The Government of Punjab has notified the Punjab Shops and Commercial Establishments (Amendment) Act, 2025, significantly overhauling the state’s framework for regulating shops, offices, and commercial establishments.
The amendment, introduces expanded working hours, tiered registration obligations, stricter penalties, and a new compounding mechanism, signaling a major shift in how labour compliance will be managed in the state going forward.
⚖️ Legal Background
The Punjab Shops and Commercial Establishments Act, 1958 governs the regulation of conditions of work and employment in shops and commercial establishments within Punjab. The 2025 amendment reflects an effort to:
- Align with modern business practices,
- Encourage ease of doing business, and
- Ensure labour protections, especially with respect to working hours, penalties, and registration.
🧾 Key Highlights of the Amendment Act, 2025
1. 🏬 Applicability Based on Workforce Strength
- The Act will now fully apply only to shops and establishments employing 20 or more workers.
- For establishments with fewer than 20 workers, only Section 13-A (Business Intimation) applies.
- If an establishment’s workforce increases to 20+, full compliance with the Act becomes mandatory.
2. 🕒 Extended Working Hours
| Provision | Previous Limit | New Limit (2025 Amendment) |
| Daily Working Hours (Section 7) | 9 hours | 10 hours |
| Total Spread of Work (Section 8) | 10 hours | 12 hours |
| Overtime Threshold (Section 7(2)(a)) | 50 hours/month | 144 hours/month |
⚠️ Note: These increased limits come with the condition of adherence to rest intervals and overtime wages, as may be prescribed.
3. 📝 Mandatory Registration & Business Intimation
🔹 For Establishments Employing 20 or More Workers (Section 13):
- Must register within 6 months of starting business.
- Registration certificate must be issued within 24 hours. If not, it is deemed granted.
- Changes in business details must be notified within 30 days.
- Closure must also be informed for cancellation of registration.
🔹 For Establishments Employing Fewer Than 20 Workers (Section 13-A):
- Must intimate their business to the Inspector within 6 months.
- No registration is required unless worker count increases to 20+.
4. 💰 Revised and Stricter Penalties
Section 6 (Hours of Work for Children and Women)
- First offence: ₹1,000 to ₹25,000
- Second offence: ₹5,000 to ₹50,000
- Ongoing violations: ₹1,000/day
Section 21 (Obstruction to Inspectors)
- First offence: ₹1,000 to ₹10,000
- Second offence: ₹3,000 to ₹50,000
- Ongoing violations: ₹500/day
Section 26 (General Penalties)
- First offence: ₹500 to ₹2,000
- Subsequent offences: ₹3,000 to ₹30,000
- Ongoing violations: ₹500/day
📝 Clarification: A second offence is one committed within 3 months of the first. If over 1 year, it is treated as a new first offence.
5. ⚖️ Compounding of Offences Introduced (New Section 26-A)
- The State Government may notify competent authorities for compounding offences under Sections 6, 20, 21, and 26.
- Offenders may settle violations by paying a compounding fee (not exceeding maximum prescribed fines), avoiding court proceedings.
- No further legal action will be taken once an offence is compounded.
6. 🗃️ Schedule Removed
- The Schedule appended to the original Act has been omitted, simplifying the structure of the law.
📌 Impact on Employers
| 🔍 Area | ⚙️ Action Required |
| Registration Compliance | Register within 6 months if employing 20+ workers. Establishments with fewer than 20 must file business intimation. |
| Workforce Planning | Review working hour policies; update shift rosters and overtime tracking. |
| Documentation | Maintain updated records of registration, changes, and closure notifications. |
| Compliance Audit | Prepare for stricter inspections and fines. Review penalty exposure under revised fine structures. |
| Dispute Avoidance | Use compounding provisions for faster resolution of minor violations. |
✅ What Employers Should Do Immediately
- Review workforce size to determine applicability.
- Apply for registration or file business intimation as per Section 13 or 13-A.
- Update HR policies on working hours and overtime.
- Train compliance staff on revised penalties and documentation norms.
- Monitor official notifications for prescribed forms, fees, and procedures under the amended Act.
📚 Conclusion
The Punjab Shops and Commercial Establishments (Amendment) Act, 2025 is a landmark update that balances ease of compliance with increased accountability. With enhanced working hours, streamlined registration, and graduated penalties, the amendment reflects Punjab’s commitment to modern labour law governance while preserving worker rights.
Employers should ensure timely compliance to avoid penalties and leverage the compounding mechanism to manage minor offences efficiently.