States lead on labour reforms, pave way for women’s night shifts amid Centre’s code delay

26 states have carried out reforms, which includes allowing women to work in night shif.

Despite delays at the central level in implementing the four labour codes, a majority of Indian states have moved ahead with key labour reforms on their own.

From allowing women to work night shifts across sectors to expanding social security for gig workers, at least 26 states have carried out reforms to address industry demands and promote workforce inclusivity, according to official data.

"The industry has been consistently asking states to allow women to work in night shifts across different sectors. They say it’s crucial for their business and investment plans," a senior government official told Moneycontrol, adding that most states, barring a few in the North East, have allowed night shifts for women.

As of July 7, 2025, Nagaland and Arunachal Pradesh were the only two states which haven’t made any changes to their codes in this matter. Arunachal Pradesh is considering the issue and may soon allow women to work at night, said sources.

Night shift access for women

At the central level, the Occupational Safety, Health and Working Conditions Code, 2020 (OSH&WC) advocates for allowing late night-duty for women, but it’s not yet notified. Nonetheless, several states have proactively amended their respective Shops and Establishments Acts to allow women to work night shifts, subject to safeguards such as written consent, secure transportation, workplace safety measures, and POSH compliance.

"This transition from prohibition to protection not only promotes gender inclusivity and aligns with global labour standards but also supports economic growth and simplifies compliance for employers," said Sujjain Talwar, Co-Founding Partner, Economic Laws Practice.

Previously, most states imposed prohibitions on women working night shifts, with ad hoc exemptions primarily limited to the IT and ITeS sectors. In recent years, however, there has been a noticeable shift toward a general exemption model whereby women are now permitted to work night shifts across sectors, provided appropriate safeguards are in place and their consent is obtained, say experts.

States such as Karnataka, Maharashtra, Telangana, Tamil Nadu, and Andhra Pradesh have issued notifications to this effect in the last few years. Other states such as Bihar and Jharkhand are yet to implement such a change, particularly in the context of commercial establishments, said Vinay Joy, Partner at Khaitan & Co.

The new guidelines given by different states (for women) are highly transformative in character, said Rohitaashv Sinha, Partner, King Stubb & Kasiva. "This is a game changer and will create gender inclusivity, increase workforce contribution, and be in line with global standards, which will have a major economic boost in future," Sinha added.

Broader labour reforms

In addition to this, many other major labour reforms have been carried out by almost all the states. For instance, Gujarat and Andhra Pradesh have made changes to the Factories Act to allow for 12-hour shifts within a 48-hour weekly-limit, allowing greater flexibility to business. Several states have also harmonised the adherence and expansion of social security to gig workers.

States like Karnataka, Rajasthan and Telangana are looking to implement the provision of social security benefits to gig workers, while Kerala is expanding e-portals for worker registrations and social security enrolment.

Rahul Sundaram, Partner, IndiaLaw LLP, noted that important reforms by states focus on streamlining industrial relations, ensuring minimum wages and timely payments for all workers.

Labour laws fall under the Concurrent List of the Constitution, which means both the Centre and the states have the right to frame rules. However, in case of conflict between central and state laws, the central legislation typically prevails — unless the state law has received presidential assent, in which case it can take precedence.

Concurrent legislative powers

As per the legislative framework, the role of the central government is to frame the labour codes, draft and notify model rules or central rules under each Code. The role of the state governments is to frame their own rules under these codes, either based on the model rules or adapted to state-specific requirements. The states then notify these rules to operationalise the Codes within their respective jurisdictions, explain experts.

The other crucial reforms mentioned in the four central labour codes, which are not yet in place, include a universal definition of wages; ensuring that fixed term employees receive benefits linked to tenure on a pro-rated basis; introduction of the concept of ‘core activity’ in relation to contract labour, which restricts outsourcing of essential operations; establishment of a workers reskilling fund to support retrenched workers; and raising thresholds for layoffs and retrenchment approvals, among others.