Shop and Establishment Act

Shop and Establishment Act is to provide statutory obligation and rights to employees and employers in the unorganised sector of employment, i.e., shops and establishments.

Scope And Coverage

  • A state legislation; each state has framed its own rules for the Act.
  • Applicable to all persons employed in an establishment with or without wages, except the members of the employer's family.
  • State government can exempt, either permanently or for a specified period, any establishments from all or any provisions of this Act.

Main Provisions

  • Compulsory registration of shop/establishment within thirty days of commencement of work.
  • Communications of closure of the establishment within 15 days from the closing of the establishment.
  • Lays down the hours of work per day and week.
  • Lays down guidelines for spread-over, rest interval, opening and closing hours, closed days, national and religious holidays, and overtime work.
  • Rules for employment of children, young persons and women
  • Rules for annual leave, maternity leave, sickness and casual leave, etc.
  • Rules for employment and termination of service.
  • Maintenance of registers and records and display of notices.
  • Obligations of employers.
  • Obligations of employees.


When To Consult And Refer

  • At the time of start of an enterprise.
  • When framing personnel policies and rules


Shops & Establishment Act is a State Act & therefore please go through the State specific Shops & Establishment Rules for getting knowledge on registration and maintenance of different registers.

Please check State Specific Guidelines and Procedure