**Punjab Cabinet Approves Amendment to Shops and Commercial Establishments Act**
The Punjab Cabinet has recently approved an amendment to the Punjab Shops and Commercial Establishments Act of 1958, aimed at alleviating compliance burdens for small businesses and improving the overall ease of doing business in the state. This decision was made during a council of ministers meeting led by Punjab Chief Minister Bhagwant Mann.
This marks the third consecutive cabinet meeting, following earlier discussions that included the approval of a Land Pooling Policy and the waiver of ₹68 crore in debt for Scheduled Caste families.
In a statement to the media, Chief Minister Mann highlighted that the amendment is designed to liberate shopkeepers from the “Inspector Raj.” Under the new provisions, establishments with up to 20 employees will be exempt from all Act requirements, which is expected to benefit approximately 95% of shops and commercial establishments in Punjab. Registration will now only be necessary for businesses employing more than 20 individuals.
An official spokesperson from the Chief Minister’s office indicated that this change is anticipated to directly assist millions of shopkeepers across the state. However, these smaller establishments will still need to submit essential information to the labor department within six months of the Act’s implementation or the start of their business operations.
To further enhance employee earnings, the permissible overtime limit has been increased from 50 hours to 144 hours per quarter. Additionally, the daily work spread-over period has been extended from 10 to 12 hours, including rest intervals. Employees will still receive double pay for any work exceeding 9 hours per day or 48 hours per week.
The registration process has been simplified, allowing businesses with 20 or more employees to receive deemed approval for registration within 24 hours of application submission. Establishments with up to 20 workers are only required to provide basic information and are not mandated to register.
Moreover, penalties for violations of the Act have been revised, with the minimum fine raised from ₹25 to ₹1,000 and the maximum from ₹100 to ₹30,000. To prevent undue harassment and provide businesses with time to comply, a three-month grace period will be implemented between the first and second offenses, as well as for subsequent violations. A new Section 26A has been introduced to allow for the compounding of offenses, effectively decriminalizing the Act and eliminating the necessity for shopkeepers to appear in court.
Despite these changes, all rights and protections afforded to laborers under various labor laws will continue to be upheld, ensuring their interests are safeguarded.
**FAQ**
**What are the key benefits of the amendment to the Punjab Shops and Commercial Establishments Act?**
The amendment aims to reduce compliance burdens for small businesses, exempting those with up to 20 employees from most provisions of the Act, thereby enhancing the ease of doing business in Punjab.
