TFP Bureau, Raipur, April 13, 2025: In a major step toward improving the business environment in the state, the Chhattisgarh government has implemented the Shop and Establishment (Regulation of Employment and Conditions of Service) Act, 2017, and its accompanying Rules, 2021, effective from February 13, 2025. The move aims to streamline business operations and protect the rights of workers while easing the regulatory burden on small traders and shopkeepers.
The Act applies to shops and establishments across both urban and rural areas employing 10 or more workers. However, businesses with fewer than 10 employees or no workers are exempt from its provisions, providing much-needed relief to small and self-employed businesses. The Act aligns with the Model Shop Act recommended by the Ministry of Labor and Employment, Government of India.
Simplified Online Registration and Deemed Registration
One of the key provisions of the new law is the shift to a completely online registration system. All businesses are required to register within six months via the Labor Department’s portal,http://shramevjayate.cg.gov.in. A digitally signed certificate will be issued upon registration, and amendments or updates regarding shop operations, such as closures, can also be made online.
To ensure timely processing, the system incorporates a “deemed registration” provision. If the department fails to certify a registration within 15 working days, the registration will be considered automatically approved, further simplifying the process for businesses.
Employee Benefits and Flexibility for Employers
The Act also brings important changes for workers. Employees are entitled to 8 days of casual leave, 8 days of festival leave, and earned leave. Additionally, women workers are now allowed to work night shifts, provided adequate safety measures and facilities are in place.
Businesses are now permitted to operate seven days a week, as long as employees receive a weekly day off. The state government retains the flexibility to declare regional holidays based on local needs.
Streamlining Business Operations
Business owners will no longer need to physically visit government offices for processes like registration or filing annual returns. The transition to online systems will save time, resources, and energy, contributing to a more efficient and business-friendly environment.
Moreover, a new settlement fee has been introduced to resolve minor labor law violations, eliminating the need for judicial proceedings and ensuring quicker and more straightforward dispute resolutions.
Positive Impact on Small and Medium Businesses
The implementation of the Shop and Establishment Act is expected to strengthen Chhattisgarh’s Ease of Doing Business policies. Small and medium-sized businesses will benefit from simpler legal processes, greater inclusion of women in the workforce, and better protection for workers in the organized sector.
This reform is poised to make Chhattisgarh a more progressive and inclusive state, fostering economic growth and social equity by providing a more supportive environment for businesses and workers alike.
