Shop Act.Pmd
THE PUNJAB SHOPS ANDCOMMERCIALESTABLISHMENT ACT,1958
(PUNJAB ACT NO. 15 OF1958)
(ReceivedtheassentofthePresidentofIndiaonthe25thApril,1958andwaspublishedinthePunjabGovernmentGazetteonthefirstMay,1958for generalinformation.
1.Shorttitle,extentcommencementandapplication-(1)ThisActmaybecalledthePunjabShopsCommercialEstablishmentsAct,1958.
(2)It extends to the whole of the State ofPunjab.
(3)It shall come into force on such date as Government, maybynotification in the official Gazette, appoint in thisbehalf.
(4)It shall apply in the first instance to the areas specified intheschedule,butGovernmentmaybynotificationdirectthatitshallalsoapplytosuchotherareaandonsuchdateasmaybespecified in thenotification.
2.Definitions-(1)InthisAct,unlessthecontextotherwiserequires:-
(i)“closed”meansnotopenfortheserviceofanycustomerorforany other purpose whatsoever relating tobusiness;
(ii)“closed day” means the day of the week on which a shoporcommercial establishment remainsclosed;
(iii)“closinghour”meansthehouratwhichashoporcommercialestablishmentcloses;
(iv)“commercial establishment” means any premiseswhereinany business, trade or profession is carried on for profit,andincluding journalistic or printing establishments andpremisesinwhichbusinessofbankinginsurance,stocksandshares,brokerageorproduceexchangeiscarriedonorwhichisusedashotel, restaurant, boarding or eating house, theatre, cinemaorother place of public entertainment, 1[all privatelymanagededucational institutions, private colleges includingmedicalcolleges,computertrainingcentresandhealthandfitnessclubs]or any other place which the Government may declare,bynotificationintheofficialGazette,tobeacommercialestablishment for the purpose of thisAct.
1. Added by Hr. Govt. Noti. No. 1/32/83-1-Lab, dated28.2.97.
COMMENTARY
Commercial Establishment and Shop-Common and notCommon features of:
Oneelementiscommontoboththeexpressions'Shop'and'Commercialestablishment',namely,thattherehavetobepremiseswherein,inthecaseofa commercial establishment any business, trade or profession is carried on for profitandinthecaseofashopwhereanytradeorbusinessiscarriedonorwhereservicesarerendered to customers. The carrying on of trade or business or professionnecessarilyhastohaveacloseandintimateconnectionwiththepremises.Theotherrequirementisthatwhatshouldbecarriedoninthosepremisesistradeorbusinessorrenderingofservicestocustomersinthecaseofashop,andinthecaseofacommercialestablishmentatradeorbusinessorprofessionhastobecarriedonforprofit.Iftheelement, of rendering service is eliminated, the remaining to elements that iscarryingon of trade or business are common both to a shop as well as to acommercialestablishment.Butashopaccordingtothedefinitiondoesnotincludeacommercialestablishment. Therefore, the same premises cannot be at the same time a shop aswellas a commercial establishment. [Ram Chander Baru Ram Vs. The State ofPunjabAIR 1963 Punjab 148(F.B.)].
Shop & Commercial Establishment - Distinction thereof:
Any premises used under this Act must be construed as any specific ordefinedpremises.Itmustbeaplaceeitheropenorbuiltuponandintheprocessionandoccupationofthepersonthroughoutthedayandnight,butnotforfewhoursinadayforthispurposeofcarryingonhistradeorbusinessorrenderingservicetohiscustomers.Ifanygoodarepreparedormanufacturinginapremises,butactuallytheyaresoldoutsidethe premises and no services are rendered to the customers or it is not used in anywayconnectedwithsuchtradeorbusiness,suchpremisescannotbeholdtobea"Shop"undertheShopsandCommercialEstablishmentAct.Theworkofrepairingwatchesofcustomers for remuneration conducted systematically is a business or trade and nota profession and the premises in the occupation of the repairer wherein the work iscar-ried or would be a shop under the Act [Khanmohd Vs. The State of A.P.(1973-LabIC 239) (AP)] Likewise financial institution rendering service to its customers byad-vancingmoneytopurchasemotorvehiclesinhirepurchasebases,fallswithinthemeaningof words 'Shop'. [1981 (2) Lab IC-108 (Madras) N.O.C.]
