Delhi grants conditional exemption to Shops and Establishments

On 7 August 2025, the Government of NCT of Delhi issued a notification providing significant exemptions to all shops and commercial establishments except liquor shops from compliance with Sections 14, 15, and 16 of the Delhi Shops and Establishments Act, 1954. These provisions relate to restrictions on daily and weekly working hours, employment of women during night shifts, and certain record-keeping obligations. The notification reflects Delhi’s attempt to modernise its labour framework by offering businesses greater operational flexibility, but it does so under a carefully designed framework of safeguards.

The exemption is conditional, and employers remain bound by strict employee welfare protections. No worker may be engaged for more than nine hours a day or 48 hours a week, and not beyond five continuous hours without a break. Overtime is permitted but must be paid at twice the ordinary rate of wages. Employers must also provide weekly offs on a rotational basis, compensatory leave and double wages for work on national holidays and ensure that wages are paid promptly through digital or banking channels.

Enhanced responsibilities have been placed on establishments employing women, especially for night shifts. Written consent from female employees is mandatory, supported by adequate safety and transportation facilities. Employers must also set up an Internal Committee in line with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. Infrastructural measures such as CCTV installation with one-month recording retention, as well as adequate restrooms and lockers, are also required.

To operationalise the exemption, establishments must formally submit their details and a compliance undertaking to the Labour Department, and display a copy of the notification at prominent entry/exit points. This framework underscores Delhi’s shift towards conditional deregulation: businesses are offered autonomy to operate more flexibly, but with heightened accountability to ensure employee welfare, safety, and dignity are not compromised.