Shops and Establishments Act in Goa: Rules & Compliance 2025-26
Table of Contents
The Shops and Establishments Act in Goa is moving from the 1973 Act to a new 2025 Act. The Governor gave assent to the 2025 Act on 19 September 2025, but it takes effect only on a date the state notifies; however, no such notification has been issued to date. Until then, the Labour Department continues to operate under the 1973 Act.
Key Takeaways
- Understand why Goa currently maintains two Acts: one actively in force and one awaiting commencement.
- Follow the timeline from the 1973 Act to the 2025 Act and the draft OSH Rules of 2026.
- Compare the old and new rules on coverage, hours, leave, women’s night work, and penalties.
- Check whether your establishment must register or only give an intimation.
- Prepare for open questions and operational changes regarding the effective commencement date.
What is the Shops and Establishments Act in Goa?
A labour welfare legislation of the State of Goa that provides a statutory framework for regulating employment conditions in shops, commercial establishments, and other establishments covered under the Act, with the objective of ensuring fair, safe, healthy, and dignified working conditions while prescribing corresponding duties and responsibilities for employers.
The Act broadly seeks to regulate:
- Employment conditions and terms of service.
- Working hours, rest intervals and weekly holidays.
- Leave and other statutory benefits available to employees.
- Wages and overtime in accordance with applicable provisions.
- Health, safety and welfare of employees.
- Employment of young persons and other protected categories.
- Registration, record-keeping, and statutory compliance by establishments.
- Inspection and enforcement of labour standards by the competent authorities.
What Changed in 2025-26: A Timeline
Goa’s legal framework for shops and establishments underwent a significant transition in 2025–26, with the enactment of a new law replacing the earlier framework. However, the new Act has not yet been brought into force.
| Date | Development |
|---|---|
| 1973-1974 | The Goa, Daman and Diu Shops and Establishments Act, 1973 was enacted as Act 13 of 1974. |
| 17 December 2020 | Online payment-based automatic renewal of registrations was introduced. |
| 2021 | Amendments increased penalties and introduced provisions for paid maternity leave. |
| 6-7 August 2025 | The Goa Shops and Establishments Bill, 2025 was introduced and passed by the Legislative Assembly. |
| 19 September 2025 | Received the Governor’s assent, enacting the Goa Shops and Establishments Act, 2025 (Act 23 of 2025). |
| 1 October 2025 | The 2025 Act was published in the Official Gazette. Its commencement was left to a future Government notification. |
| 21 November 2025 | The four Labour Codes, including the OSH Code, came into force. |
| May 2026 | Goa issued the draft Goa OSH (Labour) Rules, 2026, indicating the continued development of the state’s labour law framework. |
Which Law Applies to a Goa Employer Today?
Current Regulatory Position
Goa is currently undergoing a statutory transition between the 1973 and 2025 Shops and Establishments laws.
| Law | Position |
|---|---|
| 1973 Act | Continues to be reflected in the Labour Department’s current registration and renewal procedures. |
| 2025 Act | Enacted; however, its implementation remains pending the official notification of its commencement date. |
| OSH Code, 2020 | Applies independently to establishments meeting its statutory coverage thresholds. |
What Employers Should Do
Until the commencement of the 2025 Act is officially notified, employers should:
- Keep existing registration and renewal requirements up to date.
- Monitor official notifications regarding the 2025 Act.
- Assess applicability and compliance requirements under the OSH Code and corresponding rules.
Key takeaway: The 2025 Act represents the next stage in Goa’s regulatory framework, but its effective date must be confirmed before it can be treated as the operative law.
