Odisha Cabinet has approved major amendments to the Factories Act, 1948 and the Odisha Shops and Commercial Establishments Act, 1956.
The reforms, cleared during a cabinet meeting chaired by Chief Minister Mohan Charan Majhi, are expected to simplify compliance, expand economic activity, and enhance workforce participation across the state.
The revised provisions apply to shops and commercial establishments employing 20 or more workers and introduce changes to working hours, overtime limits, and operational flexibility.
The government has positioned these reforms as part of its broader strategy to attract new industries and align with the deregulation priorities of the Cabinet Secretariat, Government of India.
Extended Working Hours and Higher Overtime Benefits
One of the central changes is the increase in daily working hours from 9 to 10, while maintaining the weekly cap at 48 hours.
Employers can now require employees to work up to six continuous hours without a mandatory break, but they must provide a 30-minute rest interval afterward.
The government has raised the quarterly overtime limit from 50 to 144 hours. Employers must pay workers double their regular wage rate if they exceed 10 hours a day or 48 hours a week.
In factories, the total spread-over period—including rest intervals—can now extend to 12 hours.
Under specific exemptions, employers may allow adult workers to work up to 12 hours daily, with a spread-over of 13 hours and a weekly overtime limit of 60 hours.
These provisions are designed to help industries meet peak demand and improve productivity, while also increasing workers’ earnings through additional overtime opportunities.
Odisha Shops and Establishments Can Operate 24×7
Another major reform allows shops and commercial establishments to operate 24 hours a day, 365 days a year.
Previously, businesses required special permissions to extend operating hours or employ staff during night shifts.
The new rules remove these restrictions, giving entrepreneurs greater flexibility to manage operations based on demand and market conditions.
To promote linguistic inclusion, the amendments also mandate that all shops and commercial establishments display signboards in Odia, regardless of their size or employee strength.
Women Employees Permitted to Work Night Shifts
The reforms include provisions to allow women employees to work night shifts, provided they submit written consent and employers meet safety conditions prescribed by the state government.
These conditions include GPS-enabled transport, female security personnel, and adequate workplace lighting.
The government expects the move to increase female participation in the organised and corporate sectors, which restrictive shift policies have traditionally limited.
A government official noted that the previous requirement for employers to seek approval before engaging women in night shifts was a barrier to business growth.
The new framework makes such employment automatic, subject to compliance with safety norms.
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