Bhubaneswar: In a move aimed at easing compliance for small businesses, promoting entrepreneurship, and generating employment opportunities, the Odisha Government has promulgated the Odisha Shops and Commercial Establishments (Amendment) Ordinance, 2025. The decision was approved by the State Cabinet during its 27th meeting held on September 29, 2025.
The ordinance amends key provisions of the Odisha Shops and Commercial Establishments Act, 1956 to make the State’s business ecosystem more flexible, inclusive, and investor-friendly. It seeks to modernize regulations governing establishments and align them with evolving economic and labour practices.
As per the amended provisions, the Act will now apply to establishments employing 20 or more employees, significantly reducing the compliance burden on micro and small businesses. However, all establishments, irrespective of size, will be required to display Odia signboards.
The ordinance allows for increased daily working hours from 9 to 10 hours, while maintaining the weekly limit at 48 hours. Employees will not work for more than six continuous hours without a minimum rest break of 30 minutes. The overtime limit has been raised from 50 hours to 144 hours per quarter, with workers entitled to double wages for overtime.
In a major reform, the ordinance permits shops and commercial establishments to operate 24×7, 365 days a year, giving business owners the flexibility to manage operations according to market demand. It also removes the prohibition on employing women during night shifts, allowing such engagement with their written consent and under strict safety and security conditions to ensure their dignity and well-being.
Officials stated that the ordinance would be replaced by a formal Act of the State Legislature in due course. The move is expected to significantly improve the Ease of Doing Business in Odisha, attract new investments, and expand employment opportunities across sectors.
