The 2025 revisions to the Shops & Commercial Establishments Act introduce several significant changes. Notably, the full application of the Act is now limited to establishments with 20 or more employees, easing the compliance burden on smaller businesses. Registration requirements have been simplified, especially for those with fewer than 20 workers, who only need to notify the labor department. A new 'deemed registration' process allows businesses to be considered registered if their application isn't processed within 24 hours. Additionally, working hours have been extended, overtime limits increased, and penalties for violations have become stricter, with daily fines for ongoing issues. These amendments aim to create a more supportive environment for businesses while ensuring worker protections.

The 'deemed registration' process introduced in the 2025 amendments is designed to expedite the registration of businesses with 20 or more employees. If an establishment submits a registration application to the labor department and it isn't processed within 24 hours, the application is automatically considered granted. This is a significant improvement over the previous requirement, which could lead to delays in obtaining necessary approvals. This process not only alleviates the pressure on businesses to wait indefinitely for their registration but also encourages compliance with the law, allowing businesses to operate without unnecessary delays.

For small business owners with fewer than 20 employees, compliance with the new regulations is relatively straightforward. You should submit basic information to the labor department within six months of the act's implementation date. Since you're largely exempt from detailed regulations, focus on this initial notification to ensure you're compliant. As your workforce grows, you'll need to familiarize yourself with the full requirements of the Act, including registration and record-keeping. Staying updated on any changes in the law will help you avoid potential penalties and ensure smooth operations.

The 2025 amendments have made significant changes to the working hour regulations. The daily limit for working hours has been extended from 9 hours to 10 hours. Additionally, the maximum spread of working hours in a day has increased from 10 to 12 hours, which includes breaks. This change aims to provide employers with greater flexibility in managing work schedules while still ensuring that employees are protected. It's essential for employers to communicate these new regulations clearly to their employees and adjust schedules accordingly to remain compliant.

Under the revised law, the cap on overtime has increased significantly. Previously, the limit was set at 50 hours per quarter, but the 2025 amendments raise this limit to 144 hours per corresponding period. This change allows businesses more flexibility in scheduling overtime work. However, it's crucial to note that specific rules regarding double pay for overtime beyond established thresholds remain in place. Employers should ensure they're aware of these regulations and communicate them to employees to avoid any compliance issues and to foster a transparent work environment.

The 2025 amendments to the Punjab Shops & Commercial Establishments Act have significantly increased penalties for violations, with minimum fines starting at ₹1,000 and maximum fines reaching upwards of ₹30,000. Daily fines for ongoing violations have also been introduced, creating a more stringent enforcement environment. This means businesses must be more vigilant in ensuring compliance with the Act to avoid hefty penalties. Regular compliance reviews and staying informed about potential changes in legislation are crucial steps for businesses to mitigate risks associated with these enhanced penalties.

The revised Act offers a structured approach to handling repeat offences, which includes specified grace periods between infractions. This is a significant change from the previous version, where such guidelines were less clearly defined. Businesses should take advantage of this new framework by implementing compliance measures that reduce the likelihood of repeat violations. It's also advisable to keep detailed records of any infractions and corrective actions taken. This proactive approach can help demonstrate a commitment to compliance, potentially lessening the penalties imposed for any future offences.

The introduction of a compounding mechanism for offences in the 2025 amendments allows businesses to settle violations through a compounding fee, which is capped at the maximum fine. This means that instead of facing lengthy legal proceedings for minor infractions, businesses can opt to pay a fee and resolve the issue more quickly. This approach is designed to encourage compliance by making it easier for businesses to rectify violations without the burden of enduring a protracted legal battle. However, it's essential to understand the specific circumstances under which compounding is applicable to ensure that you are following the law correctly.