Haryana overhauls Shops & Establishments framework: Wider coverage, longer hours, stricter compliance

The Haryana Government has introduced a substantial overhaul of the Haryana Shops and Commercial Establishments Act, 1958 through its Amendment Ordinance issued on 11 November 2025. This is not a routine update it marks a clear push by the State towards a far more organised, digital and compliance-driven regulatory environment for businesses operating in its territory.

One of the biggest shifts comes from the new applicability structure. A freshly inserted Section 1(5) divides establishments by size: those with 20 or more workers are now governed by the full Act, while smaller establishments are covered only by a newly introduced Section 13A, which requires a simple online intimation. This is a major policy movement away from a one-size-fits-all model. Smaller units receive a lighter, more practical compliance pathway, while larger establishments will be expected to meet higher operational and documentation standards.

The Ordinance also revisits working-hour norms for the first time in years. The daily limit has been raised from nine to ten hours, and the overall spread-over cap has increased dramatically from 50 hours to 156 hours giving employers significantly more room to design practical shifts. Rest intervals have similarly been eased, with the minimum break now required after six hours instead of five. These changes respond to an industry-wide need for more operational flexibility, especially in sectors where customer-facing or shift-based work is routine.

A complete substitution of Section 13 ushers in a fully digital, time-bound registration system. Establishments with 20 or more workers must apply online within one month of commencement and provide details such as GPS location, managerial information, workforce size and business type. Inspectors must then issue the registration within the strict timelines under the Haryana Right to Service Act, 2014. Any changes must be intimated within seven days, and closure must be reported within thirty. Non-compliance will now draw significantly higher penalties starting at ₹3,000 and going up to ₹25,000 for repeated offences plus ₹500 per day for continuing violations.

For smaller establishments, the new Section 13A is a relief. Instead of full registration, these businesses simply need to submit an online intimation and will receive a Basic Information Performa ID Number. This acknowledges that not all establishments have the same compliance bandwidth, while still ensuring the State maintains a complete digital registry.

Several other important updates modernise enforcement. Section 19 now references the Bharatiya Nyaya Sanhita, 2023, updating terminology by replacing outdated references to the IPC. Section 20 strengthens penalties for inaccurate registers or false entries, and newly inserted Sections 20A and 20B require all employees to receive formal appointment letters with photographs, as well as identity cards a move that aligns Haryana with national efforts toward workforce formalisation.

Finally, an entirely new Section 26 revamps the general penalty framework for violations without specified penalties. The fines ₹3,000 for a first offence and up to ₹25,000 for subsequent ones underscore the State’s emphasis on compliance discipline and timely corrective action.

For employers, these changes are far from cosmetic. They require HR, operations and compliance teams to revisit foundational aspects of business functioning: working hours, documentation, registration workflows, on boarding, appointment letters, record-keeping and digital filings. Larger businesses, in particular, will now be operating in a significantly more structured and closely monitored environment. Smaller units benefit from reduced compliance load but must still maintain accurate digital information.

Overall, the Ordinance signals Haryana’s clear intention to transition toward a governance model that is modern, digital-first, and firmly enforcement-oriented. Employers who act early by tightening processes, updating documentation, digitising compliance records, and training teams will find the transition far smoother and avoid penalties. Those who delay may find the new regime far less forgiving.