In a significant decision aimed at easing compliance for small business owners, the Bhagwant Mann Government has announced amendments to the Punjab Shops and Commercial Establishments Act 1958. Chief Minister Bhagwant Singh Mann shared the details with the media following a cabinet meeting, stating that the move will end the longstanding "Inspector Raj" and bring major relief to small traders across the state.
Jalandhar Central Halka Incharge Nitin Kohli lauded the Bhagwant Mann Government for abolishing Inspector Raj in Punjab. Nitin Kohli said, "The Punjab Government has made a major decision that has brought huge relief to small businesses. There is a wave of happiness among the small business community. The Mann Government has officially ended Inspector Raj. I’m thankful to our supremo, Shri Arvind Kejriwal ji, and Punjab CM Shri Bhagwant Singh Mann ji for this bold move."
"This has been a long-standing demand of our small traders. Previously, inspectors would harass business owners daily, asking for different documents. Now, inspectors can visit only once every six months — either at the trader’s office or the trader may visit the inspector's office if required. The overtime limit has also been raised from 50 to 144 hours, and bigger businesses too have also been given additional facilities. For companies with more than 20 employees, the registration application will be approved within 24 hours — and if not, it will be considered approved automatically.
Earlier, fines ranged from ₹25 to ₹100. Now, the first-time penalty will range from ₹1000 to ₹3000, and a three-month grace period will be provided for making corrections. Legal matters will also be resolved directly — there's no need to go to court anymore."
What are the new changes?
As per the new reforms, shopkeepers employing up to 20 helpers or employees will no longer be required to maintain detailed compliance records or submit them regularly. They will now only need to submit information once every six months. Only establishments with more than 20 employees will be required to maintain comprehensive records and register with the authorities.
The Chief Minister emphasized that labour laws will still be applicable, but with simplified procedures. The penalties for rule violations have been significantly increased. Earlier Rs 25–Rs 100 range and now it is Rs 1,000–Rs 30,000 for the first offence. However, business owners will now have a three-month period to rectify any violations, avoiding immediate penalties or court involvement.
CM Mann also announced that the overtime limit has been increased from 50 hours per quarter to 144 hours. Workers will now earn double wages for any work beyond 9 hours a day or 48 hours a week, even for just one additional hour. The total working hours, including breaks, are capped at 12 hours per day.
Furthermore, penalties will be resolved at the level of the Assistant Labour Commissioner (ALC), with an online payment portal being launched soon for immediate settlement.
Under the new system, businesses applying for registration will receive approval within 24 hours. If no response is received within that timeframe, the registration will be considered automatically approved. Inspectors will be allowed to visit premises only once every three months for checks.