The PUNJAB SHOPS AND COMMERCIAL ESTABLISHMENT ACT, 1958

 
 
 
THE PUNJAB SHOPS AND COMMERCIAL ESTABLISHMENT 
ACT, 1958 
(PUNJAB ACT NO. 15 OF 1958) 
 
(Received the assent of the President of India on the 25th April, 1958 and was published in 
the Punjab Government Gazette on the first May, 1958 for general information. 
1. Short title, extent commencement and application - (1) This Act may be called the 
Punjab Shops & Commercial Establishments Act, 1958. 
(2) It extends to the whole of the State of Punjab. 
(3) It shall come into force on such date as Government, may by notification in the 
official Gazette, appoint in this behalf. 
(4) It shall apply in the first instance to the areas specified in the schedule, but 
Government may by notification direct that it shall also apply to such other area 
and on such date as may be specified in the notification. 
2. Definitions - (1) In this Act, unless the context other wise requires:- 
(i) “closed” means not open for the service of any customer or for any other purpose 
whatsoever relating to business; 
(ii) “closed day” means the day of the week on which a shop or commercial 
establishment remains closed; 
(iii) “closing hour” means the hour at which a shop or commercial establishment 
closes; 
(iv) “commercial establishment” means any premises wherein any business, trade 
or profession is carried on for profit, and including journalistic or printing 
establishments and premises in which business of banking insurance, stocks 
and shares, brokerage or produce exchange is carried on or which is used as hotel, 
restaurant, boarding or eating house, theatre, cinema or other place of public 
entertainment, 1[all privately managed educational institutions, private colleges 
including medical colleges, computer training centers and health and fitness clubs] 
or any other place which the Government may declare, by notification in the 
official Gazette, to be a commercial establishment for the purpose of this Act. 
 
 
1. Added by Hr. Govt. Noti. No. 1/32/83-1-Lab, dated 28.2.97. 
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THE PUNJAB SHOPS AND COMMERCIAL ESTABLISHMENT ACT, 1958 
 
COMMENTARY 
Commercial Establishment and Shop-Common and not Common 
features of: 
One element is common to both the expressions 'Shop' and 'Commercial 
establishment', namely, that there have to be premises wherein, in the case of a 
commercial establishment any business, trade or profession is carried on for profit and in the 
case of a shop where any trade or business is carried on or where services are rendered to 
customers. The carrying on of trade or business or profession necessarily has to have a close 
and intimate connection with the premises. The other requirement is that what should be 
carried on in those premises is trade or business or rendering of services to customers in 
the case of a shop, and in the case of a commercial establishment a trade or business 
or profession has to be carried on for profit. If the element, of rendering service is 
eliminated, the remaining to elements that is carrying on of trade or business are common 
both to a shop as well as to a commercial establishment. But a shop according to the 
definition does not include a commercial establishment. Therefore, the same premises cannot 
be at the same time a shop as well as a commercial establishment. [Ram Chander Baru Ram 
Vs. The State of Punjab AIR 1963 Punjab 148 (F.B.)]. 
Shop & Commercial Establishment - Distinction thereof: 
Any premises used under this Act must be construed as any specific or defined 
premises. It must be a place either open or built upon and in the procession and 
occupation of the person throughout the day and night, but not for few hours in a day for this 
purpose of carrying on his trade or business or rendering service to his customers. If any good 
are prepared or manufacturing in a premises, but actually they are sold outside the premises and 
no services are rendered to the customers or it is not used in any way connected with such 
trade or business, such premises cannot be hold to be a "Shop" under the Shops and 
Commercial Establishment Act. The work of repairing watches of customers for remuneration 
conducted systematically is a business or trade and not a profession and the premises in the 
occupation of the repairer wherein the work is carried or would be a shop under the Act 
[Khanmohd Vs. The State of A.P. (1973-Lab IC 239) (AP)] Likewise financial institution 
rendering service to its customers by advancing money to purchase motor vehicles in hire 
purchase bases, falls within the meaning of words 'Shop'. [1981 (2) Lab IC-108 (Madras) 
N.O.C.] 
Commercial Establishment-Integrated trade or business activity must take 
place : 
C. It will be seen from the definition of the phrase 'Commercial establishment’ in Sec. 2 (iv) 
that an integrated trade or business activity must take place at the given premises for profit. 
Activities though connected with trade or business in premises in an isolated form like the 
activity of a business traveler would not make the same a commercial establishment. 
Similarly, the residence of a businessman will not become a commercial establishment 
merely because he is thinking out schemes and making plans to either evolve new business or 
to enlarge the existing one. No one can deny that it is business activity. To put it shortly, only 
those premises can be said to be a commercial establishment where two minds meet to strike 
a business deal for profit. It is hardly material by what means they meet. Any trade or 
business requires two or more 
7 
THE PUNJAB SHOPS AND COMMERCIAL ESTABLISHMENT ACT, 1958 
 
