The Odisha Legislative Assembly has approved the Odisha Shops and Commercial Establishments Amendment Bill, 2025, which introduces key changes to labour regulations in the retail and commercial sectors.
The bill increases the maximum daily working hours from 9 to 10, while maintaining the weekly cap at 48 hours, aiming to better distribute workloads without increasing overall strain. Additionally, overtime limits over three months have been raised from 50 to 144 hours, with overtime pay set at double the regular wage rate.
Labour Minister Ganesh Ram Singh Khuntia defended the amendments, stating that they will enable establishments to handle production demands more efficiently and allow employers to manage skilled manpower over extended periods. “Willing workers can opt for overtime to earn higher wages, boosting their income,” Khuntia said. He emphasised that the reforms will attract more investments, enhance ease of doing business, and create greater self-employment opportunities in the state.
The minister highlighted Odisha’s current 12% growth rate, predicting further acceleration to achieve a “developed Odisha” by 2036. He also noted that all shops must display nameplates in Odia, and while establishments with fewer than 20 employees are exempt from registration, they will still benefit from various labour protections and facilities.
However, the opposition parties, including the Biju Janata Dal (BJD) and Congress, strongly criticised the bill, alleging it would lead to worker exploitation, weaken labour rights, and increase unemployment.
During discussions, BJD MLA Ranendra Pratap Swain argued that the original 1956 law was designed to protect workers in shops and commercial setups, but the amendments dilute these safeguards and exclude a large segment of employees from legal coverage. “Now, only establishments with 20 or more workers will be covered, leaving lakhs of employees in smaller outfits without protections,” Swain said. He warned that extending daily hours to 10 and overtime to 144 hours quarterly could allow companies to shift from three to two shifts, forcing workers into 12-hour days (10 regular + 2 overtime) and resulting in job cuts for third-shift employees.
Swain further raised concerns about health impacts from longer hours, noting a lack of surveys on workers’ physical and mental well-being. He questioned the government’s ability to ensure women’s safety for night shifts, pointing out inadequate daytime protections and the absence of specific safety provisions in the bill. “This law is solely in the interest of big companies; overtime will benefit employers more than employees, and it could spark major labor unrest,” he added.
Other opposition members echoed these sentiments. Ganeshwar Behera questioned the haste in issuing an ordinance on November 28 instead of waiting for the assembly session starting November 27. Dhruba Charan Sahoo criticised the government for relying on bureaucratic notes from the previous regime it had condemned. Sarada Prasanna Nayak also opposed the bill.
In response, ruling party MLAs like Irasis Acharya supported the amendments, stating they aim to boost investments and promote business. Acharya clarified that women would work night shifts only with written consent, and the government is appointing necessary staff to enforce labour laws effectively. MLAs Santosh Khatua and Dushmant Kumar Swain also backed the bill.
Despite opposition demands to refer the bill to a select committee and proposed amendments, Minister Khuntia rejected them. Speaker Surama Padhi put the bill to a voice vote, leading to its passage. BJD and Congress MLAs staged a walkout in protest.
The bill’s passage comes amid broader alignment with the four national labour codes notified in November 2021, as the state updates its outdated laws. While the government views it as a step toward economic growth and worker empowerment, critics fear it prioritises corporate interests over labour welfare.
