Punjab’s 365-Day Economy: A Double-Edged Sword

shop and establishments

In a significant move to boost economic growth, the Punjab Government has exempted all establishments from specific provisions of the Punjab Shops and Commercial Establishments Act, 1958, allowing them to remain open on all 365 days for a period of one year until May 31, 2025.

While this decision aims to stimulate economic activity and create more jobs, it also raises concerns about employee welfare, work-life balance, and the potential for exploitation.

The Benefits of the Exemption

The Punjab Government’s decision is expected to yield several benefits, including:

Increased economic activity: By allowing businesses to operate year-round, the government aims to boost consumer spending, leading to higher sales and profits for businesses.

Job creation: As businesses expand their operations, they will need to hire more employees, creating new job opportunities for the state’s residents.

Enhanced consumer convenience: Customers will have greater flexibility in their shopping habits, leading to increased satisfaction with the local economy.

Attracting investment: The policy could attract new businesses and investors to the state, creating a more vibrant and competitive economy.

The Potential Risks and Challenges

While the benefits of the exemption are significant, it also raises several concerns that need to be addressed to ensure that the policy is implemented responsibly:

Employee welfare: The extended working hours could lead to increased stress, burnout, and fatigue among employees, particularly those working in retail and hospitality sectors.

Work-life balance: The policy could disrupt traditional family and community life, as employees may be required to work on holidays and weekends.

Safety and security: The government must ensure that adequate safety and security measures are in place to protect employees and visitors, especially if establishments remain open after 10:00 PM.

Labour exploitation: There is a risk of labour exploitation if businesses take advantage of the relaxed regulations to pay low wages or demand excessive overtime.

Social implications: The policy could exacerbate social inequalities if it disproportionately affects low-income workers or vulnerable groups.

Ensuring Responsible Implementation

To mitigate these risks and ensure that the exemption is implemented responsibly, the Punjab Government must:

Enforce labour laws: The government must strictly enforce all applicable labour laws, including those related to working hours, minimum wages, and overtime pay.

Promote employee welfare: The government should encourage businesses to adopt measures to promote employee well-being, such as providing adequate rest periods, offering health and wellness benefits, and creating a positive work environment.

Ensure safety and security: The government must establish guidelines for safety and security measures that businesses must follow, particularly for establishments that remain open after 10:00 PM.

Female Employee Provisions: Separate lockers, security, and restrooms must be provided for female employees female employee is allowed to work after 08:00 PM.

Employers employing women must establish and contribute to an Internal Complaints Committee (ICC) under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, ensuring that the committee is fully operational.

Monitor compliance: The government should regularly monitor compliance with the exemption’s terms and conditions to identify and address any violations.

Provide support to vulnerable groups: The government should provide targeted support to vulnerable groups, such as women, children, and low-income workers, to ensure that they are not disadvantaged by the policy.

The Punjab Government’s decision to exempt establishments from certain provisions of the Punjab Shops and Commercial Establishments Act is a bold move with the potential to boost economic growth and create jobs.

However, it is essential that the government takes steps to mitigate the risks associated with the policy and ensure that it is implemented responsibly.

By prioritizing employee welfare, safety, and security, the government can help to create a more sustainable and equitable economy for all.

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