individuals dealing with one another and if such dealing does take place in any given 
premises, or is intended to take place therein, they can be said to a commercial 
establishment but not otherwise. The purpose of the meeting of the two minds has to be for 
profit, though the profit may not be the necessary result. [Ram Chander Baru Ram Vs. The 
State of Punjab AIR 1963 Punjab 148 (F.B.)]. 
Business and profession-Distinction thereof: 
A business must be distinguished from a profession. In the former, the very object and 
motive is only to earn profit, where as in the case of a profession, although a professional 
earns some money and carries it on as a means of livelihood, it can by no stretch of reasoning 
be called a trade or business. [Khan Mohamad Vs. State of AP (1973 Lab. IC 239)]. A 
legal practitioner who attends his establishment for a period of one and a half days each 
week cannot but be said to be a restriction which is not reasonable nor in public interest. 
The legal profession as such cannot be equated at par with any other shop or establishment 
under the Shop Act because of embargo, the legal practitioner will not have his chamber 
opened for any purpose but so ever for one and a half days in a week. Even for exercise of 
his intellectual skill. Hence inclusion of establishment of legal practitioners within the 
definition of commercial establishment is violative of Article 19(1) (g) of Constitution of 
India. [Dipti Kumar Basu & others Vs. Chief Inspector of (Shops & Establishment) and 
others 1986 Lab IC 1718 (Cal.)]. Likewise, the inclusion of the establishment of legal 
practitioners in definition of commercial establishment, does not answer the text of business 
and the inclusion would be violative of Article 14 of the Constitution of India and also on the 
ground of business. [Narendera K. Chand Fuladi & others V/s. State of Maharashtra 
1986 Lab IC 318 (Bom.)]. It has also been laid down by the Hon'ble Punjab & Haryana 
High Court that doctor's clinics are not termed as commercial establishment. [Kuldeep Singh 
Gill Vs. State of Punjab & others 1989 (2) CIR-87 (P&H)]. Work incidental or ancillary to 
any business or trade is a commercial activities, but activities of State Marketing Board or its 
constituent Market Committee would not be incidental or ancillary to any business. Hence 
State Marketing Board or its constituent Committee are not commercial establishment. 
[Bihar State Marketing Board Vs. The Chief Inspecting Officer, Bihar and others (1985) 
Lab IC-1820 (Patna)]. 
Distinction between Charitable Institution & Commercial Establish- ment 
:- 
A club, which does not carry out any commercial activity but confines its 
activity for rendering service or entertainment to its members only, cannot be said to be an 
commercial establishment within the meaning of the professions of the Act, [Management of 
Tata Iron & Steel Ltd. Chief Inspecting Officer, Govt. of Bihar & others (1997 LLR 816 
(Patna)] but in the club's property including its premises are let out on hire regularly to the 
members of the public or if its restaurant is also made open to the general public or activity of 
the club are such so as to enable it to make regular income by dealing with the out sides, in 
such a case the club may be said to be engaged in commercial activities. [Beldih Club, 
Jamshedpur Vs. The Presiding Officer, La- bour Court Jamshedpur & others 1991 (1) 
Patna Law Journal Reports 811 (Patna) (D.B.)]. The test charitable purpose in satisfied by 
the proof of any of the three conditions, namely, relief of the poor, education or medical 
relief. [P.C. Raja Ratnama Institution Vs. M/s Municipal Corp. of Delhi and others 1990 
AIR 816 (S.C.)]. There 
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THE PUNJAB SHOPS AND COMMERCIAL ESTABLISHMENT ACT, 1958 
 
cannot be any doubt whatsoever that where business activities or trade activities are being 
carried out, profit motive is not a relevant factor for the purpose of consideration as to whether 
the same comes within the purview of the word 'Industry' or establishment or not. [Beldih 
Club, Jamshedpur Vs. The Presiding Officer, Labour Court Jamshedpur & others 
1991 (1) Patna Law Journal Reports 811 (Patna) (D.B.)]. It has been laid down by the apex 
court that if payment is made in the shape of fee by way of voluntary contribution, the purpose 
would be still remain to be charitable one. [P.C. Raja Ratnama Institution Vs. M/s 
Municipal Corp. of Delhi and others 1990 AIR 816 (S.C.)]. If the same is paid under 
compulsion than it cannot be said that the hospital is run for charitable object and since the 
object is not charitable, it cannot be said that the hospital is exempted from the provisions of 
the Act. [Management of Tata Iron & Steel Ltd. Chief Inspecting Officer, Govt. of Bihar & 
others (1997 LLR 816 (Patna)] But a public charitable trust established to provides 
scholarship to the ladies and also to provide books etc. to them and further to provide means 
to the widows, helpless ladies and orphans etc. is not doing any commercial activity, but is 
established for charitable purposes and if for the purpose of carrying out the object of the Trust 
certain properties of the Trust are sold by it then those activities of selling its own land etc. 
do not fall within the definition of a commercial establishment. For treating an activity, a 
commercial activity, there must be some investment of capital and there activities must be 
run with the risk of profit or loss and only in that circumstances the activities can be said to be 
commercial in nature. Trust is not being used for commercial purposes and the activities of 
trust cannot be said to be commercial activities, the office of trust does not fall within 
definition of shop or a commercial establishment under the Act and therefore the provisions of 
the Act are not applicable to it and the authorities under the Act has no jurisdiction to entertain 
and decide dispute regarding reinstatement made by it by the Chokidars of the trust. [M/s 
Rajmata B.S.K. Junagarh Vs. State of Rajasthan 1994- Lab IC 1877 (Raj.)]. Likewise the 
main objects of Pinjrapole Sanstha is to take care and maintain sick and lame cattle and has 
other objects also such as raising of cattle, improving the breed, carrying of cattle which 
come to the Pinjrapole so they can be of use to others, to run a dairy farms in order to supply 
good milk and ghee in the interest of public to do agricultural operations, to grow grass to cut it 
or have it cut and to buy or sell the same or stare it and the Sanstha had lot of land and had 
rental and other income and also agriculture income, hence the Pinjrapole Sanstha is a 
commercial establishment and liable to pay minimum wages to its workers. [Ahmedabad 
Pinjrapole Sanstha 
Vs. Misc. Majdur Sabha and others 1987 Lab IC 577 (Gujrat)]. 
(v) “day” means the period of twenty-four hours beginning at mid night: 
Provided that in the case of any employee whose hours of work extend 
beyond midnight, day means the period of twenty- four hours beginning 
from the time when such employment commences; 
(vi) “employee” means a person wholly or principally employed in, or in 
connection with an establishment, where working on permanent, 
periodical, contract or piece rate wages or on commission basis 
even though he receives no reward for his 
9 
THE PUNJAB SHOPS AND COMMERCIAL ESTABLISHMENT ACT, 1958 
 
