Patna: The Bihar government on Monday introduced the Bihar Shops and Establishments (Regulation of Employment and Conditions of Service) (Repeal) Bill, 2026 during the Monsoon Session of the Legislative Assembly, proposing to replace the state’s existing Shops Act with a framework aligned to the Centre’s labour reforms.
If passed by the Assembly and approved by the Governor, the legislation will repeal the current law and bring Bihar’s regulation of shops and commercial establishments in line with the Occupational Safety, Health and Working Conditions Code, 2020. According to the government, the move is expected to reduce compliance requirements for smaller businesses while extending a uniform regulatory system across the state.
What Will Change for Small Shopkeepers?
One of the most significant changes proposed in the Bill concerns the registration requirement for commercial establishments.
Under the existing Shops Act, even establishments employing one or two workers are required to register with the authorities. The new Bill proposes that only shops and establishments employing 10 or more workers will be required to register.
According to the government, this change is intended to reduce the administrative burden on small shopkeepers and micro-enterprises, many of which currently have to comply with registration formalities despite employing only a handful of workers.
Uniform Rules for Urban and Rural Areas
The proposed legislation also seeks to introduce a common regulatory framework across Bihar.
Unlike the previous system, which largely focused on urban commercial establishments, the new provisions would apply to rural areas as well. Any shop or establishment employing 10 or more workers would be required to register, regardless of whether it is located in a town or a village.
Officials said the change aligns Bihar’s labour regulations with the Central Government’s new labour code and is intended to create a uniform compliance mechanism across the state.
Social Security Benefits for Workers
According to the government, employees working in establishments covered under the new labour framework will be eligible for benefits under social security schemes, including the Employees’ State Insurance Corporation (ESIC), where applicable.
Officials said that bringing establishments under the new regulatory framework could also make it easier for workers and their families to access government benefits in the event of workplace accidents or other unforeseen circumstances.
Replacing the Existing Shops Act
The Bihar government said the Bill has been introduced to formally repeal the existing Shops Act following the enactment of the Occupational Safety, Health and Working Conditions Code, 2020 by the Centre.
According to the government, the earlier law had already been repealed through an ordinance. The Bill introduced in the Assembly seeks to provide permanent legislative backing to that decision.
What’s Next?
The Bill will now be taken up for consideration by the Bihar Legislative Assembly. If it is passed by both Houses of the Legislature and receives the Governor’s assent, the new law will come into force, replacing the existing Shops Act and introducing the revised registration norms across Bihar.
