The intention of the Shops and Establishment Act is to regulate the work conditions of the employees. Each State Government has enacted Shops and Establishment Act specific to its state.

The Act primarily lists rules for opening and closing hours of work, working hours per day and week, rest interval, overtime work, national and state holidays, sick leave, casual leave, maternity leave, maintenance of registers, minimum age of employment, employment and termination from service, display of notices and other obligations of employers and rights of employees.

The Shops and Establishment Act is applicable to shops, commercial establishments, restaurants, hotels, theatres, public amusement parks etc.

It is mandatory that every such business that comes under the coverage of the Act must within 30 days of commencement of business apply and get the Shops and Establishment License.

The Department of Labour requires the employers to maintain registers pertaining to employment benefits, salary, deductions, holidays given to employees etc. The compliance requirements may vary from state to state.

Details needed for applying for the Shops and Establishment License
  • PAN card/identity and address proofs of sole proprietor/partners/directors as applicable.
  • Details of all the employees.
  • Copy of rental/lease agreement if place of business is rented or leased.

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