Bhubaneswar: The Odisha Cabinet chaired by Chief Minister Mohan Majhi on Monday approved amendments to the Factories Act, 1948, and the Odisha Shops and Commercial Establishments Act, 1956.
These changes adjust working hour regulations to influence business operations and employment conditions in the state. It applies to shops and commercial establishments employing 20 or more workers. As part of the new guidelines, employees working beyond duty hours will be entitled to overtime pay. The standard daily working hours are set to increase from 9 to 10 and the quarterly overtime cap from 50 to 144 hours. Work shifts can extend to 6 hours without a mandatory half-hour break.
If an employee works more than 10 hours in a day or more than 48 hours in a week, they are entitled to receive double wages for overtime.
Similarly, women employees will be allowed to work night shifts (before 6 am or after 7 pm) provided they submit written consent, with the state government responsible for ensuring their safety.
The amendments also make it mandatory for shops and commercial establishments to display sign boards in Odia. These establishments will also be allowed to operate 24 hours a day, 365 days a year.
“These reforms shall reduce compliance burden on small businesses and provide impetus to entrepreneurs, thus creating more economic activities while ensuring welfare of employees. It shall also enhance employees’ earnings by allowing more overtime work and promote higher work participation opportunities for women in organised and corporate sectors,” an official release said.
To improve ease of doing business and promote industrial investment, the maximum daily work hours in factories can be increased from 8 to up to 10, with a weekly limit of 48 hours subject to specified conditions. Workers may work up to 6 continuous hours without a break, if notified by the government. The total spread-over period, including rest intervals, can extend to 12 hours including intervals for rest.
Workers exceeding prescribed hours will receive double the ordinary wage rate for overtime.
In an exemption, adult workers can be permitted to work up to 12 hours daily, with a spread-over of 13 hours and a weekly overtime limit of 60 hours.
“These reforms shall attract new investments into the state, enable the factories to meet peak demand and increase productivity. It shall also help in enhancing workers’ earnings by allowing more overtime work. The approved amendment proposals as suggested in the Priority Areas of Deregulation Initiatives of the Cabinet Secretariat, Government of India shall create conducive environment for rapid industrialisation in the state,” it added.