14th November 2025 — The Government of Haryana has promulgated the Haryana Shops and Commercial Establishments (Amendment) Ordinance, 2025 today, marking a significant overhaul of the labour-regime applicable to shops and commercial establishments in the state. The amendment effectively modernises the Haryana Shops and Commercial Establishments Act, 1958 and is aimed at re-balancing employer flexibility, worker protection and compliance efficiency. it has come into force from 12 November,2025.
Key Changes
- A new threshold rule: With the insertion of sub-section (5) to Section 1 of the Act, the amended law specifies that all provisions of the Act (other than Section 13A) will apply only to shops and establishments employing 20 or more workers, while for those with fewer than 20 workers, only Section 13A will apply.
- Appointment letters and identity cards: Two new sections have been added — Section 20A mandates that every employer must furnish an appointment letter to each employee (with photograph and acknowledgement) and Section 20B requires that every worker be issued an identity card containing prescribed particulars.
- Increased minimum rest period: In Section 8(1) of the Act, the words “five hours” (rest interval) have now been replaced with “six hours”.
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- Revised penalties: Section 21(2) has been substituted to raise the lower and upper bounds of penalty for contraventions from “less than … to …” to “not less than Rs. 3,000 but may extend to Rs. 10,000.” Separately, Section 26 has been replaced to provide that for a first violation the penalty is “not less than Rs. 3,000 and may extend to Rs. 10,000”, and for a second violation “not less than Rs. 5,000 and may extend to Rs. 25,000”, with continuous violations subject to a daily penalty of Rs. 500.
The amendments is part of a broader push by the Haryana Government to promote ease of doing business, reduce compliance burden for smaller establishments, and simultaneously strengthen accountability and worker rights in larger shops and commercial enterprises. The threshold of 20 workers is meant to simplify compliance for smaller units while maintaining regulatory oversight for larger ones. The new identity and appointment‐letter provisions are intended to promote transparency of employment relationships. Revised penalties aim to deter non-compliance while replacing older, often low‐level fines with meaningfully sized amounts.
Implications
- For shops/establishments with fewer than 20 workers: Many provisions of the Act will no longer apply (except Section 13A) .This means a lighter regulatory burden, but they must remain mindful of the section(s) that are still applicable.
- For establishments with 20 or more workers: They will continue to be fully regulated under the Act, but must now ensure compliance with the new documentation requirements (appointment letters, identity cards) and the revised penalty regime.
- For all employers: The requirement for six hours rest interval (instead of five) must be reflected in scheduling. Also, the revised penalty regime means non-compliance may incur higher costs.
- For workers: The reforms strengthen the formalisation of employment, which can aid in verifying rights, entitlements, and may promote better protection. But real benefit will depend on how strictly the new rules are enforced on the ground.
