Amendment to Haryana Shops and Commercial Establishments Act: Navigating Key Changes
Introduction
On 05 February 2026, the Government of Haryana notified the Haryana Shops and Commercial Establishments (Amendment) Act, 2025 (“Amendment”) amending the Haryana Shops and Commercial Establishments Act, 1958 (“Haryana S&E Act”).
The Amendment inter alia introduces thresholds for applicability of the Haryana S&E Act, increased working hours and overtime limits and revised penalties, thereby leading to a progressive shift in the legislation governing shops and establishments in the State of Haryana.
Key Changes introduced by the Amendment
- Threshold based applicability
The Haryana S&E Act was earlier applicable to all the shops and commercial establishments, irrespective of the number of workers engaged by an employer. However, by virtue of this Amendment, the Haryana S&E Act will now only apply to shops and commercial establishments employing 20 or more workers, thereby requiring the employer to submit an application online to the Inspector with the prescribed fees, documents and information and obtain a registration certificate.
Moreover, pursuant to the Amendment, employers of shops and commercial establishments in the State of Haryana, employing less than 20 workers are now only required to give an online intimation in the prescribed form of commencement of their business to the Inspector within one month from the date of such commencement.
The online registration certificate or intimation, as the case may be, shall now be valid until it is amended or cancelled upon closing of the establishment or revoked by the Inspector, in the manner prescribed under the Haryana S&E Act.
- Hours of Work
The Amendment has also revised the working hours and the overtime thresholds for workers, as follows:
| Provision | Limits prior to Amendment | Revised limits pursuant to Amendment |
| Daily Working Hours (Section 7) | 9 Hours | 10 Hours |
| Continuous Number of Hours of Work for a Mandatory Break (i.e., 30 Minutes) (Section 8) | 5 Hours | 6 Hours |
| Overtime Hours in a Quarter (Section 7) | 50 Hours / Quarter | 156 hours / Quarter |
- Mandatory Appointment Letter
Pursuant to the Amendment, every establishment employing 20 or more workers is required to furnish to all his employees with a letter of appointment, having affixed the photograph of the employee and obtain an acknowledgement thereto.
- Increased Penalties
The Amendment has revised the penalties under the Haryana S&E Act, as follows:
| Provision | Penalties prior to Amendment | Revised penalties pursuant to Amendment |
| Failure to maintain registers, records and exhibit notices (Section 20) | INR 5 per day | INR 500 per day |
| Inspection of Registers and calling for information (Section 21) | Upto INR 200 | Upto INR 10,000 |
| General Penalty (Section 26) | Upto INR 100 (First Offence); and INR 300 (Second Offence) Additional INR 100 per day (Continuous Subsequent Offence) | INR 3,000 to INR 10,000 (First Offence); and INR 5,000 to INR 25,000 (Second Offence) Additional INR 500 per day (Continuous Subsequent Offence) |
Our Thoughts
The Amendment represents a significant pivot toward “Ease of Doing Business” in the State. By introducing a 20-worker threshold for applicability, the government has effectively exempted smaller businesses from a previously universal compliance burden. The amended Haryana S&E Act also aligns with the Shops and Establishment Acts of other States such as Punjab, Gujarat and Maharashtra.
In furtherance to the Amendment, it would be prudent that employers in the State of Haryana review their compliance practices so as to align with the amended provisions and avoid facing any potential penalties from being imposed.
It is however significant to note that, the provisions of the amended Haryana S&E Act, such as the working hour limits, may be in conflict with the central legislation set out under the Labour Codes, which came into effect on 21 November 2025. Given the fact that the Labour Codes, do not repeal the Shops and Establishment legislations in any State, in case of any conflict between the Central legislation (i.e. the Labour Codes) and the State legislation (i.e., Haryana S&E Act), under the Indian Constitutional framework the provisions of the Central legislation would prevail.
The information contained in this document is not legal advice or legal opinion. The contents recorded in the said document are for informational purposes only and should not be used for commercial purposes. Acuity Law LLP disclaims all liability to any person for any loss or damage caused by errors or omissions, whether arising from negligence, accident, or any other cause.
