Chandigarh extends exemption for establishments with up to 20 workers under Punjab Shops Act

The Center has extended the Punjab Shops and Commercial Establishments (Amendment) Act to Chandigarh in a bid to reduce the compliance burden on small businesses and improve ease of doing business in the state, a government order issued on Friday said.

The amendment allowed businesses employing up to 20 workers, which constitute 95 per cent of shops and commercial establishments in Punjab, to be exempt from all provisions of the Act.

In the statement made by the state government, it was stated that the Punjab government had enacted changes to release shopkeepers from “Inspector Raj” in August this year.
Registration efforts within the scope of the law will now only be valid for stores where more than 20 people work.

The registration process has also been streamlined and businesses with 20 or more employees will now receive accepted confirmation of registration within 24 hours of applying.

Under the change, workplaces employing up to 20 workers are required to provide only basic information and are not required to register.