CommercialEstablishment-Integratedtradeorbusinessactivitymusttake place:
C. It will be seen from the definition of the phrase 'Commercial establishment" inSec.2(iv)thatanintegratedtradeorbusinessactivitymusttakeplaceatthegivenpremisesforprofit.Activitiesthoughconnectedwithtradeorbusinessinpremisesinanisolated form like the activity of a business traveller would not make the same acom-mercialestablishment.Similarly,theresidenceofabusinessmanwillnotbecomea commercialestablishmentmerelybecauseheisthinkingoutschemesandmakingplansto either evolve new business or to enlarge the existing one. No one can deny that itisbusinessactivity.Toputitshortly,onlythosepremisescanbesaidtobeacommercialestablishmentwheretwomindsmeettostrikeabusinessdealforprofit.Itishardlymaterialbywhatmeanstheymeet.Anytradeorbusinessrequirestwoormore
individuals dealing with one another and if such dealing does take place in anygivenpremises,orisintendedtotakeplacetherein,theycanbesaidtoacommercialestablishmentbutnototherwise.Thepurposeofthemeetingofthetwomindshastobeforprofit,thoughtheprofitmaynotbethenecessaryresult.[RamChanderBaruRamVs. 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 veryob-ject and motive is only to earn profit, where as in the case of a profession, althougha professionistearnssomemoneyandcarriesitonasameansoflivelihood,itcanbynostretch of reasoning be called a trade or business. [Khan Mohamad Vs. State of AP(1973Lab.IC239)].Alegalpractitionerwhoattendshisestablishmentforaperiodofoneandahalfdayseachweekcannotbutbesaidtobearestrictionwhichisnot reasonablenorinpublicinterest.ThelegalprofessionassuchcannotbeequatedatparwithanyothershoporestablishmentundertheShopActbecauseofembargo,thelegalpractitionerwillnothavehischamberopenedforanypurposebutsoeverforoneanda halfdaysinaweek.Evenforexerciseofhisintellectualskill.Henceinclusionof establishmentoflegalpractitionerswithinthedefinitionofcommercialestablishmentisviolativeofArticle19(1)(g)ofConstitutionofIndia.[DiptiKumarBasuothersVs.Chief Inspector of (Shops & Establishment) and others 1986 Lab IC 1718(Cal.)].Likewisetheinclusionoftheestablishmentoflegalpractitionersindefinitionofcommercialestablishment,doesnotanswerthetextofbusinessandtheinclusionwouldbe violative of Article 14 of the Constitution of India and also on the ground ofbusi-ness. [Narendera K. Chand Fuladi & others V/s. State of Maharashtra 1986LabIC318(Bom.)].IthasalsobeenlaiddownbytheHon'blePunjabHaryanaHighCourtthatdoctor'sclinicsarenottermedascommercialestablishment.[KuldeepSinghGillVs.StateofPunjabothers1989(2)CIR-87(P&H)].Workincidentalorancil-larytoanybusinessortradeisacommercialactivities,butactivitiesofStateMarketingBoard or its constituent Market Committee would not be incidental or ancillary toanybusiness. Hence State Marketing Board or its constituent Committee are notcommer-cialestablishment.[BiharStateMarketingBoardVs.TheChiefInspectingOfficer,Bihar and others (1985) Lab IC-1820(Patna)].
DistinctionbetweenCharitableInstitutionCommercialEstablish-ment:-
Aclub,whichdoesnotcarryoutanycommercialactivitybutconfinesitsactivityforrenderingserviceorentertainmenttoitsmembersonly,cannotbesaidtobeancommercialestablishmentwithinthemeaningoftheprofessionsoftheAct,[Man-agementofTataIronSteelLtd.ChiefInspectingOfficer,Govt.ofBiharoth-ers(1997LLR816(Patna)]butintheclub'spropertyincludingitspremisesareletoutonhireregularlytothemembersofthepublicorifitsrestaurantisalsomadeopentothegeneralpublicoractivityoftheclubaresuchsoastoenableittomakeregularincomebydealingwiththeoutsides,insuchacasetheclubmaybesaidtobeengagedincommercial activities. [Beldih Club, Jamshedpur Vs. The Presiding Officer,La-bourCourtJamshedpurothers1991(1)PatnaLawJournalReports811(Patna)(D.B.)]. The test charitable purpose in satisfied by the proof of any of the threecondi-tions,namely,reliefofthepoor,educationormedicalrelief.[P.C.RajaRatnamaInstitutionVs.M/sMunicipalCorp.ofDelhiandothers1990AIR816(S.C.)].There
