Shops and Establishment Act,1953 – Brief Notes

The Department of labour regulates the Shops and Establishment Act. As it is promulgated by the state it differs from state to state. This act regulates the working of commercial establishments, charitable trusts, societies, printing establishments, educational institutions that are established for making a profit, premises where banking, stock or share brokerage, insurance is carried on. It also regulates time and conditions of payment, weekly holidays, wages for holidays, working hours, rest intervals, opening and closing hours, deductions from wages, leave policy etc.

Any shop or commercial establishment that has commenced operation must apply for a license to the Chief Inspector. Once the Chief Inspector is satisfied that all the requirements are complied with in the application, he will grant the certificate of registration to the occupier.

The certificate has to be renewed periodically and must be displayed in the Shop or Establishment. On the closure of the Shop or Commercial establishment, the occupier has to notify the Chief Inspector within 15 days and after reviewing of the request the name of the establishment shall be removed from the register and the certificate shall be cancelled.

  • Every State enacts a Shop and commercial establishment legislation and there are variations in the specifications of each Act.
  • The Act governs a varied range of aspects of business such as opening, working and closing hours, holidays, T&C of wages, structural regulations, fire precautions, maternity leave, overtime etc.
  • Department of Labour regulates the Act and it is extended from shops that engage in the sale of goods, retail or wholesale or in providing services to customers to charitable organizations, hotels, restaurants, entertainment venues etc.
  • Shops and establishments need to be registered within a specified duration of opening such as 30 days fixed by Karnataka.
  • A child under 14 cannot be employed while women cannot work during the night