Draft DNH & DD Shops and Establishments Amendment 2026: Changes, Compliance and Business Impact

An amendment to the Shops and Commercial Establishments Act has been notified by the Department of Labour and Employment of the Union Territory of Dadra and Nagar Haveli and Daman and Diu. The notification was issued on 15 July 2026 and published in the Official Gazette, Series II No. 26, dated 17 July 2026.

The DNH & DD Shops and Establishments Amendment, 2026, proposes three main amendments. First, the Act will apply to all shops and establishments, not to various categories based on employee numbers. Secondly, registration and related functions would be handled through a centralized online portal. Lastly, shops and establishments throughout the Union Territory can operate round the clock, subject to worker safety regulations and government limitations.

This document is still a draft. It was issued to collect comments from stakeholders. A shop owner should not treat every proposal in it as a rule that is already in force. Businesses should study the proposal, check the final Gazette, and prepare for possible changes.

Notification at a Glance

The date point needs care. The notice carries 15 July 2026, while the Gazette carries 17 July 2026. It asks for comments within 30 days of the “issue of this notice,” but does not explain which date must be used to count the period. A stakeholder planning to comment should confirm the deadline with the Labour Department and avoid waiting until the last day.

The Existing Regulatory Framework

The Gujarat Shops and Establishments Act, 2019

The draft seeks to amend the Gujarat Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2019, as adapted to Dadra and Nagar Haveli and Daman and Diu. This law deals with shops and other commercial establishments. It covers subjects such as registration, business hours and conditions of work.

In simple words, a shops and establishments law sets basic rules for commercial workplaces. The legal definitions in the governing law still decide whether a business is covered.

Application in Dadra and Nagar Haveli and Daman and Diu

The 2019 Gujarat law has been adapted for this Union Territory. The proposal would amend that adapted law only within Dadra and Nagar Haveli and Daman and Diu. It is not a nationwide amendment. The draft uses “State Government,” so the final framework should make clear which UT authority exercises each power.

Existing Registration Framework

The comparison statement in the Gazette shows different treatment based on the number of workers. It states that most provisions apply to establishments with 20 or more workers, while Section 7 applies to establishments with fewer than 10 workers. Under Section 7, a smaller establishment gives an intimation and receives an intimation receipt.

The wording for employee number contains an apparent gap and is discussed under “Drafting Issues” below.

Existing Opening and Closing Hours

The comparison table shows location-based hours. Certain municipal locations, highways, bus station premises, hospital premises, and petrol pumps may remain open 24 hours a day. Other areas have closed periods such as 2 a.m. to 6 a.m. or 11 p.m. to 6 a.m. The proposal would replace these groups with a single general rule while retaining the government's power to restrict hours.

Scope and Applicability of the Draft Regulation

• Territorial Application
• The draft would apply only within Dadra and Nagar Haveli and Daman and Diu.
• Businesses and Establishments Covered

The proposed Section 1(3) says that the Act shall apply to “all shops and establishments.” If this wording is retained in the final Regulation, worker count would no longer decide whether the Act applies. A very small shop could enter the same main legal framework as a larger establishment.

Definitions and exemptions in the principal Act may still matter. The draft does not list every covered business type.

Impact on Small Establishments

Small establishments are likely to see the clearest change. The separate intimation system under Section 7 would be removed. The proposal instead places registration in the rewritten Section 6. A small employer may therefore receive a registration certificate rather than only an intimation receipt.

A small business would still need correct details, self-certified documents and compliance with later rules on forms and fees.

Existing and Newly Commencing Establishments

The proposed Section 6 provides 60 days from the commencement or start of business, as applicable. A valid registration under the Goa, Daman and Diu Shops and Establishments Act, 1973 would continue until expiry. Certain OSH Code, municipal and panchayat registrations would receive deemed status.

Special Categories Requiring Prior Approval

Most certificates are proposed to be auto-generated through the online portal. The draft creates an exception for:

• Slaughterhouses
• Meat-processing units
• Meat-selling units
• Poultry farms
• Abattoirs

These businesses would need prior approval. The draft does not identify the competent authority or approval procedure.

What Has Changed Under the Draft Regulation?

The proposal broadens coverage and consolidates several related processes into Section 6. It also removes location-based limits from the main opening-hours rule.

Amendment to Section 1: Application to All Establishments

The proposed wording says the Act will apply to all shops and establishments. It removes the employee-number language from Section 1(3), although the reasons column mentions ten or more employees.

Substitution of Section 6: Unified Registration Framework

The new Section 6 would cover registration, changes, closure and cancellation. The prescribed application would include a self-declaration, self-certified documents, the fee, and basic details about the employer, manager, business, and workers. For most businesses, the certificate would be generated online.

Omission of Sections 7 to 10

Sections 7 to 10 would be removed. Their subjects would not all disappear: changes, closure and cancellation would move into Section 6.

Substitution of Section 35: Proposed 24x7 Operations

Any shop or establishment may remain open 24 hours, subject to Sections 12, 14, 16 and 18, and to notified limits relating to traffic, health, safety, nuisance or law and order.

