Bhubaneswar: In a significant move aimed at improving the Ease of Doing Business and boosting economic activity in the state, the Odisha Cabinet on Monday approved key amendments to the Odisha Shops and Commercial Establishments Act, 1956.
The reforms are expected to simplify compliance for businesses, increase employment opportunities—particularly for women—and enhance workforce productivity, while ensuring the protection of employee welfare.
The key amendments are as follows:
- The provisions of the Odisha Shops and Commercial Establishments Act, 1956 shall apply to shops and commercial establishments in the state that employ 20 or more individuals.
- Daily working hours have been increased from 9 hours to 10 hours.
- An employee’s work shift shall not exceed six continuous hours without a minimum rest interval of 30 minutes.
- The overtime work limit has been increased from 50 hours to 144 hours over a period of three months.
- If an employee works more than 10 hours in a day or more than 48 hours in a week, they shall be entitled to double the ordinary rate of wages for the overtime hours.
- Establishments will now have the option to remain open 24×7, all 365 days of the year.
- The prohibition on engaging women employees during night shifts has been removed.
- Women employees may be engaged during night shifts, subject to their written consent and adherence to safety, security, and dignity conditions as may be notified by the State Government.
These reforms aim to reduce the compliance burden on small businesses and provide a boost to entrepreneurship, thereby generating greater economic activity while safeguarding employee welfare. They are also expected to increase employee earnings through additional overtime work and promote greater participation of women in the organised and corporate sectors.
