GUWAHATI: The Government of Assam has enacted the Assam Shops and Establishments (Amendment) Act, 2025, bringing significant reforms to the regulatory framework governing commercial establishments across the state. The new Act, which repeals an earlier 2025 Ordinance, introduces key changes including a revised applicability threshold, enhanced gender equality provisions allowing women to work night shifts with mandatory safety protocols, and updated working hour norms.
The legislative overhaul aims to streamline compliance for smaller businesses while simultaneously strengthening worker protections, particularly for women, and aligning the state’s labour laws with modern business practices. The amendment is expected to impact a wide array of shops and commercial establishments, from retail outlets to IT and consulting firms, by modifying their operational and employment guidelines.
What was announced
The Assam Shops and Establishments (Amendment) Act, 2025, was officially announced by the Government of Assam. The Act, which came into effect after the Governor of Assam issued an Ordinance on October 13, 2025, and subsequently passed the Bill, amends the existing Assam Shops and Establishments Act, 2022.
According to official notifications, the key provisions include raising the applicability threshold under Section 6 from establishments employing five or more workers to those employing twenty or more. The Act also strengthens gender equality, explicitly prohibiting discrimination in employment and permitting women to work between 9 p.m. and 6 a.m., provided they give consent and employers implement stringent safety measures.
Furthermore, the amendment revises working hour norms, setting limits on daily and weekly work hours, mandating overtime at double the regular wage, capping overtime at 144 hours per quarter, and prescribing compulsory rest intervals.
Why it matters
The new Act carries substantial implications for businesses and employees across Assam. By increasing the applicability threshold, the government aims to reduce the compliance burden on smaller entities, allowing them greater operational flexibility. Establishments employing fewer than twenty workers will now be exempt from certain provisions of the Act, a move that could foster ease of doing business for micro and small enterprises.
For women workers, the Act marks a significant step towards gender-neutral employment practices. Allowing women to work night shifts, previously restricted by the 1971 Act, opens up new opportunities for employment and career progression in sectors that operate round-the-clock. This provision is coupled with a strong emphasis on mandatory safety measures, including security, transport, and workplace safeguards in line with the Prevention of Sexual Harassment (POSH) Act, 2013, as well as CCTV surveillance, separate restrooms, and medical facilities.
The revised working hour norms and overtime regulations are designed to enhance employee welfare, ensuring fair compensation and adequate rest. The cap on overtime hours and the mandate for double wages for extra work aim to protect employees from exploitation and promote healthier work-life balance.
Background
The Assam Shops and Establishments Act, 1971, which regulated working conditions for decades, was repealed and replaced by the Assam Shops and Establishments Act, 2022, effective March 13, 2025. This earlier overhaul aimed to align labour compliance with modern business practices, enhance employee welfare, digitise record-keeping, and standardise norms across various sectors.
The 1971 Act had specific restrictions, such as prohibiting women from working between 7 p.m. and 6 a.m., and applied to establishments with five or more employees. The current 2025 amendment builds upon the 2022 Act, further refining these provisions.
These state-level reforms are also in consonance with broader national labour reforms. The Government of India announced the implementation of four new Labour Codes – The Code on Wages, 2019, The Industrial Relations Code, 2020, The Code on Social Security, 2020, and The Occupational Safety, Health and Working Conditions Code, 2020 – with effect from November 21, 2025. These central codes rationalise 29 existing labour laws and include provisions for gender discrimination prohibition, equal pay for equal work, and permitting women to work night shifts with consent and mandatory safety measures across all establishments.
The Assam government’s latest amendment reflects a concerted effort to modernise its labour laws, ensuring they are progressive and supportive of both economic growth and worker rights, particularly in light of the central government’s push for comprehensive labour reforms.
Key details
The Assam Shops and Establishments (Amendment) Act, 2025, introduces several specific changes:
- Applicability Threshold: The Act now applies to establishments employing twenty or more workers, up from the previous threshold of five workers. This change is outlined in Section 6, sub-section (1) of the principal Act.
- Gender Equality and Night Work for Women: The amendment explicitly prohibits discrimination based on gender in employment matters. Women are now permitted to work during night shifts (between 9 p.m. and 6 a.m.) subject to their written consent.
- Mandatory Safety Measures for Women: Employers must ensure robust safety provisions for women working night shifts. These include adequate security arrangements, transport facilities, proper lighting, CCTV surveillance in critical areas, separate ladies’ toilets, medical facilities, crèches for children, and exclusive women-supervised accommodations where provided. Compliance with the POSH Act, 2013, and the establishment of complaint committees are also mandatory.
- Working Hour Norms:
- Daily working hours are limited to nine hours.
- Weekly working hours are capped at forty-eight hours.
- The spread-over of work, including rest intervals, cannot exceed twelve hours in a day.
- A mandatory rest interval of thirty minutes is required after six continuous hours of work.
- Overtime work is to be compensated at double the ordinary wage rate.
- Total overtime hours are capped at 144 hours per quarter.
- Repeal of Ordinance: The Act formally repeals the Assam Shops and Establishments (Amendment) Ordinance, 2025, while preserving all actions taken under it.
What’s next
The Assam Shops and Establishments (Amendment) Act, 2025, is now in effect, having been enacted following the Ordinance issued in October 2025. Businesses operating in Assam are required to ensure immediate compliance with the revised provisions. The state labour department is expected to monitor the implementation of the new rules, particularly those pertaining to women’s safety during night shifts and adherence to the updated working hour norms. Employers are advised to review their existing policies and operational procedures to align with the amended Act.
Sources & References
Source: Notification regarding Assam Shops and Establishments (Amendment) Act, 2025