labour but does not include a member of the employer’s family; 
(vii) “employer” means a person having charge of or owning or having 
ultimate control over the affairs of an establishment an includes 
member of the family of an employer, a manager, agent or other person 
acting in the general managment or control of the stablishment; 
(viii) “establishment” means a shop or a commercial establishment; 
(ix) “factory” has the meaning assigned to it in the Factory Act, 1948; 
(x) “family” in relation to an employer, means - 
(i) spouse, 
(ii) children and step children; and 
(iii) parents, sisters and brothers if residing with and wholly 
dependent upon him; 
(xi) “festival” means any festival which Government may 
notification declare to be a festival or the purpose of this Act; 
(xii) “Government” menas the Punjab Government; 
(xiii) “hours of the work or working hours” means the time 
during which the person employed are at the disposal of the 
employer exclusive of an interval allowed for rest and means; 
(xiv) “inspector” means an inspector appointed under this Act; 
(xv) “leave” means leave provided for in section 14; 
(xvi) “manager” in relation to an establishment where five or more 
persons are employed or an establishment or whose owner does not 
ordinarily carry on the business personally, means a person declared 
as such by the prescribed manner; 
(xvii) ”night” means a period of at least twelve consecutive hours 
which shall include the interval between 8 p.m. and 6 a.m. 
1[(xviii) “opened” in relation to a shop or commercial establishment 
whose enterance is the only enterance to the residence, means 
opened for the service of any customers or for any buisness 
connected with the establishment.] 
(xix) “opening hour” means the hour at which an establishment opens. 
 
 
1.   Substituted   by Punjab Act 1 of 1964 section 2 clauses (1) 
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THE PUNJAB SHOPS AND COMMERCIAL ESTABLISHMENT ACT, 1958 
 
(xx) “prescribed” means prescribed by rules made under this Act; 
(xxi) “prescribed authority” means the authority prescribed under the 
rules made under this Act; 
1[(xxi-A) “quarter” means a period of three months commencing on the 
first day of January, first day of April, first day of July, and first day 
of October, every year;] 
(xxii) “retail trade or business” includes the business of barber or hair 
dresser, the sale of refreshment or intoxicating liquors and retail 
sales by auction; 
(xxiii) “register of establishment” means a register maintained for the 
registration of establishment under this Act; 
(xxiv) “registration certificate” means a certificate showing the 
registration of an establishment; 
(xxv) “shop” means any premises where any trade or business is caried 
on or where services are rendered to customers and includes 
office store rooms, godowns, 2[sale depots] or ware houses 
whether in the same premises or otherwise used in connection 
with such trade or business but does not include a commercial 
establishment or a shop attached to a factory where the persons 
employed in the shop are allowed the benefits provided for 
workers under the Factory Act, 1948 (LXIII of 1948). 
"Shop"-Essential Features of :- 
The word 'Shop' is to be taken to mean a premises where trade or business is 
carried on in the shape of buying and selling of goods at the spot. It is rather axiomatic that in 
all trades it is the buying or selling which is going on in one form or the other in present or in 
future or even on speculative basis. But in a shop the buying and selling is at the premises or in 
other words on the spot for cash consideration or may be barter, or on credit. The significant 
factor is the availability of the goods, there and then and so also of services. The crux of the 
definition of the word 'shop' in S. 2 (xxv) is that the business or trade vis-a-vis the shop is 
the actual buying and selling of goods and that must take place in the premises. [Ram 
Chander Baru Ram Vs. The State of Punjab 
AIR 1963 Punjab 148 (F.B.)]. 
(xxvi) “Spread over” means the period between the commencement and 
termination of a employee on any day; 
 
