Open house: Would the new labour laws boost productivity in small businesses?
Reforms are bold
in nature
In a bid to stimulate small business growth and streamline regulatory norms, the Punjab Government has introduced bold reforms to its labour laws—allowing shopkeepers to hire up to 20 workers without inspections and mandating overtime pay at double the rate. Legally, this reduces compliance friction and encourages entrepreneurship. That said, easing inspections risks undermining essential labour protections. Intellectually, the reform aligns with neoliberal ideals of deregulation and productivity—but may erode worker dignity if unchecked. Socially, the move could generate more jobs in the informal sector, yet workers may face exploitation without enforcement safeguards. Scientifically, studies link productivity not just to hours worked but to well-being, motivation and safe conditions—factors that unmonitored workplaces may neglect. Economically, small businesses might gain cost-efficiency, fostering retail competitiveness. However, precedents in other states caution against prioritising profits over protections. In sum, while the reforms may enhance productivity, their success hinges on embedding safeguards that uphold workers’ rights—striking a balance between growth and justice.
Preetpal Singh Chhina
New labour laws
are innovative
The Law of Innovation is that it invites criticism and resistance from opponents. So, the new labour laws are too innovative and should not succumb to resisting forces. Certainly, in the long run, these laws will prove to be fruitful. This is because of the harsh fact that earlier, more employees were hired in businesses but productivity was not up to the mark because of lack of seriousness amongst employees towards work, especially women. If an entrepreneur hires even a few serious workers, then also higher output can be achieved. Nowadays, the basic factor in increasing productivity depends not upon hiring more number of workers but is directly proportionate to serious and efficient workers in businesses. So, I welcome the new labour laws and hope that all small businessmen will benefit from it in near future.
Sanjay Chawla
Amended labour
laws entail risks
The amended labour laws may offer flexibility to small businesses, but they also open the doors to serious risks. Removing inspection oversight could weaken enforcement of labour protections, thereby increasing the likelihood of overwork, underpayment and unsafe working conditions. A major concern is the potential rise in child labour. Without regular inspections, unscrupulous employers may exploit minors, especially in informal sectors where documentation is weak. The allowance of up to 20 workers, without scrutiny, may make it easier to hide such violations. Additionally, while overtime pay is mandated, its enforcement is questionable in the absence of regulatory monitoring. These changes could shift the balance in favour of employer convenience at the cost of workers’ rights and well-being. To ensure real productivity gains, safeguards like digital compliance systems, surprise audits and strong penalties for violations must accompany such reforms.
Jaspreet Singh
Compliance, fair treatment a must
Similar labour laws are already in vogue to protect and ensure job safety and exploitation from the employers. Various amendments have been brought in. Labour laws are meant to give minimum wages and provident fund benefit etc to the unskilled, unorganised groups of labour. But the moot question is the transparent implementation of the existing labour laws by the authorities concerned. It is an open secret that small enterprises and business houses never register their entities and do not comply with record maintenance and camouflage on actual staff employed on roll to evade regular checks and inspection by the authorities to avoid even provident fund deposit to the Central office. Though the move of the Punjab government is in the right direction, implementation and compliance is must to ensure fair treatment and exploitation at the hands of employers.
Anil Vinayak
Challenge for workers’ rights
The recent amendments by the Punjab Government to labour laws, allowing shopkeepers to employ up to 20 workers without the fear of routine inspections, aim to promote ease of doing business, particularly for small enterprises. Coupled with defined working hours of nine hours (including lunch and tea-breaks) and mandatory double wages for overtime, the move is intended to encourage productivity and flexibility in small businesses. From a business perspective, the relaxed inspection norms may reduce bureaucratic interference and offer a sense of autonomy to small shop owners, potentially helping them grow and formalise their workforce. This could translate into better service efficiency and perhaps more employment opportunities. However, the lack of regular inspections raises concerns about the enforcement of workers’ rights. In the absence of oversight, there’s a risk that the set working hours or overtime provisions might not be properly followed, especially in the unorganised retail sector. Employee welfare could be compromised unless mechanisms for grievance redressal and surprise checks remain active. Ultimately, while the policy may boost productivity and ease of doing business for owners in the short run, its long-term fruitfulness will depend on how well the rights of workers are protected and whether compliance mechanisms remain effective despite reduced inspections. Balance and accountability will be the key.
Narinder Singh
Monitor their impact
The recent amendment to labour laws by the Punjab Government, aimed at granting shopkeepers the freedom to employ up to 20 workers without fear of inspections, has sparked interest among small business owners and stakeholders. The new regulations also specify working hours for shops at nine hours, including breaks, with overtime pay mandated at double the regular rate for additional hours. Proponents of the amendment claim that it will increase employee productivity in small businesses, enabling them to compete more effectively in the market. By reducing the regulatory burden, small businesses can focus on growth and development, potentially leading to increased employment opportunities and economic activity. However, concerns have been raised about the potential impact on workers’ rights and working conditions. Will the amended laws ensure fair treatment and protection for employees, or will they lead to exploitation? As the amended labour laws come into effect, it will be crucial to monitor their impact on small businesses and workers. If implemented effectively, these laws could indeed prove fruitful in boosting employee productivity and promoting economic growth. I look forward to seeing how these changes play out and their effects on the state’s economy.
Gurnam Singh Boparai
Will help enhance employee earnings
This is aimed at reducing compliance burden on small businesses and enhancing the ease of doing business in the state. Under this amendment, all establishments employing up to 20 workers will be exempted from all provisions of the Act. It will cover 95 per cent of shops and commercial establishments in the state. Although, its success is yet to be seen, the amendment will enhance employee earnings, as the permissible overtime in a quarter has been increased from 50 hours to 144 hours.
Sanjeev Behal
Grace period provision is good
Small shopkeepers usually do not have permanent staff as the daily wage labour keeps changing. Inspections made them prone to harassment and registration process caused delays. To prevent this and allow time for compliance, a three-month grace period will be provided between the first and second offences. This may be a good step and will ease business for small shop owners.
Lalit Sharma
What’s the issue?
The Cabinet recenty approved an amendment to the Punjab Shops and Commercial Establishments Act, 1958, aimed at the ease of doing business in the state. Under the amendment, shopkeepers are completely freed from the “Inspector Raj”. All establishments employing up to 20 workers will be exempted from inspections. The registration work under the law will now be applicable for shops employing over 20 persons.
Question for next week
Adequate arrangements such as shady trees along roads, ample green cover, potable water points, shelter homes sand public gardens are essential to combat the rising mercury in Amritsar. The district administration must play its role sincerely, and voluntary organisations need to extend their support to meet the growing challenges. Are they rising to the occasion?
Suggestions in not more than 150 words can be sent to amritsardesk@tribunemail.com by Thursday (June 19)
Amritsar