Shops and Establishments Act India — Employee Rights, Working Hours & Leave
- Covers offices, shops, restaurants, theatres, hotels — NOT factories
- Leave entitlement varies: typically 15–21 days/year
- Termination notice period required (30–90 days depending on state/service)
- Employer must register establishment with Labour Department
- Applies to IT companies, startups, retail chains, banks
If you work in a private company, office, shop, or restaurant in India — the Shops and Establishments Act is your most basic labour protection law. It's a state-level law, so rules vary, but the core protections are similar across India.
Who is Covered by Shops & Establishments Act?
The Act covers employees working in:
- Shops and retail establishments
- Commercial establishments (offices, IT companies, banks, insurance)
- Hotels, restaurants, eating houses
- Theatres, cinema halls, places of public entertainment
- Any commercial business not covered by the Factories Act
Not covered: Factories (covered by Factories Act 1948), central government offices, establishments of central public undertakings.
Working Hours Under S&E Act
| State | Daily Hours | Weekly Hours | Overtime Rate |
|---|---|---|---|
| Maharashtra | 9 hours | 48 hours | Double rate |
| Karnataka | 10 hours | 50 hours | Double rate |
| Delhi | 9 hours | 48 hours | Double rate |
| Tamil Nadu | 9 hours | 48 hours | Double rate |
| Telangana | 9 hours | 48 hours | Double rate |
Spread-over (gap between first and last hour of work) is generally capped at 10–12 hours. Meal break of at least 30 minutes after 5 hours of work is typically mandatory.
Leave Entitlements
Typical leave provisions under most state S&E Acts:
- Earned Leave / Privilege Leave: 15–21 days per year (1 day for every 20 working days)
- Casual Leave: 8–12 days
- Sick Leave: 7–12 days
- Public Holidays: National + state festivals (typically 10–15 days)
Leave entitlement under S&E Act is the minimum floor. Many private companies offer more — but they cannot offer less than what the state law mandates.
Weekly Off
Every employee is entitled to at least one day of rest per week. The day can be fixed by employer. If an employee is made to work on their weekly off, they must be given compensatory off or overtime pay.
Termination and Notice Period
Under the Shops & Establishments Act, employers generally must give notice before terminating an employee:
- Less than 3 months service: No notice required (or 1 month in some states)
- More than 3 months: 1 month notice or 1 month's wages in lieu
- More than 1 year: 30 days notice (some states require 3 months)
Many states require termination to be reported to the Labour Commissioner if more than a certain number of employees are terminated. Wrongful termination can be challenged before Labour Court.
Maternity Benefits
The Maternity Benefit Act, 1961 (as amended in 2017) applies to all establishments with 10+ employees. Under this:
- 26 weeks paid maternity leave for first 2 children
- 12 weeks for 3rd child onwards
- 8 weeks for adoptive and commissioning mothers
- Work from home option after maternity leave (if nature of work permits)
How to File a Complaint Under S&E Act
- Identify your state's specific Act (e.g., Maharashtra Shops & Establishments Act, Delhi Shops & Establishments Act)
- File complaint with the Labour Commissioner or Inspector under S&E Act
- Bring: employment contract, salary slips, any written evidence of violation
- Inspector has power to conduct inspections and issue notices to employer
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