Delhi Notifies Shops and Establishments (Amendment) Act, 2026

On March 11, 2026, the Government of the National Capital Territory of Delhi, notified the Delhi Shops and Establishments (Amendment) Act, 2026 (Amendment Act), introducing significant reforms to the Delhi Shops and Establishments Act, 1954 (Delhi S&E Act).

The key regulatory changes are outlined below:

1. Revised Applicability Threshold: One of the most significant changes is the introduction of an employee-based threshold for applicability. The Amendment Act establishes applicability to shops and establishments employing 20 or more employees.

2. Employment of Women in Night Shifts: The Amendment Act substitutes Section 14 to permit women to work night shifts, subject to stringent safety mandates. The mandatory safeguards include written consent of women employees, provision of safe transportation and appropriate surveillance measures during the night shift.

3. Working Hours for Employees: The Amendment Act significantly allows businesses more flexibility, particularly during peak or seasonal cycles. The daily working hours have been increased to 10 hours and are inclusive of rest intervals and lunch breaks. In addition, the maximum limit for weekly work has been increased to 60 hours. Further, the previous annual limit of 150 hours of overtime work has been replaced by a quarterly limit of 144 hours.

4. Continuous Working Hours Before Break: The Amendment Act amends the maximum period of continuous work allowed before a mandatory rest interval to 6 hours. Employers must ensure that no employee works for more than 6 hours without a rest or meal interval.

5. Spread-Over Working Hours: The Amendment Act provides a uniform maximum spread-over of 12 hours, replacing earlier differentiated limits for shops and commercial establishments.

6. Child Labour Protections: Aligning with national standards and international labor conventions, the Amendment Act raises the minimum age of employment. The age threshold has been raised from 12 years to 14 years.

Conclusion: 

The Amendment Act represents a progressive shift toward balancing economic competitiveness with social protection. While it reduces the compliance burden for small businesses, it imposes higher standards of welfare and safety for larger establishments.