 
1. Inserted by Pb. Act No. 1 of 1964 section 2 clauses (2). 
2. Substituted by Punjab Act 1 of 1964 section 2 (3) 
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THE PUNJAB SHOPS AND COMMERCIAL ESTABLISHMENT ACT, 1958 
 
(xxvii) “Wages” shall have the meaning assigned to it in the Payment of 
Wages Act, 1936 (IV of 1936); 
(xxviii) “Wages period” means the period after which the wages of an 
employed person shall be paid; 
(xxix) “Week” means the period between midnight on Saturday and mid 
night on the following Saturday; 
(xxx) “Young person” means a person who has attained the age of 
fourteen but has not attained the age of eighteen years; and 
(xxxi) “Years” means a year commencing on the first day of April. 
(2) For the purpose of this Act, any employment in the service of the 
employer of an establishment upon any work whether within 
establishment or outside it, which relates to, or is connected with or is 
ancillary to the business carried on at the establishment shall be 
deemed to be about the business of the establishment. 
3. Act not applicable to certain establishment and persons - Nothing in 
this Act shall apply to:- 
(a) offices of or under the Central or State Government (expect 
commercial undertakings), the Reserve Bank of India, any 
railway administration or any local authority; 
(b) any railway service, water transport service, tramway, postal, 
telegraph or telephone service, any system of public conservancy or 
sanitation or any industry business or undertaking which supply 
powers, light or water to the public; 
(c) railway dinning cars; 
(d) office of lawyers; 
(e) any person employed about the business of any establishment 
mentioned in paragraphs (a) to (d) aforesaid; 
(f) any person whose hours of employment are regulated by or under 
the Factories Act, 1948, expect the provision of sub- section (3), 
(4) and (5) of section 7 of this Act, in so far as they relate to 
employment in a factory; 
(g) any person whose work is inherently intermittent; 
1[(h) establishment of stamp vendors and petition writers.] 
 
 
 
1. Added by Pb. Act. 1 of 1964. 
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THE PUNJAB SHOPS AND COMMERCIAL ESTABLISHMENT ACT, 1958 
 
4. Provision of section 9 and sub-section (1) section 10 of not 
applicable to certain establishment - (1) Nothing in section 9 and 1[sub- 
section (1) of section 10] shall apply to 
(a) clubs, hotels, boarding houses, stalls and refreshment rooms at the 
railway station; 
(b) shops of barbers and hairdressers;] 
2[(c) establishment dealing exclusively in meat, fish confectionery, 
poultry, eggs daily produce (except ghee), bread, sweet, chocolate ice, 
ice cream, cooked food, fresh fruit, flowers of vegetables.] 
(d) shops dealing 3[exclusively] in medicines or medical or surgical 
requisites or appliances and establishments for the treatment or care 
of the sick, infirm, destitute or mentally unfit. 
(e) shops dealing in articles required for the funerals, burials, or 
cremations; 
(f) shops dealings 2[exclusively] in pans (betel leaves), beedis or 
cigarettes or liquid refreshments sold retails for consumption on the 
premises; 
(g) shops dealing 4[exclusively] in newspapers or periodicals, editing and 
dispatching section of the newspaper offices and offices of the news 
agencies; 
5[(h) places of public entertainment except cinema houses;] 
(i) establishment for the retail sale of petrol and petroleum products used 
for transport; 
(j) shops in regimental institutes, garrison shops and troop canteen in 
cantonments; 
(k) tanneries; 
(l) 6[establishment engaged in] retail trade carried on at an exhibition or 
show, such retails trade in subsidiary or ancillary only to the main 
purpose of the exhibition or show; 
 
 
1. Inserted by Pb. Act No. 1 of 1964. 
2. Substituted by ibid. 
3. Substituted by ibid. 
4. Inserted by ibid. 
5. Substituted by ibid. 
6. Added by ibid 
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THE PUNJAB SHOPS AND COMMERCIAL ESTABLISHMENT ACT, 1958 
 
(m) oil mills not registered under the Factories Act, 1948; 
(n) brick and lime kilns; 
(o) commercial establishments engaged in the manufacture of bronze and 
brass utensils so far as it is confined to the process of melting in 
furnaces; 
1[(p) saltpeter refineries; 
(q) establishments of commercial colleges of shorthand or 
typewriting and other educational academies; 
(r) booking offices of the passenger and goods transport companies; [(s) 
establishments dealing exclusively in green and dry fodder and 
chaff cutting, and 
(t) cycle stands, and cycle repairs shops] 
2[(2) Nothing in sub section (2) of section 10 shall apply to- 
(i) establishments of cinema houses; 
(ii) establishment dealing in hides and skins; 
(iii) ice factories; 
(iv) establishments engaged exclusively in repairs of cycles or 
motor vehicles or the service of motor vehicles (not being an 
establishment dealing in cycles or motor vehicles or exclusively in 
spare parts thereof); 
(v) establishments dealing exclusively in providing on hire tents, 
chhauldaries and other articles such as crockery, furniture, 
loudspeakers, gas lights and fans required for ceremonial purposes, and 
(vi) establishments, dealing exclusively in the retail sale of phullian, 
murmura, sugar coated grams, reories, or other similar 
commodities.] 
5. Powers of Government to extend the provisions of Act (1) - 
Notwithstanding anything contained in section 3 of section 4, Government may 
by notification declare that any class of establishments or persons specified 
therein shall not be exempt from the operation of such provisions of the Act 
as may be specified in the notification and that the provisions of this Act 
specified in such notification shall apply to such 
 
