In a key initiative to boost ease of doing business and lessen compliance burdens for small enterprises, Punjab Labour Minister Tarunpreet Singh Sond introduced a series of forward-looking amendments to The Punjab Shops and Commercial Establishments Act, 1958 and The Punjab Labour Welfare Fund Act, 1965 in the Punjab Vidhan Sabha today.
The proposed amendments, introduced as The Punjab Shops and Commercial Establishments Bill, 2025 and The Punjab Labour Welfare Fund Bill, 2025, aim to strike a balance between supporting businesses and safeguarding employee interests.
Key Highlights of the Amendments:
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Relief for Small Businesses: Establishments employing up to 20 workers will be exempt from all provisions of the Act, provided they submit the required information to the labour inspector within six months of the Act’s enforcement or the start of operations.
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Increased Overtime Limit: To enhance employee earnings, the permissible overtime per quarter will increase from 50 hours to 144 hours. The daily work spread has been extended from 10 to 12 hours (including rest intervals), with overtime to be compensated at double the rate for hours exceeding 9 per day or 48 per week.
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Simplified Registration: Establishments with 20 or more employees will benefit from a faster registration process, with automatic approval deemed granted within 24 hours of application.
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Realistic Penalty Structure: Penalties have been revised to align with current economic conditions—minimum fines raised from ₹25 to ₹1,000 and maximum from ₹100 to ₹30,000.
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Time Buffer for Compliance: To avoid harassment, a three-month gap will be provided between first and subsequent offences, allowing time for establishments to address compliance issues.
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Focused Welfare Coverage: Only employees whose wages fall under the Payment of Wages Act, 1936 will now be eligible for welfare benefits under the Labour Welfare Act, thereby excluding higher-earning categories that may not require such support.
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Faster Claims Settlement: The process for handling unpaid wage claims will be simplified to reduce both cost and delay. Unclaimed funds for over one year may be utilized by the Labour Welfare Board to support welfare activities.
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Increased Contributions: Monthly employee contributions to the Labour Welfare Fund will rise from ₹5 to ₹10, and employer contributions from ₹20 to ₹40. The fund will now be deposited quarterly instead of twice a year to ease the burden on businesses and enhance the Board’s financial capacity.
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New Penalty Provision: A specific penalty clause will be introduced to ensure stricter compliance, as the current Act lacks any such enforcement mechanism.
Labour Minister Tarunpreet Singh Sond emphasized that these reforms are designed to streamline business operations while upholding the dignity and rights of workers. “The Mann Government is committed to building a supportive environment for businesses without compromising on employee welfare. These amendments reflect that commitment,” he stated.