Shop and Establishment
KAPG & Associates

The Shop and Establishment Act is a legislation in India that regulates the working conditions and rights of employees in shops and commercial establishments. Each state has its own version of the act, which governs various aspects of labor laws related to shops, commercial establishments, and certain other businesses. The primary objective of this act is to ensure the welfare of employees and promote fair working conditions.

image
icon png

Who Needs to Register?

The act applies to a variety of establishments, including:

  • Retail shops

  • Restaurants and cafes

  • Hotels

  • Warehouses

  • Service providers (salons, repair shops, etc.)

  • Other commercial establishments

icon png

Importance of Shop and Establishment Registration

Legal Compliance: Registration under the Shop and Establishment Act is mandatory for operating a shop or establishment, ensuring adherence to local labor laws.

Employee Rights: The act outlines rights related to working hours, holidays, wages, and other employment conditions, protecting employees from exploitation.
Access to Government Schemes: Registered businesses may be eligible for various government schemes, benefits, and subsidies aimed at promoting entrepreneurship and labor welfare.
Business Credibility: Having a registration enhances the credibility of the business and instills confidence among customers and employees.

icon png

Key Provisions of the Act

The Shop and Establishment Act typically covers the following aspects:
Working Hours: Regulation of daily and weekly working hours, including provisions for overtime.

Holidays: Mandatory holidays, including weekly off days and festival holidays.
Leave Entitlements: Provisions for paid leave, sick leave, and casual leave.
Wages: Guidelines for payment of wages and overtime compensation.
Working Conditions: Standards for safety, health, and hygiene in the workplace.
Termination and Notice: Rules regarding termination of employment, notice periods, and severance.