 
1. New clause (p) to (t) added vide Pb. Act No. 1 of 1964. 
2. Added by Pb. Act. 1 of 1964. 
14 
THE PUNJAB SHOPS AND COMMERCIAL ESTABLISHMENT ACT, 1958 
 
 
class of establishments or persons as the case may be. 
(2) Every notification made under sub-section (i) shall as soon as 
possible, after it is made, be laid before both Houses of the State Legislature. 
6. Conditions of employment for young persons. (1) - The total 
number of hours worked by a young person employed about the business of an 
establishment, exclusive of intervals for meals and rest, shall not exceed 
thirty hours in any one week or five hours in any one day. 
(2) A young person employed about the business of an establishment shall 
not be employed continuously for more than three hours without an interval of 
at least half an hour for meals or rest. 
(3) Government may prescribed further conditions in respect of the 
employment of young persons employed about the business of 
establishments or any class of them, including, if it thinks fit, conditions with 
respect to the daily period of employment of these persons and no such 
person shall be employed otherwise than in accordance with those conditions. 
(4) In the case of any contravention of, or failure to comply with the 
provisions of this section, the employer shall be liable, on conviction, to a fine 
which shall not be less than fifty rupees but which may extend to two hundred 
rupees. 
(5) Where, in proceedings for an offence under this section, the person 
in respect of whom the offence committed was a young person and he appears to 
the court to have been at the date of the commission of the offence a young 
person, he shall, for the purpose of this Act, be presumed at that date to have 
been a young person unless the contrary is proved. 
7. Hours of employment - (1) Subject to the provisions of this Act, no 
person shall be employed about the business of an establishment for more than 
fortyeight hours in any week and nine hours in a any one day. 
(2) On occasions of seasonal or exceptional pressure of work a 
person employed in an establishment may be employed about the business of the 
establishment in excess of the working hours specified in sub section (1): 
Provided that - 
(a) the total number of overtime hours worked by an employee does 
15 THE PUNJAB SHOPS AND COMMERCIAL ESTABLISHMENT ACT, 1958 
 
 
not exceed fifty within a period of 1[any one quarter]; and 
(b) the person employed overtime shall be paid renumeration at twice 
the rate of his normal wages calculated by the hours. 
Explanation - ‘Normal Wages’ for the purpose of proviso (b) means basic 
wages plus such allowances including the cash equivalent of the advantages 
accruing through the concessional sale of workers of foodgrains and other articles 
as the worker is for the time being entitled to, but does not included bonus. 
(3) No employer shall, on any day or in any week, employ about the 
business of the establishment any person who has been previously employed on 
that day or in that week in another establishment or a factory for a longer period 
than shall together with the time during which he has been previously 
employed on than day or that  week  in  such another establishment or 
factory exceed the number of hours permitted by this Act. 
(4) In any proceedings against the employer of the establishment for a 
contravention of the provisions of sub-section (3) it shall be a defence to 
prove that the employer did not know and could not with reasonable diligence 
ascertain that the person was previously employed by the employer of the 
other establishment or factory. 
(5) No person shall work about the business of an establishment or two 
or more establishments or an establishment and a factory in excess of the 
period during which he may be lawfully employed under this Act. 
Hours of Employment-Overtime meaning of : 
Section 7 (2) of the Act only limits the maximum hours of work in a shop. But it does 
not impose any restriction upon the employer to fix a lesser number than provided in the said 
section. When the normal hours of work is admittedly 36 hours in week so any hours of 
work done beyond that normal hours i.e. 36 hours in a week must be regarded as 
"Overtime". [Carew and Co. Ltd. V/s. Sailaja Kanti Chatterji and others 1973 Lab IC 
515 (Cal.)]. Likewise, the Hon'ble Supreme Court of India in a case Philips India Ltd. Vs. 
Labour Court Madras has also interpreted the meaning of over- time. Their lordship has 
decided that even though the expression "Overtime" is not defined in the Act, its 
connotation is unambiguous. In no uncertain terms it means in the content of working hours, 
period in excess of the prescribed working hours. The proviso to Section 14 (1) makes it 
abundantly clear that any work taken in excess of the working hours prescribed in the main 
part of sub-section (1) of Section 14 (Section 7 (2) 
 
