REGULATORY HANDBOOK

THE SHOPS AND ESTABLISHMENT ACT

(Covering 35 States & Union Territories)

SCOPE . OBJECTIVES . REGISTRATION PROCESS . KEY DEFINITIONS . SELF CERTIFICATION SCHEME

Akshit Rai

Published on: Aug 17, 2020

Updated on: May 12, 2025

★★★★★(163 Ratings)

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INTRODUCTION

The Shop and Establishment (S&E) Act is applicable on all the commercial establishments; viz, business centres, offices, warehouses, stores, hotels, eateries, amusement parks, theatres, etc, nationwide. It is one of the most important regulations required to be complied with for any business.

OBJECTIVE

S&E Act is designated to protect the rights of employees by defining uniform benefits to the employees; irrespective of the industry and type of establishment he / she is employed with.
Designed to regulate the payment of wages, terms of service, holidays, leaves, work conditions, hours of work, overtime work, maternity leave and benefits, rules for employment of children.

SCOPE

S&E Act is governed by the Labour Department and regulates premises wherein any trade, business or profession is carried out.
Most businesses in India are regulated by the S&E Act.
Every State & UT has its separate Act and regulations.
It regulates the working of Shops, Commercial establishments, and even residential premises running for business gain.
S&E act regulates the following areas:
- Working hours, overtime, leave policy
- Rest interval for employees
- Opening and closing hours
- Closed days, national and religious holidays
- Annual, maternity, sickness, and casual leave
- Time and conditions of payment of wages
- Deductions from wages
- Dismissal of employment
- Cleanliness, Lighting and ventilation
- Precautions against fire
- Accidents reporting and Record keeping
- Maintain various Registers
- Display of notices/certificate
- Rules for the employment of children

KEY DEFINITIONS

“Shop”: Shop means any premises where goods are sold, either by retail, wholesale, or services are rendered to customers. It includes an office, a store-room, godown, warehouse, or workplace, whether on the same premises or otherwise, used in connection with such trade/ business. A shop however does not include a factory or a commercial establishment.
“Commercial Establishment”: Commercial establishment means a premise where any trade, business, profession or any work is undertaken, which may include society, charitable or another trust, journalistic and printing establishments, contractors and auditors establishments, educational institutes, premises where the business of banking, insurance stocks, and shares, the brokerage is undertaken, restaurants and eating houses, residential hotels, clubs, theatres and other places of public amusement or entertainment.

REGISTRATION OF SHOP AND ESTABLISHMENT

As each state in India has its own Shop Act and follows separate regulations. The process, fee structure, documentation may be different depending on the State regulations.
On starting a Shop or Establishment, one needs to apply for Shop Act Registration within the stipulated period set by State regulations.
Application is to be submitted to the Chief Inspector in the prescribed Form according to the state regulations, containing following details:
- Name of the employer
- Name, address, and category of the establishment
- The Number of employees
- Other relevant detail as required
- The fee is calculated as per the number of employees.
The Labour Department of each state has the authority for the registration process. Many States have a 100% online process, while some states are still following the manual procedure for filing.
The Registration certificate is required to be renewed periodically as mentioned in the state regulations.

DOCUMENTS FOR REGISTRATION

While every state has its specific requirement, following set of documents are usually required across every state for seeking registration under S&E Act:

Photo of Premises displaying name on board of shop / establishment
Incorporation Certificate of Company / LLP
List of Directors or Partners with ID & Address proof
Partnership Deed in case of Partnership Firm
Copy of PAN Card or Aadhar Card
Address proof like an Electricity Bill of premises
Government prescribed fees

AMENDMENT OF REGISTRATION CERTIFICATE

In case of change in following scenarios, an application for amendment of the registration has to be submitted to the concerned officer within timeline prescribed as per state act:

Name and address of the establishment
Nature of business
Director, Employer, Partner
Number of employees

The fresh certificate is issued post cancellation of the existing certificate.

CLOSURE OF SHOP OR ESTABLISHMENT

Due to any reason, if shop or establishment gets closed, the occupier must intimate the concerned Chief Inspector in writing within 15 days of the closure; who shall cancel the registration and remove it from the register.

