Chandigarh, June 4 : The Punjab Cabinet, led by Chief Minister Bhagwant Singh Mann, has approved a major amendment to the Punjab Shops and Commercial Establishments Act, 1958, aimed at reducing compliance burdens on 95% small businesses and enhancing the ease of doing business in the state. The Council of Ministers took the decision today during a meeting held at the Chief Minister’s official residence.

Punjab Govt Eases Labour Laws for Small Establishments, Increases Overtime Limit

The Chief Minister’s Office spokesperson disclosed that, under this progressive amendment, the government will exempt all establishments employing up to 20 workers from all provisions of the Act. This move will directly benefit lakhs of shopkeepers across Punjab. However, these establishments must still submit relevant information to the Labour Department within six months of the Act coming into force or starting their business. “The government has increased the permissible overtime in a quarter from 50 hours to 144 hours to enhance employee earnings. It has also extended the daily spread-over period of work from 10 hours to 12 hours, including rest intervals. However, employers must pay employees overtime at double the regular rate for any work that exceeds 9 hours a day or 48 hours a week.”

Small Businesses ; Labour Law Amended: Fast-Track Registration, Higher Penalties

Officials have streamlined the registration process. Establishments with 20 or more employees will now receive deemed approval for registration within 24 hours of application submission. Under the amendment, establishments with up to 20 workers need to provide only basic information. They have no obligation to register. Moreover, the authorities have rationalized the penalties under Sections 21 and 26—raising the minimum fine from Rs. 25 to Rs. 1,000 and the maximum from Rs. 100 to Rs. 30,000. To prevent harassment, a three-month grace period will be provided. This allows businesses time to achieve compliance between the first and second offences. The same grace period applies to subsequent offences. A new Section 26A has also been introduced. It allows for the compounding of offences. This decriminalizes the Act and eliminates the need for shopkeepers to attend court. Meanwhile, the authorities will adhere to all securities provided by various labour laws. They will protect the rights of labourers, thereby safeguarding their interests.