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Punjab Cabinet Approves Overhaul of Shops and Establishments Act to Ease Compliance for Small Businesses

The amendments exempt micro businesses from key regulations ahead of their introduction in the Assembly session

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Overview

  • Establishments with up to 20 workers will be exempt from most provisions of the Act but must submit basic information to the Labour Department within six months of enactment
  • Quarterly overtime limits jump from 50 to 144 hours and daily work spread extends to 12 hours with double pay for hours beyond nine per day or 48 per week
  • Firms employing 20 or more staff will receive deemed registration approval within 24 hours under the streamlined process
  • Penalties under Sections 21 and 26 are raised to a minimum of Rs 1,000 and a maximum of Rs 30,000, with a three-month grace period before repeat fines
  • A new Section 26A allows compounding of offences without court appearances and the full package will be tabled after stakeholder consultations