Punjab extends permission granted to shops and establishments allowing them to remain open all year round
On 16 July 2019, the Government of Punjab (Government) issued a notification (Notification) allowing all establishments to remain open for 24 hours on all 365 days of the year, up to 31 May 2020. The Notification exempts all establishments in Punjab from the provisions of Section 9 and Section 10(1) of the Punjab Shops and Commercial Establishments Act, 1958. The above-mentioned sections prescribe opening and closing hours of an establishment and declare Sunday as a closed day.
The exemptions under the Notification are subject to certain conditions, and failure to fulfil such conditions may lead to withdrawal of the exemptions. The conditions to avail the exemptions are as follows:
Removal of restrictions on hours and days of operation had been a long-standing demand of traders and establishments, particularly those in the IT and ITeS sector. In response, the states of Maharashtra, Gujarat and Tamil Nadu have also previously granted exemptions similar to the present Notification. In fact, the present Notification bears close resemblance to the exemption notification by the Government of Tamil Nadu dated 28 May 2019. However, the exemption in Tamil Nadu is only applicable to establishments employing 10 or more persons, while no such threshold has been prescribed in the present Notification.
Therefore, this exemption granted by the Government of Punjab, is a welcome move as it is expected to bring in flexibility in the conduct of business of establishments and increase employment opportunities. However, the Notification falls short of prescribing the specific safety and security measures to be taken by the employer, leaving it to the discretion of the employer.
- Anshul Prakash (Partner), Kruthi N Murthy (Associate) and Kosheel Gupta (Associate)
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