BENEFITS OF REGISTRATION

Proof of legal entity: Registration is a proof of legal entity and allows to conduct business within limits of the particular state.
Business Bank Account: The proof as a legal entity helps in opening a business bank account.
Smooth Inspections: it helps to smoothen the Inspection process whenever the Inspector visits the premises.
Benefit under various schemes of Central & State Governments

SELF CERTIFICATION SCHEME (EASE OF DOING BUSINESS)

Many State Governments have implemented a Voluntary Compliance / Self - Certification scheme to save employers from difficulties due to a plethora of labour laws, registers, and returns.
The entrepreneur / employers are free to join the scheme anytime.
They are motivated to comply with labour laws with self-inspiration without compromising with labourers' health, safety and social security.
If registered under the scheme, sets of labour laws will be automatically covered and benefits can be availed under such laws including:
- Minimum Wages Act, 1948 & respective State Rules
- Payment of Wages Act, 1936 & respective State Rules
- Contract Labour (Regulation & Abolition) Act, 1970 & State Rules
- Payment of Bonus Act, 1956 & respective State Rules
- Payment of Gratuity Act, 1972 & respective State Rules
- Maternity Benefit Act, 1961 & respective State Rules
- Equal Remuneration Act, 1976 & respective State Rules
- Child Labour (Prohibition & Regulation) Act, 1986 & State Rules
- Few more; varied for states
Those joining the scheme are exempted from surprise inspections under various labour laws and in place of multiple registers, one consolidated register is required to be maintained and few annual returns will be filed instead of the number of returns in various labour laws.

PENALTIES

The penalties under the S&E act varies for states and are usually Monetary or Operational and in few cases Imprisonment as well.
While the monetary values are high, but the risk of closure notice always hang under various non compliance.

KEY HIGHLIGHTS - ALL STATES

For easy understanding, we have compiled state wise table covering key aspects of the act applicable in said State / Union Territory. The user may also click on links provided in the table to download copy of the act.

