Chandigarh Allows Shops to Open 24x7 | Key Labour Law Compliance Rules | Detailed Analysis

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Chandigarh Administration Allows 24x7 Operation of Shops and Establishments: A Detailed Analysis

📌 Background

On 14th August 2025, the Administrator of the Union Territory of Chandigarh issued a significant notification under Section 28 of the Punjab Shops and Commercial Establishments Act, 1958, granting exemption to all shops and commercial establishments in Chandigarh from certain provisions of the Act. This move effectively permits businesses to operate round the clock, 365 days a year, subject to strict compliance with labour welfare and safety conditions.

This step aligns Chandigarh with progressive urban centres like Delhi, Maharashtra, and Karnataka, where similar exemptions have been granted to promote a 24x7 economic model.

📌 Key Provisions of the Notification

  1. 365 Days & 24-Hour Operations

    • All registered shops and establishments may remain open on all days, without restrictions on timing.

  2. Mandatory Weekly Rest for Employees

    • Each employee must be given one paid weekly off, with advance notice displayed on the notice board.

  3. Work Hour Limitations

    • Max 9 hours/day or 48 hours/week.

    • Half-hour rest after every 5 hours of continuous work.

    • Spread-over not exceeding 10 hours/day (including rest breaks).

  4. Women Employees – Safety & Welfare Provisions

    • Women cannot be compelled to work after 8:00 PM unless they provide written consent.

    • If working beyond 8 PM:

      • Transport facility with GPS-enabled vehicles.

      • Security guard presence during boarding and de-boarding.

      • No tinted glasses/curtains in vehicles.

      • Drivers’ and vehicles’ details must be recorded.

      • Drop facility must ensure women are not picked up first or dropped last.

      • Self-defense training annually.

      • At least five women employees in night shifts.

    • Separate lockers, restrooms, and security arrangements at workplace.

  5. Prohibition on Child Labour

    • Mandatory compliance with Child and Adolescent Labour (Prohibition and Regulation) Act, 1986.

  6. Wages & Overtime

    • All wages (including overtime) to be credited to bank accounts.

    • Overtime capped at 50 hours per quarter, paid at double the hourly wage rate.

  7. Festival & National Holidays

    • Employees entitled to paid holidays on national and festival days.

  8. Safety & Security Measures

    • Shops/establishments must install CCTV with minimum 15-day backup.

    • Emergency alarms to be installed.

  9. Employer’s Accountability

    • Strict record maintenance of employees, attendance, wages, and security arrangements.

    • Non-compliance may lead to cancellation of exemption after due hearing.

  10. Overriding Effect of Disaster Laws

  • Directions under the Disaster Management Act, 2005, Epidemic Diseases Act, 1897, or Bharatiya Nagarik Suraksha Sanhita, 2023 will prevail over this notification.

📌 Analysis

Economic Impact

  • This reform is aimed at boosting economic activity, employment, and tourism in Chandigarh.

  • 24x7 operations will benefit retail chains, e-commerce hubs, IT/ITES, hospitality, and service sectors.

  • Increased footfall may enhance Chandigarh’s positioning as a commercial and lifestyle hub of North India.

Labour Welfare Safeguards

  • Unlike unrestricted business-friendly models, Chandigarh has built in strong labour protections—such as weekly offs, limits on working hours, mandatory rest, overtime rules, and festival holidays.

  • Special attention is given to women employees’ safety, reflecting lessons from past incidents in metro cities.

Compliance Burden on Employers

  • Employers will face higher compliance obligations, especially in maintaining records, CCTV installation, providing secure transport, and ensuring multiple safeguards for women employees.

  • For small businesses, these requirements may be financially burdensome.

Social & Cultural Impact

  • A 24-hour city culture may bring lifestyle changes, with greater availability of services, food outlets, and entertainment options.

  • However, it could also raise challenges related to law and order, traffic, and public safety during late-night hours.

Comparative Perspective

  • Similar models in Delhi (2017), Maharashtra (2018), and Karnataka (2019) have shown mixed results. While large corporates and malls benefited, smaller establishments struggled to afford compliance costs.

  • Chandigarh’s detailed notification attempts to balance economic liberalization with employee rights.

📌 Conclusion

The Chandigarh Administration’s decision to allow round-the-clock operations for shops and commercial establishments is a landmark reform, reflecting the city’s ambition to become a modern economic hub.

If effectively implemented, this move could:
✔ Boost business opportunities and tourism.
✔ Create more flexible employment models.
✔ Align Chandigarh with global metropolitan standards.

However, its success will depend on:

  • Strict enforcement of labour and safety provisions, especially concerning women employees.

  • Employer compliance capacity, particularly of small establishments.

  • Law enforcement readiness to manage a new 24x7 urban culture.

In essence, the policy opens doors to economic dynamism but demands vigilant governance to ensure that growth does not come at the cost of labour exploitation or public safety.

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