Puducherry eases Shops and Establishments Act compliance

The Government of Puducherry has recently notified significant relaxations under the Puducherry Shops and Establishments Act, 1964, aimed at lightening the compliance burden for employers. The notification exempts all shops and establishments with fewer than 50 workers from the provisions of the act altogether. For establishments employing 50 or more workers, specific relaxations have been introduced around working hours and rest intervals, giving larger businesses more operational leeway while still retaining safeguards for employees.

The relaxations, however, are carefully balanced with clear limits. No employee may be made to work more than 12 hours in a day or 48 hours in a week, with overtime wages applicable beyond these thresholds. Overtime is capped at 180 hours per quarter, ensuring that extended working hours remain an exception rather than the norm. Additionally, employees must be provided with two rest intervals of 30 minutes each during the working day, with a break available after every four hours of continuous work.

For employers, the practical impact of this notification is two-fold. Smaller establishments, now exempt from the act, gain immediate relief from statutory record-keeping and compliance processes, allowing them to focus squarely on day-to-day business operations. Larger employers benefit from greater flexibility in managing shifts and schedules but must remain vigilant in monitoring attendance and payroll. Robust systems for tracking daily hours, weekly limits, and quarterly overtime will be essential to ensure that flexibility does not inadvertently lead to breaches during inspections or audits.

By combining relaxation with accountability, Puducherry has created a model that reduces compliance friction for smaller employers while giving larger businesses the space to adapt working arrangements without undermining employee welfare.