Bill tabled to modernise shop, establishment laws

Industry and Parliamentary Affairs Minister Harshwardhan Chauhan on Tuesday introduced the Himachal Pradesh Shops and Commercial Establishments (Amendment) Bill, 2025, in the Vidhan Sabha, outlining major updates to the decades-old regulatory framework governing shops and commercial establishments in the state.

The legislation seeks to modernise the existing Himachal Pradesh Shops and Commercial Establishments Act, 1969, in line with changing socio-economic conditions and the state’s evolving business landscape.

A central feature of the Bill is the proposed expansion of permissible overtime hours. Under the current Act, employees may work a maximum of 50 overtime hours per quarter. The amendment raises this limit significantly to 144 hours per quarter, with the assurance that all overtime will be compensated at twice the normal hourly wage. The government argues that this change will offer workers greater earning potential while maintaining fair compensation standards.

Another significant revision concerns the registration of establishments. At present, every commercial establishment is required to register under Section 13 of the Act. The proposed amendment narrows this requirement to establishments employing 10 or more workers. The shift aims to reduce compliance burdens for small businesses and promote ease of doing business.

The Statement of Objects and Reasons notes that more than 50 years after the Act’s enactment, several provisions have become outdated. The government maintains that these amendments will enhance the Act’s relevance, strengthen administrative efficiency and balance employee welfare with business facilitation.