The Gujarat government has enacted a significant overhaul of factory labour laws, extending the permissible daily work shift from 9 hours to 12 hours. The reform, introduced via the Factories (Gujarat Amendment) Ordinance, 2025 on 1 July 2025 and passed by the Gujarat Assembly in September 2025 as the Factories (Gujarat Amendment) Bill, 2025, amends the Factories Act, 1948 — the central legislation that governs working conditions across Indian industries.
What Has Actually Changed?
The amendment is far-reaching. Here is a point-by-point breakdown of the key changes for workers and employers in Gujarat:
- Daily shift limit raised: The maximum daily working hours increases from 9 hours to 12 hours, inclusive of rest intervals. Weekly cap of 48 hours remains unchanged.
- Four-day workweek option: Workers can now complete their 48-hour weekly limit across just four 12-hour shifts, giving them three consecutive days off — a major shift in how factories can structure their operations.
- Mandatory rest interval: After every 6 hours of continuous work (raised from the previous 5-hour limit), workers must receive a 30-minute break — this is a floor, not a ceiling.
- Quarterly overtime cap raised: The maximum overtime permitted per quarter increases from 75 hours to 125 hours. All overtime must be paid at double the regular wage rate.
- Overtime thresholds by week type: For a five-day workweek, overtime wages apply for work exceeding 10 hours daily or 48 hours weekly. For a four-day workweek, the threshold is 11.5 hours per day.
- Women allowed in night shifts: The amendment explicitly permits women to work in factory night shifts — defined as 7 pm to 6 am — subject to adequate safety arrangements mandated by the employer.
- Worker consent mandatory: Extended hours beyond 9 hours per day require written consent from workers. Employers cannot unilaterally impose 12-hour shifts.
Why Did the Gujarat Government Make This Change?
The stated rationale is to improve ease of doing business and attract foreign direct investment, particularly in manufacturing sectors like pharmaceuticals, chemicals, textiles, and auto components — all of which are concentrated in Gujarat. Global manufacturers, especially those operating 24/7 production cycles, have pushed for longer shift flexibility to reduce the cost and complexity of managing multiple smaller shifts.
The government also argues that the four-day workweek option actually benefits workers by compressing hours and giving longer weekends, and that the night shift provision expands employment opportunities for women in factories that previously excluded them due to legislative restrictions.
What Critics Are Saying
Labour unions and workers’ rights groups have raised serious concerns. The primary argument is that a 12-hour workday physically exhausts workers, increases industrial accident risk, and disproportionately pressures low-wage factory workers who may feel compelled to consent to extended hours to avoid being passed over for employment. The Wire and other outlets have reported that workers in several industrial clusters expressed that “written consent” may not be truly voluntary in practice.
The night shift provision for women has drawn mixed reactions — welcomed by professional women in supervisory roles, but questioned by those concerned about safety infrastructure, transport, and the added burden of night-time domestic responsibilities.
What Workers Need to Know
- You have the right to refuse: Extended shifts beyond 9 hours per day are only valid with your written consent. No employer can legally enforce a 12-hour shift without it.
- Overtime must be paid at double wages: If you work beyond the applicable daily or weekly threshold, your employer is legally required to pay 2× your standard rate.
- Night shift for women requires safety measures: The law mandates that women assigned night shifts must have adequate safety, transport, and welfare facilities. Check with your factory’s welfare officer.
- The weekly 48-hour cap stands: Regardless of daily shift length, no worker should work more than 48 regular hours in a week under the amendment.
Impact on Gujarat’s Industrial Landscape
Gujarat is home to some of India’s largest industrial clusters — the Dahej petrochemical complex, Surat’s diamond and textile belt, Rajkot’s engineering units, and Vadodara’s pharma and chemical sector. Industry bodies like CII Gujarat and FICCI Gujarat welcomed the amendment, saying it aligns the state’s factory laws with global manufacturing standards and increases Gujarat’s competitiveness against Maharashtra and Tamil Nadu in attracting large-scale factory investment.
The ordinance came into force immediately on 1 July 2025, and the Assembly conversion in September 2025 makes it a permanent part of Gujarat’s statute books. Factories are expected to revise HR policies and shift structures in the coming months.