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- Act title corrected: “Establishment” \u2192 “Establishments”<\/strong><\/li>\n
- Long title and Preamble rewritten to frame the Act around regulation of conditions of work and employment<\/strong> rather than registration.<\/li>\n
- Systemic terminology replacement<\/strong> throughout the Act: “worker” \u2192 “employee”<\/strong>; “Facilitator”\/”Chief Facilitator” \u2192 “Inspector-cum-Facilitator”\/”Chief Inspector-cum-Facilitator”<\/strong>.<\/li>\n<\/ul>\n
2. Definitions (Section 2) \u2014 notable changes<\/strong><\/h3>\n
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\n \nTerm<\/th>\n Change<\/th>\n<\/tr>\n<\/thead>\n \n Appellate Authority<\/td>\n Now defined as the Labour Commissioner, Assam<\/strong><\/td>\n<\/tr>\n \n Adjudicating Authority (new)<\/td>\n Deputy Labour Commissioner, Assam<\/strong><\/td>\n<\/tr>\n \n “Employee” (new, 3a)<\/td>\n Comprehensive definition covering skilled\/semi-skilled\/unskilled, manual, operational, supervisory, managerial, administrative, technical or clerical work; excludes Apprentices Act trainees and armed forces members<\/td>\n<\/tr>\n \n “Establishment” \u2014 exemptions (clause 5)<\/td>\n Manufacture (not being a factory) brought within “business”; exemption list for shops\/hotels\/restaurants\/cinemas now tied to where OSH&WC Code Part VII does not apply<\/strong>; new carve-in for commercial establishments<\/strong> (advertising, commission, forwarding agencies etc.) not covered by OSH&WC Code Part VII<\/td>\n<\/tr>\n \n “Factory”<\/td>\n Redefined by reference to the OSH&WC Code, 2020<\/strong><\/td>\n<\/tr>\n \n “Intermittent work” (new)<\/td>\n Defined, with a 120-day (in preceding 12 months) or 60-day seasonal-work threshold beyond which work is not<\/strong> deemed intermittent<\/td>\n<\/tr>\n \n “Shift”<\/td>\n Redefined as a time-period where two or more sets of employees work different periods of the day<\/td>\n<\/tr>\n \n “Wages”<\/td>\n Comprehensively redefined (basic pay, DA, retaining allowance) with a long exclusion list (bonus, HRA, gratuity, retrenchment compensation, etc.) \u2014 mirrors the Code on Wages\/OSH&WC wage definition<\/strong>, including the 50%-inclusion rule for high non-cash components and the 15% cap on wages-in-kind<\/td>\n<\/tr>\n \n “Worker”<\/td>\n Redefined to include persons engaged through an agency<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n 3. Registration architecture \u2014 a major restructuring<\/strong><\/h3>\n
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- Chapter-II heading changed<\/strong>: “Registration of Shops and Establishments” \u2192 “Commencement, Changes and Closure”<\/strong> \u2014 signalling a shift away from a registration-gatekeeping model.<\/li>\n
- Section 6 (registration) omitted entirely.<\/strong><\/li>\n
- New Section 7<\/strong> (“Intimation by establishment having less than ten workers”): Establishments with under 10 workers<\/strong> give a simple online intimation<\/strong> (not registration) within 60 days of commencement, with self-declaration\/self-certified documents. Importantly, a proviso confirms all Act provisions not covered by the OSH&WC Code apply to establishments with 10+ employees<\/strong> \u2014 reinforcing that 10+ worker establishments fall under the central Code framework instead.<\/li>\n
- Section 8 (old registration provision) omitted.<\/strong><\/li>\n
- New Section 9<\/strong>: Employers notify changes to particulars within 30 days (10+ worker establishments) or by simple intimation (under-10 establishments); Inspector-cum-Facilitator issues a fresh registration certificate online within 15 days<\/strong>.<\/li>\n<\/ul>\n
4. Closure and retrenchment (new Section 10) \u2014 substantial worker-protection additions<\/strong><\/h3>\n
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- 60 days’ prior written notice<\/strong> required for closure (30 days for temporary closure exceeding 7 days), specifying reasons, affected employee count, proposed date, and statutory dues settlement.<\/li>\n
