Shops and Other Commercial Establishments

Every state has its own Shops and Establishment Act ("Shop Act”) with regard to shops and commercial establishments. For example, the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 is applicable to shops and commercial establishments in Maharashtra employing 10 (ten) or more employees.

These Shop Act regulate the conditions of work and employment in shops, commercial establishments, residential hotels, restaurants, eating houses, theaters, and other places of public amusement or entertainment as per the applicability which may differ from one state to another.

The Shops Act is applicable to all persons employed in a shop or commercial establishment with or without wages, except members of the employer’s family. It does not apply to workmen in a factory or in an establishment attached to a factory to whom benefits under the Factories Act, 1948, are applicable. The typical provisions include registration of establishments, working hours, holidays, leaves, penalties, etc.