Factories (Gujarat Amendment) Ordinance, 2025: Key Highlights and Implications

Introduction

The Factories (Gujarat Amendment) Ordinance, 2025 was promulgated by the Governor of Gujarat on July 1, 2025, to amend provisions of the Factories Act, 1948, as applicable in Gujarat. This amendment responds to extraordinary national circumstances and aims to boost industrial growth, attract investment, and generate employment. By introducing flexibility in working hours, overtime limits, and provisions for women’s employment in night shifts, the amendment reflects a balance between productivity and worker welfare. The keyphrase Factories Gujarat Amendment Ordinance underscores its importance for industries and policymakers alike.

Background and Objective

The ordinance was introduced since the Legislative Assembly was not in session. The Governor invoked powers under Article 213 of the Constitution of India after obtaining the President’s instructions. Its main objectives are to:

Provide flexibility in working hours.
Enable factories to handle exceptional workload efficiently.
Expand opportunities for women workers while ensuring safety and dignity.
Enhance economic activity and employment in Gujarat.

Changes in Working Hours

Daily Working Hours: Extended up to 12 hours a day (inclusive of rest), subject to a maximum of 48 hours per week.
Continuous Work Without Break: Allowed up to 6 hours without an interval.
Spread Over Time: Increased to 12 hours including rest periods.

These provisions allow greater flexibility while retaining weekly limits, ensuring no worker is overburdened beyond legal limits.

Overtime Provisions

Overtime wages are now clearly structured:
- More than 9 hours per day / 48 hours per week (6-day week).
- More than 10 hours per day / 48 hours per week (5-day week).
- More than 11.5 hours per day (4-day week) or work on paid holidays.
Overtime wages will be paid at twice the ordinary rate of wages.
The maximum overtime limit per quarter has been raised from 75 hours to 125 hours, with prior written consent of workers.

Employment of Women Workers

A major reform in the ordinance is allowing women to work between 7 PM and 6 AM with strict safeguards:

Prevention of Sexual Harassment: Employers must establish redressal mechanisms, complaint committees, and ensure confidentiality.
Safe Working Environment: Adequate lighting, CCTV surveillance, hygienic facilities, and proper restrooms must be provided.
Transport and Security: Employers must arrange transport with CCTV, GPS, and security guards (including women guards) for night shifts.
Consent of Women Workers: Night shifts are not compulsory; written consent is mandatory.
Supervision: At least 1/3rd of night shift supervisors must be women.
Workforce Conditions: Women must work in groups of at least 10, with no shift changes except after a weekly or other holiday.

These conditions ensure women’s safety, equality, and fair opportunities for night shift employment.

Industrial and Economic Implications

For Industries: More flexibility to manage operations, especially in high-demand periods.
For Workers: Clearer entitlements for overtime wages and safety conditions.
For Women: Broader access to employment in modern industries, supported by stronger workplace safeguards.
For Gujarat: Enhanced investment climate and economic competitiveness in the manufacturing sector.

Conclusion

The Factories (Gujarat Amendment) Ordinance, 2025 marks a landmark reform that balances industrial needs and worker rights. Firstly, it extends working hours with flexibility. Secondly, it redefines overtime to bring clarity and fairness. Moreover, it empowers women workers with strong safety safeguards for night shifts. In addition, the ordinance strengthens compliance across industries. Consequently, organizations gain more operational flexibility. Meanwhile, workers benefit from clear entitlements and protection. Furthermore, women receive greater opportunities in modern industries. Therefore, Gujarat sets a strong precedent in industrial labor policy. Ultimately, the ordinance encourages inclusivity and paves the way for sustainable growth in the state’s industrial landscape.

Download: Factories Gujarat Amendment Ordinance 2025 Explained in Detail