One act replaces six labour laws reforms:Theaters and restaurants allowed to operate all night; employees get freedom to choose holidays

The Madhya Pradesh government is preparing to scrap six existing labour laws and replace them with a single comprehensive labour code, in a major reform aimed at easing business operations and improving employment flexibility. Under the proposed framework, theatres and restaurants may soon be allowed to operate round the clock, while employees will have greater freedom in deciding their working hours and weekly holidays. Night-long operations for businesses At present, restaurants at railway stations can remain open till 1:30 am, while theatres are allowed to operate until 1 am. Under the new proposed law, these time restrictions are expected to be removed, enabling 24-hour operations. Officials say this change is intended to boost economic activity and create new employment opportunities. Employees to get greater flexibility The new labour system aims to treat employers and employees on equal footing. If a shop or establishment operates 24 hours, employees will be assigned shifts across different time slots, ensuring rotational work opportunities. A key feature of the reform is that weekly holidays will be fixed, but employees will be able to choose their own day off, marking a significant shift from current employer-driven schedules. Labour Secretary officials stated that the reform is designed to enhance job creation and promote “ease of value creation.” High-level committee drafting the new law A high-level committee has been formed under the chairmanship of Additional Chief Secretary (Health) Ashok Barnwal, with members including: The committee has already held three meetings, and the draft of the new law is nearly ready. Officials said earlier labour laws were largely designed around establishments, whereas the new framework will also prioritise workers’ rights and flexibility. Alignment with central labour reforms The move follows the central government’s labour reforms introduced in November 2025, when 29 labour laws were consolidated into four labour codes covering wages, social security, industrial relations, and workplace safety. Madhya Pradesh’s new single act is being aligned with this structure to unify central and state labour regulations into one simplified system. Laws to be repealed The proposed reform will repeal several state labour laws, including: A recent amendment merging the Slate-Pencil Act into the Labour Welfare Fund Act (2026) will also be discontinued under the new framework. No routine inspection for shops Under the proposed system, inspectors will no longer be required for verification of shops or commercial establishments. Entrepreneurs will only need to submit a single application to start a business, without routine government inspection, significantly reducing compliance burden. Focus on ease of doing business Officials say the new law aims to remove unnecessary restrictions on industries and businesses while ensuring structured working hours and worker protections. Once implemented, the reform is expected to bring all labour-related provisions under a single legal framework, simplifying compliance for both employers and workers.