The 1973 Act and the 2025 Act Compared
The 2025 Act introduces a more digital, flexible, and threshold-based compliance framework. The key changes are set out below:
| Key Area | 1973 Act | 2025 Act |
|---|---|---|
| Coverage | Broad coverage, subject to exclusions | Full provisions for 20+ workers; online intimation for fewer than 20 |
| Registration | Within 90 days | Online, within 60 days |
| Certificate | 1 year, with renewal | Up to 5 years |
| Daily hours | 8 hours | Up to 10 hours |
| Weekly hours | 48 hours | 48 hours |
| Rest interval | 1 hour after 5 hours | 30 minutes after 5 hours |
| Overtime | Maximum 6 hours/week | Maximum 144 hours/quarter |
| Weekly rest | Establishment closing day | 24 consecutive hours per worker |
| Women – night work | Prohibited / Restricted (Requires special permission) | Permitted 7:30 p.m.–7:00 a.m. with consent and safeguards |
| Paid holidays | 7 days | 9 days |
| Crèche | No statutory requirement. | Required at 50+ workers |
Key Shift
- 1973 Act → Fixed & traditional compliance
- 2025 Act → Digital, flexible, and employee-threshold-based compliance framework.
The 2025 Act also expressly excludes certain categories, including government bodies, specified educational institutions, personnel in managerial or supervisory roles, family members of the employer, and employees drawing a monthly salary exceeding ₹24,000.
Note: The comparison reflects the provisions of the 2025 Act as enacted. Its practical application remains subject to its commencement and the rules made under it.
Registration and Intimation under the 2025 Act
The 2025 Act introduces a two-tier compliance system based on the number of workers:
Establishments with 20 or More Workers
- Online registration must be completed within 60 days from the date the Act comes into force or from the commencement of business operations.
- The Facilitator-cum-Inspector must issue the registration certificate within 7 working days of application.
- Registration may remain valid for up to five years, with renewal to be sought 30 days before expiry.
- Changes in ownership and closure of the establishment must be reported online.
Establishments with Fewer Than 20 Workers
These establishments must file an online intimation within 60 days of commencing operations. If the workforce subsequently reaches 20 workers, registration under the Act becomes mandatory.
Other Compliance Requirements
The Act further requires employers to:
- Issue appointment letters and identity cards to workers.
- Maintain prescribed registers and records, electronically or otherwise.
- File annual returns in the prescribed manner.
- Comply with inspections conducted through the prescribed web-based and randomized system.
A registration may also be canceled by the Facilitator-cum-Inspector, after providing an opportunity of being heard, if it was obtained through misrepresentation or false documents. Maintaining accurate workforce management records ensures seamless compliance when tracking employee thresholds and shift schedules.
Hours, Overtime and Leave
The 2025 Act permits up to 10 working hours per day, subject to a 48-hour weekly limit. Work performed beyond 8 hours a day or 48 hours a week must be paid at double the ordinary wage rate, with overtime capped at 144 hours per quarter. Work on the weekly rest day is also compensated at twice the applicable rate.
Leave Entitlements
- Sick leave: 9 days per year.
- Casual leave: 6 days per year.
- Earned leave: 15 days after completing 240 days of continuous service, accumulable up to 45 days.
Employers should ensure their leave policy reflects these entitlements and consider leave encashment at exit. The applicable Goa holiday list should also be consulted when determining paid festival holidays.
For establishments with variable shifts, appropriate hospitality payroll software or retail HR solutions can support accurate attendance and overtime records.
Women’s Night Work and Crèche Facilities
The 2025 Act permits women to work between 7:30 PM and 7:00 AM, provided their written consent is obtained, and all prescribed statutory safeguards are implemented. These include appropriate rest and shelter facilities, separate toilet facilities, safety measures, protection against harassment, and suitable transport arrangements.
Establishments employing 50 or more workers must provide a crèche, either independently or through a common facility located within a one-kilometer radius.
Employers must review the detailed statutory requirements alongside state rules before introducing night shifts or operationalizing crèche facilities.