can not be any doubt whatsoever that where business activities or trade activitiesarebeingcarriedout,profitmotiveisnotarelevantfactorforthepurposeofconsiderationastowhetherthesamecomeswithinthepurviewoftheword'Industry'orestablishmentornot.[BeldihClub,JamshedpurVs.ThePresidingOfficer,LabourCourtJamshedpur & others 1991 (1) Patna Law Journal Reports 811 (Patna) (D.B.)].Ithasbeenlaiddownbytheapexcourtthatifpaymentismadeintheshapeoffeebywayofvoluntarycontribution,thepurposewouldbestillremaintobecharitableone.[P.C.Raja Ratnama Institution Vs. M/s Municipal Corp. of Delhi and others 1990AIR816(S.C.)].Ifthesameispaidundercompulsionthanitcannotbesaidthatthehospitalis run for charitable object and since the object is not charitable, it cannot be saidthatthehospitalisexemptedfromtheprovisionsoftheAct.[ManagementofTataIron SteelLtd.ChiefInspectingOfficer,Govt.ofBiharothers(1997LLR816(Patna)]Butapubliccharitabletrustestablishedtoprovidesscholarshiptotheladiesandalsotoprovide books etc. to them and further to provide means to the widows, helplessladiesand orphans etc. is not doing any commercial activity, but is established forcharitablepurposesandifforthepurposeofcarryingouttheobjectoftheTrustcertainpropertiesoftheTrustaresoldbyitthenthoseactivitiesofsellingitsownlandetc.donotfallwithinthedefinitionofacommercialestablishment.Fortreatinganactivityacommer-cial activity, their must be some investment of capital and there activities must berunwiththeriskofprofitorlossandonlyinthatcircumstancestheactivitiescanbesaidtobe commercial in nature. Trust is not being used for commercial purposes and theac-tivities of trust can not be said to be commercial activities, the office of trust doesnotfallwithindefinitionofshoporacommercialestablishmentundertheActandthereforetheprovisionsoftheActarenotapplicabletoitandtheauthoritiesundertheActhasnojurisdiction to entertain and decide dispute regarding reinstatement made by it bytheChokidarsofthetrust.[M/sRajmataB.S.K.JunagarhVs.StateofRajasthan1994-Lab IC 1877 (Raj.)]. Likewise the main objects of Pinjrapole Sanstha is to takecareand maintain sick and lame cattle and has other objects also such as raising ofcattle,improving the breed, carrying of cattle which come to the Pinjrapole so they can beofusetoothers,torunadairyfarmsinordertosupplygoodmilkandgheeintheinterestofpublictodoagriculturaloperations,togrowgrasstocutitorhaveitcutandtobuyorsellthesameorstareitandtheSansthahadlotoflandandhadrentalandotherincomeand also agriculture income, hence the Pinjrapole Sanstha is a commercialestablish-mentandliabletopayminimumwagestoitsworkers.[AhmedabadPinjrapoleSanstha
Vs. Misc. Majdur Sabha and others 1987 Lab IC 577(Gujrat)].
(v)“day” means the period of twenty four hours beginning atmidnight:
Provided that in the case of any employee whose hours ofworkextendbeyondmidnight,daymeanstheperiodoftwentyfourhoursbeginningfrom the time when such employmentcommences;
(vi)“employee”meansapersonwhollyorprincipallyemployedin,orinconnectionwithanestablishment,whereworkingonpermanent, periodical, contract or piece rate wages oron commission basis even though he receive no reward forhis
labourbutdoesnotincludeamemberoftheemployer’sfamily;
(vii)“employer” means a person having charge of or owningorhavingultimatecontrolovertheaffairsofanestablishmentanincludesmemberofthefamilyofanemployer,amanager,agentorotherpersonactinginthegeneralmanagmentorcontrolofthestablishment;
(viii)“establishment”meansashoporacommercialestablishment;
(ix)“factory” has the meaning assigned to it in the FactoryAct,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 andwhollydependent uponhim;
(xi)“festival” means any festival which Governmentmaynotification declare to be a festival or the purpose of thisAct;
(xii)“Government” menas the PunjabGovernment;
(xiii)“hoursoftheworkorworkinghours”meansthetimeduring which the person employed are at the disposal oftheemployer exclusive of an interval allowed for rest andmeans;
(xiv)“inspector” means an inspector appointed under thisAct;
(xv)“leave” means leave provided for in section14;
(xvi)“manager”inrelationtoanestablishmentwherefiveormorepersonsareemployedoranestablishmentorwhoseownerdoesnotordinarilycarryonthebusinesspersonally,meansapersondeclared as such by the prescribedmanner;
(xvii)”night” means a period of at least twelve consecutivehourswhich shall include the interval between 8 p.m. and 6a.m.