 
1.   Substituted  by  Pb.  Act  1 of 1964. 
16 THE PUNJAB SHOPS AND COMMERCIAL ESTABLISHMENT ACT, 1958 
 
in the Punjab Act) would constitute overtime work eight hours a day and 48 hours in a week 
would constitute normal working hours. Anything in excess of eight hours a day but not 
exceeding 10 hours a day and 48 hours a week and not exceeding 54 hours a week will 
constitute overtime work. This becomes clear from the language used in the proviso when it 
says that the bar imposed by sub-section (1) of Section 14 may be breached to the extent 
provided in the proviso. The expression used is that "No such person" meaning there by that 
person, who would be required to work eight hours a day or 48 hours a week, may be allowed to 
work in excess of that limit subject to payment of overtime wages. [M/s Philips India Ltd. 
Vs. Labour Court Madras and others and State Bank of India V/s. Central Govt. 
Labour Court 1985 Lab IC 854 (S.C.)]. 
Overtime Wages meaning thereof : 
When normal working hours are prescribed ordinary rates and then permitting 
overtime work upto the ceiling, simultaneously making it obligatory to pay over time wages 
at the rate prescribed in the very statute. But where the employer prescribed working hours 
per day or total number of hours of work per week less than the maxi- mum permissible 
under the statute, any work taken in excess of the prescribed hours of work would be overtime 
work and the employer would be liable to pay some compen- sation but not necessarily the 
statutory compensation which would be attracted only when the employer takes work in 
excess of the maximum hours of work prescribed by the statue. [M/s Philips India Ltd. V/s. 
Labour Court Madras and others and State 
Bank of India Vs. Central Govt. Labour Court 1985 Lab IC 854 (S.C.)]. 
8. Intervals for rest and meals - Subject to the provisions of section 6, no 
employee except a chowkidar, watchman or guard, shall be allowed to work 
in an establishment for more than five hours before he had an interval for rest of 
at least half an hour: 
Provided that Government may by notification fix such interval for rest in 
respect of any class of establishment for the whole of the State or any part thereof 
as may consider necessary. 
(2) The period of work of an employee in an establishment shall be so 
fixed that, inclusive of his interval for rest, the spread over shall not be more 
than the hours in a day. 
9. Opening and closing hours - Government shall by notification fix the 
opening and closing hours of all classes of establishment and different opening 
and closing hours may be fixed for different classes of establishment and for 
different areas; 
Provided that Government may allow an establishment attached to a 
factory to observe such opening and closing hours as the Government may 
direct. 
17 THE PUNJAB SHOPS AND COMMERCIAL ESTABLISHMENT ACT, 1958 
 
 
Right to carry on one's trade or business restriction placed on such right 
by the said Act are reasonable: 
The Punjab Shops and Commercial Establishment Act, 1958 comes in conflict with the 
fundamental right of a citizen to carry on his trade business or profession un- hampered. 
However, this right is subject to reasonable restriction that may be placed and the Act in 
question is certainly a piece of legislation which puts reasonable restriction on the 
individual's right to carry on trade, business or profession unhampered. 
[Ram Chander Baru Ram Vs.  State of Punjab 1963 AIR (Pb.) 148 (F.B.)]. 
The Hon'ble Supreme Court of India in case of Ram Dhan Dass Vs. State of Punjab 
has observed that the preamble of the Act show that the statute was enacted to provide for 
the regulation of the conditions of work and employment in shops and commercial 
establishments. It was held that providing 48 hours of work in a week or a provision for 
opening and closing hours is not unreasonable and the restriction not unreasonable and the 
restriction imposed were necessary to relieve physical overstrain on the workers and afford 
better conditions or work ensuring a reasonable amount of leisure to workers. [Ram Dhan 
Dass Vs. State of Punjab 1961 FLR 836 (S.C.)]. 
More over these provisions would be valid even if the employer himself carries on the 
business without engaging any body. [Manohar Lal Vs. State of Punjab 1961 PLR 660 
(Pb.)]. 
Note : 
1. The establishment of Gold Smiths are exempted from section 9 of the Punjab Shops 
and Establishment Act, 1958 in which owner of the establishment has not employed 
any person as an employee, vide Haryana Govt. Notification No. 14(427)78-12, 
dated 15.6.89, published in Haryana Govt. Gazette at page 1363 on 15th June, 1989) 
2. A Notification issued by Haryana Govt. under section (9) of Punjab Shops and 
Commercial Establishment Act, 1958 vide Notification No. 5343-3-lab-75/16651, Dated 
28-5-75, says that all Shops and Commercial establishment in Haryana shall not open 
earlier than 9.00 AM and close later than 7.45pm; but this notification shall not have 
affect in the Shops and Commercial Establishments of which separate things have 
been fixed from time to time under this Act. 
3. In the case of dealers of television sets in Haryana, the following opening and closing 
hours have been fixed by Haryana Govt. vide Notification No. 10464-2- Lab-75/31505, 
dated 16-10-75. 
Opening Hours Closing Hours 9.00am  1.00pm  
5.00pm 9.30pm  
10. Close  day  - (1) Save as otherwise provided by this Act every 
establishment shall remain closed on every Sunday. 
18 THE PUNJAB SHOPS AND COMMERCIAL ESTABLISHMENT ACT, 1958 
 
