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🏭 Factories (Gujarat Amendment) Ordinance, 2025: Major Labour Law Reforms for Industrial Growth

Published on: 1st July 2025
Category: Labour Law Updates | Gujarat | Factories Act | Compliance

📌 Introduction

The Government of Gujarat has ushered in a transformative change in industrial labour policy with the promulgation of the Factories (Gujarat Amendment) Ordinance, 2025, notified on 1st July 2025. This ordinance temporarily amends the Factories Act, 1948 to boost industrial productivity, attract new investments, generate employment, and enable flexibility in working hours.

Let’s break down the key amendments and understand their impact on employers, HR professionals, factory managers, and compliance consultants.

⚖️ Legal Basis

  • This amendment has been promulgated by the Governor of Gujarat under Article 213 of the Indian Constitution.
  • Presidential assent was obtained since the Gujarat Legislative Assembly was not in session.

🔍 Summary of Key Amendments

Section

Amendment Summary

Impact

Section 54

Daily working hours extended to 12 hours/day (inclusive of rest), with a weekly cap of 48 hours

Allows longer shifts with worker consent, creating more production flexibility

Section 55

Workers can work up to 6 continuous hours without a break

Provides better shift structuring for continuous processes

Section 56

Spread-over can now be up to 12 hours including rest

Supports flexibility in staggered shift planning

Section 59

Revised overtime rates for varying schedules:
• 9 hrs/day (6-day week)
• 10 hrs/day (5-day week)
• 11.5 hrs/day (4-day week)
2x Wages for extra work

Encourages multiple shift patterns with fair compensation

Section 65

Quarterly overtime limit increased to 125 hours
Written consent mandatory for overtime

Extended seasonal or urgent operations support

Section 66

Women permitted to work night shifts (7 PM – 6 AM) with safety conditions

Empowers women workers, with a comprehensive workplace safety framework

👩‍🏭 Night Shift for Women: Stringent Safety Protocols

The most significant change is the provision for employing women during night shifts, a move towards gender inclusion. However, the ordinance enforces strict conditions to ensure women’s safety and dignity:

✅ Minimum 10 women workers per batch
✅ Proper lighting and 45-day CCTV footage storage
✅ Transport with GPS & CCTV, female guards
No first pick-up or last drop for women
✅ Grievance redressal committees & counsellors
No compulsion – Night shift only with written consent
✅ Minimum 12-hour rest between shift changes

📈 Objective Behind the Ordinance

The Gujarat Government aims to:

  • Attract national & international investments
  • Create more employment opportunities
  • Allow flexible shift models for continuous production industries
  • Promote gender diversity in the workforce
  • Support Make in India and Ease of Doing Business initiatives

🔄 Applicability & Enforcement

  • Effective Date: 1st July 2025
  • Applicable To: All factories registered under the Factories Act, 1948 in Gujarat
  • Operative Period: Till it is ratified or replaced by legislation in the Gujarat Assembly

✅ Action Points for Employers & HR

  1. Update shift rosters as per new daily/weekly work hour norms
  2. Ensure written consent for overtime and night shift work
  3. Implement or upgrade grievance redressal mechanisms
  4. Review factory safety protocols and transport arrangements
  5. Conduct orientation for all women employees opting for night shift
  6. Maintain documentary compliance for inspections and audits

📞 Need Help with Factory Compliance?

At Prakash Consultancy Services (PCS), we assist factories in compliance audits, shift policy restructuring, overtime registers, and POSH protocols.

📧 Email: prakash@pcsmgmt.com
📞 Call us: +91-9322230818
🌐 Visit: blog.pcsmgmt.com

Let us help you stay compliant, productive, and employee-friendly under the new ordinance!

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