STATE	Applicability for Registration	Registration after Commencement of Business	Opening & Closing Hours of business	Weekly Close Day	Hours of Work for Employees	Leave with Wages	Double Employment	Maintain Registers and Record	Cleaning & Maintenance	Return Filing
DELHI	Mandatory	Within 90 Days	As fixed by Government from time to time	Any one day	48 hours / week & 9 hours in a day	EL: 15 days yearly CL: 12 days yearly SL: 12 days yearly	Restricted	Register of fines, deductions, display of notices	Mandatory	NA
UTTAR PRADESH	Mandatory	Within 90 Days	S: 8 am to 8 pm E: 9 am to 7 pm	Any one day	8 hours in a day	EL: 15 days yearly CL: 10 days yearly SL: 15 days yearly	NA	Register of fines, wages, display of notices	NA	NA
HARYANA	Mandatory	Within 30 Days	As fixed by Government from time to time	Every Sunday	48 hours / week & 9 hours in a day	EL: 1 day on every 20 working days CL : 7 days yearly SL: 7 days yearly	NA	Register of Employees, wages, deductions, Working hours, rest hours, attendance of employees	Mandatory	NA
PUNJAB/CHANDIGARH	Mandatory	Within 30 Days	As fixed by Government from time to time	Every Sunday	48 hours / week & 9 hours in a day	EL: 1 day on every 20 working days CL : 7 days yearly SL: 7 days yearly	NA	Register of Working hours, rest hours, attendance of employees, wages, deductions	Mandatory	NA
HIMACHAL PRADESH	Mandatory	Within 30 Days	As fixed by Government from time to time	Any 1 day	48 hours / week & 9 hours in a day	EL: 1 day for every 12 days of working CL: 7 days yearly SL: 7 days yearly	NA	Register of employees, wages, deductions, leave with wages, display of notices	NA	NA
J&K / LADAKH	Mandatory	Within 30 Days	Time frame set as per the type of Establishment	1 day between Sunday & Friday	48 hours / week & 9 hours in a day	EL: 30 days yearly CL: 14 days yearly SL: Not specified	Restricted	Register of Employees, leave with wages, refusal of leave, lime washing, display of notices	Mandatory	NA
UTTARAKHAND	Required only on 10 or more employees	Within 180 Days	As fixed by Government from time to time	Not Specified	48 hours / week & 9 hours in a day	EL: 1 day for every 20 days of working CL: 8 days yearly SL: No Provision	NA	Not Specified	Mandatory	Annual Return
MAHARASHTRA	Required only on 10 or more employees	Within 60 Days	As fixed by State Government	Any one day	48 hours / week & 9 hours in a day	Calculated as per no. of working days & months of employment	NA	Muster Roll cum Wage Register	Mandatory	Annual Return
GUJARAT	Required only on 10 or more employees	Within 60 Days	As fixed by Government from time to time	Any one day	48 hours / week & 9 hours in a day	EL: 1 day on every 20 working days CL : 7 days yearly SL: 7 days yearly	NA	Muster Roll cum Wage Register	Mandatory	Annual Return
MADHYA PRADESH	Mandatory	Within 30 Days	As fixed by Government from time to time	Any one day	S: 9 hours in a day E: 10 hours in a day	CL: 15 days Yearly and Calculative privilege leave	NA	Register of Employees, leave, refusal of leave, dates of lime-washing	Mandatory	NA
RAJASTHAN	Mandatory	Within 30 Days	As fixed by Government from time to time	Any 1 day	48 hours / week & 9 hours in a day	EL: 1 day for every 12 days of working No provision for SL and CL	NA	Register of employment, working hours, intervals, opening and closing hours, leave with wages	Mandatory	NA
GOA	Mandatory	Within 90 Days	As fixed by Government from time to time	Any 1 day	48 hours / week & 8 hours in a day	EL: 15 days yearly CL: 6 days yearly SL: 9 days yearly	Restricted	Register of employment, wages, advances, fines, deductions for damage or loss caused to the employer by the neglect or default of employees, limewashing	Mandatory	Periodical Returns on having 10 or more employees
DAMAN & DIU / DADRA & NAGAR	Mandatory	Within 90 Days	As fixed by Government from time to time	Any 1 day	48 hours / week & 8 hours in a day	EL: 15 days yearly CL: 6 days yearly SL: 9 days yearly	Restricted	Register of employment, wages, advances leave, advances, fines, deductions for damage or loss caused to the employer by the neglect or default of employees, limewashing	Mandatory	Periodical Returns on having 10 or more employees
KARNATAKA	Mandatory	Within 30 Days	Blr: 6 am to 9 pm Others: 8am - 8 pm	Any one day	48 hours / week & 9 hours in a day	EL: 1 day on every 20 working days SL: 12 days yearly	NA	Muster Roll cum Wage Register, record of leaves with wages	NA	Annual Return
TAMIL NADU	Mandatory	Mandatory	As fixed by Government from time to time	Any 1 day	48 hours / week & 8 hours in a day	EL: 12 days Yearly CL: 12 days yearly SL: 12 days yearly	NA	Register of employment, Deductions for damage or loss	Mandatory	NA
TELANGANA	Mandatory	Within 30 Days	As fixed by Government from time to time	S: Every Sunday E: Any 1 day	48 hours / week & 8 hours in a day	EL: 15 days yearly CL: 12 days yearly SL: 12 days yearly	Restricted	Register of employment, wages, fines, deductions, leave, advances of wage	Mandatory	Periodical Returns on having 10 or more employees