- Employees with 1+ year continuous service<\/strong> are entitled to retrenchment-equivalent notice and compensation on closure \u2014 unless<\/strong> closure is due to “unavoidable circumstances beyond the employer’s control,” in which case compensation is capped at 3 months’ average wage<\/strong>. Financial difficulties, unsold stock accumulation, or lease\/licence expiry are explicitly excluded<\/strong> from counting as “unavoidable circumstances.”<\/li>\n
- Retrenchment conditions: 1 month’s notice (or pay in lieu), compensation of 15 days’ average wage per completed year of service<\/strong>, and notice to the Government.<\/li>\n
- “Last in, first out” principle within a worker category, absent contrary agreement.<\/li>\n<\/ul>\n
5. Health & safety (new Section 12)<\/strong><\/h3>\n
Employers must ensure: daily waste collection\/disposal, adequate lighting in all areas including passageways, compliance with the Assam Fire and Emergency Services Act, 2025<\/strong>, clean\/hygienic walls and ceilings, and mechanical ventilation where natural airflow is inadequate. Employers are made responsible for continuous supervision and accident prevention.<\/p>\n
6. Overtime, leave, and working conditions<\/strong><\/h3>\n
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- Overtime wages<\/strong>: fixed at twice the normal rate<\/strong>, calculated daily or weekly \u2014 whichever is more favourable to the employee; overtime work requires the employee’s consent<\/strong>.<\/li>\n
- Shift work<\/strong>: any department\/section may now work more than one shift (old restrictive language removed).<\/li>\n
- Earned leave<\/strong>: employees working 90+ days in 6 months<\/strong> get earned leave at 1 day per 20 days worked<\/strong> (revised formula).<\/li>\n
- Appointment letters & ID cards<\/strong> (new Section 16): Mandatory for every employee, including retrospectively for existing employees (within 3 months of the Act’s commencement); ID cards must be produced on demand to the Inspector-cum-Facilitator.<\/li>\n<\/ul>\n
7. Enforcement machinery \u2014 realigned to central codes<\/strong><\/h3>\n
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- Chief Inspector-cum-Facilitator \/ Inspector-cum-Facilitator<\/strong> (Section 23, substituted): appointed by government notification, not below Group-A rank; deemed public servants<\/strong> under the Bharatiya Nyaya Sanhita, 2023.<\/li>\n
- Cross-references updated throughout from the old Criminal Procedure Code, 1973 and IPC-era statutes to the Bharatiya Nagarik Suraksha Sanhita, 2023<\/strong> and Bharatiya Nyaya Sanhita, 2023<\/strong>.<\/li>\n
- New Section 24(6)<\/strong>: a dispute-resolution mechanism where doubts among multiple Inspectors are referred to the Chief Inspector-cum-Facilitator for a binding decision.<\/li>\n<\/ul>\n
8. Penalties \u2014 substantially increased and restructured (Section 27)<\/strong><\/h3>\n
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\n \nContravention type<\/th>\n Old regime<\/th>\n New regime<\/th>\n<\/tr>\n<\/thead>\n \n General contravention (other than S.7\/S.10(2))<\/td>\n \u2014<\/td>\n Fine up to Rs. 50,000<\/strong>; continuing contravention: additional fine up to Rs. 2,000\/day<\/strong><\/td>\n<\/tr>\n \n Contravention of S.7 or S.10(2) specifically<\/td>\n \u2014<\/td>\n Fine up to Rs. 10,000<\/strong>; continuing contravention: additional fine up to Rs. 100\/day<\/strong><\/td>\n<\/tr>\n \n Obstruction of Inspector \/ refusal of facility (new S.29(1))<\/td>\n \u2014<\/td>\n Fine up to Rs. 1 lakh<\/strong> or imprisonment up to 3 months<\/strong>, or both<\/td>\n<\/tr>\n \n Refusal to produce documents (new S.29(2))<\/td>\n \u2014<\/td>\n Fine up to Rs. 2 lakh<\/strong> or imprisonment up to 3 months<\/strong>, or both<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n New<\/strong>: courts may direct that at least 50%<\/strong> of any fine imposed be paid as compensation to the victim<\/strong> (or legal heirs, in case of death) \u2014 Section 28.<\/p>\n
