Shop And Establishment Act Simplified


Posted by on November 22, 2016

The Shop and Establishment Act is a state Legislation under which each state has to frame its own rules. The main objective of this Act is to cover working hours per day and per week, opening & closing hours, holidays, over time, leave entitlement, employment of women and children and rules for employment and termination.

The Act lists down the Forms and the formalities that the companies need to follow. These forms cover the following

  • License/Registration under the Act
  • Renewal of Registration Certificate
  • Changes in information
  • Closure of Business or establishment

The actual name of the forms and their applicability vary from state to state.

In order to ensure enforcement of these rules, inspectors are authorized to visit these establishments to detect and report breaches of these rules. The inspectors have been given authority to launch prosecutions of the defaulters in accordance with the Act.

Some of the Major breaches include:

  • Non-Registration
  • Non-Renewal
  • Nonconformance to the operating hours
  • Not granting leaves as per the act
  • Making employees work on Holidays or not giving day-offs
  • Not paying wages under the Minimum Wages Act
  • Employing females after work hours
  • Employee Child labour
  • Continuous work without proper break

Some of the Minor breaches related to procedural lapses include:

  • Failure to maintain registers (leave register, washing register, register of employment in prescribed format, muster roll in prescribed format).
  • Failure to display notices


Maintenance of Registers under the act

Following is the list of registers that are required to be maintained under the Act. The name of the registers and applicability might vary from state to state.

  • Register of Employment
  • Register of Leave
  • Leave Book
  • Notice specifying the days of Holidays
  • Muster Roll
  • Wage Register
  • Lime Washing Register

In addition to the above the act lays down the following:

  • Powers and duties of Inspectors
  • Consequences of non-compliance or breach under the Act
  • Penalty for obstructing Inspector
  • Safety Guidelines
  • Deductions allowed in the Wages
  • Claims related to the wages
  • Wages for Holidays



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