Madhya Pradesh Shops & Establishments Act Amendment: Digital Compliance Reforms and Employer Implications

In December 2025, Madhya Pradesh amended its Shops & Establishments Act to fully digitize labor compliance, moving registration, inspections, and closures to online systems. The state also permitted women to work night shifts, subject to enhanced safety safeguards—underscoring its push for easier compliance and more inclusive employment.

India’s state of Madhya Pradesh (MP) has enacted the Second Amendment to its Shops & Establishments Act, 1958, reinforcing its move towards a fully digitized compliance ecosystem. The amendment modernizes how establishments are registered, monitored, and inspected, with all key processes now routed through state government-notified online systems.

Madhya Pradesh S&E Act: Key highlights of the 2025 amendment

The primary objective of the amendment, introduced via extraordinary gazette published on December 15, 2025, is to modernize the compliance framework. This includes online registration of establishments, electronic maintenance of records, automated issuance of certificates, and technology-driven inspection mechanisms.

Transition to a fully digital compliance framework

The amendment formally incorporates the following digital mechanisms into the Act:

1. Central inspection system: A state-notified online platform for the scheduling, allocation, conduct, and monitoring of inspections.
2. Labor department portal: The official portal for registration, modification, compliance updates, and closures.

All statutory interactions under the Act are now routed exclusively through these systems.

Revised registration process for establishments

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Section 6 of the Madhya Pradesh S&E Act now mandates online registration of establishments. Employers must apply for registration on the notified portal within 30 days from the date the Act (i.e., December 15, 2025) becomes applicable to the establishment. The application should be submitted in the prescribed format along with the applicable fee and include details such as:

1. The name of the employer and management personnel,
2. Address and date of commencement of business,
3. Name and category of the establishment (shop, commercial establishment, hotel, restaurant, theatre, etc.)
4. Any other prescribed particulars.

Upon submission of the required information and payment of fees, the registration certificate will be automatically generated by the portal. The digital certificate must be prominently displayed at the establishment. The registration fee is to be prescribed under the rules but cannot exceed INR 2,500 (US$27.6) per establishment.

To register under the revised MP S&E Act, companies can visit the official website; click here: labour.mp.gov.in

Mandatory online updates for changes

The S&E amendment places a statutory obligation on employers to ensure that any change in the registration details submitted under Section 6 is updated on the portal within seven days of such change.

Once the information is updated, the portal will automatically revise the register of establishments and generate an amended or fresh registration certificate, as required. This provision ensures real-time accuracy of establishment records.

Online intimation of closure

Under the revised Section 8 of the Madhya Pradesh S&E Act, employers are required to intimate the closure of an establishment within 10 days of such closure through the online portal.

Following this update, the establishment is removed from the register of establishments, and the corresponding registration certificate is digitally cancelled. This ensures formal closure is reflected in the state government records without manual intervention.

Changes to inspection powers

The amendment also revises the inspection framework under Section 41. Inspectors are now authorized to enter establishments allotted through the central inspection system, reinforcing the role of technology in inspection allocation and oversight.

Additionally, a safeguard has been introduced for smaller establishments. Inspectors are restricted from exercising inspection powers in establishments employing 20 or fewer workers, unless prior permission is obtained from the Labor Commissioner or an authorized officer. This provision aims to reduce unnecessary regulatory burden on small businesses.

ALSO READ: Gujarat Shops & Establishments Update: New Rules for Employers

Action points for employers in Madhya Pradesh

1. Review registration coverage

• Confirm that all establishments in Madhya Pradesh are registered on the Labor Department portal.
• Ensure digital registration certificates are available and displayed at each workplace.

2. Validate existing information

• Verify the accuracy of the employer, manager, address, category, and commencement details.
• Rectify discrepancies promptly through the portal.

3. Establish internal update controls

• Implement processes to ensure changes are reported within the 7-day statutory timeline.
• Clearly assign responsibility to HR, compliance, or operations teams.

4. Prepare for digitized inspections

• Familiarize relevant teams with the central inspection system.
• Maintain statutory records and certificates in accessible digital formats.

5. Plan for new establishments or closures as per latest amendment

• Complete registration for new establishments within 30 days of commencement.
• Intimate closures within 10 days and confirm digital cancellation of registration.

6. Train HR and compliance teams

• Update internal SOPs to reflect the digital compliance framework.

Night shift employment of women in Madhya Pradesh (June 2025)

On June 27, 2025, the state issued two notifications under the Shops and Establishments Act, 1958, and the Factories Act, 1948, revising the framework for employing women during night shifts. These notifications replace earlier orders.

Shops and commercial establishments

Women may be employed between 9:00 pm and 7:00 am (IST), subject to conditions including:

1. Written consent from women employees
2. Minimum deployment of five women per night shift
3. CCTV surveillance and presence of women security personnel
4. Compliance with the Maternity Benefit Act, 1961, and the POSH Act, 2013

Factories

Women may be employed between 8:00 pm and 6:00 am (IST), subject to stricter safeguards, including:

1. Safe transportation to and from the workplace
2. Well-lit and secure premises
3. Women wardens and supervisors where lodging is provided
4. At least one-third women supervisory staff during night shifts
5. A mandatory 12-hour rest interval between shifts 
6. Full compliance with the POSH Act

Policy direction

Together, these measures signal Madhya Pradesh’s new approach to workforce participation. While shops and commercial establishments benefit from streamlined conditions, factories are subject to enhanced safeguards reflecting operational and safety considerations. The framework balances expanded employment opportunities for women with robust protections.

(US$1 = INR 90.52)

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