The Government of Assam has introduced important changes through the Assam Shops and Establishments (Amendment) Act, 2026. The Act received the Governor’s assent on 31 August 2026 and was published in the Assam Gazette on 2 September 2026 through Notification No. LGL.239/2022/291.
The amendment has been enacted as Assam Act No. XVII of 2026 and has come into force with immediate effect. It aims to align the Assam Shops and Establishments Act, 2022 with the framework of the Central Labour Codes. Read the legislative text
Major changes under the Assam Shops Act Amendment
1. Online intimation and self-certification
The registration framework has been revised to simplify compliance for smaller establishments.
Employers of establishments employing fewer than ten workers must submit an online intimation of commencement of business within 60 days, along with the prescribed self-declaration and self-certified documents.
Any change in the submitted particulars must be reported within 30 days.
2. Sixty days’ notice for closure
An employer intending to permanently close an establishment must provide 60 days’ prior written notice to the concerned labour authorities and affected employees.
The notice must include:
Reasons for closure;
Number of employees likely to be affected;
Proposed date of closure; and
Details of statutory dues and employee settlements.
Temporary closure exceeding seven days will require 30 days’ notice.
3. Closure compensation and retrenchment benefits
Employees who have completed at least one year of continuous service will be entitled to notice and compensation in accordance with the retrenchment provisions.
The compensation is generally equivalent to 15 days’ average wages for every completed year of continuous service, or part thereof exceeding six months.
4. Overtime wages at double rate
Employees working beyond the prescribed daily or weekly working hours must be paid overtime wages at twice the normal wage rate.
Overtime will be calculated on a daily or weekly basis, whichever is more favourable to the employee. The employee’s consent is also required before assigning overtime work.
5. Revised definition of wages
The amendment introduces a detailed definition of “wages”, broadly aligned with the Code on Wages, 2019.
Wages include basic pay, dearness allowance and retaining allowance, if any. Certain components such as house rent allowance, overtime allowance, conveyance allowance, employer contributions to provident fund, gratuity and retrenchment compensation are excluded subject to statutory conditions.
If excluded allowances exceed 50% of total remuneration, the excess amount must be added back to wages for statutory calculations.
6. Appointment letters and identity cards
Every employer must issue an appointment letter to each employee in the prescribed form.
Employees who did not receive an appointment letter before the amendment came into force must be issued one within three months.
Employers must also provide identity cards containing the prescribed details.
7. Earned leave entitlement
An employee who has worked for at least 90 days during a six-month period will be entitled to earned leave with wages.
Earned leave will be calculated at the rate of one day for every 20 days of work.
8. Health, safety and workplace facilities
Employers must ensure proper arrangements for:
Collection and disposal of workplace waste;
Adequate lighting;
Clean and hygienic walls, ceilings, windows and skylights;
Proper ventilation; and
Fire and emergency safety measures.
Employers are also responsible for adequate supervision and accident-prevention measures.
9. Inspector-cum-Facilitator system
The amendment replaces the earlier terminology of “Chief Facilitator” and “Facilitator” with:
Chief Inspector-cum-Facilitator; and
Inspector-cum-Facilitator.
The revised inspection framework combines compliance facilitation with enforcement. In case of disagreement between an employer and an Inspector-cum-Facilitator, the matter may be referred to the Chief Inspector-cum-Facilitator.
10. Higher penalties for violations
The Assam Shops and Establishments Amendment Act, 2026 increases penalties for non-compliance.
For certain violations, the fine may extend to ₹50,000, with an additional fine of up to ₹2,000 per day for continuing contraventions.
Other violations may attract a fine of up to ₹10,000, along with an additional daily fine of up to ₹100.
Obstructing an Inspector-cum-Facilitator or refusing to produce statutory records may result in a fine of up to ₹2 lakh, imprisonment of up to three months, or both.
The court may direct that at least 50% of the fine be paid as compensation to the affected employee or the employee’s legal heirs.
11. Adjudication and appeal mechanism
The Deputy Labour Commissioner has been designated as the Adjudicating Authority for determining penalties.
An aggrieved person may appeal against the penalty order before the Labour Commissioner, Assam, within three months from the date of receiving the order. The appeal period may be extended by a further three months where sufficient cause is shown.
Compliance action for employers
Employers in Assam should review and update their:
Online registration and establishment details;
Appointment letters and identity cards;
Wage structure and overtime calculations;
Working hours and leave records;
Closure and retrenchment procedures;
Health, safety and fire-safety arrangements;
Statutory registers and records; and
Procedures for responding to labour inspections and notices.
The amendment marks a significant development in Assam labour law compliance by introducing online self-certification, stronger employee protections, mandatory employment documentation and higher penalties for violations.