Punjab government eases business regulations to support small enterprises

**Punjab Government Eases Business Regulations for Small Enterprises** In a significant policy shift aimed at bolstering small businesses, the Punjab Cabinet, under the leadership of Chief Minister Bhagwant Singh Mann, has approved pivotal amendments to the Punjab Shops and Commercial Establishments Act, 1958. This decision, anticipated to simplify compliance for 95% of small businesses, underscores the government's commitment to enhancing the ease of doing business across the state. The amendments were sanctioned during a meeting of the Council of Ministers at the Chief Minister’s official residence. According to a spokesperson for the Chief Minister’s Office, one of the critical changes is the exemption of all establishments with up to 20 employees from the majority of the Act's provisions. Nonetheless, these establishments must provide relevant business information to the Labour Department within six months of the amendment taking effect or from the date they commence operations. Further facilitating a business-friendly environment, the permissible overtime hours have been increased substantially—from 50 to 144 hours per quarter. The work spread-over period is also extended from 10 to 12 hours per day, including rest intervals. To ensure fair compensation, employees will be entitled to overtime pay at twice the regular rate for any work exceeding 9 hours per day or 48 hours per week. The registration process has undergone a transformation, promising quick turnarounds. Establishments employing 20 or more workers will receive automatic approval for registration within 24 hours of application submission. For those employing up to 20 workers, the requirement is simplified to submitting basic information without the obligation of registration. Moreover, penalties for non-compliance have been recalibrated—the minimum fine is now Rs. 1,000, with the maximum capped at Rs. 30,000. In a move to alleviate concerns of harassment and allow businesses leeway for compliance, the government has introduced a three-month grace period between offences. Notably, a new Section 26A facilitates the compounding of offences, effectively decriminalizing the Act and sparing shopkeepers the need to attend court proceedings. However, the amendment ensures that all protections offered by labour laws for workers' rights and interests remain intact. These regulatory reforms highlight the Punjab government's proactive stance in creating a nurturing ecosystem for small businesses while safeguarding worker rights, aiming for balanced economic growth in the state.