Shop and Establishment Act In India

Shop and Establishment Act is the important regulation to which most businesses in India are subjected enacted by every state in India.

The Act is designed to regulate payment of wages, hours of work, leave, holidays, terms of service and other work conditions of people employed in shop and commercial establishments as listed below.

  • Hours of work
  • Interval for rest and meals
  • Prohibition of employment of children
  • Employment of young person or women
  • Lighting and ventilation
  • Precautions against fire
  • Record keeping
  • Opening and closing hours
  • Weekly holidays
  • Wages for holidays
  • Leave policy
  • Cleanliness

Premises Regulated by the Shop & Establishment Act

The Shop and Establishment Act in India is promulgated by the state and may slight differ from state to state. However, as per the Act, all shops and commercial establishments operating within each state are covered by the respective Shop & Establishments Act. Shops are defined as premises where goods are sold either by retail or wholesale or where services are rendered to customers, and includes an office, a store-room, godown, warehouse or workhouse or work place. Establishments are defined as shop, a commercial establishment, residential hotel, restaurant, eating-house, theatre or other places of public amusement or entertainment. Further, establishments as defined by the act may also include such other establishments as defined by the Government.