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The Punjab Shops and Commercial Establishments Act, 1958

The Punjab Shops and Commercial Establishments Act, 1958, together with the Punjab Shops and Commercial Establishments Rules, 1958, governs the employment of people in shops and commercial establishments in the areas of Punjab to which the State Government has extended it. It sets out how an establishment is registered and what records and notices an employer must keep, so that the rights of the people working there are protected.

Key Definitions

  • Commercial establishment: premises where a business, trade or profession is carried on for profit. The definition expressly covers journalistic and printing work, banking, insurance, stock and share broking, hotels, restaurants, eating houses, theatres, cinemas and other places of public entertainment.
  • Shop: premises where goods are sold or services are rendered to customers, including the offices, storerooms, godowns and warehouses used in connection with that business. A shop attached to a factory is excluded where its workers already get the benefits of the Factories Act.
  • Establishment: a shop or a commercial establishment.

Registration of Establishments

  • An establishment that already exists when the Act is applied to its area must be registered within 30 days of that date. A new establishment must be registered within 30 days of starting business.
  • The employer applies by sending a statement (Form F) to the prescribed authority giving the name of the employer and the manager, the postal address, the name of the establishment if it has one, the number of people employed and any other particulars the Rules require.
  • Once satisfied that the statement is correct, the authority enters the establishment in the register of establishments and issues a registration certificate (Form H). The certificate must be shown to an Inspector whenever one asks for it.
  • Any change in the particulars must be reported (Form G) within 7 days; the authority then corrects the register and, where needed, the certificate.
  • When an establishment closes, the employer must inform the authority within 10 days of closing. The establishment is then removed from the register and its certificate cancelled.
  • Registration is done online through the Punjab Labour Department.

Establishments and Persons Not Covered

The Act does not apply to:

  • Offices of the Central and State Governments (other than their commercial undertakings), the Reserve Bank of India, railway administrations and local authorities.
  • Railway, air, water transport and tramway services; postal, telegraph and telephone services; public sanitation; and undertakings supplying power, light or water to the public.
  • Dining cars on railways.
  • Offices of legal practitioners.
  • Establishments of stamp vendors and petition writers.
  • People employed in any of the establishments above.
  • People covered by the Factories Act, apart from the provisions of sub-sections (3), (4) and (5) of section 7, which still apply to them.
  • People whose work is only intermittent.

Opening Days

By a notification dated 16 June 2020, the Government of Punjab allowed shops and commercial establishments to stay open on all 365 days of the year. The notification is linked under References below.

Compliances

References

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