GLOBIVOX

Introduction

On September 29, 2025, the Odisha state cabinet, led by CM Mohan Charan Majhi, passed key amendments to the Shops & Commercial Establishments Act (1956) and the Factories Act (1948). These changes raise the daily work limit, adjust overtime rules, open up night shifts for women under conditions, and aim to balance economic growth with worker welfare.

The updates mark one of the most significant shifts in labour policy in Odisha in recent years. But what do they mean for employees and employers on the ground?

What Exactly Changed

Here are the major amendments that have been approved:

• Daily working hours increased from 9 to 10 hours while keeping the weekly cap at 48 hours.

• Overtime: If someone works more than 10 hours in a day or more than 48 hours in a week, the overtime compensation will be at double the ordinary wage rate.

• The quarterly cap on overtime hours has been raised: Previously 50 hours in three months, now increased to 144 hours per quarter.

• Breaks/rest: No one can be made to work more than six continuous hours without at least a half-hour break.

• **Shops & commercial establishments with 20 or more employees will come under these amended rules.

• Night shifts for women are now permitted (i.e., work before 6 AM or after 7 PM) provided written consent is given. There are conditions related to safety, security, and dignity.

• Establishments now may operate 24×7, 365 days a year if they choose.

Why the State Did It — Rationale

These changes were introduced for a few key reasons:

1. Ease of Doing Business: Odisha aims to simplify labour laws and reduce compliance hurdles so businesses have more flexibility.

2. Boosting Economic Activity: More flexible working hours can help businesses respond better to demand peaks.

3. Increasing Women Workforce Participation: Allowing women to work night shifts under safe conditions can open up more job opportunities.

4. Improving Worker Earnings: With higher overtime caps and double wages for extra hours, employees stand to earn more.

Potential Benefits for Employees

Here are what workers might gain under the new rules:

• Higher income through overtime (double wages beyond threshold hours).

• More work flexibility: Some may prefer working longer hours if it means fewer working days, or aligning hours with personal schedules.

• Better opportunities for women in industries or businesses that operate in night hours, given added safeguards.

• Legal clarity over what counts as overtime, what breaks are required, etc., reducing chances of exploitation.

Concerns & Challenges

No policy shift is without trade-offs. Some likely issues:

• Work-life balance: Increasing daily hours could lead to fatigue, reduced rest, and stress, especially for those commuting, with family responsibilities, etc.

• Safety and compliance: Night shifts for women require strict safety measures. It remains to be seen how effectively those will be enforced.

• Costs for employers: Paying double wages for overtime may increase labour costs. Smaller businesses might struggle more.

• Overuse of overtime: There’s a risk that employers may push employees to continuously work long hours, especially in peak seasons, to maximize productivity.

Comparison to Previous Law & Other States

• Before now, Odisha’s Shops & Commercial Establishments Act capped workday at 9 hours and weekly limit at 48 hours, with overtime rules but lower overtime caps.

• The quarterly overtime cap (50 hours) was significantly lower; the new 144-hour cap allows more overtime in busy periods.

• Similar moves in other Indian states have been under discussion, but Odisha's rules are notable for the increased daily cap + night shift permissions. (Exact comparative data would need deeper research.)

What It Means for Business

For companies and establishments:

• Need to adjust scheduling: More flexibility in shifts, more options for nighttime operations.

• Operational costs: Budgeting must account for double wages, possibly transportation or security costs for night shift workers.

• Compliance requirements: Ensuring safety, rest breaks, written consent for night work, etc. This may mean infrastructure investments (lighting, security, transport).

• Competitive edge: Businesses that manage these changes well may benefit from increased productivity and ability to serve markets round the clock.

Looking Forward — Implementation & Enforcement

Some points to monitor:

• How well are the safety conditions for women being enforced in night shifts?

• Will small and medium establishments be supported (financially or via policy) to adapt?

• How will labour inspectorates monitor overtime, rest intervals, etc.?

• Employee awareness: Workers need to know their rights under the amended rules, especially regarding overtime pay.

Conclusion

Odisha’s amendment to labour laws marks a significant shift: 10-hour workdays, stronger overtime benefits, and more opportunities (including for women) in night shifts. The aim is to balance growth with worker welfare.

If implemented well, this reform could raise worker incomes, boost business activity, and set an example for other states. But the devil will be in the details — enforcing safety, ensuring fair compensation, and preserving work-life balance will decide whether the changes genuinely benefit employees or lean too heavily toward business interests.