Implementation Timeline and Compliance Norms

Stakeholder Consultation Period

Comments may be sent to the Commissioner-cum-Secretary (Labour) at the address in the notice. Because the notice and Gazette show different dates, stakeholders should confirm the last date directly.

Proposed Commencement

The draft links commencement to Gazette publication. The July document is expressly a consultation draft and should not be confused with a final Regulation.

Registration, Change and Closure Periods

Registration is proposed within sixty days and closure reporting within thirty days. Amendment periods, forms, fees and detailed portal procedures would be prescribed later.

Why Was the Amendment Proposed?

The notice links the proposal with labour reform, easier compliance and changing business conditions in the Union Territory.

• Simpler Digital Registration

An online certificate based on self-certified records may reduce the time required for routine approval.

• Less Duplicate Compliance

Recognition of OSH Code and local registrations may reduce duplicate filing. Its value will depend on portal verification.

• One Place for Related Tasks

Registration, changes, closure, and cancellation would be grouped in one section. This can make the law easier to follow because employers would not need to navigate several separate sections for related events.

• Flexible Business Hours

The proposed 24x7 rule responds to businesses that serve customers beyond normal daytime hours. It also removes different time bands based mainly on location. Worker protections and government restrictions would remain important limits.

Proposed Registration and Compliance Framework

1. Application and Self-Certified Records

The prescribed application would contain employer, manager, establishment, business and worker details, supported by a self-declaration and self-certified documents. The applicant confirms a self-certified copy as true. False records or the concealment of material facts could lead to cancellation.

2. Deemed Registration

Eligible OSH Code, municipal and panchayat registrations would be treated as registrations under this Act. The draft does not explain how a business will prove this deemed status on the portal.

3. Updating Registration Details

For changes to details, the employer would apply online, pay the prescribed fee, and obtain a fresh certificate. Special categories would still need approval.

4. Closure and Cancellation

Closure would be reported online within thirty days. The Inspector may also remove a business that has closed without reporting it. A registration obtained through false information, forged documents, hidden facts, or fraud may be cancelled, but the employer must first be given a hearing.

5. Validity and Penalty

The certificate would remain valid until ownership or the nature of business changes. The draft proposes a ₹5,000 penalty for violating Section 6 or the rules made under it. It does not clearly explain whether the amount applies once, per breach, or in another manner.

Proposed 24x7 Operation of Shops and Establishments

• Which Establishments May Remain Open?

The proposed Section 35 uses broad language. It says any shop or establishment in the Union Territory may remain open 24 hours on any day of the week. This would replace the current location groups shown in the comparison table.

• Business Hours Are Not Employee Working Hours

A shop can stay open by using different shifts. That does not mean one worker can be made to work all day or all night. The draft keeps Sections 12, 14, 16 and 18 in place for workers. Because the full text of those sections is not reproduced in this Gazette, their exact requirements should be checked in the principal Act.

• Government May Reduce Hours

The 24x7 permission would not be absolute. A notified authority could reduce opening hours for a class of establishments, a mall, certain premises or an area. Reasons may include traffic, public health, public safety, public nuisance and law and order. Businesses should therefore watch later Gazette notifications even after any final amendment takes effect.

Impact on Businesses

• Micro and Small Establishments

Small shops may move from a lighter intimation route to registration. They must provide correct details, use the portal and report changes.

• Existing Registered Businesses

Earlier Goa, Daman and Diu registrations may continue until expiry. Certain OSH Code and local registrations may receive deemed status, subject to the final law.

• Retail, Food and Service Businesses

Longer hours can help customer-facing businesses but may increase staffing, power, security, and transport costs. Opening for 24 hours is a choice, not a duty.

• Logistics and Support Operations

Logistics and support operations may benefit from extended hours, but other sector, safety, and labour rules will still apply.

How Can Businesses Achieve Compliance?

Because this is a draft, the first duty is to monitor, not assume, that the new process is already live.

• Check coverage: Decide whether the workplace falls within the legal meaning of a shop or establishment.
• Review current certificates: Record the law, authority, number, validity and expiry date for every registration.
• Look out for deemed status possibilities: Note down OSH code and municipal or panchayat registrations that might fall under deemed status.
• Ensure accurate information about your business: keep your employer, manager, address, activity, and number of workers up to date.
• Look out for the final Gazette: Get to know the exact terms of the law, the act's start date, forms, fees, and the online portal.
• File the application within the stipulated time: If it passes as a law and needs registration, file the application within sixty days from the start date.
• File amendments: File amendments within the time prescribed by the final law.
• Control working hours: If working overtime, ensure you have sufficient staffing and adequate worker protection.
• Inform regarding closure: Propose an online notice within thirty days of closure.

Compliance Checklist for Businesses

Benefits for Businesses

• Faster routine registration: Most certificates would be generated through the online portal without prior approval.
• One digital record: Registration, changes and closure would use the same broad framework.
• Fewer duplicate registrations: Certain OSH Codes and local registrations would be recognised.
• Wider operating choice: Businesses could choose hours that match customer demand.
• Long certificate life: No routine renewal period is stated; validity continues until ownership or business nature changes.
• Reduced location differences: The same main 24x7 rule would apply across the Union Territory.

