Every business needs a physical space to set up their infrastructure and hire employees to undertake business operations. The Shops and Establishments Act plays an important role in safeguarding the interests of employees and employers in a small and medium business setting.

Purview of the Shops & Establishments Act

Within this Act, any business that is involved in selling goods and services to customers out of a commercial office space is liable to register. The different commercial establishments that fall within the purview of this Act are:

• A commercial, banking, trading or insurance establishment
• An establishment or administrative service in which persons are employed or mainly engaged in office work
• A restaurant, hotel, boarding or eating house, a cafe or any other refreshment house
• A cinema, theatre or any other place of public entertainment or amusement

Provisions of the Act

The Act lays down the following provisions: 

1. Employee working hours per day and per week
2. Guidelines for spread-over, rest interval, opening and closing hours closed days and national and religious holidays, overtime work
3. Employment of children, young persons and women
4. Rules for annual leave, maternity leave, sickness and casual leave
5. Rules for employment and termination of Service
6. Obligation of employers
7. Obligation of employees 

It is important to note that the State Government can exempt, either permanently or for specified period, any establishments from all or any provisions of this Act. 

In India, different states have differing laws within this Act:

New Delhi, Delhi

The complete information on the Shops and Establishments Act applicable to the state of New Delhi can be found on the Delhi Government’s website.

Mumbai, Maharashtra:

The Bombay Shops & Establishments Act of 1948, which is applicable to the whole state of Maharashtra, is available on this link.

Kolkata, West Bengal

The information on the Shops and Establishment Act applicable to the state of West Bengal can be found on this link.

Chennai, Tamil Nadu

The complete information on the Shops and Establishment Act applicable to the state of Tamil Nadu can be found here.  

Bengaluru, Karnataka

The information about the Shops & Establishment Act applicable to the state of Karnataka can be found here.