Delhi enhances operational flexibility for establishments and provides conditional permission for women to work at night

At a glance

• Delhi introduced the Delhi Shops and Establishments (Amendment) Act, 2026 (Delhi S&E Amendment Act), introducing significant changes to key provisions of the Delhi Shops and Establishments Act, 1954 (Delhi S&E Act) with specific focus on enhancing operational flexibility for employers while reinforcing the necessary safeguards for employees.
• The Delhi S&E Amendment Act substantially narrows the scope of applicability of the Delhi S&E Act by limiting coverage to shops and establishments employing 20 or more employees.
• The definition of ‘child’ has been revised by increasing the age threshold from 12 years to 14 years, tightening protections against child labour.
• A key reform under the Delhi S&E Amendment Act is the permissibility of women employees working during night shifts, subject to enhanced safety, consent and compliance requirements.

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

The Delhi S&E Amendment Act marks a fundamental shift in regulatory coverage by restricting the applicability of the Delhi S&E Act to shops and establishments employing 20 or more employees, replacing the earlier regime which applied uniformly to all establishments. This change significantly reduces statutory compliance obligations for smaller establishments operating within the National Capital Territory of Delhi.

From a working‑hours perspective, the Delhi S&E Amendment Act enhances operational flexibility by increasing the daily working hours limit from nine to ten hours, with the revised limit being inclusive of rest intervals and lunch breaks. The maximum duration of continuous work without a break has also been extended from five to six hours, and the spread‑over of working hours has been standardised at 12 hours for both shops and commercial establishments (earlier, 10.5 hours in commercial establishments and 12 hours in shops). In addition, overtime limits have been expanded, permitting up to 60 hours per week and 144 hours per quarter, as opposed to the earlier limit of 54 hours in a week and 150 hours in a year.

A significant departure from the earlier framework is the removal of the blanket prohibition on night‑shift employment of women. The Delhi S&E Amendment Act enables women employees to work during night hours (9pm to 7am in summer and 8pm to 8am in winter), subject to mandatory safeguards, including prior written consent, adequate CCTV surveillance, security and transport facilities (including for contract workers), minimum staffing norms, maternity‑related restrictions, and full compliance with the Prevention of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act 2013. Employers operating in Delhi will need to carefully evaluate these conditions alongside enhanced working‑hour limits to ensure compliance.