The Bihar Legislature has enacted a new law to amend and consolidate the regulation of employment and service conditions for workers employed in shops and establishments. This Act aligns with modern labour practices and seeks to provide uniformity across the State, while ensuring worker welfare, health, and safety.

Key Provisions

1. Applicability
   • Extends to the whole State of Bihar.
   • Applies to shops & establishments employing 10 or more workers.
2. Registration & Labour Identification Number (LIN)
   • Mandatory registration within 6 months of commencement/existence.
   • Every registered shop/establishment will be issued a Labour Identification Number (LIN) within one week of application.
3. Duties of Employers
   • Wages to be paid monthly, within 7 days of wage period.
   • Wages & dues to be credited into employee’s bank/post office account.
   • Provide service card within 10 days of employment.
   • No discrimination against women; restrictions on night work unless safety, transport, and other facilities are ensured.
   • Ensure health, safety, fire prevention, sanitation, and adequate supervision.
4. Working Hours & Overtime
   • Maximum 48 hours/week, subject to daily caps (9–11.5 hrs based on workdays).
   • Overtime beyond 48 hrs/week to be paid at 2x ordinary wages.
   • Spread-over of work including rest interval shall not exceed 12 hrs/day.
   • Total overtime capped at 144 hrs per 3 months.
5. Dismissal & Discharge
   • One month’s notice or wages in lieu required for termination (except in cases of misconduct).
   • Compensation of 15 days’ average wages per completed year of service for workers with ≥1 year service.
   • Workers may appeal dismissal/termination within 6 months to prescribed authority.
6. Leave & Holidays
   • Weekly holiday with wages.
   • 7 days sick leave & 8 days casual leave annually.
   • Earned leave: 1 day per 20 days worked (if ≥240 days service in a year); maximum accumulation of 45 days.
   • Encashment allowed for leave refused beyond accumulation cap.
   • 8 paid festival holidays including Independence Day, Republic Day, Gandhi Jayanti & May Day, plus 4 other agreed holidays.
7. Welfare Provisions
   • Mandatory provision of safe drinking water, latrines/urinals, first-aid.
   • Crèche facility for ≥30 women workers or ≥50 workers.
   • Canteen facility for ≥100 workers (common facility permitted).
8. Facilitators & Inspections
   • State Government to appoint Facilitators & a Chief Facilitator.
   • Web-based inspection schedule mandated.
   • Facilitators empowered to advise, inspect, seize records, and enforce compliance.
9. Records & Returns
   • Employers to maintain registers & records (manual/electronic).
   • Annual return filing mandatory.
10. Penalties
    • General contravention: Fine ₹10,000 – ₹25,000.
    • Repeat offences: ₹20,000 – ₹50,000.
    • Workplace accidents due to violation: Imprisonment up to 6 months and/or fine ₹2–5 lakh.
    • Obstruction of Facilitators: Fine ₹10,000 – ₹25,000.
    • Compounding of first & second offences allowed (₹10,000 & ₹20,000 respectively); no compounding on third offence.
11. Miscellaneous
    • Protection for officials acting in good faith.
    • State Government empowered to grant exemptions & make rules.
    • Act to operate in addition to other laws, not in derogation.