previous law.
  • Biggest beneficiaries of amendments to existing law would be markets, malls, food outlets and retailers, especially during festive season.
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