Applicability, Registration and Compliances under Shop and Establishment Act in Delhi By Pranav Kumar

Dear Professional Colleagues,

In this write-up, I have covered various aspects of Shop and Establishment Act in Delhi.

  1. Shop and Establishment Act is one of few labour laws enacted and enforced by state govt in India. It is one of the important regulation to which most business subject to. The Act is designed to regulate the payment of wages, hours of work, leave, holidays, terms of service and other work conditions of people employed in the shop and commercial establishments. Today, we are going to discuss The Delhi Shops Act, 1954.
  2. The Shop and Establishment Act is regulated by the Department of Labor and regulates premises wherein any trade, business or profession is carried out. The act not only regulates the working of commercial establishments, but also societies, charitable trusts, printing establishments, educational institutions run for gain and premises in which banking, insurance, stock or share brokerage is carried on. This act regulates areas such as working hours, rest interval for employees, opening and closing hours, closed days, national and religious holidays, overtime work, rules for employment of children, annual leave, maternity leave, sickness and casual leave, etc.,


  1. Every establishment is required to be registered under The Delhi Shops Act, 1954 within 90 days from the date on which the establishment commences the work.
  2. It shall be the duty of the occupier to notify to the Chief Inspector, on a prescribed form any change in respect of any information contained in registration certificate within 30 days after the change has taken place.
  3. The occupier shall within 15 days of his closing the establishment, notify the Chief Inspector in writing accordingly. The Chief Inspector shall on receiving the information and being satisfied with the nature of closure remove such establishment from the register of establishments and cancel the registration certificate.
  4. A Registration Certificate shall be renewed at an interval of every twenty-one years.

Employment & Working Hour

  1. "young person" means a person who is not a child and has not completed his eighteenth year of age.
  2. "adult" means a person who has completed his eighteenth year of age;
  3. "child" means a person who has not completed his twelfth year of age;
  4. No adult shall be employed or allowed to work in the business of an establishment for more than nine hours on any day or 48 hours in any week and the occupier shall fix the daily periods of work accordingly provided that during any period of stock taking or making of accounts or any other purpose as may be prescribed, any adult employee may be allowed or required to work for more than the hours fixed in this section, but not exceeding 54 hours in any week subject to the conditions that the aggregate hours so worked shall not exceed 150 hours in a year provided further that advance intimation of at least three days in this respect has been given in the prescribed manner to the Chief Inspector and that any person employed on overtime shall be entitled to remuneration for such overtime work at twice the rate of his normal remuneration calculated by the hour. For the purpose of calculating the normal hourly wage the day shall be reckoned as consisting of eight hours.
  5. The period of work of an adult employee in an establishment each day shall be so fixed that no period of continuous work shall exceed five hours and that no employee shall be required or allowed to work for more than five hours before he had an interval for rest and meals of at least half an hour.
  6. The time for such interval shall be fixed by the employer and intimated to the Chief Inspector a week before such fixation and shall remain operative for a period of not less than three months.
  7. The periods of work on any day of an adult person shall be so arranged that inclusive of his interval for rest or meals as required under section 10, they shall not spread over for more than ten and a half hours in any commercial establishment or for more than twelve hours in any shop.
  8. No child shall be required or allowed to work whether as an employee or otherwise, in any establishment notwithstanding that such child is a member of the family of the employer
  9. No young person shall be required or allowed to work in the business of an establishment for more than six hours a day.
  10. No young person shall be employed continuously for more than three and a half hours without an interval of at least half an hour for rest or meals and the spread over shall not exceed eight hours on any day.
  11. No young person or woman shall be allowed or required to work whether as an employee or otherwise in any establishment between 9 p.m. and 7 a.m. during the summer season and between 8 p.m. to 8 a.m. during the winter season.

Payment of Wages

  1. The wages of every employee in any shop or establishment shall be paid on a working day before the expiry of the seventh day of the last day of the wage period in respect of which the wages are payable.
  2. Where the employment of any person is terminated by or on behalf of the employer, the wages earned by him shall be paid before the expiry of the second working day after the day on which his employment is terminated.


