More overtime work, registration waiver among Punjab Shops and Establishments Act tweaks cleared by cabinet

Addressing the media on the cabinet decision, Mann said the amendment was aimed at getting shopkeepers, who form 85 per cent of all traders, out of inspector raj. He said that all establishments employing up to 20 workers would now be exempted from all provisions of the Act. This move is expected to directly benefit lakhs of shopkeepers across Punjab.

However, such establishments will still be required to submit relevant information to the labour department within six months of the Act coming into force or the commencement of their business.

The permissible overtime in a quarter has been increased from 50 hours to 144 hours. Additionally, the daily spread-over period of work has been extended from 10 hours to 12 hours, inclusive of rest intervals. Nevertheless, employees must be paid overtime at double the regular rate for work exceeding nine hours per day or 48 hours per week.

The registration process has also been streamlined and the establishments with 20 or more employees will now receive deemed approval for registration within 24 hours of application submission. Under the amendment, establishments employing up to 20 workers are required to provide only basic information and are not obligated to register. Moreover, penalties under sections 21 and 26 have been rationalised—raising the minimum fine from Rs 25 to Rs 1,000 and the maximum from Rs 100 to Rs 30,000.

Now class-wise amendments will be made in the amended Act and it will be introduced in the upcoming Assembly session for approval. Mann said that all the stakeholders would be consulted.

The chief minister said that if a shopkeeper or the owner of an institution makes his workers work more than the stipulated time and does not even pay double the money, the workers can complain to the labour inspector. Earlier they had to go to the labour court.

To prevent harassment and allow businesses time to achieve compliance, a three-month grace period will be provided between the first and second offences, as well as subsequent ones.

A new section 26A has also been introduced to allow for the compounding of offences, thereby decriminalising the Act and eliminating the need for shopkeepers to attend court.

Meanwhile, all the securities and rights provided by various labour laws will be adhered to for safeguarding the interests of the labourers, according to the government.