While planning to step into the world of business, you need to draw up not only your business plan, product/service model, financing options, but also make a comprehensive list of all the compulsory regulations that your business entity will have to comply with such as the taxation legislation, licensing requirements, etc. One such important legislation is the Shops and Establishments Act, enacted by every state in India to regulate conditions of work and to provide for statutory obligations of the employers and rights of the employees in the unorganized sector of employment and other establishments in their jurisdiction. In this article, we will discuss the applicability and requirements of the Shop and Establishments Act in greater detail.

Which businesses come under the purview of Shops & Establishments Act?

1) A commercial or trading or banking or insurance establishment
2) An establishment or administrative service in which persons employed or mainly engaged in office work
3) A hotel, restaurant, boarding or eating house, a cafe or any other refreshment house
4) A theater, cinema or any other place of public amusement or entertainment