The Punjab Cabinet on Wednesday approved an amendment to the Punjab Shops and Commercial Establishments Act, 1958, aimed at reducing compliance burdens on small businesses and enhancing the ease of doing business in the state.
The decision was taken at a meeting of the council of ministers, chaired by Punjab Chief Minister Bhagwant Mann here. It was the third cabinet meeting held in a row.
The council of ministers first held a meeting on Monday in which it approved the Land Pooling Policy and then on Tuesday it waived Rs 68 crore debt of Scheduled Caste families.
Addressing the media after the cabinet meeting, Mann said the cabinet approved an amendment in the Punjab Shop and Commercial Establishments Act, 1958 and it is aimed at completely freeing shopkeepers from the "Inspector Raj." Under this amendment, all establishments employing up to 20 workers will be exempted from all provisions of the Act, he said, adding that it will cover 95 per cent of shops and commercial establishments in the state.
The registration work under the law will now be applicable for shops employing over 20 persons, he said.
An official spokesperson of the chief minister's office said this move is expected to directly benefit lakhs of shopkeepers across Punjab.
However, such establishments will still be required to submit relevant information to the labour department within six months of the Act coming into force or the commencement of their business, said the spokesperson.
To enhance employee earnings, the permissible overtime in a quarter has been increased from 50 hours to 144 hours.
Additionally, the daily spread-over period of work has been extended from 10 hours to 12 hours, inclusive of rest intervals, said the spokesperson.
Nevertheless, employees must be paid overtime at double the regular rate for work exceeding 9 hours per day or 48 hours per week, he said.
The registration process has also been streamlined and establishments with 20 or more employees will now receive deemed approval for registration within 24 hours of application submission.
Under the amendment, establishments employing up to 20 workers are only required to provide basic information and are not obligated to register, said the spokesperson.
Moreover, penalties under the law have been rationalized, raising the minimum fine from Rs 25 to Rs 1,000 and the maximum from Rs 100 to Rs 30,000 for any violation.
To prevent harassment and allow businesses time to achieve compliance, a three-month grace period will be provided between the first and second offences, as well as subsequent ones, said the spokesperson.
A new Section 26A has also been introduced to allow for the compounding of offences, thereby decriminalizing the Act and eliminating the need for shopkeepers to attend court.
Meanwhile, all the securities and rights provided by various labour laws will be adhered to for safeguarding the interests of the labourers, said the spokesperson.