These are possible benefits, not guaranteed savings. Other licences and labour duties may still apply.

Challenges and Additional Compliance Burden

• Wider Coverage of Small Businesses

Applying the Act to all establishments may place registration work on very small shops, even with auto-generation.

• Missing Process Details

Forms, fees, amendment periods, and portal steps are left to later rules, so the full cost is not yet clear.

• Workforce Cost for Longer Hours

Longer hours may require more shifts, managers, security personnel, and support staff. A business should open late only when the expected demand justifies the extra cost. The proposal gives a choice; it does not promise profit.

• Digital and Data Risks

An online system works well only when it is stable and simple. Wrong entries can create future problems, especially because the Inspector may cancel registration obtained through false information or hidden facts.

Is This the Right Decision or an Additional Burden?

Why It May Be Business-Friendly

This proposal strips away routine approval for almost all registration certificates. This proposal consolidates similar provisions while accepting some other forms of registration. This proposal also offers greater flexibility in terms of business operating hours.

Why It May Add a Burden

Small businesses can transition from the light hint system into the registration process. The business owner is expected to use the portal and ensure the information is up to date. Increased time for operations will lead to higher labor and operational costs.

Balanced Assessment

This policy is justified because of the trade-off between manual authorization and online self-declaration and registration. However, for the process to be fair, the rules must be straightforward, and the fees low. Additionally, there must be an effective portal, and the small businesses must be properly guided.

The proposed policy can thus be regarded as both an opportunity and a matter of compliance. It cannot automatically be seen as a burden, because 24x7 operation is not mandatory. The burden will arise if the forms, fees, or portal processes are difficult for small-business employers.

Business Opportunities Created

Night Retailing and Food Services: Stores, eateries, and kitchen deliveries can stay open for longer hours.

• Last Mile Logistics: Longer business hours can help with late pickups and deliveries.
• Warehousing: Operators may plan more shifts and use space for longer periods.
• Hospitality and tourism: Visitors may get wider access to food, retail, and support services.
• Customer support: Service businesses may offer round-the-clock help where demand exists.
• Security and transportation: Additional night shifts may require secure locations and employee movement.
• HR and payroll systems: There may be a requirement for more detailed records regarding shifts, attendance, and payments.
• Regulatory support: Smaller firms may seek Shops and Establishment registration services.

Drafting Issues and Areas Requiring Clarification

"All Establishments" Vs Ten Or More Employees

The clause suggested implies that the Act would apply to all shops and establishments. The reasons column mentions ten or more employees. Both clauses cannot be regarded as the same. The final draft must eliminate this confusion.

Gap in Number of Workers in Existing Law

The comparative statement includes the general provision for twenty or more workers and Section 7 for less than ten. There is no mention of 10 to 19 workers in the context above.

Deemed Registration Process

The proposal grants deemed registration but does not say whether a business must upload its existing certificate, obtain a portal number, or send an intimation.

Forms, Fees and Time Periods

The draft refers to prescribed forms, fees and a prescribed amendment period. Exact values and procedures are not stated.

Ownership and Business Changes

The certificate remains valid until ownership or the nature of business changes. The amendment provision also allows a fresh certificate upon change of particulars. The final rules should explain when an amendment is enough and when a completely new registration is needed.

Competent Authority and Penalty

The special approval authority is not named. The ₹5,000 penalty provision also does not explain how it applies to multiple or ongoing breaches.

How Can Corpseed Help?

Corpseed can support businesses preparing for the proposed framework through:

• Applicability assessment for shops and commercial establishments
• Review of existing registration certificates
• Assessment of possible deemed-registration status
• Shops and Establishments registration services
• Online application and document-filing support
• Assistance with changes in registration particulars
• Closure-intimation support
• Labour law compliance services and compliance-gap review
• Monitoring of the final Gazette and implementing rules

Final forms and fees will depend on the rules as notified. Support can help businesses prepare accurate records.

Corpseed's Core Message

The firms operating in Dadra and Nagar Haveli and Daman and Diu should see the proposed document for 2026 as significant, but not yet law. What needs to be done is to review the current registration to identify any deficiencies, maintain accurate business and employee records, and track the latest Gazette.

Corpseed helps employers interpret regulations, make online submissions, and register under the Shops and Establishments Act. Firms that the regulation may cover can obtain assistance with the document at hand.

Key Takeaways

The DNH and DD Shops and Establishments Amendment 2026 is a draft that has been published for stakeholder comments.

• It proposes to apply the Act to all shops and establishments in the Union Territory.
• Registration certificates would normally be generated through an online portal.
• Some OSH Code, municipal and panchayat registrations may receive deemed status.
• Registration would generally be required within sixty days under the proposed rule.
• Business closure must be reported within 30 days.
• Shops and establishments could remain open 24x7, but workers would remain protected by the Act.
• The government could restrict opening hours for safety, health, traffic, nuisance or law-and-order reasons.
• Businesses should wait for and review the final Gazette before treating the proposal as enforceable law.