Penalties and Compounding
The 2025 Act introduces a graduated penalty structure and permits compounding of eligible offenses.
| Violation | Penalty under the 2025 Act |
|---|---|
| First contravention | Up to ₹10,000, along with ₹500 per day for continuing violations |
| Second or subsequent similar offense | Up to ₹20,000 |
| Contravention causing death or serious injury | ₹25,000 to ₹1,00,000 |
| Obstructing an inspector or withholding statutory records | Up to ₹10,000 |
Compounding
Eligible offenses may be compounded with the approval of a Gazetted Officer. Repeat offenders within five years are excluded, and failure to comply with a compounding order will result in an additional penalty equivalent to 20% of the maximum statutory fine.
Establishments falling within the scope of the Occupational Safety, Health and Working Conditions (OSH) Code must evaluate its distinct penalty provisions independently.
Other Goa Duties Alongside the Act
Compliance under the Shops and Establishments Act operates concurrently with other statutory employment obligations. Employers should verify the applicable minimum wages in Goa, professional tax slabs, and Labour Welfare Fund contributions, as each statutory head carries distinct contribution rates, reporting formats, and payment deadlines. Additionally, employers must issue accurate monthly salary slips to all employees.
Compliance Checklist for Employers in Goa
- Assess employee headcount: For establishments with fewer than 20 workers, submit an online intimation; for 20 or more workers, register under the 2025 Act. Establishments with 10 or more workers must also evaluate applicability under the OSH Code.
- Maintain existing registration: Continue maintaining registration and renewal compliance under the 1973 Act until the 2025 Act is officially brought into force.
- Monitor official notifications: Routinely check updates from the Goa Labour Department regarding the enforcement date and accompanying rules.
- Issue mandatory documentation: Issue formal appointment letters and official identity cards to all workers upon engagement.
- Track working hours and spread-over: Ensure strict compliance with daily working hour limits, the 48-hour weekly ceiling, and mandatory rest intervals.
- Record overtime: Accurately compute and log overtime hours, paying wages at double the ordinary rate.
- Maintain leave balances: Log and maintain accurate records for sick, casual, and earned leave entitlements.
- Document night work safeguards: Where women are engaged in night shifts, retain signed written consent forms alongside verification of transport and safety provisions.
- Maintain statutory records: Store registers, attendance logs, wage rolls, and compliance documents in an easily accessible format for inspection.
Conclusion
The Goa Shops and Establishments framework aims to modernize state labour governance by aligning regulatory requirements with modern operational models. Employers should establish proactive internal compliance systems to ensure a smooth transition once the 2025 Act is formally operationalized.
A forward-looking approach should aim not merely to enforce existing standards but to create a regulatory environment in which employee protection and business innovation can develop together. In the coming years, effective implementation, digital compliance mechanisms, greater awareness of workers’ rights, and responsive regulation can contribute to a more inclusive, resilient, and future-ready employment ecosystem in Goa.
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Frequently Asked Questions
What is the Goa Shops and Establishments Act, 2025?
The Goa Shops and Establishments Act, 2025 is the State’s new legislation governing employment conditions, welfare, and compliance requirements for shops and establishments in Goa.
Is the Goa Shops and Establishments Act, 2025 Currently in Force?
The Act has been enacted and published, but its enforcement is contingent upon an official notification issued by the State Government in the Official Gazette. Employers should verify the latest official position before relying on it as the operative law.
What Happens to Registrations Issued under the Earlier Goa Shops and Establishments Act?
Until the 2025 Act is formally brought into force, employers should continue to maintain applicable registration and renewal requirements under the existing framework.
Which Other Labour Laws Should Employers in Goa Consider?
Compliance with the Shops and Establishments legislation does not replace obligations under other applicable laws, including statutory obligations under Minimum Wages, Professional Tax, the Labour Welfare Fund, and Occupational Safety regulations.
When does the Occupational Safety, Health and Working Conditions Code Apply to a Goa Establishment?
The OSH Code applies according to its statutory coverage provisions. In general, establishments employing 10 or more workers should assess whether the Code applies to them.
Where Can Employers Verify Changes to Goa’s Shops and Establishments Requirements?
Employers should refer to the Goa Department of Labour and Employment and the Official Gazette for commencement notifications, amendments, rules, and other regulatory updates.
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