KERALA	Mandatory	Within 60 Days	As fixed by Government from time to time	Every Sunday	48 hours / week & 8 hours in a day	EL: 15 days yearly CL: 12 days yearly SL: 12 days yearly	NA	Register of employment, working hrs, opening and closing hours, holidays and leaves granted	Mandatory	Periodical Returns on having 10 or more employees and Annual welfare Return
ANDHRA PRADESH	Mandatory	Within 30 Days	As fixed by Government from time to time	S: Every Sunday E: Any 1 day	48 hours / week & 8 hours in a day	EL: 15 days yearly CL: 12 days yearly SL: 12 days yearly	Restricted	Register of fines,damage or loss, advances, and Integrated register	Mandatory	Periodical Returns on having 10 or more employees: Combined Return through Integrated Registrationd
PUDDUCHERY	Mandatory	Within 30 Days	S: 6 am to 10 pm E: 8 am - 8 pm	Any 1 day	48 hours / week & 8 hours in a day	EL: 12 days yearly CL: 12 days yearly SL: 12 days yearly	Restricted	Register of fines, damage, loss	Mandatory	NA
WEST BENGAL	Mandatory	Within 30 Days	S: 8 am to 10 pm E: 8 am to 11 pm	Any 1 day following with half day	48 hours / week & 8 hours in a day	EL: 14 days yearly CL: 10 days yearly SL: 14 days yearly	NA	Register of employees, working hours, intervals,leave, pay, overtime	NA	NA
BIHAR	Mandatory	Within 30 Days	8.00 am - 10.00 pm	Any 1 day	48 hours / week & 9 hours in a day	EL: 1 day for every 20 days of working CL: 12 days yearly SL: 12 days yearly	NA	Register of leave with wages, fines, wages	NA	Annual Return
JHARKHAND	Mandatory	Within 30 Days	8.00 am - 9.00 pm	Any 1 day	48 hours / week & 9 hours in a day	EL: 1 day for every 20 days of working CL: 12 days yearly SL: 12 days yearly	NA	Register of leave with wages, fines, wages	Mandatory	Periodical Returns on having 10 or more employees
ASSAM	Mandatory	Within 30 Days	As fixed by Government from time to time	Any 1 day	48 hours / week & 8 hours in a day	EL: 16 days yearly CL: 12 days yearly SL: 12 days yearly	Restricted	Register of working hors, rest hours, overtime, employment, leave, lime washing	Mandatory	NA
ODISHA	Mandatory	Within 30 Days	As fixed by Government from time to time	Any 1 day	48 hours / week & 9 hours in a day	EL: 1 day for every 20 days of working CL: Not specified SL: 15 days yearly	NA	Combined Register of overtime, working and payment, muster roll	Mandatory	Annual Return
CHHATISGARH	Mandatory	Within 6 Months	As fixed by Government from time to time	Any one day	48 hours / week & 9 hours in a day	CL: 8 days Yearly and Calculative privilege leave	NA	Attendance Register, Wage Resgister, Leave Register	Mandatory	Annual Return
ANDAMAN & NICOBAR	Mandatory	Within 30 Days	As fixed by Government from time to time	Any 1 day	48 hours / week & 9 hours in a day	EL: 15 days yearly CL: 12 days yearly SL: 12 days yearly	NA	Register of Compensatory Holiday, wages, overtime, leave, muster-roll, wage slip, employees	NA	NA
MANIPUR	Mandatory	Within 30 Days	Time frame set month wise	Any 1 day	48 hours / week & 9 hours in a day	EL and SL 30-30 days after 12 months of service CL: 12 days yearly	NA	Register of, wages, fines and deductions, leave with wages, attendance, overtime and account of wages	Mandatory	Annual Return
MEGHALAYA	Mandatory	Within 30 Days	As fixed by Government from time to time	Any 1 day	8 hours in a day	EL:16 days after 12 months of service CL: 12 days yearly SL:12 days yearly	Restricted	Register of working hours, intervals, overtime, payment of overtime, limewashing, painting, etc., leave with wages	Mandatory	NA
MIZORAM	Mandatory	Within 30 Days	Not Specified	Any 1 day	Not Specified	Number of Leaves not specified	Restricted	Register of employment, leave with wages, overtime work and overtime wages, working hours, intervals, limewashing, painting, etc.	Mandatory	NA
NAGALAND	Mandatory	Within 30 Days	As fixed by Government from time to time	Any 1 day	48 hours / week & 8 hours in a day	EL:16 days after 12 months of service CL: 12 days yearly SL:12 days yearly	NA	Register of working hours, pay, leave, intervals, overtime, payment of overtime	Mandatory	NA
SIKKIM	Mandatory	Within 30 Days	Time frame set as per the category of shop or establishment	Any 1 day	48 hours / week & 9 hours in a day	EL:20 days after 12 months of service CL: 12 days yearly SL:12 days yearly	NA	Register of fines, damage or loss, employment, dates of lime washing, colour washing, leave	Mandatory	NA
TRIPURA	Mandatory	Within 30 Days	S: 8 am to 9 pm E: 8 am to 11 pm	Any 1 day	48 hours / week & 8 hours in a day	EL: 15 days after 12 months of service CL: 14 days yearly SL:12 days yearly	NA	Register of pay, overtime, employees, working hours, intervals	NA	NA

Disclaimer

The information provided in this article is intended for general informational purposes only and should not be construed as legal advice. The content of this article is not intended to create and receipt of it does not constitute any relationship. Readers should not act upon this information without seeking professional legal counsel.