Goa proposes amendments to factories act on work hours and overtime

The Goa Legislative Assembly introduced the Factories (Goa Amendment) Bill, 2025, marking a step toward labour law reform in the state. The Bill seeks to amend the Factories Act, 1948 as applicable to Goa, with two core changes designed to provide greater operational flexibility for employers. First, the daily working hour limit under Section 54 is proposed to be increased from nine hours to ten hours. Second, the overtime ceiling under Section 65(3)(iv) will be enhanced from 125 hours to 144 hours per quarter, giving industries more room to manage fluctuating workloads and seasonal production demands.

For employers, these changes present a clear advantage in managing workforce requirements without breaching statutory caps. Industries with dynamic demand cycles such as manufacturing, tourism-linked production, and seasonal industries stand to benefit most. However, the amendments do not dilute other safeguards in the act. Weekly maximum working hour limits and mandatory rest intervals remain unchanged, meaning employers will still need to carefully balance extended workdays with existing statutory protections. Compliance also hinges on accurate tracking of overtime and ensuring that all extra hours are compensated at legally prescribed rates. Proper documentation and transparent overtime management will be key to avoiding disputes or inspection-related risks.

Positioned as part of Goa’s broader ease of doing business agenda, the reforms signal the state’s intent to create a more industry-friendly regulatory environment while retaining essential labour protections. For employers, this is an opportunity to achieve operational efficiency, but one that must be balanced with rigorous compliance discipline.