Working Hours and Overtime — Gujarat

Working hours and overtimeUnder the federal Fair Labor Standards Act, non-exempt employees must be paid at least 1.5× their regular hourly rate for hours worked beyond 40 in a workweek. State laws can require more generous overtime rules. for employees in shops and commercial establishments in Gujarat are governed by the Gujarat Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2019 (effective 1 May 2019, which repealed the older 1948 Act), as amended by the Gujarat Shops and Establishments (Amendment) Act, 2026. The Amendment Act was passed by the State Assembly on 17 February 2026 and received the Governor's assent and gazette notification on 27 February 2026, converting into law the earlier Ordinance No. 3 of 2025 (issued 16 December 2025).

Coverage threshold has been raised from 10 to 20 workers by the 2026 amendment. Establishments with fewer than 20 workers must still submit an online intimation to the Inspector, but the full provisions of the Act do not apply to them. Key limits under the amended Act: maximum 10 hours per day (raised from 9), maximum 48 hours per week (unchanged), and maximum 6 hours of continuous work before a mandatory break of at least 30 minutes (raised from 5 hours). Shops may operate seven days a week, but every worker must receive at least 24 consecutive hours of rest per week; if denied, compensatory leave must be granted within 2 months. Workers are entitled to 8 paid festival holidays per year (26 January, 15 August, 2 October plus 5 mutually agreed). Earned leave accrues at 1 day for every 20 days worked, available only after 240 days of service in a calendar year.

OvertimeUnder the federal Fair Labor Standards Act, non-exempt employees must be paid at least 1.5× their regular hourly rate for hours worked beyond 40 in a workweek. State laws can require more generous overtime rules. (§15): Since the 2019 Act replaced the 1948 Act on 1 May 2019, overtimeUnder the federal Fair Labor Standards Act, non-exempt employees must be paid at least 1.5× their regular hourly rate for hours worked beyond 40 in a workweek. State laws can require more generous overtime rules. is paid at twice the ordinary rate of wages, not the older 1.5× rate. OvertimeUnder the federal Fair Labor Standards Act, non-exempt employees must be paid at least 1.5× their regular hourly rate for hours worked beyond 40 in a workweek. State laws can require more generous overtime rules. is triggered by any work beyond 48 hours per week or beyond the daily ceiling (now 10 hours). The 2026 amendment raised the quarterly overtimeUnder the federal Fair Labor Standards Act, non-exempt employees must be paid at least 1.5× their regular hourly rate for hours worked beyond 40 in a workweek. State laws can require more generous overtime rules. cap to 144 hours (from 125). The maximum combined daily working time including overtimeUnder the federal Fair Labor Standards Act, non-exempt employees must be paid at least 1.5× their regular hourly rate for hours worked beyond 40 in a workweek. State laws can require more generous overtime rules. is 10 hours per day under the post-2026 regime. OvertimeUnder the federal Fair Labor Standards Act, non-exempt employees must be paid at least 1.5× their regular hourly rate for hours worked beyond 40 in a workweek. State laws can require more generous overtime rules. worked on a festival holiday is paid at 2× ordinary wages and the worker is entitled to a compensatory holiday. There is no income-based cap — the 2× rate applies uniformly regardless of salary — and overtimeUnder the federal Fair Labor Standards Act, non-exempt employees must be paid at least 1.5× their regular hourly rate for hours worked beyond 40 in a workweek. State laws can require more generous overtime rules. wages must be paid in the same wage period as the ordinary wages for that work. Employers are required by rule to report overtimeUnder the federal Fair Labor Standards Act, non-exempt employees must be paid at least 1.5× their regular hourly rate for hours worked beyond 40 in a workweek. State laws can require more generous overtime rules. to the Inspector within 24 hours.

Worked example: A supermarket in Vadodara with 30 staff can schedule 10-hour shifts under the amended Act. A cashier working Monday–Saturday at 10 hours/day = 60 hours/week; the first 48 hours are paid at ordinary wages and the remaining 12 hours at 2× overtimeUnder the federal Fair Labor Standards Act, non-exempt employees must be paid at least 1.5× their regular hourly rate for hours worked beyond 40 in a workweek. State laws can require more generous overtime rules.. A warehouse worker in Ahmedabad earning ₹600/day (₹75/hour for 8 hours) who logs 100 overtimeUnder the federal Fair Labor Standards Act, non-exempt employees must be paid at least 1.5× their regular hourly rate for hours worked beyond 40 in a workweek. State laws can require more generous overtime rules. hours in Q1 2026 (within the 144-hour cap) is owed ₹150/hour × 100 = ₹15,000 in overtimeUnder the federal Fair Labor Standards Act, non-exempt employees must be paid at least 1.5× their regular hourly rate for hours worked beyond 40 in a workweek. State laws can require more generous overtime rules.. An employer paying the old 1.5× rate (₹112.50/hour) would underpay by ₹3,750 for that quarter — recoverable under the Payment of Wages Act, 1936.

Conflict note (OSH Code): The central Occupational Safety, Health and Working Conditions Code, 2020 came into effect on 21 November 2025 and specifies an 8-hour normal daily period for establishments with 10+ employees. This directly conflicts with Gujarat's 10-hour daily limit under the 2026 amendment. As of April 2026 the conflict is unresolved — if your employer uses the 10-hour Gujarat limit to justify overwork, raise the OSH Code standard with the District Labour Office.

For factories, the Factories Act, 1948 continues to apply. Gujarat's industrial sector in Ahmedabad, Surat and the GIDC estates remains heavily factory-regulated, with the 48-hour weekly ceiling and 2× overtimeUnder the federal Fair Labor Standards Act, non-exempt employees must be paid at least 1.5× their regular hourly rate for hours worked beyond 40 in a workweek. State laws can require more generous overtime rules. also applicable there.