A New Dawn or a Troubling Shift? Gujarat’s Factories Amendment Bill Ignites Debate Over Worker Rights and Economic Revival

GANDHINAGAR — The legislative landscape of Gujarat’s industrial sector underwent a seismic shift on Wednesday as the state assembly passed the Factories (Gujarat Amendment) Bill, 2025. The Bill, which amends the Factories Act, 1948, is poised to bring about a fundamental change in the daily work lives of lakhs of factory workers by increasing the daily working hours from 9 to a potential 12 hours. While the state government champions the move as a catalyst for economic growth and a path to a more flexible, globally competitive workforce, labour unions and opposition parties have raised a red flag, arguing that the changes could lead to the exploitation of the very people the law is meant to protect.

The Core of the Amendment: A Shift to a 12-Hour Workday

The most significant provision of the Bill is the extension of the daily working hours from nine to twelve. This change, however, is not a unilateral mandate. It comes with crucial caveats and conditions designed to maintain a semblance of balance.

• Weekly Cap Remains Unchanged: The weekly work cap remains at 48 hours. This is a critical point that the government has emphasized to counter claims of worker exploitation. It suggests a potential shift towards a four-day work week, where an employee could work 12 hours a day for four days and be entitled to two days of paid leave.

• Written Consent is Mandatory: The amendment explicitly states that the 12-hour workday is subject to the written consent of the worker. This is designed to present the change as a voluntary option, empowering the worker to choose a schedule that suits them.

• Overtime and Compensation: For work beyond the ordinary hours, the Bill provides for overtime wages at twice the ordinary rate. It also raises the quarterly cap on overtime hours from 75 to 125, allowing factories to handle surges in demand without violating legal limits.

 

A Step Forward for Women in the Workforce?

Another groundbreaking provision of the Bill is the proposal to allow women to work night shifts in factories, specifically between 7 p.m. and 6 a.m. This is a significant departure from the traditional restrictions imposed on women’s employment in factories. However, this permission is not without conditions.

 

The amendment includes a list of 16 stipulations that factory owners must adhere to for employing women on night shifts. These conditions, which include ensuring a safe work environment, providing proper lighting and CCTV surveillance, and offering secure transportation, are aimed at mitigating the risks associated with night work and promoting gender diversity in the industrial sector. The provision also makes a woman worker’s written consent a prerequisite for night shifts, ensuring the option is not a coercive one.

Legal and Constitutional Context: States and the Concurrent List

 

The power of the Gujarat government to enact these changes stems from the Concurrent List of the Indian Constitution, which includes “labour” as an item. This means both the Central government and state governments can legislate on the subject. With over 100 state laws and 40 central laws governing various aspects of labour, the system is a complex web of regulations.

 

The passing of this Bill is part of a broader, nationwide trend. It’s a continuation of the state government’s earlier move, through an ordinance in July 2025, to relax labour laws under the Factories Act. This, in turn, was part of a broader national trend where states, citing the need for economic revival, have used legal provisions like Section 5 and Section 65 of the Factories Act, 1948, to increase working hours.

A Lingering Shadow: The “Public Emergency” Clause

The government’s use of an ordinance to initially bring about these changes has raised questions, particularly given the Supreme Court’s prior ruling on a similar matter. A “public emergency,” as defined by the Factories Act, is a grave situation where national security is threatened by war, external aggression, or internal disturbance. During the pandemic, several states, including Gujarat, had invoked this clause to suspend labour laws and increase work hours.

 

However, the Supreme Court, in the case of Gujarat Mazdoor Sabha vs. The State of Gujarat (2020), had struck down a similar move, ruling that a pandemic or economic slowdown does not constitute a “public emergency” that threatens national security. The Court emphasized that workers’ rights to humane working conditions are a part of their fundamental right to life under Article 21 of the Constitution.

 

The new Bill, by replacing the ordinance, attempts to legitimize the changes through a proper legislative process. However, the move has ignited a debate: does a permanent amendment to a law that was previously justified under a “temporary” emergency provision set a dangerous precedent for the future of labour rights in the country?

 

Forward: A Fine Line Between Progress and Peril

This Bill is a study in contrasts. On the one hand, it addresses a genuine need for flexibility in a globalized economy. For certain industries and workers, a four-day work week with longer hours could be a welcome change, offering a better work-life balance and higher earning potential. The provision for women’s night shifts, with its stringent safety conditions, can also be seen as a progressive step towards genuine gender equality in the industrial workforce.

 

On the other hand, the law’s reliance on “written consent” is a point of deep concern. In the current economic climate, where jobs are scarce and bargaining power is minimal, a worker’s consent might not be a choice at all, but rather a necessity to keep their job. This raises the fear of a return to a more exploitative work culture, where the informal extension of working hours becomes a formal reality without a proportional increase in wages or a true improvement in working conditions.

 

This amendment is not merely about changing numbers on a clock; it is about redefining the social contract between the state, the employer, and the employee. As the Bill moves forward, all eyes will be on its implementation and its actual impact on the ground. Will it unlock Gujarat’s industrial potential, or will it leave its most vulnerable workers further behind? The answer, as always, will lie not in the letter of the law, but in the spirit in which it is enforced. 

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