Haryana Government has released Haryana Shops and Commercial Establishments (Amendment) Ordinance, 2025 on November 12, 2025, focusing on achieving Ease of Doing Business while strengthening worker welfare and documentation.
This legislation significantly modernizes the Haryana Shops and Commercial Establishments Act, 1958 by introducing simplification, digitization, and rationalized penalties.
- Applicability and Registration Change
The amendment aim to rationalize regulations and streamline administrative processes, especially for smaller establishments.- Revised Applicability Threshold: The Act will now only apply to establishments employing 20 or more workers. Previously, the Act applied to establishments with a lower or no such threshold. This change significantly reduces the regulatory compliance burden on fewer than 20 people.
- Simplified Registration:
- Registration is now in an automatic mode based on self-certification through an online portal.
- A related administrative reform has reduced the service timeline for shop registration under the Right to Service Act to just one day. This is intended to ensure faster, transparent, and accountable service delivery.
- Worker Welfare and Employment Terms
The Ordinance strengthens legal protection and clarity regarding the terms of employment for workers.- Mandatory Appointment Letters: It is now mandatory for all employers to issue a formal appointment letter to every employee. This ensures transparency on employment terms and provides legal protection for both parties.
- Mandatory Identity Cards: Employers are also mandated to issue identity cards to their employees.
- Working Hours and Overtime Provisions
The amendments introduce greater flexibility in working patterns while ensuring that worker interests are protected through regulated limits and compensation.- Flexible Working Week: Working hours are made flexible to accommodate either a five-day work week or a six-day work week.
- Weekly Limit Unchanged: The maximum weekly working limit remains unchanged at 48 hours.
- Changed Work Hours: This amendment allows for a maximum of ten hours from nine hours of work per day.
- Establish Hours: The working hour shall be in an establishment for more than Six hours before he had an interval for rest of at least half an hour.
- Increased Overtime Limit: The continuous and quarterly overtime limit has been significantly raised from 50 hours to 156 hours.
- Penalties
The Ordinance focuses on decriminalization and rationalizing penalties to encourage compliance.- Decriminalization of Minor Offences: The amendment replaces imprisonment clauses for minor procedural or economic offences with monetary penalties.
- Rationalized Penalties: Penalties have been rationalized to promote compliance and accountability in a fair and facilitative manner, ensuring enforcement without criminalizing small business owners for minor infractions. The general penalties for a first violation increase a range of ₹3,000 to ₹10,000. Subsequent violations also see a steep rise (up to ₹25,000) and introduce a daily penalty of ₹500 for continuous non-compliance.
Comparison: Act (1958) vs. Ordinance (2025)
| Feature | Original Act (1958 – Provisions) | Amendment Ordinance (2025 – Changes) |
|---|---|---|
| Applicability Threshold | Applied to most shops and establishments regardless of size (often lower threshold). | Applies only to establishments employing 20 or more workers. |
| Registration Process | Manual/Physical registration with longer processing times and inspection focus. | Automatic mode based on self-certification via an online portal. Service timeline reduced to one day under Right to Service Act. |
| Appointment Letter | Often not explicitly or strictly mandated for all categories of workers. | Mandatory for all employers to issue a formal appointment letter to every employee. |
| Identity Card | Not consistently or strictly mandated. | Mandatory for employers to issue identity cards to all employees. |
| Working Week Flexibility | Typically, a 6-day work week was standard. | Made flexible to accommodate a five-day work week or a six-day work week. |
| Quarterly Overtime Limit | 50 hours per quarter. | Significantly raised to 156 hours per quarter. |
| Overtime Compensation | Typically paid at double the normal wage rate. | Confirmed at double the normal rate of wages, and all overtime must be voluntary and properly recorded. |
| Penalties | Fine not exceeding ₹100 Fine not less than ₹100 but not exceeding ₹300 Every subsequent offence within the same year shall not be less than 100 rupees |
Not less than ₹3,000 but may extend to ₹10,000 Not less than ₹5,000 but may extend to ₹25,000 ₹500 per day (imposed by the competent authority) |
| Maximum Daily Working Hours | Nine (9) hours of work per day | Maximum of ten (10) hours of work per day is now allowed. |
| Rest Interval Requirements | Continuous work period shall not exceed five (5) hours | Employee shall have an interval for rest of at least half an hour (30 minutes) after working for six hours. |
What Businesses should Do?
- Review workforce size and follow the correct compliance process.
- Update business details online within the required timelines (7 days for change, 30 days for closure)
- Recheck work-hour practices and overtime records to align with the revised limits.
- Ensure all registers documents and employee data are accurate to avoid penalties.
Conclusion
The amendment aims to simplify administrative compliance and digitize processes for businesses, while simultaneously mandating clearer documentation and providing more flexible working options under strictly regulated weekly limits for workers.
Disclaimer
The information provided in this article is intended for general informational purposes only and should not be construed as legal advice. The content of this article is not intended to create and receipt of it does not constitute any relationship. Readers should not act upon this information without seeking professional legal counsel.