1[(xviii)“opened”inrelationtoashoporcommercialestablishmentwhose enterance is the only enterance to the residence,meansopened for the service of any customers or for anybuisnessconnected with theestablishment.]
(xix)“opening hour” means the hour at which anestablishmentopens.
1. Substituted by Punjab Act 1 of 1964 section 2 clauses(1)
(xx)“prescribed” means prescribed by rules made under thisAct;
(xxi)“prescribedauthority”meanstheauthorityprescribedunderthe rules made under thisAct;
1[(xxi-A)“quarter”meansaperiodofthreemonthscommencingonthefirstdayofJanuary,firstdayofApril,firstdayofJuly,andfirst day of October, everyyear;]
(xxii)“retailtradeorbusiness”includesthebusinessofbarberorhairdressor,thesaleofrefreshmentorintoxicatingliquorsandretail sales byauction;
(xxiii)“registerofestablishment”meansaregistermaintainedforthe registration of establishment under thisAct;
(xxiv)“registration certificate” means a certificate showingtheregistration of anestablishment;
(xxv)“shop” means any premises where any trade or businessiscariedonorwhereservicesarerenderedtocustomersandincludes office store rooms, godowns, 2[sale depots] orwarehouseswhetherinthesamepremisesorotherwiseusedinconnection with such trade or business but does not includea commercialestablishmentorashopattachedtoafactorywherethepersonsemployedintheshopareallowedthebenefitsprovided for workers under the Factory Act, 1948 (LXIIIof1948).
"Shop"-Essential Features of:-
Theword'Shop'istobetakentomeanapremiseswheretradeorbusinessiscarriedonintheshapeofbuyingandsellingofgoodsatthespot.Itisratheraxiomaticthatinalltradesitisthebuyingorsellingwhichisgoingoninoneformortheotherinpresentiorinfuturoorevenonspeculativebasis.Butinashopthebuyingandsellingisatthepremisesorinotherwordsonthespotforcashconsiderationormaybebarter,oron credit. The significant factor is the availability of the goods, there and then andsoalsoofservices.Thecruxofthedefinitionoftheword'shop'inS.2(xxv)isthatthebusiness or trade vis-a-vis the shop is the actual buying and selling of goods andthatmust take place in the premises. [Ram Chander Baru Ram Vs. The State ofPunjab
AIR 1963 Punjab 148(F.B.)].
(xxvi)“Spreadover”meanstheperiodbetweenthecommencementand termination of a employee on anyday;
1.Inserted by Pb. Act No. 1 of 1964 section 2 clauses(2).
2.Substituted by Punjab Act 1 of 1964 section 2(3)
(xxvii)“Wages”shallhavethemeaningassignedtoitinthePaymentof Wages Act, 1936 (IV of1936);
(xxviii)“Wagesperiod”meanstheperiodafterwhichthewagesofan employed person shall bepaid;
(xxix)“Week”meanstheperiodbetweenmidnightonSaturdayandmid night on the followingSaturday;
(xxx)“Youngperson”meansapersonwhohasattainedtheageoffourteen but has not attained the age of eighteen years;and
(xxxi)“Years”meansayearcommencingonthefirstdayofApril.
(2)ForthepurposeofthisAct,anyemploymentintheserviceoftheemployer of an establishment upon any work whether wiheinestablishmentoroutsideit,whichrelatesto,orisconnectedwithor is ancillary to the business carried on at theestablishmentshallbedeemedtobeaboutthebusinessoftheestablishment.
3.Actnotapplicabletocertainestablishmentandpersons-Nothingin this Act shall applyto:-
(a)offices of or under the Central or State Government(expectcommercialundertakings),theReserveBankofIndia,anyrailway administration or any localauthority;
(b)any railway service, water transport service,tramway,postal,telegraphortelephoneservice,anysystemofpublicconservancyor sanitation or any industry business or undertakingwhichsupply powers, light or water to thepublic;
(c)railway dinningcars;
(d)office oflawyers;
(e)any person employed about the business of anyestablishmentmentioned in paragraphs (a) to (d)aforesaid;
(f)any person whose hours of employment are regulated byorundertheFactoriesAct,1948,expecttheprovisionofsub-section(3),(4)and(5)ofsection7ofthisAct,insofarastheyrelate to employment in afactory;
(g)any person whose work is inherentlyintermittent;
1[(h) establishment of stamp vendors and petitionwriters.]
