Background
The Punjab Shops and Commercial Establishments Act, 1958, together with the Punjab Shops and Commercial Establishments Rules, 1958, was enacted to regulate working conditions, hours of work, payment of wages, employment of women and children, leave, holidays, health, and safety in shops and commercial establishments within the State of Punjab.
The legislation was introduced to bring uniformity and legal safeguards for employees working in the non-factory sector (such as retail, trade, service, and allied establishments), who otherwise lacked protections similar to those available to factory workers under the Factories Act, 1948. The Act also provides for registration of establishments, maintenance of prescribed registers, maternity benefits, and basic welfare facilities such as first aid, safety, and hygiene.
Applicability
The Act applies to shops, commercial establishments, residential hotels, restaurants, eating houses, theatres, places of public amusement or entertainment, and other notified establishments in the State of Punjab.
Compliance requirements under the Act in accordance with the Rules
Shops and Establishment Registration Certificate (Section 13, Rule 13)
Every employer must register the establishment under the Act within the prescribed time from commencement of business. The Registration Certificate shall be renewed annually by 31st March, with a grace period of 30 days allowed.
The employer of the establishment is required to apply for Registration of the Establishment under this act within 30 days from the date of commencement of work in the said establishment.
Act not applicable to following:
(a) offices of or under the Central or State Governments, (except commercial undertakings), the Reserve Bank of India, any railway administration or any local authority;
(b) any railway service, air service, water transport service, tramway, postal, telegraph or telephone service, any system of public conservancy or sanitation or any industry business or undertaking which supplies power, light or water to the public;
(c) railway dining cars;
(d) offices of lawyers;
(e) any person employed about the business of any establishment mentioned in paragraphs (a) to
(d) aforesaid;
(f) any person whose hours of employment are regulated by or under the Factories Act, 1947, except the provisions of sub-sections (3), (4), and (5) of section 7 of this Act in so far as they relate to employment in a factory;
(g) any person whose work is inherently intermittent;
(h) establishments of stamp vendors and petition writers.
The registration certificate shall be renewable by the 31st. March, every year. Thirty
days grace time shall, however, be allowed for the renewal of the certificate.
Prohibition on Employment of Children (Section 29)
No child below 14 years shall be employed in any establishment. Young persons shall not work more than 30 hours in a week or 5 hours in a day, and not more than 3 continuous hours without a 30-minute rest. Daily spread-over shall not exceed 7 hours.
Conditions of Employment of Women (Section 30)
Women shall not be required to work at night in any establishment, except those engaged in treatment of sick, infirm, destitute, or mentally unfit persons. No woman shall be employed during the 6 weeks immediately following her confinement or miscarriage.
Hours of Employment (Section 7)
No person shall be employed more than 48 hours per week or 9 hours per day. Overtime shall not exceed 50 hours in a quarter and is payable at twice the normal rate. No employee, except a watchman/guard, shall work more than 5 continuous hours without a rest interval of 30 minutes. Daily spread-over shall not exceed 10 hours.
Close Day of Establishments (Section 10(1))
Every establishment shall remain closed on Sunday, except for specified exempt categories such as cinemas, ice factories, repair shops, and certain retailers. If a close day coincides with a festival, the employer may open, provided employees working that day are paid double wages.
Any changes in the certificate of registration shall be submitted in Form G to the Inspector within 7 days from the date the change took place.
The employer shall, within ten days of closing the establishment, notify in writing to the Inspector within whose area the establishment is situated.
The employer of an establishment shall in Form A intimate to the Inspector within whose local limits the establishment is situated, the working hours, the day in a week employee shall not be allowed/ required to work in any other establishment and the period of interval of the employed person within fifteen days of the date of registration of the establishment.
Weekly Off Day for Employees (Section 11)
No employees shall be allowed or required to work-
(a) on a close day, in any establishment which is required to observe a close day; and
(b) on one day in a week, in any other establishment; and
(c) before the opening hour of the establishment and after closing hour of the establishment.
Provided that a watchman may be allowed or required to work on an off day under
this section if he is allowed another off day in the week.
Holidays for Employees (Section 12)
Every employee shall be allowed holidays with wages on Independence Day, Republic Day, and Gandhi Jayanti, along with three other holidays as declared by Government. Employees working on such holidays must be paid double wages.
Wages for Weekly Off Days (Section 15(1))
Employees employed for 15 days or more shall be paid wages for weekly off days at not less than average daily wages. Leave wages must be paid at average daily earnings, excluding overtime and bonus but including allowances.
Earned Leave (Section 14(a))
Every employee completing 20 days of service in a year earns 1 day of leave; for young persons, leave accrues at 1 day per 15 days. Unused leave may be carried forward up to 40 days (young persons) or 30 days (others).
