UP Govt Extends Shops And Establishments Act Statewide, Introduces Major Labour Reforms

The Uttar Pradesh government has approved extensive amendments to the Shops and Commercial Establishments Act, 1962, expanding its applicability from select urban areas to the entire state. With this change, all establishments employing 20 or more workers, across both urban and rural districts, will now fall under the law’s ambit, significantly widening legal protection for employees.

Labour Minister Anil Rajbhar said the amendments aim to safeguard workers’ rights without burdening small establishments, while ensuring that employees in larger units receive all mandated benefits. 

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The revised Act also broadens its scope to include clinics, polyclinics, maternity homes, architects, tax consultants, technical consultants, service providers, and similar commercial units. Staff employed in these sectors will now be entitled to safe working conditions and statutory benefits.

Key changes include revised timings for women’s night shifts, from the earlier 9 pm to 6 am, now updated to 7 pm to 6 am, and mandatory seating arrangements for workers required to stand throughout the day. Employers must also provide appointment letters to all employees. Additionally, before filing any legal case, an employer must now be issued a mandatory 15-day improvement notice, a provision that did not exist earlier.

Daily working hours for employees have been increased from eight to nine, while weekly limits remain capped at 48 hours. The maximum permissible working hours in a day have been raised from 10 to 11. The quarterly overtime limit has also been increased from 125 to 144 hours, with payment fixed at twice the regular wage rate.

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For the first time in 63 years, fines under the Act have been significantly updated. Violations will now attract penalties of Rs 2,000 for the first offence and up to Rs 10,000 for subsequent offences, compared to the previous Rs 100-Rs 500 range.

According to the government, these reforms aim to make commercial operations more organised, increase transparency, and ensure stronger legal safeguards for workers across Uttar Pradesh.