Bihar enacts new Shops and Establishments Act, 2025

The Government of Bihar has taken a major step toward modernising its labour regulatory framework with the enactment of the Bihar Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2025. This legislation consolidates and updates provisions on working hours, conditions of service, leave entitlements, employee welfare, and workplace safety across shops and commercial establishments, bringing the state in closer alignment with contemporary labour standards.

A central feature of the new act is the introduction of a formal registration requirement for establishments employing ten or more workers, with prescribed timelines and conditions for compliance. Employers are now obligated to maintain employee records in standardised formats, process wage payments through bank transfers, and ensure basic health and safety measures such as adequate lighting, ventilation, and sanitation facilities. The act also introduces progressive safeguards for women employees, including restrictions on night work unless supported by certified safety arrangements, and mandatory crèche facilities for establishments meeting a prescribed workforce threshold.

The legislation further harmonises working hour provisions with national labour reforms, restricting daily and weekly work limits while mandating overtime pay for additional hours. It codifies statutory leave entitlements such as earned leave, casual leave, and maternity protections, alongside safeguards for sickness-related absences. Enforcement has been strengthened through inspector-cum-facilitator oversight, clear dispute resolution mechanisms, and codified penalties for contraventions, aiming to ensure accountability and compliance across the board. For employers, the new act represents both an administrative reset and an opportunity to standardise employment practices. While compliance obligations will increase particularly in relation to registration, record-keeping, and welfare facilities the law also provides clarity, consistency, and alignment with national labour reforms