Leave Wages on Dismissal/Discharge (Section 14(b) – Punjab Shops and Commercial Establishments Act, 1958)
On dismissal or discharge, employees are entitled to wages in lieu of unavailed leave as per Section 14(a).
Casual and Sick Leave (Section 14(4))
Every employee is entitled to 7 days casual leave and 7 days sick leave with wages annually.
Deductions from Wages (Section 17)
The wages of an employee shall be paid to him without deductions of any kind except those authorized by or under the Payment of Wages Act, 1936, in so far as such deductions are applicable to the employee and in such manner, to such extent and to subject to such conditions as are specified in that Act.
Form B: Notice specifying close days, working hours, period of interval in establishment in Punjab (Section 20(1), Rule 4)
Every employer must display in Form B the close day, working hours, rest intervals, and other prescribed particulars.
Records of Working Hours and Rest Intervals (Section 20(2), Rules 2A, 3, 4)
Employers must maintain prescribed records of working hours, rest intervals, leave, and overtime. Attendance must be marked within one hour of duty start. Photographs of employees with 3 months service must be kept. Registers and notices as prescribed must be maintained.
Register of Employees (Form C) (Section 20(4), Rule 5(1)
Every employer shall maintain a register of employees in Form C.
Register of Wages (Form D) (Section 20(4), Rule 5(2))
Every employer shall maintain a register of wages in Form D.
Register of Deductions (Form E) (Section 20(4), Rule 5(3))
Every employer shall maintain a register of deductions in Form E.
Notice of Removal of Employee (Section 22)
No employee shall be removed without one month’s prior notice or pay in lieu, except for misconduct or where service is less than three months.
Maintenance of Records and Registers (Rule 6)
All prescribed registers and records must be maintained in English and Punjabi, duly bound, serially page-marked, and signed by the employer and Inspector. Such records shall be preserved for two years.
Maternity Benefit (Section 31, Rule 12)
Maternity benefit is payable to women at average daily wages earned during the three months preceding the 6 weeks before delivery. Payment must be made within one week after delivery.
Fire Safety Precautions (Rule 18)
Every establishment shall provide adequate firefighting arrangements and escape routes. Exit doors must open from inside. Adequate fire extinguishers and buckets must be provided.
First Aid Box (Rule 19(1))
Every establishment shall maintain a first aid box with prescribed contents, including dressings, bandages, iodine, burn ointment, scissors, sticking plaster, and a copy of first aid leaflet issued by the Chief Inspector.
In every establishment a first-aid box with the following contents shall be maintained –
(i) six medium sterilized dressings
(ii) six 2-1/2” bandages;
(iii) one ounce bottle containing 2 per cent alcoholic iodine;
(iv) one ounce bottle containing selvolatile having the dose and mode of administration indicated on the label;
(v) one pair of scissors;
(vi) one tube of burnol;
(vii) one ounce olive oil to be used as eye drops;
(viii) one role of sticking plaster;
(ix) one copy of the first-aid leaflet issued by the Chief Inspector.
Medical Examination of Employees (Rule 19(2), (3) – Punjab Shops and Commercial Establishments Act, 1958)
In establishments serving food, drink, or beverages, employees (including employer) must undergo annual medical examination by a certifying surgeon or civil dispensary doctor, with a certificate in Form I confirming they are free of communicable diseases. Employers must also ensure proper ventilation and exhaust of smoke.
Penalty & Punishments
General penalty u/s 26 – Fine not exceeding one hundred rupees for the first offence, and three hundred rupees for every subsequent offense. Provided that the fine in respect of every subsequent offence within the same year shall not be less than one hundred rupees in any case.
For contravention, employer will be liable on conviction to a fine not exceeding five rupees for everyday on which the contravention occurs or continues. For any omission or wishful wrong entry, the employer on conviction shall be liable to imprisonment for a term not exceeding three months or to a fine which shall not be less than twenty five rupees and may extend to two hundred rupees or both.
Conclusion
The Punjab Shops and Commercial Establishments Act, 1958, along with the Rules of 1958, serves as the primary labour welfare legislation for the unorganised and service sectors in Punjab. It ensures regulation of working hours, rest intervals, weekly holidays, leave entitlements, prohibition of child labour, maternity benefits, and welfare provisions such as safety and first aid.
For employers, compliance under this Act is essential to ensure legal validity of operations, avoidance of disputes, and protection from penalties. For employees, it guarantees minimum standards of employment, health, and welfare rights. Overall, the Act balances the interests of employers and employees, providing a structured framework for labour management in the state’s shops and commercial establishments.
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