1. Added by Pb. Act. 1 of1964.
4.Provisionofsection9andsub-section(1)section10ofnotapplicabletocertainestablishment-(1)Nothinginsection9and1[sub-section (1) of section 10] shall applyto
(a)clubs,hotels,boardinghouses,stallsandrefreshmentroomsatthe railwaystation;
(b)shops of barbers andhairdressers;]
2[(c)establishmentdealingexclusivelyinmeat,fishconfectionery,poultry,eggsdailyproduce(exceptghee),bread,sweet,chocolateice,icecream,cookedfood,freshfruit,flowersofvegetables.]
(d)shopsdealing3[exclusively]inmedicinesormedicalorsurgicalrequistiesorappliancesandestablishmentsforthetreatmentorcare of the sick, infirm, desitute or mentallyunfit.
(e)shops dealing in articles required for the funerals, burials,orcremations;
(f)shops dealings 2[exclusively] in pans (betel leaves), birisorcigarettesoriquidrefreshmentssoldretailsforconsumptiononthepremises;
(g)shopsdealing4[exclusively]innewspapersorperiodicals,editinganddespatchingsectionofthenewpaperofficesandofficesofhe newsagencies;
5[(h)placesofpublicentertainmentexceptcinemahouses;]
(i)establishmentfortheretailsaleofpetrolandperoleumproductsused fortransport;
(j)shopsinregimentalinstitutes,garrisonshopsandtroopcanteenincantonments;
(k)tanneries;
(l)6[establishmentengagedin]retailtradecarriedonatanexhibitionorshow,suchretailstradeinsubsidiaryorancillaryonlytothemain purpose of the exhitition orshow;
1.Inserted by Pb. Act No. 1 of1964.
2.Substituted byibid.
3.Substituted byibid.
4.Inserted byibid.
5.Substituted byibid.
6.Added byibid
(m)oil mills not registered under the Factories Act,1948;
(n)brick and limekilns;
(o)commercialestablishmentsengagedinthemanufactureofbronzeandbrassutensilssofarasitisconfinedtotheprocessofmeltinginfurnaces;
1[(p) saltpetrerefineries;
(q)establishments of commercial colleges of shorthandortypewritting and other educationalacademies;
(r)bookingofficesofthepassengerandgoodstransportcompanies;[(s) establishments dealing exclusively ingreen and dry fodderand
chaff cutting,and
(t)cycle stands, and cycle repairsshops]
2[(2)Nothinginsubsection(2)ofsection10shallapplyto-
(i)establishments of cinemahouses;
(ii)establishment dealing in hides andskins;
(iii)icefactories;
(iv)establishmentsengagedexclusivelyinrepairsofcyclesormotorvehiclesortheserviceofmotorvehicles(notbeinganestablishmentsdealingincyclesormotorvehiclesorexclusivelyin spare partsthereof);
(v)establishments dealing exclusively in providing on hiretents,chhauldariesandotherarticlessuchascrockery,furniture,loudspeakers,gaslightsandfansrequiredforcremonialpurposes,and
(vi)establishments,dealingexclusivelyintheretailsaleofphullian,murmura, sugar coated grams, reories, or othersimilarcommodities.]
5.PowersofGovernmenttoextendtheprovisionsofAct(1)- Notwithstandinganythingcontainedinsection3ofsection4,Governmentmay by notification declare that any class of establishments orpersonsspecified therein shall not be exempt from the operation ofsuchprovisions of the Act as may be specified in the notification and thattheprovisions of this Act specified in such notification shall apply tosuch
1.New clause (p) to (t) added vide Pb. Act No. 1 of1964.
2.Added by Pb. Act. 1 of1964.
classofestablishmentsorpersonsasthecasemaybe.
(2) Every notification made under sub-section (i) shall as soonaspossible,afteritismade,belaidbeforebothHousesoftheStateLegislature.
6.Conditionsofemploymentforyoungpersons.(1)-Thetotalnumberofhoursworkedbyayoungpersonemployedaboutthebusinessof an establishment, exclusive of intervals for meals and rest, shallnotexceed thirty hours in any one week or five hours in any oneday.
(2)Ayoungpersonemployedaboutthebusinessofanestablishmentshallnotbeemployedcontinuouslyformorethanthreehourswithoutaninterval of at least half an hour for meals orrest.
(3)Governmentmayprescribedfurtherconditionsinrespectoftheemployment of young persons employed about the businessofestablishmentsoranyclassofthem,including,ifitthinksfit,conditionswith respect to the daily period of employment of these persons andnosuch person shall be employed otherwise than in accordance withthoseconditions.
