Shops and Establishment is to provide for the regulation of conditions of work and employment in shops and commercial establishments. By this law it is intended to promote industrial peace and welfare of the employees. The Department of Labour in the state level is administering this law.

A Shop shall mean any premises where any trade or business is carried on or where services are rendered to customers, and includes offices, storerooms, go downs, or warehouses, whether in the same premises or otherwise, used in connection with such trade or business, but does not include a shop attached to a factory where the persons employed in the shop fall within the scope of the Factories Act, 1948

A Commercial Establishment shall mean a commercial or trading or banking or insurance establishment, an establishment or administrative service in which person employed are mainly engaged in office work, a hotel, restaurant, boarding or eating house, a café or any other refreshment house, a theatre or any other place of public amusement or entertainment and includes such establishments as the State government may by notification declare to be a commercial establishment for the purpose of this Act.

By this the department of Labour regulate the working hours, opening and closing hours, holidays, overtime work, young person and women, prohibiting the employment of children, leave such as annual leave, maternity leave, casual leave etc. rule relating to employment and termination, maintaining the registers and records, display of notices, obligation of employer and employee etc.


Who Require Registration.

Within 30 days from the date of commencement of work the employer of every establishment shall register under this act and in case of closure, the same has to be communicated to the authorities within 15 days from the closing of the establishment.

What is The Registration Process

The applicant have to submit duly filled application along with the relevant information/documents & applicable filing fee to the labour department having jurisdiction. In most states the registration process is online. On receipt of the application and the fees, the Inspector shall, on being satisfied about the correctness of the statement, registrar shall issue a registration certificate to the employer. The registration certificate shall be prominently displayed in the establishment. 

Documents Required

  • Address proof for the establishment or shop - rent or lease agreement
  • Identity Proof of the authorised signatory
  • Constitution Documents of the entitiy.
  • Photograph of the applicant

Compliance Requirements

  • The registration certificate shall be prominently displayed at the establishment and shall be renewed at such intervals as may be prescribed.
  • All establishments shall exibit the name Board in Local language and and can use any other language in addition.
  • Every employer shall send a combined annual return on or before 31st of January of every year.

Register & Records to be maintained

The employer is liable to maintain certain records and registers in the shop or establishment.The importent registers to be maintained under the rules are:

  • Register of leave with wages
  • Muster Roll-cum-Register of Wages
  • Visit book in which an Inspector visiting the establishment may record his remarks
  • Appointment order.

What all are the restriction of employment of children and women?

There is restriction on employment of Child or women in an enterprise. No child shall be allowed to work in an establishment. No woman, or a young person (person aged between 14-18 years), is allowed to work at night times. Employer seeking to engage women employees during night shift shall make an application to the appropriate authority and obtain permission for the same.

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