At a glance
- The Delhi government has granted an exemption to all shops and commercial establishments (except liquor shops) from certain provisions of the Delhi Shops and Establishment Act 1954, allowing for ease of operations.
- The relaxations include conditions for women working at night, opening and closing hours of shops and establishments, and weekly close day, subject to strict compliance conditions.
- Employers are required to ensure strict safety measures, install CCTV cameras, provide transportation for night workers, and obtain explicit consent from women employees for working in night shifts.
- Establishments intending to avail such exemptions are required to make an application to the Labour Department, government of National Capital Territory of Delhi together with an undertaking to comply with all conditions.
We would like to express gratitude to JSA for their contribution on this publication.
The government of National Capital Territory of Delhi, through a notification dated 7 August 2025 (Exemption Notification), has granted operational relaxations under the Delhi Shops and Establishment Act 1954 (Delhi S&E Act) to all shops and commercial establishments, except liquor shops. These exemptions mainly concern daily operating hours, weekly closing days, and restrictions on women working at night, subject to specific conditions.
Key highlights from the Exemption Notification
The Exemption Notification suspends the applicability of Section 14 (young persons and women to work during daytime) in so far as it relates to employment of women, Section 15 (opening and closing hours of shops and commercial establishments), and Section 16 (close day) of the Delhi S&E Act, subject to the following conditions:
Daily and weekly working hour restrictions
- No employee is allowed to work beyond nine hours per day, inclusive of meal and rest breaks, and 48 forty-eight hours per week.
- No employee is permitted to work for more than five hours at a stretch without an interval for rest.
- Overtime to be paid at twice the normal rate in line with Section 8 of the Delhi S&E Act.
- Daily hours, weekly hours, spread-over limits, rest intervals, and overtime will be subject to notifications as issued from time to time.
Working in shifts
- Where shift work is adopted, employers must ensure equitable rotation and must ensure that no employee is forced into working continuous night shifts.
- This will be especially relevant for commercial establishments operating round the clock, such as in the hospitality industry.
- Employers require the consent of women employees before deploying them in night shifts.
Safety, transport and security measures
- Employers are required to make suitable arrangements regarding safety, security, and transportation for all employees who are required to work beyond normal working hours prescribed under the Delhi S&E Act.
- Further, each establishment must install CCTV cameras to record workplace activity and must preserve these recordings for a minimum period of one month.
- Employers are required to submit the recordings on demand to the Chief Inspector of Shops.
Work on national holidays
- Employees working on national holidays must be granted a compensatory day off in lieu thereof, along with overtime compensation at twice the normal rate of wages.
- This provides fair compensation for additional work while ensuring the employees get their designated time off, albeit at a later date.
Weekly off on rotation basis
- The weekly rest day shall be on a rotational basis, helping round-the-clock business operations where necessary while still providing employees with their required rest day.
Constitution of internal committee
- Every employer engaging women workers must constitute an internal committee in accordance with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act 2013 and the committee must be operational.
Display of Notice
- A copy of the Exemption Notification will be prominently displayed at the entrance / exit of the establishment.
Provision for basic facilities
- Establishments must provide their employees with washrooms, safety lockers, and other basic amenities.
Exemption not automatic
- The Exemption Notification requires employers wanting to avail such exemptions to submit detailed information to the Labour Department of the government of National Capital Territory of Delhi as a pre-condition.
- The required details include the establishment's registration number, name and address, contact details of the occupier or employer, nature of business, and the number of male and female employees.
- As part of the application process, employers are further required to submit an undertaking that they will follow all conditions under the Exemption Notification along with the detailed information being submitted.
Conclusion
The Exemption Notification reflects a positive move by the Delhi government to allow businesses more operational flexibility, while still safeguarding employee rights and welfare. However, it is important to note that the Exemption Notification does not override or replace any other existing instructions issued by other government departments, or enforcement authorities. Accordingly, employers must keep in mind all such existing obligations and ensure that there are no conflicts between the exemptions provided herein and the prevailing laws.
Overall, these changes aim to create a more supportive and efficient commercial environment in Delhi facilitating a way forward for businesses to operate in a 24/7 economy. At the same time, businesses can benefit from these exemptions only if they fully comply with the prescribed requirements in the Exemption Notification. It is a welcome change for businesses and employees alike, as it allows for ease of doing business and also gives equal opportunities to female employees to be able to earn more through their explicit consent to take on such work.
However, the interplay of these provisions under the respective State specific shops and commercial establishments legislations and the newly notified Labour Codes, particularly with respect to those conditions which deviate from stipulations under the Codes, will need to be evaluated and on-ground implementation of the same needs to be assessed in due course.
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