June 5, 2025 : Establishments Act, 1958, have been approved. Under these amendments, commercial establishments with up to 20 employees will no longer be required to register, which will protect traders from harassment by inspectors. After the Cabinet meeting, Chief Minister Bhagwant Singh Mann told reporters at his residence that these amendments will be presented in the Legislative Assembly for approval. Once approved, the amended Act will be implemented.
Mr. Mann said that earlier, shops and commercial establishments in Punjab had to be registered, and detailed records had to be maintained even to employ a single worker. Now, establishments with up to 20 employees will not need to register, nor will they have to maintain employee records.
The Chief Minister also stated that the daily working hours for employees in shops and other establishments have been increased from 10 hours to 12 hours, including rest time. This allows employees to work up to three hours of overtime daily. Those working 9 hours a day or up to 48 hours a week will be paid double the regular rate by the employer. The quarterly overtime limit for employees has been raised from 50 hours to 144 hours, allowing employees to work up to 144 hours of overtime every three months.
Furthermore, fines under Sections 21 and 26 have been increased. The state government has raised the minimum fine from ₹25 to ₹1,000 and the maximum fine from ₹100 to ₹30,000.
Simplified Registration Process for Establishments with More than 20 Employees:
Punjab Chief Minister Bhagwant Singh Mann said that along with amendments, the registration process has been simplified. Shops or commercial establishments with more than 20 employees will now be considered automatically registered within 24 hours of application submission. However, establishments with up to 20 employees will not need to register; they will only have to provide basic information.
Summary:
The Punjab Cabinet has approved amendments to the Shops and Commercial Establishments Act, 1958, which will bring flexibility to commercial regulations and increase employment opportunities.