Workers in smaller establishments set to lose rights under proposed Delhi Shops & Establishments Act amendment

The Delhi Government’s proposed Bill to amend the Delhi Shops and Establishments Act, 1954, excludes shops and establishments with less than 20 employees from the ambit of the Act.

The Hindu accessed the draft ‘The Delhi Shops and Establishments (Amendment) Bill, 2026’, expected to be tabled by Law Minister Kapil Mishra during the ongoing session of the Delhi Assembly. The Bill was sent to the MLAs by the Assembly Secretariat on Tuesday (January 6, 2026). 

The amendment proposes to add a clause to the 1954 Act so that it is applicable to shops and establishments “employing twenty or more employees.” The move is expected to strip lakhs of workers in the city of the rights provided in the Act, according to experts and labour unions.

The 1954 Act does not mention any minimum threshold of employees required for its applicability, and it is therefore enforceable on all shops and establishments, as per officials. The Act also provides several safeguards such as mandatory leaves, weekly holidays, fixed working hours, and a month’s notice for dismissal for them, among others.

Increase in work hours

The proposed bill also allows an increase in working hours.

As per the 1954 Act, an employee cannot be asked to work for more than nine hours a day, of which not more than five hours at a stretch, and also mandates an interval for “rest and meals of at least half an hour”. The Bill proposes to change it to “ten hours inclusive of rest interval and lunch break”.

While the 1954 Act, fixed the total working hours in any week to not go beyond 54 hours, the new bill proposes to increase this limit to sixty hours per week.

Increase working hours 

The proposed bill also allows an increase in working hours.

As per the 1954 Act, an employee cannot be asked to work for more than nine hours a day, of which not more than five hours at a stretch, and also mandates an interval for “rest and meals of at least half an hour”. The Bill proposes to change it to “ten hours inclusive of rest interval and lunch break”.

While the 1954 Act, fixed the total working hours in any week to not go beyond 54 hours, the new bill proposes to increase this limit to sixty hours per week.

The Bill also proposes to make amendments to allow women to work in night shifts, which was already done by an official notification last year.