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Punjab cabinet approves labour reforms; small businesses freed from compliance hassles



CHANDIGARH: The Punjab Cabinet has approved a major amendment to the Punjab Shops and Commercial Establishments Act, 1958, aimed at reducing compliance burdens on 95 per cent of small businesses and enhancing ease of doing business in the state. The decision was taken at a meeting of the Council of Ministers held today at the Chief Minister’s official residence.A spokesperson from the Chief Minister’s Office said that, under this progressive amendment, all establishments employing up to 20 workers will be exempted from all provisions of the Act. 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.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. Nevertheless, employees must be paid overtime at double the regular rate for work exceeding 9 hours per day or 48 hours per week.



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