The Chandigarh Administration has issued a major policy shift allowing all shops and commercial establishments in the Union Territory to remain open 365 days a year and operate 24 hours a day. The order, which was notified on August 14, 2025, provides an exemption under the Punjab Shops and Commercial Establishments Act, 1958 (as applicable to Chandigarh), effectively removing restrictions on opening hours for businesses in the region.
Key Details of the Notification:
The notification, issued under the powers conferred by Section 28 of the Punjab Shops and Commercial Establishment Act, 1958, aims to offer greater flexibility to businesses while ensuring employee welfare and safety. This significant change allows all registered shops and commercial establishments in Chandigarh to operate without limitations on the number of hours or days.
Conditions for the Exemption:
Although the 24/7 operation is now allowed, there are several stringent conditions set by the Chandigarh Administration to ensure the safety and welfare of employees, especially female workers. These conditions are aimed at promoting a secure and fair working environment while complying with labor laws.
1. Employee Rest and Working Hours:
- Employees are entitled to at least one day off per week, with no wage deduction for the day of rest.
- A half-hour break is mandatory after 5 continuous working hours.
- The working hours should not exceed 9 hours per day or 48 hours per week.
2. Safety and Security Measures:
- If the establishment operates after 10:00 pm, it is mandatory to ensure adequate safety for employees and visitors, including CCTV cameras and emergency alarms.
- Female employees working after 8:00 pm must provide written consent, and the establishment must ensure proper transport and security.
- A GPS-enabled vehicle system must be implemented to guarantee secure transport for women employees working late hours.
3. Female Employee Protection:
- Separate lockers, restrooms, and security facilities must be provided for female employees.
- The Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013 will be strictly followed, with the employer ensuring adequate protection for female workers.
- The management must maintain a register of transportation details including driver information, vehicle registration, and pickup/drop-off times.
4. Compliance with Child Labor Laws:
- All establishments must comply with the provisions of the Child and Adolescent Labour (Prohibition and Regulation) Act, 1986, ensuring that child labor is not employed under any circumstance.
5. Wage and Overtime Provisions:
- Overtime work will be compensated at twice the normal wage rate.
- The total overtime hours worked in a quarter should not exceed 50 hours.
- All wages, including overtime, will be credited directly to employees’ bank accounts.
6. Other Important Provisions:
- National and festival holidays will be granted with full wages.
- Employers are responsible for maintaining accurate records related to workers’ employment.
- Adequate security measures must be in place, and emergency procedures must be outlined in case of accidents or threats.
7. Penalties for Non-Compliance:
- If any of the conditions outlined above are violated, the exemption may be revoked, and the establishment could face penalties or closure following due process.
Significance of the Exemption:
This exemption comes as part of the Chandigarh Administration’s ongoing effort to promote business growth and economic activity in the region. Allowing shops and commercial establishments to remain open throughout the year, including night shifts, is expected to:
- Boost local business operations, particularly in sectors like retail, hospitality, and service-based industries.
- Support tourism and night-time economy, as customers can now access services and products at any time.
- Offer more job opportunities, particularly for people who are looking for flexible work schedules.
However, it is important to note that while businesses now have the liberty to operate round-the-clock, employee welfare remains a top priority. The stringent safety protocols and fair treatment guidelines are designed to prevent exploitation and ensure that the shift to a 24/7 operational model does not harm the well-being of workers.
Conclusion:
The Chandigarh Administration’s decision to allow shops and commercial establishments to operate 24 hours a day throughout the year marks a major step toward aligning with global business practices while still upholding essential labor rights. This progressive move not only supports businesses in adapting to modern demands but also emphasizes the importance of maintaining a safe and fair working environment for all employees.
This exemption brings new opportunities for businesses but also places a strong focus on employee security, safety, and work-life balance, ensuring that any increase in economic activity doesn’t come at the cost of workers’ rights or well-being.