Punjab Cabinet Under CM Mann Greenlights Historic Labour Reforms for Small Businesses
Chandigarh, June 4,
Major Relief for Small Businesses
The Punjab Cabinet, chaired by Chief Minister Bhagwant Singh Mann, has passed a transformative amendment to the Punjab Shops and Commercial Establishments Act, 1958, on Wednesday. This reform aims to alleviate compliance pressures for 95% of small businesses, fostering a more business-friendly environment in the state.
The decision was made during a Council of Ministers meeting at the Chief Minister’s official residence in Chandigarh.
Key Highlights of the Amendment
A spokesperson from the Chief Minister’s Office shared the following details:
- Exemption for Small Units: Establishments with up to 20 workers are now exempt from all provisions of the Act, a move set to benefit lakhs of shopkeepers across Punjab. However, these businesses must submit basic information to the Labour Department within six months of the Act’s enforcement or the start of their operations.
- Faster Registration: Businesses with 20 or more employees will receive automatic registration approval within 24 hours of applying. Those with fewer than 20 workers only need to provide minimal details and are not required to register.
- Updated Penalties: Fines under Sections 21 and 26 have been revised, increasing the minimum penalty from Rs. 25 to Rs. 1,000 and the maximum from Rs. 100 to Rs. 30,000, ensuring a fairer penalty structure.
- Reduced Harassment: A three-month grace period will be granted between the first and second offences, as well as subsequent violations, giving businesses time to comply without immediate repercussions.
- Offence Compounding: The newly introduced Section 26A allows for the compounding of offences, decriminalizing minor violations and sparing shopkeepers from court appearances. watch…….Punjab Creates History: 40 Government School Students Qualify for JEE (Advanced)
Worker Benefits and Protections
The reforms also prioritize employee welfare while maintaining labour rights:
- Extended Overtime: The quarterly overtime limit has been raised from 50 hours to 144 hours, and the daily work spread-over period, including rest intervals, has been extended from 10 hours to 12 hours.
- Fair Overtime Pay: Employees working beyond 9 hours a day or 48 hours a week will be compensated at double their regular rate, ensuring equitable earnings.
- Labour Rights Upheld: All existing labour law protections and securities will remain in place to safeguard workers’ interests.
A New Era for Punjab’s Economy
These amendments aim to cut bureaucratic red tape, minimize harassment, and create a supportive ecosystem for small businesses in Punjab while ensuring labour rights are protected. The Punjab Government’s initiative underscores its dedication to building an inclusive economy where small enterprises can flourish.
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