Glossary · Compliance & Registrations
Shop and Establishment Act
A state-level labour law regulating the working conditions, hours of work, leave, and other conditions of employment in shops, commercial establishments, and offices.
The Shop and Establishment Act is administered by state Labour Departments. Every commercial establishment, including offices, must register under this act (online on state portals) and display the registration certificate. It defines working hours (typically 9 hours/day and 48 hours/week), overtime, holiday and weekly off, leave entitlements, and maternity benefits. Penalties for non-compliance range from ₹500 to ₹5,000 per offence depending on the state.
Examples
A Bangalore startup with 10 employees registers on the Karnataka Labour Department portal to obtain a Shop and Establishment license.