The Punjab government has approved amendments to the Punjab Shops and Commercial Establishments Act, 1958. The Council of Ministers, headed by the Chief Minister Bhagwant Mann, took the decision on Wednesday. The move is aimed at streamlining the ease of business by reducing the compliance burden on small businesses.
This is the 3rd cabinet meeting held by the state government in the last three days. In the first meeting, the government approved the land pooling policy, while in the second meeting, it took the decision to waive off Rs 68 crore debt on scheduled caste families.
Provisions in the new amendment
As per a report by PTI, the small businesses that employ up to 20 employees are given big relief in regulations. The small businesses that have up to 20 employees are not required to get registered. They only need to provide the basic information. Chief Minister Mann said that the amendment will free the small business owners from ‘Inspector Raj’.
For businesses that have over 20 employees, the amendment has streamlined the registration process. Such businesses will get deemed approval for registration within 24 hours of the registration application
Furthermore, to prevent the business from harassment in compliance matters, a three-month grace period will be provided between the first and second offence, and the subsequent offence. Additionally, 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.
Regulations on working hours
As per the new regulations the daily-spread work period in the state has been extended from 10 hours to 12 hours, including the rest intervals. Furthermore, for the overtime for work exceeding 9 hours per day or 48 hours per week, the employees are to be paid double of the regular work rate.