Navigating Regulatory Flexibility: Exemption under Rajasthan’s Commercial Laws

The Rajasthan Shops and Commercial Establishments Act, 1958 (Act 31 of 1958) regulates the operations of shops and commercial establishments within the state. Recently, the state government issued a notification granting an exemption allowing shops and commercial establishments to remain closed for one day per week for a period of three years from the date of publication in the Rajasthan Gazette. This notification was published on June 20, 2024.

This exemption is contingent upon certain conditions laid out by the government:

  1. Weekly Paid Holiday: Employers must provide a paid weekly holiday to all employees, rotating the day off each week.
  2. Working Hours: Employees’ daily working hours are set at 8 hours and weekly at 48 hours. Any additional work beyond these hours must be documented separately.
  3. Overtime Compensation: Employees are entitled to overtime pay as per the Act’s provisions.
  4. Appointment Letters: Every employed individual must receive an appointment letter, with a copy submitted to the area inspector and kept on record.
  5. Continued Benefits: All statutory benefits under the Act remain applicable to employees.
  6. Compliance: Employers must strictly adhere to these conditions and any subsequent directives issued by the state government.
  7. Termination Clause: Violation of these conditions will lead to automatic termination of the exemption, exposing the employer to legal consequences under relevant laws.

This exemption aims to balance operational flexibility for businesses with the protection of employees’ rights and ensure compliance through strict monitoring and enforcement measures. Employers opting for this exemption must navigate these terms diligently to avoid penalties and maintain lawful operations within Rajasthan.


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