Are Small Companies in Gurgaon Required to Register Under the Punjab Shop and Establishment Act?

Hello Everyone,

Our company is a US-based MNC operating out of Gurgaon. We have just a small workforce of 10 employees on our payroll. I wanted to inquire whether we are obligated to follow the rules and regulations under the Punjab Shop and Establishment Act. As we have not registered yet, do we need to undergo the registration process?

Thank you!

Regards

Dear Farid,

You would be required to register under the Shops and Establishment Act and comply with various other labor laws.

Regards

Dear,

You are working in Gurgaon (Haryana) and therefore are expected to follow the Punjab Shops and Commercial Establishment Act, 1958, as applicable to the State of Haryana along with other labor laws. However, after reviewing your statement, it appears that you are not adhering to this Act by requiring employees to work more than the specified maximum working hours per day, thereby violating Section 7 of this Act. Additionally, you are not providing Annual Leave with wages to your employees as mandated by Section 14 of this Act. Therefore, you are advised to familiarize yourself with the Punjab Shops Act, 1958, and ensure that your establishment operates in compliance with the relevant laws.

Opinions and comments are submitted as requested, based on observations from your query.

With Regards,

R.N.Khola

Can anyone help me with Shop & Establishment registration in Haryana (Hasangarh)? Is Hasangarh covered under Shop & Establishment or is it exempted?

Regards,
Shailesh K. Rao

Dear Shailesh,

It is hereby made clear that at present, the Punjab Shops & Commercial Establishment Act, 1958, as applicable to the State of Haryana, is in effect throughout the state. Therefore, all shops and commercial establishments are covered under this Act, whether the establishment is situated in a rural area or in a city area. For registration, you may contact the office of the Shops/Labour Inspector in your area.

With Regards,
R.N. Khola

Dear Mr. Khola,

My company has also registered itself in this act, but we are in the exploration business. Could you please let me know why we need to be registered in this? What about the leave policy that we should follow? The head office is based in Gurgaon, and we have sites all over India. The total number of employees in the office is 12, whereas site employees are above 100. We are looking forward to a leave policy for office-based employees. Do we need to follow the Shop and Establishment Act or the Industry Act?

Please advise.

Thanks,
Shweta

Dear Shweta,

Sorry, I could not understand the term ‘exploration business'. If you do not have any manufacturing activity/ process then your establishment is covered under the Shops & Establishment Act & you must be knowing that this Act is a State Act. Most the States have enacted this Act to regulate the working conditions of the employees working on these establishments. Registration of the establishment is mandatory under the applicable Shops Act. You are to follow Shops Act of the respective State where your offices are located. Your H. O. is also covered under the Punjab Shops & Commercial Act, 1958 as applicable to State of Haryana & as you are also employing twelve employees at your head offices you are to deposit registration for Rs. 5000/- for a span of three years. A no. of members has given different leave policies on different threads. Go through them & keeping in mind the minimum statutory leaves as applicable in your case finalize you leave policy.
Opinion/ comments Submitted as requested.

With Regards,
R.N.Khola

Dear Mr. Khola,

We are drilling contractors. We have already deposited the fee of Rs. 5000, but I am confused about how we fall under this act. We are changing our leave policy, and all the employees will question this. I need to understand everything about this act. Do you think we should follow the leave policy as per this act?

Thanks,
Shweta

Dear Shweta,

If you want to understand everything, then go through the Punjab Shops & Commercial Establishment Act, 1958 as applicable to the State of Haryana. If you are going to change your leave policy of your establishment, then before effecting such change, please go through section 9A under Chapter IIA of the Industrial Disputes Act, 1947 for effecting such change. If you are to give only the bare minimum statutory leaves, then there is no need for framing any leave policy. Adhere to the laws relating to the grant of different kinds of leaves. For removing the confusion, you should go through the applicability clause under that particular Act.

With Regards,
R.N.Khola

Is the Punjab Shops & Commercial Establishment Act, 1958, applicable to hospitals in Gurgaon? Please help.

Regards,
Mahesh Patil

Dear Mahesh,

In Haryana, private hospitals are also covered under the Punjab Shops & Commercial Establishments Act, 1958.

Regards,
R N KHOLA

Khola Sir, thank you for your inputs. Can anyone share the current minimum wage rates for different establishments in Gurgaon?

Dear Mr. Khola,

Our company manager has changed, and I need to modify the name of our manager under the Punjab Shops & Commercial Establishment Act, 1958. Please let me know the procedure and time period to do the same.