(4)Inthecaseofanycontraventionof,orfailuretocomplywiththeprovisionsofthissection,theemployershallbeliable,onconviction,toafinewhichshallnotbelessthanfiftyrupeesbutwhichmayextendtotwohundredrupees.
(5)Where, in proceedings for an offence under this section,thepersoninrespectofwhomtheoffencecommittedwasayoungpersonandheappearstothecourttohavebeenatthedateofthecommissionoftheoffenceayoungperson,heshall,forthepurposeofthisAct,bepresumedat that date to have been a young person unless the contrary isproved.
7.Hoursofemployment-(1)SubjecttotheprovisionsofthisAct,nopersonshallbeemployedaboutthebusinessofanestablishmentformorethan fortyeight hours in any week and nine hours in a any oneday.
(2)Onoccasionsofseasonalorexceptionalpressureofworka personemployedinanestablishmentmaybeemployedaboutthebusinessoftheestablishmentinexcessoftheworkinghoursspecifiedinsubsection(1):
Provided that-
(a)thetotalnumberofovertimehoursworkedbyanemployeedoes
not exceed fifty within a period of 1[any one quarter];and
(b)the person employed overtime shall be paid renumerationattwice the rate of his normal wages calculated by thehours.
Explanation - ‘Normal Wages’ for the purpose of proviso (b)meansbasic wages plus such allowances including the cash equivalent oftheadvantagesaccruingthroughtheconcessionalsaleofworkersoffoodgrainsandotherarticlesastheworkerisforthetimebeingentitledto,butdoesnot includedbonus.
(3)Noemployershall,onanydayorinanyweek,employaboutthebusinessoftheestablishmentanypersonwhohasbeenpreviouslyemployedonthatdayorinthatweekinanotherestablishmentorafactoryforalongerperiod than shall together with the time during which he hasbeenpreviouslyemployedonthan day orthat week in suchanotherestablishmentorfactoryexceedthenumberofhourspermittedbythisAct.
(4)Inanyproceedingsagainsttheemployeroftheestablishmentfora contravention of the provisions of sub-section (3) it shall be adefenceto prove that the employer did not know and could not withreasonablediligence ascertain that the person was previously employed bytheemployer of the other establishment orfactory.
(5)Nopersonshallworkaboutthebusinessofanestablishmentortwoormoreestbalishmentsoranestabishmentandafactoryinexcessofthe period during which he may be lawfully employed under thisAct.
Hours of Employment-Overtime meaning of:
Section7(2)oftheActonlylimitsthemaximumhoursofworkinashop.Butitdoesnotimposeanyrestrictionupontheemployertofixalessernumberthanprovidedin the said section. When the normal hours of work is admittedly 36 hours in weeksoanyhoursofworkdonebeyondthatnormalhoursi.e.36hoursinaweekmustberegarded as "Overtime". [Carew and Co. Ltd. V/s. Sailaja Kanti Chatterji andoth-ers 1973 Lab IC 515 (Cal.)]. Likewise the Hon'ble Supreme Court of India in acasePhilips India Ltd. Vs. Labour Court Madras has also interpreted the meaning ofover-time.Theirlordshiphasdecidedthateventhoughtheexpression"Overtime"isnotdefinedintheAct,itsconnotationisunambiguous.Innouncertaintermsitmeansinthecontent of working hours, period in excess of the prescribed working hours. Thepro-viso to Section 14 (1) makes it abundantly clear that any work taken in excess oftheworkinghoursprescribedinthemainpartofsub-section(1)ofSection14(Section7(2)
1. Substituted by Pb. Act 1 of1964.
in the Punjab Act) would constitute overtime work eight hours a day and 48 hours ina week would constitute normal working hours. Anything in excess of eight hours adaybutnotexceeding10hoursadayand48hoursaweekandnotexceeding54hoursa week will constitute overtime work. This becomes clear from the language used intheprovisowhenitsaysthatthebarimposedbysub-section(1)ofSection14maybebreachedtotheextentprovidedintheproviso.Theexpressionusedisthat"Nosuchperson"meaningtherebythatperson,whowouldberequiredtoworkeighthoursadayor48hoursaweek,maybeallowedtoworkinexcessofthatlimitsubjecttopaymentofovertime wages. [M/s Philips India Ltd. Vs. Labour Court Madras and othersandState 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 thenpermittingovertime work upto the ceiling, simultaneously making it obligatory to pay overtimewagesattherateprescribedintheverystatute.Butwheretheemployerprescribedworking hours per day or total number of hours of work per week less than themaxi-mumpermissibleunderthestatute,anyworktakeninexcessoftheprescribedhoursofwork would be overtime work and the employer would be liable to pay somecompen-sationbutnotnecessarilythestatutorycompensationwhichwouldbeattractedonlywhen the employer takes work in excess of the maximum hours of work prescribedbythestatue.[M/sPhilipsIndiaLtd.V/s.LabourCourtMadrasandothersandState
Bank of India Vs. Central Govt. Labour Court 1985 Lab IC 854(S.C.)].
