The Chandigarh Administration has introduced a key amendment under the Punjab Shops & Commercial Establishments Act, 1958, bringing important changes to working hours, spread-over limits, and overtime provisions.
This amendment reflects a shift towards operational flexibility, while maintaining the core principle of employee protection and statutory compliance.
Key Changes Introduced
Working Hours
Employees can now work up to 10 hours per day, subject to a maximum of 48 hours per week.
Spread Over
The total working period, including rest intervals, has been increased to 12 hours per day.
Overtime Limit
The permissible overtime has been enhanced to 144 hours per quarter, providing greater flexibility during peak business periods.
What This Means for Employers
From a business standpoint, this amendment enables organisations to structure operations more efficiently, especially in sectors such as retail, IT services, logistics, and commercial establishments with extended working hours.
However, with increased flexibility comes heightened compliance responsibility.
Key Compliance Considerations
Employers are advised to take the following steps:
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Ensure weekly working hours remain within 48 hours
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Pay overtime strictly as per statutory provisions (double wages)
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Maintain accurate attendance, wage, and overtime records
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Structure shifts carefully within the 12-hour spread-over limit
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Ensure compliance with weekly off and rest interval provisions
Areas Requiring Attention
While the amendment is beneficial, non-compliance risks may arise in the following areas:
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Excess working hours without proper overtime payment
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Inadequate documentation or registers
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Misinterpretation of spread-over vs working hours
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Lack of internal policy alignment
Summary Snapshot
|
Particular |
Revised Provision |
|---|---|
|
Working Hours |
10 hours per day (48 hours/week) |
|
Spread Over |
12 hours per day |
|
Overtime Limit |
144 hours per quarter |
Practical Approach
From a compliance and audit perspective, organisations should treat this amendment not merely as a relaxation, but as an opportunity to strengthen internal systems.
A structured approach would include:
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Updating HR policies and employment contracts
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Aligning attendance and payroll systems
-
Conducting internal compliance audits
This will ensure that flexibility is utilised without exposing the organisation to regulatory risks.
Conclusion
The Chandigarh amendment is a progressive step towards modernising labour regulations. While it supports business needs, its success depends on disciplined implementation and proper compliance management.
Organizations that proactively adapt will not only benefit operationally but will also remain inspection-ready and legally secure.