  1. Every person employed in an establishment shall be entitled:
    1. After every twelve months', continuous employment, to privilege leave for a total period of not less than fifteen days;
    2. In every year, to sickness or casual leave for a total period of not less than twelve days;
    3. Provided that 
      1. an employee who has completed a period of four months in continuous employment shall be entitled to not less than five days privilege leave for every such completed period; and
      2. an employee who has completed a period of one month in continuous employment shall be entitled to not less than one day's casual leave for every month.
    4. Provided further that a watchman or caretaker who has completed a period of twelve months in continuous employment shall be entitled to not less than thirty days' privilege leave.
    5. Privilege leave to which an employee is entitled above (a) or under any such law, contract, custom or usage, award, settlement or agreement or any part of such leave, if not availed of by such employee, shall be added to the privilege leave in respect of any succeeding period to which he is so entitled, so, however, the total period of such privilege leave which may be accumulated by such employee shall not at anyone time exceed three times the period of privilege leave to which he is entitled after every twelve months' employment under that clause or under such law, contract, custom or usage, award, settlement or agreement.
    6. Leave admissible under above (b) shall not be accumulated
    7. If an employee entitled to leave under this section is discharged by his employer before he has been allowed the leave, or if, having applied for and having been refused the leave, he quits his employment before he has been allowed the leave, the employer shall pay him full wages for the period of leave due to him.
  2. Every employee shall be paid for the period of his leave at a rate equivalent to the daily average of his wages for the days on which he actually worked during the preceding three months, exclusive of any earnings in respect of overtime but inclusive of dearness allowance.
  3. The premises of every establishment shall be kept sufficiently lighted and ventilated during all working hours.
  4. Suitable arrangements shall be made for the supply of drinking water to the employees.
  5. No employer shall dispense with the services of an employee who has been in his continuous employment for not less than three months, without giving such person at least one months' notice in writing or wages in lieu of such notice provided that such notice shall not be necessary where services of such employee are dispensed with for misconduct, after giving him an opportunity to explain the charge or charges against him in writing.
  6. No employee who has put in 3 months' continuous service shall terminate his employment unless he has given to his employer a notice, of at least one month, in writing. In case he fails to give one month's notice he will be released from his employment on payment of an amount equal to one month's pay.

Records & Registers

  1. Every employer shall maintain a register of employment and wages in Form 'G'. Every register shall be duly bound and its pages serially numbered provided that where the opening and closing hours are ordinarily uniform, the employer may maintain such register in Form 'H' along with a separate register of wages and record of leave in Form 'I' provided further that entries relating to a particular date, on which an employee is called upon earlier or detained later than the usual working hours, shall be made immediately in the remarks column of Form "H" before such early or late working commences.
  2. Every occupier shall exhibit in his establishment a notice showing the close day, the daily working hours and the usual period of rest interval fixed for employees in form 'K'.
  3. The registers, records and notices relating to any calendar year shall be preserved till the end of the following year.
  4. The employer shall furnish every employee with a letter of appointment Such letters of appointment shall contain the following and such other particulars as may be prescribed, namely:
    1. The name of employer,
    2. The name, if any, and the postal address of the establishment,
    3. The name, father's name and the age of the employee,
    4. The hours of work,
    5. Date of appointment.

Click here to read the disclaimer

Write a Comment

  • Nice

    11-01-2018 / 09:45:26 PM
  • Can we change the address in the Shops RC

    07-08-2018 / 03:50:42 PM
  • one of our consultant is saying we can't change the address in Rc we need to make new one only

    07-08-2018 / 03:51:36 PM
  • what are the consequences if we have not regestred under the shops and establishment act

    13-02-2019 / 03:03:11 PM
  • if there is anyone who is dealing in regular compliances of shop and establishment act please contact me at , i want to outsource my work relating to this.

    17-05-2019 / 01:33:05 PM