How Haryana's New Amendments To Shops And Establishments Act Could Change The Way Businesses Operate

1. Section 7(1): The daily working hours has been increased from 9 hours to 10 hours. This 11% increase in permissible working time aims to provide employers with greater operational flexibility, particularly in sectors requiring extended service hours such as retail, hospitality, and information technology.
2. Section 7(2) Proviso (a): Annual overtime limit has been increased from 50 hours to 156 hours. The increase represents more than a threefold increase, allowing employers to utilize overtime labour for approximately three hours per week throughout the year, compared to the previous limit of less than one hour per week.
3. Section 8(1): Spread-over period (continuous work interval) has been extended from 5 hours to 6 hours. Workers can now be required to work for six consecutive hours before being entitled to a rest break, rather than five hours previously.

1. Employers with twenty (20) or more workers must submit an online application for registration within one month of commencing business, providing specific details such as the names of employer and manager, postal address alongwith GPS location, name of establishment, number of persons employed and nature of the business.
2. New establishments must register within one month of commencing business operations.
3. Upon receiving an application with requisite documents and fees, the Inspector must verify the information and issue an online registration certificate within the timeframe specified under the Haryana Right to Service Act, 2014.
4. Registration is now conducted exclusively online, and certificates are issued digitally.
5. The ordinance mandates prompt updates for any subsequent changes, including name, manager, or workforce alterations and provides a streamlined process for cancellation upon closure.
6. Registration certificates remain valid until amended, cancelled, or revoked. The ordinance imposes a duty on employers to notify changes in registered particulars within seven days of such changes occurring. Amendments to registration details require a fresh application, though no additional fee is charged for amended certificates.
7. Employer with fewer than twenty (20) workers within one month of commencing business, need only submit a basic online intimation to the Inspector, who shall provide a Basic Information Performa ID Number for tracking by the employer.

1. Section 20A- Every employer of an establishment is now required to issue an appointment letter containing a photograph to all of his employee having affixed the photograph of employee and obtain acknowledgment thereto.
2. Section 20B- Every employer of an establishment is now required to issue an identity card with prescribed particulars to every worker.

1. Section 26: The penalty for violations, such as failure to register or provide required documentation, starts at Rs. 3,000 and may go up to Rs. 10,000 for first violations, rising substantially for repeat offences. In cases of ongoing contravention, authorities are empowered to levy a daily penalty of Rs. 500 per day.
2. Section 20(6): Making false entries or omitting required records attracts similarly strict penalties, starting at Rs. 3,000 and may go up to Rs. 10,000 for first violations, rising substantially for repeat offences.
3. Section 19(3): Haryana Shops Act has been amended to replace the reference to Section 21 of the Indian Penal Code,1860 with Clause 28 of Section 2 of the Bharatiya Nyaya Sanhita, 2023. This technical amendment ensures consistency with India's new criminal law framework.

1. Assessment of Applicability: Employers to determine whether the establishment employs twenty (20) or more workers to identify the provisions that apply.
2. Digital Readiness: Employers to ensure systems are in place for online registration or intimation, as required under the Ordinance.
3. Working Hours Review: Employers to review and revise working hours, shift schedules, and overtime policies to align with the revised limits on extended working hours.
4. Documentation Systems: Employers to establish processes for issuing appointment letters with photographs and identity cards to all employees.
5. Record-Keeping: Employers to maintain accurate and updated employment records, and promptly notify authorities of any changes in establishment particulars to avoid penalties.

For Workers

Workers should be aware of the following key changes:

1. Extended Working Hours: The maximum permissible daily working hours have been increased to ten, potentially affecting work schedules.
2. Overtime Limits: The enhanced overtime provisions may lead to longer work hours, accompanied by corresponding overtime compensation.
3. Documentary Rights: Workers are entitled to receive appointment letters and identity cards, which serve as formal proof of employment.