The Government of Gujarat has promulgated Ordinance No. 3 of 2025, amending the Gujarat Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2019. This ordinance introduces significant changes to thresholds, working hours, and women’s employment provisions, reflecting the state’s commitment to modernizing labour laws while balancing worker welfare and business flexibility. Employers, HR professionals, and compliance managers should take note of these updates to ensure readiness for implementation.
Background
- The principal Act of 2019 was designed to improve working conditions, encourage women’s participation in the workforce, and simplify compliance.
- The 2025 ordinance was issued under Article 213 of the Constitution, as the Legislative Assembly was not in session.
- The amendments aim to expand applicability, enhance equality, and regulate overtime work.
Key Amendments in Gujarat Ordinance No. 3 of 2025
1. Applicability Threshold Increased
- The Act now applies to establishments employing 20 or more workers (previously it was 10).
- This change reduces compliance burden for smaller establishments while ensuring larger workplaces maintain regulatory standards.
2. Working Hours Adjusted
- Daily working hours increased from 9 to 10 hours.
- Rest intervals adjusted from 5 to 6 hours.
- This aligns Gujarat’s framework with evolving business needs while maintaining rest provisions.
3. Women’s Night Shift Employment
- Women workers may now work between 9:00 p.m. and 6:00 a.m., subject to:
- Consent of the worker.
- Employer provision of rest rooms, night crèches, ladies’ toilets.
- Adequate protection of dignity, honour, and safety.
- Transportation from workplace to residence.
- The State Government retains power to regulate or prohibit such employment in public interest.
4. Overtime Regulations Revised
- Maximum overtime hours per quarter increased from 125 to 144 hours.
- This provides flexibility for employers while ensuring limits on excessive work.
Options Employers Can Explore
Employers may consider the following approaches:
| Option | Description | Potential Impact |
| Compliance Readiness | Review workforce size and applicability under new threshold. | Ensures legal adherence. |
| Shift Planning | Adjust schedules to accommodate extended hours. | Improves productivity. |
| Women’s Safety Measures | Implement facilities and transport for night shift employment. | Builds trust and compliance. |
| Payroll Adjustments | Factor in increased overtime limits. | Prevents disputes and ensures transparency. |
| Policy Updates | Update HR manuals and employee communication. | Enhances clarity and reduces risk. |
Practical Implications
- Small establishments (under 20 workers) gain relief from compliance obligations.
- Women’s participation in night shifts may increase, provided safety measures are ensured.
- Overtime flexibility supports industries with seasonal or peak demand.
- Extended working hours require careful scheduling to avoid fatigue and maintain productivity.
Key Takeaways
- Ordinance No. 3 of 2025 modernizes Gujarat’s labour law framework.
- Applicability threshold raised to 20 workers.
- Women’s night shift employment permitted with safeguards.
- Working hours and overtime limits expanded.
- Employers should proactively prepare compliance strategies.
Conclusion
The Gujarat Shops and Establishments (Amendment) Ordinance, 2025 represents a balanced approach to labour regulation—expanding opportunities for women, easing compliance for smaller businesses, and providing flexibility in working hours and overtime. Organizations operating in Gujarat should evaluate their workforce policies, infrastructure, and compliance systems to align with these changes.
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Disclaimer – This blog post is a general guide. It should not be considered legal advice. Consult a legal professional for more details.