8.Intervalsforrestandmeals-Subjecttotheprovisionsofsection6,noemployee except a chowkidar, watchman or guard, shall be allowed toworkinanestablishmentformorethanfivehoursbeforehehadanintervalfor rest of atleast half anhour:
ProvidedthatGovernmentmaybynotificationfixsuchintervalforrestinrespectofanyclassofestablishmentforthewholeoftheStateoranypart thereof as may considernecessary.
(2)Theperiodofworkofanemployeeinanestablishmentshallbesofixedthat,inclusiveofhisintervalforrest,thespreadovershallnotbemore than the hours in aday.
9.Openingandclosinghours-Governmentshallbynotificationfixtheopeningandclosinghoursofallclassesofestablichmentanddifferentopeningandclosinghoursmaybefixedfordifferentclassesofestablichmentand for differentareas;
ProvidedthatGovernmentmayallowanestablishmentattachedtoa factory to observe such opening and closing hours as theGovernmentmaydirect.
Right to carry on one's trade or business restriction placed onsuchright by the said Act are reasonable:
The Punjab Shops and Commercial Establishment Act, 1958 comes inconflictwith the fundamental right of a citizen to carry on his trade business or professionun-hampered. However, this right is subject to reasonable restriction that may beplacedandtheActinquestioniscertainlyapieceoflegislationwhichputsreasonablerestric-tionontheindividual'srighttocarryontrade,businessorprofessionunhampered.
[Ram Chander Baru Ram Vs. State of Punjab 1963 AIR (Pb.) 148(F.B.)].
TheHon'bleSupremeCourtofIndiaincaseofRamDhanDassVs.StateofPunjab has observed that the preamble of the Act show that the statute was enactedtoprovidefortheregulationoftheconditionsofworkandemploymentinshopsand commercialestablishments.Itwasheldthatproviding48hoursofworkinaweekora provisionforopeningandclosinghoursisnotunreasonableandtherestrictionnot unreasonable and the restriction imposed were necessary to relieve physicaloverstrainon the workers and afford better conditions or work ensuring a reasonable amountofleisure 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 himselfcarrieson the business without engaging any body. [Manohar Lal Vs. State of Punjab1961PLR 660(Pb.)].
Note:
1.TheestablishmentofGoldSmithsareexemptedfromsection9ofthePunjabShopsandEstablishmentAct,1958inwhichowneroftheestablishmenthasnotemployedanypersonasanemployee,videHaryanaGovt.NotificationNo.14(427)78-12,dated15.6.89,publishedinHaryanaGovt.Gazetteatpage1363on15th June,1989)
2.A Notification issued by Haryana Govt. under section (9) of Punjab ShopsandCommercialEstablishmentAct,1958videNotificationNo.5343-3-lab-75/16651,Dated28-5-75,saysthatallShopsandCommercialestablishmentinHaryanashallnot open earlier than 9.00 AM and close later than 7.45pm; but thisnotificationshallnothaveaffectintheShopsandCommercialEstablishmentsofwhichseparate things have been fixed from time to time under thisAct.
3.In the case of dealers of television sets in Haryana, the following openingandclosing hours have been fixed by Haryana Govt. vide Notification No.10464-2-Lab-75/31505, dated16-10-75.
OpeningHoursClosingHours9.00am1.00pm
5.00pm9.30pm
10.Close day -(1)Save as otherwise provided by this Acteveryestablishment shall remain closed on everySunday.
Providedthat,inthecaseofanestablishmentattachedtofactorytheemployermaysubstitutetheclosedayofsuchestablishmentsoastocorrespondtothesubstitutedclosedayofthefactoryinthesamemannerand subject to the same conditions as are laid down inthis behalf intheFactories Act,1948.
ProvidedfurtherthatGovernmentmaybynotificationfixanyotherdaytobeclosedayinrespectofanyclassofestablishmentsforthewholeof the State or any partthereof;
(2)(i)Theemployerofanestablishmentshallintheprescribedformintimatetotheprescribedauthoritytheworkinghours,thedayinaweekreferred to in clause (b) of section 11, and the period of interval oftheemployed person, within fifteen days of the date of registration oftheestablishment.