 
Provided that, in the case of an establishment attached to factory the 
employer may substitute the close day of such establishment so as to 
correspond to the substituted close day of the factory in the same manner and 
subject to the same conditions as are laid down in this behalf in the Factories 
Act, 1948. 
Provided further that Government may by notification fix any other day to 
be close day in respect of any class of establishments for the whole of the State 
or any part thereof; 
(2) (i) The employer of an establishment shall in the prescribed form 
intimate to the prescribed authority the working hours, the day in a week 
referred to in clause (b) of section 11, and the period of interval of the 
employed person, within fifteen days of the date of registration of the 
establishment. 
(ii) The employer of an establishment may change the working hours and 
the period of interval once in a quarter of the year by giving intimation in the 
prescribed form to the prescribed authority at least fifteen days before the 
change is take place. 
(3) Notwithstanding anything contained in Sub-section (1) the 
employer of an establishment may open his establishment on the close-day if:- 
(a) such day happens to coincide with a festival, and 
(b) employees required to work on that day are paid remuneration at 
double the rate of their normal wages calculated by the hour. 
11. ‘Employees’ off day in a week - No employee shall be allowed or 
required to work:- 
(a) on a close day, in any establishment which is required to observe a 
close-day; 
(b) on one day in a week, in any other establishment; and 
(c) before the opening hour of the establishment and after the 
closing hour of the establishment; 
Provided that a watchman may be allowed or required to work on an off 
day under this section, if he allowed another off day in the week. 
12. Holidays - Every employee in an establishment shall be allowed:- 
19 THE PUNJAB SHOPS AND COMMERCIAL ESTABLISHMENT ACT, 1958 
 
 
(a) a holiday with wages on the Independence Day, Republic Day, and 
Mahatma Gandhi’s birthday; and 
(b) five other holidays with wages in a year in connection with such 
festivals as Government may declare from time to time by 
notification. 
Provided that an employee required to work on any such holiday shall 
be paid remuneration at double the rate of his normal wages calculated by the 
hour. 
13. Registration of establishments - (1) Within the period specified in sub-
section (3), the employer of every establishment shall send to the prescribed 
authority concerned a statement in the prescribed form 1[accompanied by such 
fee as may be prescribed and] containing :- 
(a) the name of the employer and the manager, if any; 
(b) postal address of the establishment; 
(c) the name, if any, of the establishment; 
(d) number of persons 2[employed in the establishment; and] 
(e) such other particulars as may be prescribed. 
(2) (i) 3[On receipt of the Statement and the prescribed fee] or the 
prescribed authority shall, on being satisfied about the correctness of the 
statement, register the establishment in the register of establishment in such a 
manner as may be prescribed and shall issue in a prescribed form a registration 
certificate to the employer. The registration certificate shall on demand by the 
Inspector, be shown to him by the employer. 
4[(ii) The registration certificate shall be renewable by the 31st 
March after every three years. Thirty days grace time shall, however, be 
allowed for the renewal of the certificate after payment of prescribed fee] 
(3) Within thirty days from the date mentioned in column 2 below in 
respect of the establishment in column 1 the statement 5[ together with the 
prescribed fee] shall be sent to the prescribed authority under sub-section (1). 
 
 
 
1. Inserted vide Haryana Act, No. 1 of 1997. 
2. Substituted vide Haryana Act, No. 1 of 1997. 
3. Substituted vide Haryana Act, No. 1 of 1997. 
4. Added vide Haryana Act, No. 1 of 1997. 
5. Inserted vide Haryana Act, No. 1 of 1997. 
20 THE PUNJAB SHOPS AND COMMERCIAL ESTABLISHMENT ACT, 1958 
 
 
 
Establishment Date from which the period of 30 days is to commence (1)
  (2)  
 
(i) Establishment existing in The date on which this Act areas 
to which this Act applies or comes into force or the date where this  
Act is extended on which the Act is  
extended, as the case may be. 
 
(ii) New establishment in such area. The date on which the 
establishment commences its work. 
 
(4) It shall be the duty of the employer to notify to the prescribed 
authority in the prescribed form any change in respect of any information 
contained in his statement under this section within seven days after the 
change has taken place. The authority shall on receiving such notice and on 
being satisfied about its correctness make the change in the register of 
establishments in accordance with such notice and shall amend the 
registration certificate, if necessary. 
(5) The employer shall, within ten days of his closing the establishment, notify 
to the prescribed authority in writing accordingly. The authority shall, on 
receiving the information and being satisfied about the correctness, remove the 
name of such establishment from the register of establishments and cancel the 
registration certificate. 
1[(6) In case of any contravention of, or failure to comply with the 
provisions of this section, the employer shall be liable, on conviction, to a fine, 
which shall not be less than one thousand rupees but which may extend to 
three thousand rupees along with the prescribed registration or renewal fee, as 
the case may be.] 
14. Leave - (a) Every employee who has been in employment for not less 
than twenty days in a year shall be entitled to one day’s earned leave for every 
such twenty days. 
Provided that a young person shall be entitled to one days earned leave 
for every fifteen days of employment during the year. 
(b) If an employee is discharged or dismissed from or leaves service 
during the course of the year, he shall be entitled to leave with 
 
