Haryana Promulgates Ordinance Amending Shops and Commercial Establishments Act

The Governor of Haryana, exercising powers under clause (1) of article 213 of the Constitution of India, promulgated The Haryana Shops and Commercial Establishments (Amendment) Ordinance, 2025 (Haryana Ordinance No. 4 of 2025) on November 11, 2025. This Ordinance, published in the Official Gazette on November 12, 2025, came into force immediately upon its publication. The legislative instrument was issued due to the Haryana Legislature not being in session, with the Governor satisfied that circumstances necessitated immediate action. The Ordinance introduces significant amendments to the Haryana Shops and Commercial Establishments Act, 1958, primarily focusing on modernizing compliance procedures, updating working conditions, and revising penalty structures.

A key change introduced by the Ordinance is the differentiation in the application of the principal Act based on the number of employees. The legislation provided: “The provisions of this Act except section 13A shall apply to the shops and establishments employing twenty or more workers and provisions of section 13A of this Act shall apply to the shops and establishments employing less than twenty workers.” This bifurcated approach aims to streamline regulatory burdens. For establishments employing twenty or more workers, a new online registration process has been mandated under the substituted Section 13, requiring employers to submit an application within one month of business commencement with prescribed details such as employer and manager names, postal address with GPS location, establishment name, number of persons employed, and nature of business. Upon verification, an online registration certificate will be issued, valid until amended, cancelled, or revoked. Employers are also required to intimate any changes in particulars or closure of the establishment online within specified timelines. Establishments employing less than twenty workers are now required to submit an online intimation to the Inspector within one month of commencing business, receiving a Basic Information Performa ID Number.

The Ordinance also revises several provisions related to working hours and employee welfare. Daily working hours have been extended from "nine hours" to "ten hours" in Section 7(1), and the permissible overtime hours in a quarter have been increased from "fifty" to "one hundred fifty-six" in Section 7(2)(a). The interval for rest has been adjusted from "five hours" to "six hours" in Section 8(1). Furthermore, new sections 20A and 20B have been inserted, mandating that every employer furnish an appointment letter with the employee's photograph and obtain acknowledgement, and provide an identity card containing prescribed particulars to every worker. Penalties for various contraventions have been significantly enhanced. For instance, contravention of registration provisions now attracts a penalty of not less than three thousand rupees but up to ten thousand rupees for the first violation, increasing to not less than five thousand rupees but up to twenty-five thousand rupees for a second violation, with a continuous subsequent violation incurring a daily penalty of five hundred rupees. Similar revised penalties apply to falsification of records and obstruction of inspecting authorities. The Ordinance also updates a statutory reference in Section 19(3), substituting "section 21 of the Indian Penal Code" with "clause (28) of section 2 of the Bharatiya Nyaya Sanhita, 2023," aligning the state law with recent central criminal law reforms.

The legislative intent behind these amendments is to modernize the regulatory framework governing shops and commercial establishments in Haryana, addressing statutory gaps and limitations in the earlier legal position. The previous Act, enacted in 1958, required updates to reflect contemporary business practices and technological advancements, particularly through the introduction of online compliance mechanisms. The policy rationale includes simplifying the ease of doing business by introducing online registration and intimation processes, while simultaneously strengthening worker protection through mandatory appointment letters and identity cards. The revised penalties aim to ensure greater compliance with the Act's provisions. By differentiating the applicability of certain provisions based on establishment size, the Ordinance seeks to tailor regulatory requirements to the capacity of businesses, reducing the compliance burden on smaller enterprises while maintaining oversight. The amendments to working hours and overtime provisions reflect an adjustment to operational realities, while the updated reference to the Bharatiya Nyaya Sanhita, 2023, ensures legal consistency across different statutes.

Keywords: Haryana Shops and Commercial Establishments, Amendment Ordinance, Online Registration, Working Hours, Employee Welfare, Penalty Revision, Bharatiya Nyaya Sanhita, 2023, Labour Law, Haryana Government Geo Tags: India, Haryana District: Not Applicable