On August 14, 2025, the Labour and Employment Department of Union Territory (“UT”) of Chandigarh exempted all establishments based in UT of Chandigarh from Sections 9 (opening and closing hours), 10(1) (closing of establishment on Sunday) and 30 (prohibition of employment of women in night shifts) of the Punjab Shops and Commercial Establishment Act, 1958 (“Punjab Shops Act”), permitting establishments to operate 365 days a year and 24 hours a day. This exemption is subject to strict conditions, including providing a weekly holiday to every employee without any wage deductions, and displaying the timetable of such holidays for a month in advance on the notice board. Employees must be allowed at least half an hour of rest after 5 hours of continuous work, with maximum working hours capped at 9 hours per day and 48 hours per week. Employers must also ensure that the working hours do not exceed 10 hours a day, including rest intervals, and provide employees with national and festival holidays with wages. Overtime must not exceed 50 hours per quarter and must be compensated at twice the ordinary wage rate, credited directly to employees’ bank accounts. Employers are required to install CCTV cameras with a minimum 15-day recording backup and provide emergency alarm systems on premises. If any establishment operates after 10:00 p.m., adequate safety and security arrangements must be ensured. Special provisions have been specified for engaging female employees, including separate lockers, restrooms, written consent for work beyond 8:00 p.m., engaging at least 5 women during night shifts, and provision of adequate transportation facilities during evening or night shifts. Employers must also provide GPS-enabled vehicles with security guards on duty, maintain transport and movement registers in the vehicles, attendance registers of security staff, and display emergency contact numbers inside vehicles which transport female employees. The driver must further confirm that the female employee has entered her residence before leaving the drop point. Additionally, employers are required to organise an annual self-defence workshop for women employees and ensure no woman employee is engaged for 6 weeks following childbirth or miscarriage. Compliance with the PoSH Act has been made mandatory. Further, establishments must comply with the Child and Adolescent Labour (Prohibition and Regulation) Act, 1986. Any violation of these conditions may lead to cancellation of the exemption by the competent authority. The directions given under the Disaster Management Act, 2005, the Epidemic Diseases Act, 1897 and the Bharatiya Nagarik Suraksha Sanhita, 2023, shall override the Punjab Shops Act.
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