2.  On analysing the definitions of establishment,
commercial establishment and shop we see that
the act virtually cover all types of business
establishment and thus making it necessary for
all business establishments in India to register
under the Act.
 This is an important labour state level
compliance requirement.
 The only case where one doesn’t need to
register under the Act is when either the
establishment is a factory when it will be
covered under the Factories Act, 1948 or when it
is exempted under the Section 3(1) of the act.

3. As per this section following establishments
are covered by the Act:
• A commercial or trading or banking or
insurance establishment, or
• An establishment or administrative service
in which persons employed or mainly
engaged in office work, or
• A hotel, restaurant, boarding or eating
house, a cafe or any other refreshment house
or
• A theater, cinema or any other place of
public amusement or entertainment.

4. This act lays down the following rules:
• Working hours per day and week.
• Guidelines for spread-over, rest interval, opening
and closing hours, closed days, national and
religious holidays, 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 as well as employees.

5. Every business has to maintain the following records
under Shops and Establishments act:
• Approval from Department of Labor.
• Various registers giving details of employment,
fines, deductions and advances, salary, holidays, etc.
The names of the register may vary from state to
state, and hence, it is a prudent practice to request
the exact nature of documents that your state might
need from your municipal corporation.
Files related to annual holidays, number of
employees need to be submitted at the Office of the
Municipal Corporation annually.

6. Every shop/establishment is compulsorily
required to register itself under this Act within
30 days of commencement of work.
Registration Certificate:
• The business owner should send to the
Inspector (Chief Inspector of Shops or other
Inspectors under the Act) of the area concerned,
an application form and fees detailing:
o Name of the establishment, the employer
and the manager, if any;
o Postal address of the establishment;
o Such other particulars as may be
prescribed.

7. • The Inspector, on verifying the statement, shall
register the establishment in the register of
establishments and issue a registration certificate.
This certificate has to be prominently displayed at
the establishment and needs to be renewed before it
expires.
• If there is any change in the initial statement, the
same has to be communicated within 15 days to the
Inspector and he will make changes in the register of
establishments and issue a fresh registration
certificate.
Closure of Business:
And in case of closure, the same has to be
communicated to the authorities within 15 days from
the closing of the establishment.
 PS. The rules under this act vary as per the states.