Chandigarh Shops & Establishments Amendment 2026: Working Hours Increased to 10 Hours | Complete Compliance Guide for Employers

The Chandigarh Administration has introduced a key amendment under the Punjab Shops & Commercial Establishments Act, 1958, bringing important changes to working hours, spread-over limits, and overtime provisions.

This amendment reflects a shift towards operational flexibility, while maintaining the core principle of employee protection and statutory compliance.

🔍 Key Changes Introduced

✅ Working Hours

Employees can now work up to 10 hours per day, subject to a maximum of 48 hours per week.

✅ Spread Over

The total working period, including rest intervals, has been increased to 12 hours per day.

✅ Overtime Limit

The permissible overtime has been enhanced to 144 hours per quarter, providing greater flexibility during peak business periods.

⚖️ What This Means for Employers

From a business standpoint, this amendment enables organisations to structure operations more efficiently, especially in sectors such as retail, IT services, logistics, and commercial establishments with extended working hours.

However, with increased flexibility comes heightened compliance responsibility.

📌 Key Compliance Considerations

Employers are advised to take the following steps:

• Ensure weekly working hours remain within 48 hours

• Pay overtime strictly as per statutory provisions (double wages)

• Maintain accurate attendance, wage, and overtime records

• Structure shifts carefully within the 12-hour spread-over limit

• Ensure compliance with weekly off and rest interval provisions

🚨 Areas Requiring Attention

While the amendment is beneficial, non-compliance risks may arise in the following areas:

• Excess working hours without proper overtime payment

• Inadequate documentation or registers

• Misinterpretation of spread-over vs working hours

• Lack of internal policy alignment

📊 Summary Snapshot

💼 PCS Advisory – Practical Approach

From a compliance and audit perspective, organisations should treat this amendment not merely as a relaxation, but as an opportunity to strengthen internal systems.

A structured approach would include:

• Updating HR policies and employment contracts

• Aligning attendance and payroll systems

• Conducting internal compliance audits

This will ensure that flexibility is utilised without exposing the organisation to regulatory risks.

🔚 Conclusion

The Chandigarh amendment is a progressive step towards modernising labour regulations. While it supports business needs, its success depends on disciplined implementation and proper compliance management.

Organisations that proactively adapt will not only benefit operationally but will also remain inspection-ready and legally secure.