Madhya Pradesh Malls, Hotels to Operate 24x7 After Governor Approves Labour Code

New Labour Code Ushers in 24x7 Business Operations

Madhya Pradesh is set for a significant transformation in its commercial activities. Following the approval of the 'Labour Empowerment Code, 2026' by Governor Mangubhai Patel, malls, hotels, restaurants, cinema halls, and shops in the state can now operate 24 hours a day, seven days a week.

The bill, passed by the Assembly in July, aims to simplify and modernize labour laws, facilitate business, and create new employment opportunities. This new system is expected to provide a considerable boost to the state's 'Night Economy'.

The promotion of late-night shopping, dining, entertainment, and other commercial activities will not only benefit traders but also likely increase employment opportunities in the service sector. However, the operation of liquor stores will continue to be governed by relevant local and statutory regulations.

Balancing Employee Welfare with Flexibility

The new Labour Empowerment Code attempts to strike a crucial balance regarding employee working hours. It prohibits any establishment from employing the same worker for 24 consecutive hours.

Employees will be assigned to work in different shifts. The objective is to enable establishments to remain open around the clock while ensuring that employee work hours adhere to established labour standards. The code provides for a maximum work limit of 48 hours per week.

If an employee is required to work beyond the stipulated hours, their consent and overtime payment as per regulations will be mandatory. Thus, the government has sought to create a flexible system for businesses while also ensuring the protection of employee interests within the legal framework.

Special Provisions for Women Employees

The new regulations include important provisions for women employees. They will now be able to work in night shifts, provided the employer takes full responsibility for ensuring their safety.

The establishment operator will be accountable for maintaining a safe workplace, providing transportation facilities, and implementing other necessary safety measures. This is expected to increase women's participation in sectors requiring late-night work.

Emphasis on Workplace Safety

The Labour Empowerment Code also places high priority on workplace safety. Commercial establishments will be mandated to have adequate arrangements for fire safety, sanitation, and emergency response.

Provisions related to fire safety for multi-storey buildings are reported to be further tightened. The government's overarching vision behind this law is to create a conducive environment for industry and trade by simplifying the labour system.

Government's Comprehensive Approach

The cabinet had approved the 'Madhya Pradesh Code on Empowering Workspaces, 2026' in July, after which it was presented in the Assembly and passed on July 21. This new code integrates and modernizes the provisions of old labour laws, relieving traders from unnecessary procedures while providing legal protection to workers' rights.

The Labour Department has also simplified the digital registration system, making the online registration process for establishments easier. The Labour Department has simplified the digital registration system, making the online registration process for establishments easier.

Potential Impact on Major Cities and Tourist Hubs

The most direct impact of the 24x7 business permission can be observed in Madhya Pradesh's major cities like Bhopal, Indore, Gwalior, Jabalpur, and Ujjain, as well as in tourist destinations.

Hotels, restaurants, malls, entertainment, and service sectors in these areas may become more active at night. The availability of services late into the night is expected to benefit tourists and the local economy. It is crucial to understand that the permission for 24-hour business does not imply employees working continuously for 24 hours.

Establishments must adhere to shift systems, and compliance with prescribed working hours, rest periods, and overtime regulations for workers is mandatory. This arrangement ensures the law balances business growth with employment and worker interests.

Criteria for Success

The government hopes that the new Labour Empowerment Code will further improve Madhya Pradesh's business environment for investors and traders. The allowance for 24x7 operations can create additional employment opportunities in sectors such as new services, delivery, security, transportation, hotels, restaurants, entertainment, and retail.

On the other hand, the true success of this law will depend on the effectiveness of its implementation on the ground concerning women's safety, working hours, overtime, fire safety, and other worker rights provisions. In summary, the 'Labour Empowerment Code, 2026' is a significant step in Madhya Pradesh's labour and business ecosystem. While the permission for 24x7 business is expected to inject new momentum into the state's night economy, the effective monitoring of employee safety and rights will be the most critical criterion for its success.