No mandatory registration for MSMEs with up to 10 workers
After approving the relaxation under Section 4 of the Act, chief minister Bhajan Lal Sharma Friday said, "This is a significant relief for small shopkeepers and business owners. Our govt is committed to reducing regulatory burdens and creating a more business-friendly environment."
The move is expected to benefit thousands of micro and small enterprises across the state, helping them operate with greater flexibility and without being bogged down by unnecessary paperwork.
In addition to the exemption, the chief minister also granted administrative approval to the draft of the Rajasthan Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2025.
"The existing Act from 1958 needed to be brought in line with the changing dynamics of the labour market and business operations. The proposed 2025 Act will simplify rules while ensuring better protection for workers," said a senior official from the labour department.
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The new draft law is aimed at modernising regulations related to employment conditions, working hours, leave entitlements, and service benefits, ensuring that both employers and employees have clarity and compliance-friendly procedures.
Officials believe that this dual move — exemption for small establishments and an updated legal framework — will together encourage the formalisation of businesses, reduce bureaucratic red tape, and foster entrepreneurial growth across urban and semi-urban Rajasthan.
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