Statutory Compliance made easy

Register for Shop and Establishments | Shop License in India

The Shops & Establishment Act

Introduction

This act was passed to

  • Regulate the conditions of work
  • Provide for statutory obligations of the employers
  • Administer the rights of employees in the unorganized sector and other establishments in their jurisdiction.

Applicability

The Shop and Establishment Act was enacted by the Government to cover unorganized sectors like the shops, residential hotels, eating houses, restaurants, commercial establishments and others. It is a state enactment and hence there are different Shop and Establishment Act(s) applicable to different States and Union Territories.

The exceptions vary in the States and each State has given a list of shops and establishments act that come into the Act, and who require the registrations under the Act to run their business in the State.

Commercial Establishment covers the following:

  • Goods are sold, either by retail, wholesale
  • Services rendered to customers. This could include an office, a store-room, godown, warehouse or work place, whether in the same premises or otherwise, used in connection with such trade/ business.

A shop however does not include a factory or a commercial establishment.

Provisions

This Act covers the following:

  • Working hours per day and week
  • Guidelines for spread-over, rest interval, opening and closing hours, closed days, national and religious holidays, overtime work
  • Employment of children, young persons and women
  • Annual leave, maternity leave, sickness and casual leave
  • Employment and termination of service
  • Maintenance of registers and records and display of notices
  • Obligations of employers as well as employees