Haryana overhauls shops Act with stronger compliance, longer hours

In a significant move aimed at reshaping the business environment in Haryana, the state has overhauled its regulatory framework by extending working hours, expanding overtime limits and tightening compliance norms. Governor Ashim Kumar Ghosh has promulgated an Ordinance amending the Haryana Shops and Commercial Establishments Act, 1958, under the state government’s ease of doing business initiative.

New regulatory framework

Extended business hours: 10 hours from 9 hours earlier

Overtime limit increased: 156 hours per quarter from 50 hours earlier

Mandatory documents: Appointment letters and identity cards for staff

Penalties: Rs 3,000 to Rs 10,000 for first violation

Ongoing contravention: Daily penalty of Rs 500

The Haryana Shops and Commercial Establishments (Amendment) Ordinance, 2025 has introduced a new business ecosystem by increasing daily business hours from nine to 10 and enhancing the overtime ceiling from 50 hours to 156 hours per quarter. Officials said the step is expected to offer greater operational flexibility to employers, particularly in key sectors such as retail, hospitality and information technology, where customer demand and competition necessitate extended service hours.

Under the revised norms, employees will now be required to work for six consecutive hours before being eligible for a rest break — an increase from the earlier five-hour provision.

Sources said the Ordinance will be tabled in the upcoming winter session of the Assembly to be converted into law.

As part of enhanced employee safeguards, employers will now be mandated to issue appointment letters and identity cards to all workers. Drawing from similar reforms in Maharashtra, Haryana has also introduced a two-tier regulatory structure based on establishment size — units employing up to 20 workers and those employing more than 20. All registrations will be carried out online.

The Ordinance establishes a stricter compliance mechanism with penalties ranging from Rs 3,000 to Rs 10,000 for first-time violations related to registration or documentation requirements. Repeated violations will attract more severe penalties, while ongoing contraventions may lead to a daily fine of Rs 500.