Chhattisgarh implements New Shop and Establishment Act, Replacing 1958 Law

RAIPUR,INDIA: The Chhattisgarh government, has implemented the Chhattisgarh Shop and Establishment (Regulation of Planning and Service Conditions) Act, 2017, along with its 2021 rules. This move aims to provide relief to small shopkeepers and safeguard employee rights. With the implementation, the old Shop and Establishment Act of 1958 and its 1959 rules have been repealed.

According to the Labour Department, the new Act will now be applicable across the entire state, unlike the previous law, which was limited to urban areas. The revised law applies only to shops and establishments with 10 or more employees, exempting smaller businesses from unnecessary regulatory burdens. Earlier, even shops without employees fell under the old Act’s jurisdiction.

The registration fee for shops and establishments will now be based on the number of employees, ranging from ₹1,000 to ₹10,000, compared to the previous ₹100 to ₹250. Businesses must register within six months of the law’s implementation through the online portal shramevjayate.cg.gov.in. Shops already registered under the previous law will be automatically included in the new system for Employees' State Insurance (ESI) and Provident Fund (PF). However, they must apply for a labour identity number within six months, though no additional fees will be required. Late applications will incur standard fees.

A major change allows shops to remain open 24/7, provided employees receive weekly off-days. Women employees can now work night shifts under specific security conditions. Employers must maintain electronic records of their employees and submit annual employee details online by February 15 each year.

The law also increases penalties for violations but introduces a compounding mechanism, allowing businesses to resolve offenses without court proceedings. Inspectors will be replaced by facilitators and chief facilitators to offer better guidance to shopkeepers and employers.

Previously, urban local bodies managed shop registrations, but as per the February 13, 2025 notification, this responsibility now falls under the Labor Department. The new rules simplify registration, reduce regulatory burdens on small businesses, and enhance employee protections.