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Rajasthan Approves Two Key Labour Reforms and aligns Shop Act with the Codes
Rajasthan Labour Reforms 2026: Extended Working Hours & Overtime Rules Explained
Original publication: 2026-02-24
Rajasthan Labour Reforms Update
Rajasthan Shops and Commercial Establishments (Amendment) Bill, 2026: Longer Hours, Higher Overtime, Tighter Compliance
In a significant move to boost economic growth and enhance worker welfare, Chief Minister Bhajan Lal Sharma approved two major labour reforms aimed at fostering a safe, dignified, and progressive work environment in Rajasthan. The Rajasthan Shops and Commercial Establishments (Amendment) Bill, 2026 introduces key changes that balance ease of doing business with regulatory compliance.
Effective date: Applies from 17 December 2025 (retrospective).
Why this change happened
The Government of India (GOI) had earlier issued a “Compliance, Reduction and Deregulation Docket” for the state seeking revision of working hours limits for Shops and Commercial Establishment workers. In compliance of the docket, the Rajasthan Government moved to amend working hours for employees working in shops and commercial establishments.
The Governor of Rajasthan had earlier issued a Rajasthan Gazette Extra Ordinary on 18 December 2025, titled the Rajasthan Shops and Commercial Establishments (Amendment) Ordinance, 2025.
What is changing
Rajasthan Factory (Amendment) Rules, 2025
Women’s employment provisions
Allows women workers, except pregnant and nursing mothers, to work in approved factory environments if safety protocols are followed.
Mandatory safety measures
Employers must provide protective gear, maintain safe air quality, and conduct regular safety training for all employees.
What this means for businesses
Operational benefits
More flexibility in workforce planning, better ability to handle peak operations, and potential improvement in productivity.
Compliance implications
Increased compliance responsibility, need for accurate tracking of working hours and overtime, and greater scrutiny on employee classification.
Employer checklist
Update HR policies to reflect revised hours, breaks, overtime, and weekly off requirements.
Reconfigure shift timings and rostering to remain within daily and quarterly thresholds.
Align payroll with the new overtime limits and ensure accurate computation and approvals.
Revisit age documentation and safeguards for adolescents, including restrictions on night work.
How Karma Global can help
Karma Global has a readymade template set of compliance forms required to be submitted to the authorities in prescribed formats. Examples include:
Prescribed online format for facility registration and renewal of registration certificate.
Prescribed format to notify a change, including notice of a close day or any change.
Prescribed formats for employment records, register of employment, leave book, medical certificate, notices, and related documentation.
Prescribed formats for daily time, working hours, and weekly off documentation.
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