The Government of Bihar has officially notified the Bihar Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2025, aimed at amending and consolidating the legal framework governing employment conditions in the state’s shops and establishments. The new law repeals the 1953 Act and introduces updated provisions to enhance worker welfare, safety, registration, wage protection, and gender equality.
The Act applies to all shops and establishments in Bihar that employ ten or more workers.
🧾 Key Highlights of the 2025 Act
📌 1. Scope & Applicability
- Applies to shops and establishments in Bihar with 10 or more workers.
- Exemptions include:
- Managerial or supervisory roles
- Government offices
- RBI
- Family members of employer
🏢 2. Registration & Labour Identification
- Mandatory registration within 6 months of commencement or setup.
- Shops must obtain a Labour Identification Number (LIN).
- LIN to be issued within a week of application.
💰 3. Wages & Payment Rules
- Monthly wage period limit.
- Wages must be paid within 7 days of wage period end.
- Bank/Post Office transfer mandatory for workers employed >15 days.
- Employers to assist in opening accounts for workers without one.
- Service cards to be issued within 10 days of hiring.
👩⚖️ 4. Gender Equality & Night Shifts for Women
- No discrimination in recruitment, pay, training, or promotion.
- Women can work only between 6 a.m. – 9 p.m.
- Exceptions allowed with consent and safety arrangements:
- Transport to doorstep
- Toilets, crèche, security, restrooms
- POSH compliance
- Exceptions allowed with consent and safety arrangements:
🧑🔧 5. Working Hours & Overtime
- Max 48 hours/week:
- 9 hrs/day for 6 days
- 10 hrs/day for 5 days
- 11.5 hrs/day for 4 days
- Minimum half-hour break after 5 hours
- Max overtime: 144 hrs/3 months
- Overtime pay at 2x normal wages
🔄 6. Shift Work & Weekly Rest
- Multiple shifts allowed
- Mandatory 24-hour rest every 7 days
- Rest day work to be paid at double wages
🚨 7. Termination & Worker Protections
- 1-month notice or pay in lieu required for employees with >6 months tenure
- Misconduct-based dismissals must follow due inquiry
- Workers with >1 year service get 15 days compensation/year
- Workers can complain within 6 months of dismissal
🏥 8. Welfare Measures
- Safe drinking water, first aid, separate toilets for men and women
- Creche facilities:
- 30+ women or 50+ total workers
- Shared crèches allowed within 1 km radius
- Canteen: Required for 100+ workers (or shared)
👮 9. Facilitators & Inspections
- State to appoint Facilitators and a Chief Facilitator
- Duties include:
- Advising employers
- Conducting inspections
- Investigating grievances
- Web-based inspection schedules to ensure transparency
- Facilitators empowered to seize records, conduct inquiries, and ensure compliance
📑 10. Records & Annual Returns
- Employers must maintain records (manual or digital)
- Must submit annual returns in the prescribed format
⚖️ 11. Penalties & Offences
- General violations: ₹10,000 – ₹25,000
- Repeat offence: ₹20,000 – ₹50,000
- Serious workplace accidents due to violations:
- Up to 6 months imprisonment
- Fine between ₹2–5 lakh or both
- Obstructing Facilitators: ₹10,000 – ₹25,000
🔁 12. Repeal of 1953 Act
- The Bihar Shops and Establishments Act, 1953 stands repealed.
- Actions under the old Act will be deemed valid if not inconsistent with the 2025 Act.
📝 Conclusion
The 2025 Act represents a modernized labour framework in Bihar focused on:
- Transparent regulation
- Digital integration
- Worker dignity
- Gender equality
- Workplace safety
It strikes a balance between employer flexibility and employee welfare, aligning state labour law with contemporary workplace realities.