(ii)Theemployerofanestablishmentmaychangetheworkinghoursandtheperiodofintervalonceinaquarteroftheyearbygivingintimationin the prescribed form to the prescribed authority at least fifteendaysbefore the change is takeplace.
(3)Notwithstanding anything contained in Sub-section (1)theemployerofanestablishmentmayopenhisestablishmentontheclose-dayif:-
(a)such day happens to coincide with a festival,and
(b)employees required to work on that day are paidremunerationat double the rate of their normal wages calcuated by thehour.
11.‘Employees’offdayinaweek-Noemployeeshallbeallowedorrequired towork:-
(a)onacloseday,inanyestablishmentwhichisrequiredtoobserveaclose-day;
(b)on one day in a week, in any other establishment;and
(c)beforetheopeninghouroftheestablishmentandaftertheclosing hour of theestablishment;
Providedthatawatchmanmaybeallowedorrequiredtoworkonanoffdayunderthissection,ifheallowedanotheroffdayintheweek.
12.Holidays - Every employee in an establishment shall beallowed:-
(a)aholidaywithwagesontheIndependenceDay,RepublicDay,and Mahatma Gandhi’s birthday;and
(b)fiveotherholidayswithwagesinayearinconnectionwithsuchfestivalsasGovernmentmaydeclarefromtimetotimebynotification.
Provided that an employee required to work on any suchholidayshall be paid remuneration at double the rate of his normalwagescalculated by thehour.
13.Registrationofestablishments-(1)Withintheperiodspecifiedinsub-section(3),theemployerofeveryestablishmentshallsendtotheprescribed authority concerned a statement in the prescribed form1[accompanied by such fee as may be prescribed and] containing:-
(a)the name of the employer and the manager, ifany;
(b)postal address of theestablishment;
(c)the name, if any, of theestablishment;
(d)number of persons 2[employed in the establishment;and]
(e)such other particulars as may beprescribed.
(2)(i) 3[On receipt of the Statement and the prescribed fee] ortheprescribedauthorityshall,onbeingsatisifiedaboutthecorrectnessofthestatement, register the establishment in the register of establishmentinsuchamannerasmaybeprescribedandshallissueinaprescribedformaregistrationcertificatetotheemployer.Theregistrationcertificateshallon demand by the Inspector, be shown to him by theemployer.
4[(ii)Theregistrationcertificateshallberenewablebythe31stMarch after every three years. Thirty days grace time shall, however,beallowedfortherenewalofthecertificateafterpaymentofprescribedfee]
(3)Withinthirtydaysfromthedatementionedincolumn2belowinrespectoftheestablishmentincolumn1thestatement5[togetherwiththeprescribedfee]shallbesenttotheprescribedauthorityundersub-section(1).
1.Inserted vide Haryana Act, No. 1 of1997.
2.Substituted vide Haryana Act, No. 1 of1997.
3.Substituted vide Haryana Act, No. 1 of1997.
4.Added vide Haryana Act, No. 1 of1997.
5.Inserted vide Haryana Act, No. 1 of1997.
EstablishmentDatefromwhichtheperiodof30daysistocommence(1) (2)
(i)Establishment existinginThe date on which this Actareas to which this Act applies or comes into force or thedatewhere this Act isextended onwhich the Actis
extended,asthecasemaybe.
(ii)New establishment in such area. The date on whichthe
establishmentcommencesitswork.
(4)It shall be the duty of the employer to notify to theprescribedauthorityintheprescribedformanychangeinrespectofanyinformationcontained in his statement under this section within seven days afterthechangehastakenplace.Theauthorityshallonreceivingsuchnoticeandonbeingsatisfiedaboutitscorrectnessmakethechangeintheregisterofestablishments in accordance with such notice and shall amendtheregistration certificate, ifnecessary.
(5)Theemployershall,withintendaysofhisclosingtheestablishment,notify to the prescribed authority in writing accordingly. Theauthorityshall,onreceivingtheinformationandbeingsatisfiedaboutthecorrectness,removethenameofsuchestablishmentfromtheregisterofestablishmentsand cancel the registrationcertificate.
1[(6) In case of any contravention of, or failure to comply withtheprovisionsofthissection,theemployershallbeliable,onconviction,toa fine, which shall not be less than one thousand rupees but whichmayextend to three thousand rupees alongwith the prescribed registrationorrenewal fee, as the case maybe.]