Chandigarh: The Punjab Cabinet on Wednesday approved an amendment to the Punjab Shops and Commercial Establishments Act, 1958, aimed at reducing compliance burdens on small businesses and enhancing the ease of doing business in the state.
The decision was taken at a meeting of the council of ministers, chaired by Punjab Chief Minister Bhagwant Mann here. It was the third cabinet meeting held in a row.
The ministers first held a meeting on Monday in which it approved the Land Pooling Policy and then on Tuesday it waived Rs 68 crore debt of Scheduled Caste families.
Addressing the media after the Cabinet meeting, Mann said the Cabinet approved an amendment in the Punjab Shop and Commercial Establishments Act, 1958 and it is aimed at completely freeing shopkeepers from the “Inspector Raj.”
Under this amendment, all establishments employing up to 20 workers will be exempted from all provisions of the Act, he said, adding that it will cover 95 per cent of shops and commercial establishments in the state.
The registration work under the law will now be applicable for shops employing over 20 persons, he said.
An official spokesperson of the chief minister’s office said this move is expected to directly benefit lakhs of shopkeepers across Punjab.
However, such 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, said the spokesperson.
To enhance employee earnings, the permissible overtime in a quarter has been increased from 50 hours to 144 hours.