 
1. Added vide Haryana Act, No. 1 of 1997. 
21 THE PUNJAB SHOPS AND COMMERCIAL ESTABLISHMENT ACT, 1958 
 
 
wages or wages in lieu of un-availed leave at the rates laid down in 
clause (a). 
(c) In calculating leave under this section fraction of half a day or more 
shall be treated as one day’s leave fraction of less than half a day shall 
be ignored. 
(d) If an employee does not in any one year take the whole of the leave 
allowed to him under clause (a), any leave, not taken by him shall 
be added to the leave to be allowed to him in the succeeding 
year; 
Provided that - 
(i) Subject to any specific agreement between the employer and the employee, the 
total number of days of leave, that may be carried forward to a 
succeeding year shall not exceed forty in the case of a young person or thirty 
in any other case; 
(ii) the provisions of this section shall not operate to the prejudice of any rights 
to which an employee may be entitled under any other law or under the terms of 
any award agreement or contract of service; 
(iii) where such award, agreement or contract of service provides for a longer leave 
with wages or weekly holidays than those provided under this section, the employee 
shall be entitled to such longer leave or weekly holidays as the case may be. 
(2) Leave provided in clause (a) sub-section (1) shall when applied for, 
shall not when applied for, be refused except for a valid reason to be 
communicated in writing by the employer to the employee within fifteen days 
of the application. 
Provided that the leave so refused shall, if applied for again, be allowed 
during the year. 
(3) (a) For the purpose of computing the period during which an 
employee has been in employment within the meaning of clause (a) sub- 
section (1) the period during which he was on leave under this section and the 
off-days in a week referred to in section 11, shall be included. 
(b) The un-availed leave of an employee shall be taken in to 
consideration in computing the period of any notice required to be given 
before discharge removal or dismissal. 
22 THE PUNJAB SHOPS AND COMMERCIAL ESTABLISHMENT ACT, 1958 
 
(4) Notwithstanding anything contained in the foregoing sub- sections, 
every employee in an establishment shall be allowed with wages seven days 
casual leave and seven days sick leave in a year. 
15. Wages for close days and during leave period (1) Any person 
employed in or about an establishment for a period of fifteen days or more than 
shall receive, for every off day in a week referred to in section 11, wages at 
the rate of not less than the average daily wages earned by him for the days on 
which he worked during the week immediately preceding every such off day. 
(2) For the leave allowed to him under section 14, an employee shall be 
paid at the rate equal of the daily average of his total fulltime earnings for the 
days, on which he worked during the month immediately preceding his leave, 
exclusive of any overtime and bonus, but inclusive of dearness allowance and 
the cash equivalent of the advantage occurring though the concessional sale to 
the employee of food grains and other articles. 
(3) An employee who has been allowed leave for not less than five days 
in the case of a young person and four days in any other case shall, on demand, 
before his leave begins, be paid the wages due for the period of leave allowed. 
16. Wages period - (1) Every person responsible for the payment of wages 
to an employee shall fix a period in respect of which wages shall be payable. 
(2) No wage period shall exceed one month. 
(3) The wages of every person employed shall be paid before the 
expiry of the seventh day from the date on which the wages became due. 
(4) Where the employment of any person is terminated, by or on behalf 
of the employer the wages earned by him and there remuneration in lieu of un 
availed period of due leave shall be paid before the expiry of the second 
working day after such termination and where an employee quits his 
employment, on or before the next day; 
Provided that no claim under this section shall be entertained unless it is 
preferred within six months from the date of it’s occurring except under, special 
circumstances at the discretion of the Chief Inspector of Shops and Commercial 
Establishment. 
23 THE PUNJAB SHOPS AND COMMERCIAL ESTABLISHMENT ACT, 1958 
 
 
17. Deduction from wages - The wages of an employee shall be paid to him 
without deductions of any kind except those authorised by or under the Payment 
of Wages Act, 1936, in so far as such deductions are applicable to the 
employee and in such manner to such extent and subject to such conditions as 
are specified in the Act. 
18. Realisation of compensation - (1) In case of contravention of the 
provisions of section 16 if a Magistrate is satisfied that the employee has not 
been paid his due wages, he shall direct the employer to pay the wages along 
with compensation not exceeding eight times the amount of wages withheld. 
(2) The amount of wages withheld and compensation payable under this 
section shall for the purpose of its recovery be deemed to be a fine imposed 
under section 26 and shall be realised as such. 
COMMENTARY 
Compensation awarded under Section 18 is not a penalty within the 
meaning of Section 26 of the Act: 
A sum awarded under this Section by way of compensation for the loss and in- 
convenience caused by the employer for not making payment to the employee on the due 
date. This amount is not by way of penalty within the meaning of Section 26 of the Act.

Excerpt shown. Open the full act in Lexace.

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