Punjab Cabinet approves amendment to shops Act

The state Cabinet on Wednesday approved an amendment to the Punjab Shops and Commercial Establishments Act-1958, exempting small businesses employing up to 20 people from its provisions.

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The government said it would reduce compliance burden on 95 per cent of small businesses, improving the ease of doing business.

However, the move drew the ire of many labour unions, who claimed that the decision favoured only employers while compromising on interests of workers.

The amendment to the Act was approved at a meeting of the Punjab Council of Ministers chaired by Chief Minister Bhagwant Mann.

The amendment will now be tabled in the state Assembly for approval.

Increase in permissible working hours

Punjab Chief Minister Bhagwant Mann said the amendment would free small businesses from the “inspector raj”.

“They (small businesses) can now hire people to work for up to 12 hours a day, up from the maximum permissible working hour shift of 10 hours a day. But payment will have to be made for overtime after standard nine-hour shift, including breaks,” said Mann. The CM said aggrieved parties could go to the Assistant Labour Commissioner for reconciliation once the move implemented.

“This will help save labourers their time that gets wasted in courts,” he added.

The Cabinet also approved an increase in permissible overtime in a quarter from 50 hours to 144 hours.

Labour Minister Tarunpreet Singh Sond told The Tribune that it would help increase workers’ earnings.

“Establishments will still be required to submit relevant information to the Labour Department within six months of the Act coming into force or the commencement of their business,” he said.

Also, penalties under Sections 21 and 26 of the Act have been rationalised, raising the minimum fine from Rs 25 to Rs 1,000 and the maximum from Rs 100 to Rs 30,000.

“To prevent harassment and allow businesses time to achieve compliance, a three-month grace period will be provided between the first and second offences, as well as subsequent ones. All securities and rights provided by various labour laws will be adhered to for safeguarding the interests of labourers,” he assured.

Will promote hire-and-fire policy: Labour bodies

However, many labour unions flayed the move.

Senior communist leader Hardev Arshi said the amendment was an attempt to “take away workers’ rights and empower the exploitative employers”.

“Since there will be no interference of inspectors on these businesses for some months, as claimed today, it will only allow the employers to adopt a hire-and-fire policy,” he said.

Tarsem Peter of the Pendu Mazdoor Union said the working class would suffer if the amendments were implemented.

“It seems the government wants to suppress the common working class. We will oppose this and take the campaign across the state,” he said, adding that not only most small shops employed minors, they also forced workers to work for 10-12 hours without any payment for overtime.

“When no action is taken against such employers even when a system of inspections is in place, one shudders to imagine how workers will be exploited when the inspector raj ends,” he added.