The Delhi Shops and Establishments (Amendment) Act, 2026 (Act No. 03 of 2026) received Presidential assent on 23rd February 2026 and was notified in the Delhi Gazette on 11th March 2026. Every employer with 20 or more employees in Delhi NCR must review their HR policies immediately.
1. Background: Why Was This Amendment Needed?
The Delhi Shops and Establishments Act, 1954 — the principal legislation governing working conditions, hours, and employment terms for commercial establishments in the National Capital Territory — had not seen a comprehensive revision in decades. With the post-pandemic shift in work patterns, the expansion of 24/7 retail and service operations, and increasing participation of women in the formal workforce, the 1954 Act had become significantly outdated.
The Delhi Legislative Assembly passed the Amendment on 9th January 2026. After receiving Presidential assent on 23rd February 2026, it was notified on 11th March 2026 through the Delhi Gazette Extraordinary, Part IV.
2. Key Amendments at a Glance
2.1 Applicability Threshold (Amendment to Section 1)
A new sub-section has been inserted after sub-section (4) of Section 1, making the applicability of the Act explicit: it now covers all shops and establishments employing twenty or more employees. This codification removes ambiguity that previously existed regarding small establishments.
2.2 Age Definition (Amendment to Section 2)
In Section 2(2), the words “twelfth year” have been substituted with “fourteenth year”. This raises the age threshold in the definition applicable to young persons, bringing it in line with contemporary child labour and education policy in India.
2.3 Working Hours Extended (Amendment to Section 8)
This is one of the most significant changes for HR and operations teams. Section 8 has been amended in two parts:
- Daily working hours: The limit has been raised from nine hours to ten hours inclusive of rest interval and lunch break.
- Weekly aggregate: The cap has been revised from 54 hours to 60 hours in any week.
- Annual aggregate: Hours so worked shall not exceed 150 hours in a year.
- Quarterly cap: The aggregate hours worked shall not exceed 144 hours in a quarter.
Employers must update employment agreements, shift rosters, and payroll systems to reflect these revised limits.
2.4 Mandatory Break Interval (Amendment to Section 10)
The words “five hours” in Section 10 have been substituted with “six hours”. This means an employee must be given a mandatory break after every six hours of continuous work — revised upward from the earlier five-hour threshold.
2.5 Spread-Over Period (Amendment to Section 11)
Section 11 previously distinguished between commercial establishments (ten and a half hours) and shops (twelve hours). The Amendment standardises this — both commercial establishments and shops now have a uniform spread-over period of twelve hours.
2.6 Night Work for Women — Complete Substitution of Section 14
Section 14 has been entirely substituted. The new provision creates a comprehensive framework for employment of women during night hours, replacing the earlier blanket restriction with a safeguard-based permission regime.
3. New Section 14 in Detail: Night Work for Women
3.1 General Prohibition on Young Persons
No young person shall be required or permitted to work, whether as an employee or otherwise, in any establishment during night. This absolute prohibition remains unchanged.
3.2 Women Permitted to Work at Night (With Consent)
Women are now entitled to employment in all establishments and may be employed during the following hours — but only with their written consent:
- 9:00 PM to 7:00 AM during the summer season
- 8:00 PM to 8:00 AM during the winter season
3.3 Six Mandatory Safeguards
The employer must ensure all of the following conditions before deploying women on night shifts:
- Written consent of women employees must be obtained before placing them on night shifts.
- Adequate CCTV surveillance, security personnel, and proper transport facility must be provided to women employees — including employees of contractors — during night shifts.
- No employer shall knowingly employ a woman in any establishment during the six weeks immediately following the day of her confinement or miscarriage.
- A minimum of two women employees shall be employed together during the night shift period.
- The employer must abide by the provisions of the Prevention of Sexual Harassment of Women at Work Place (Prevention, Prohibition and Redressal) Act, 2013 as amended from time to time.
- Such other conditions as may be notified by the Government of NCT of Delhi from time to time shall also apply.
Note: All six safeguards apply equally to women employed by contractors working on the employer’s premises — not just direct employees.
4. Compliance Checklist for Delhi NCR Employers
Employers with 20 or more employees in Delhi NCR should immediately take the following steps:
- Review and revise employment agreements and standing orders to incorporate the new daily (10 hours), weekly (60 hours), annual (150 hours) and quarterly (144 hours) working hour limits.
- Update shift scheduling systems and overtime calculation to reflect the revised caps.
- Draft and implement a written consent policy for women employees who may be required to work night shifts.
- Audit CCTV coverage, security arrangements, and transport facilities for all work locations where women are or may be deployed on night shifts.
- Ensure at minimum two women employees are rostered together during every night shift.
- Conduct a POSH compliance review — verify that the Internal Complaints Committee (ICC) is duly constituted, that the annual report has been filed, and that the anti-harassment policy is updated and displayed.
- Review maternity and post-confinement leave policies to ensure the 6-week prohibition on employment is strictly followed.
- Monitor the Official Gazette of NCT of Delhi for notification of the effective date and any additional conditions under sub-clause (vi) of the new Section 14.
5. What This Means for Different Sectors
Retail and E-commerce
24/7 retail operations, dark stores, and e-commerce fulfilment centres will be most immediately affected. The increased daily and weekly caps provide flexibility for peak-period operations, but the night shift safeguard requirements demand immediate infrastructure investment in transport and security.
IT and BPO
The sector that already operates night shifts will need to formalise written consent processes and revisit contractor compliance, particularly for women employed through staffing agencies.
Hospitality and Healthcare
Hotels, hospitals, and diagnostic centres employing women on night duty must ensure the mandatory two-women-per-shift requirement is met at all times, including for ancillary and contract staff.
Manufacturing
Manufacturing units in Delhi NCR employing women on extended shifts must align shift durations with the revised 10-hour daily cap and ensure the new spread-over maximum of 12 hours is not exceeded.
6. Penalties for Non-Compliance
Violations of the Delhi Shops and Establishments Act attract penalties under the principal Act, including fines and prosecution. With the Amendment raising obligations around women’s night shift safeguards — particularly CCTV, transport, and written consent — failure to comply could also attract liability under:
- The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013
- The Maternity Benefit Act, 1961
- The Code on Occupational Safety, Health and Working Conditions, 2020 (upon notification)
- The Digital Personal Data Protection Act, 2023 in respect of consent records and CCTV data
7. Effective Date — What We Are Waiting For
The Amendment Act provides that it shall come into force on such date as the Government of NCT of Delhi may, by notification in the Official Gazette, appoint. As of the date of this article (13 March 2026), this notification is awaited. Employers should begin compliance preparations immediately so they are ready the moment the effective date is notified.
8. How Lex Praxis Can Help
Our Labour and Employment practice team at Lex Praxis advises employers across retail, manufacturing, IT, and services on statutory compliance across Delhi NCR and multiple states. We assist with:
- Drafting and updating employment agreements and standing orders under the new limits
- Night shift policy drafting including written consent frameworks
- POSH compliance audits and ICC constitution
- Multi-state Labour Compliance Matrices under the four New Labour Codes
- Regulatory advisory and representation before Labour authorities
Contact us for a compliance review: delhi@lexpraxis.org | +91-9950463492 | B-128, Sector 2, Noida, UP