Shop and Establishment Act and employment Law

The Shop and Establishment Act governs the state's active shops and commercial establishments. The Shop and Establishment Act (the "Act") is unique to each state. The Act's general requirements, however, apply to all 50 states equally. The Shop and Establishment Act is put into effect by the labor departments of the individual states.

According to the Act, a shop is commonly defined as a place where items are sold, either retail or wholesale, or where consumers get services. As part of the trade or business, it also comprises offices, go-downs, storerooms, and warehouses.

Generally speaking, a commercial establishment is any business, financial institution, trading company, insurance agency, or office-based service. Hotels, boarding houses, restaurants, cafes, theatres, and other public entertainment and amusement facilities are included. However, the Factories Act of 1948 and the Industries (Development and Regulation) Act of 1951 regulate factories and industries, which are not covered by the Act.

The shops and businesses covered by the Act are obligated to submit an application for registration under the applicable state Act. A Shop and Establishment Registration Certificate or Shop Licence ("Certificate") is required by the Act for all businesses and establishments, including those run entirely from home.

The Act, among other things, regulates the following matters-

• Hours of work, annual leave, weekly holidays.
• Payment of wages and compensation.
• Prohibition of employment of children.
• Prohibition of employing women and young persons on the night shift.
• Enforcement and Inspection.
• Interval for rest.
• Opening and closing hours.
• Record keeping by the employers.
• Dismissal provisions.