Bihar repeals the Bihar Shops and Establishments (Regulation of Employment and Conditions of Service) Act 2025 to streamline enforcement of labour codes

At a glance

• On 1 June 2026, the Governor of Bihar promulgated the Bihar Shops and Establishments (Regulation of Employment and Conditions of Service) (Repeal) Ordinance 2026 (Ordinance) repealing the Bihar Shops and Establishments (Regulation of Employment and Conditions of Service) Act 2025 (Bihar S&E Act).  
• The repeal reflects the State’s intention to streamline implementation of the Occupational Safety, Health and Working Conditions Code 2020 (OSH Code), which already regulates key service conditions such as working hours, leaves and overtime.
• The coexistence of the Bihar S&E Act and the OSH Code had created duplication and overlapping compliance obligations for employers.  
• The Ordinance aims to simplify the regulatory framework, reduce compliance complexity and support a more business-friendly environment to attract investment.
• A savings clause in the Ordinance ensures that ongoing proceedings under the repealed Bihar S&E Act will continue unaffected, preserving legal continuity.
  

We would like to express gratitude to JSA for their contribution on this publication.

On 1 June 2026, the Governor of Bihar promulgated the Ordinance, repealing the Bihar S&E Act.

The repeal follows the implementation of the four labour codes on 21 November 2025, including the OSH Code, which regulates key aspects of employment such as working hours, leave entitlements and overtime. The coexistence of the Bihar S&E Act and the OSH Code had resulted in overlapping and potentially duplicative compliance requirements for employers.

The Ordinance reflects the State’s intention to streamline its labour law framework by eliminating legislative duplication and reducing compliance complexity. It is also aimed at improving the State’s investment climate by creating a more simplified and business-friendly regulatory environment.

Importantly, the Ordinance includes a savings clause providing that proceedings initiated under the repealed Bihar S&E Act will continue as if the Bihar S&E Act had not been repealed, thereby ensuring continuity and avoiding disruption to ongoing matters.  

This development may serve as a model for other States considering similar measures to align pre-existing labour laws with the new labour codes and reduce regulatory overlap.