The Uttar Pradesh Dookan Aur Vanijya Adhishthan (Sanshodhan) Ordinance, 2025 (U.P. Ordinance No. 16 of 2025) introduces significant amendments to the 1962 Act.
Here are the main changes introduced by the Ordinance:
1. Expanded Definitions
- Commercial Establishments: The definition has been broadened to explicitly include the establishments of medical practitioners (hospitals, clinics, etc.), architects, tax consultants, professional consultants, and service providers (including delivery services).
- Outsourced Employees: The definition of an ’employee’ now includes persons engaged through an outsourcing agency for manual, skilled, technical, or clerical work, regardless of whether the employment terms are express or implied.
2. Registration Reforms (Section 4-B)
- Threshold for Registration: Mandatory registration is now required for shops and commercial establishments employing twenty or more employees.
- Exemption for Small Businesses: A new clause suggests that shops or commercial establishments employing less than twenty employees are added to the exemptions list under Section 3.
- Online Process: Registration must be done via a departmental web portal within six months of business commencement. If the application is complete, registration is granted automatically.
- Validity: The registration certificate is not proof of ownership of the property.
3. Women’s Employment at Night (Section 22)
- Night Shifts Permitted: Employers can now allow women to work between 7:00 PM and 6:00 AM, provided they obtain the woman’s consent.
- Mandatory Conditions: Employers must provide free transportation to the employee’s residence, shelter, food/canteen facilities, restrooms, night creche, ladies’ toilets, and adequate safety measures.
4. Working Hours and Overtime (Section 6)
- Standard Hours: The maximum working hours are set at 9 hours per day and 48 hours per week for adults.
- Spread Over: The total hours of work, including overtime, cannot exceed 11 hours on any single day.
- Overtime Limit: The total number of overtime hours is capped at 144 hours in any quarter (a period of three consecutive months).
- Overtime Pay: Wages for overtime must be paid at twice the ordinary rate.
5. Employee Welfare (Section 28-A)
- Right to Sit: Employers must provide adequate sitting arrangements for all employees who are obliged to work in a standing position.
- Appointment Letters: It is now mandatory to issue an appointment letter to every employee containing details like name, salary, designation, Aadhaar number, and nature of the post.
6. Enforcement and Penalties
- Improvement Notice: Before initiating prosecution (except for specific offenses), Inspectors must issue a 15-day written “improvement notice” to give the employer a chance to comply. Prosecution will only proceed if the employer fails to comply or repeats the violation within five years.
- Increased Fines: The penalty for offenses has been increased:
- First Offence: Fine up to ₹2,000.
- Subsequent Offence: Fine up to ₹10,000.