9. New adjudication and appeal mechanism (new Sections 32A, 32B)<\/strong><\/h3>\n
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- Deputy Labour Commissioners<\/strong> appointed as Adjudicating Officers<\/strong> to determine penalties under Sections 27\u201330, with power to summon witnesses\/documents and a mandatory hearing before penalty imposition.<\/li>\n
- Appeals<\/strong> lie to the Labour Commissioner, Assam<\/strong> (Appellate Authority) within 3 months<\/strong> of the penalty order (extendable by a further 3 months for sufficient cause). Appeals must be disposed of within 90 days<\/strong>.<\/li>\n
- Unpaid penalties are recoverable as arrears of land revenue<\/strong> under the Revenue Recoveries Act, 1890 and Bengal Public Demand Recovery Act, 1913.<\/li>\n
- Cognizance of offences under Sections 27\u201330 is barred 6 months<\/strong> after the offence comes to the knowledge of the Inspector-cum-Facilitator (reduced from the earlier framework, and the old sub-section (3) time-bar is deleted).<\/li>\n<\/ul>\n
Compliance takeaways for employers<\/strong><\/h3>\n
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- Sub-10-worker establishments<\/strong> now face a lighter online-intimation regime rather than full registration \u2014 but 10+ worker establishments are explicitly routed toward OSH&WC Code compliance, echoing the pattern seen in the A&N Islands amendment covered earlier.<\/li>\n
- Retrenchment\/closure compensation obligations are now considerably more detailed and worker-protective<\/strong> \u2014 the “unavoidable circumstances” carve-out is narrowly drawn and explicitly excludes common employer justifications (financial losses, unsold stock, lease expiry).<\/li>\n
- Penalty exposure has increased sharply<\/strong>, with a new dual-track (Rs. 50,000 vs Rs. 10,000 depending on provision) and a separate, steeper track for obstruction\/document-refusal offences (up to Rs. 2 lakh + imprisonment).<\/li>\n
- Appointment letters and ID cards are now a hard compliance requirement<\/strong>, including a retrospective 3-month compliance window for existing staff \u2014 an operational action item for HR teams, not just a documentation formality.<\/li>\n
- The wages definition<\/strong> now closely tracks the Code on Wages\/OSH&WC formulation, which may affect PF, gratuity, and overtime base calculations for Assam-based establishments.<\/li>\n<\/ul>\n
Please find attached the official notification:<\/p>\n
- Retrenchment\/closure compensation obligations are now considerably more detailed and worker-protective<\/strong> \u2014 the “unavoidable circumstances” carve-out is narrowly drawn and explicitly excludes common employer justifications (financial losses, unsold stock, lease expiry).<\/li>\n
- Appeals<\/strong> lie to the Labour Commissioner, Assam<\/strong> (Appellate Authority) within 3 months<\/strong> of the penalty order (extendable by a further 3 months for sufficient cause). Appeals must be disposed of within 90 days<\/strong>.<\/li>\n
- Cross-references updated throughout from the old Criminal Procedure Code, 1973 and IPC-era statutes to the Bharatiya Nagarik Suraksha Sanhita, 2023<\/strong> and Bharatiya Nyaya Sanhita, 2023<\/strong>.<\/li>\n
- Shift work<\/strong>: any department\/section may now work more than one shift (old restrictive language removed).<\/li>\n
- Employees with 1+ year continuous service<\/strong> are entitled to retrenchment-equivalent notice and compensation on closure \u2014 unless<\/strong> closure is due to “unavoidable circumstances beyond the employer’s control,” in which case compensation is capped at 3 months’ average wage<\/strong>. Financial difficulties, unsold stock accumulation, or lease\/licence expiry are explicitly excluded<\/strong> from counting as “unavoidable circumstances.”<\/li>\n
- Section 6 (registration) omitted entirely.<\/strong><\/li>\n
- Long title and Preamble rewritten to frame the Act around regulation of conditions of work and employment<\/strong> rather than registration.<\/li>\n
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