Delhi Shops and Establishments Act

The Delhi Shops and Establishments Act is state legislation governing the proper functioning and conduct of businesses, within the state of Delhi. The Labour Department of the State is the department from which shops and establishments act registration is obtained. The shops and establishments act registration in the case of SSI or MSME businesses in the unorganized sector, serve as proof of the existence of the business. This is a detailed guide to Delhi Shop and Establishment Act.

Shops and Establishments Act

The Shop and Establishment Act has been enacted by various State Governments to regulate the conditions of work of employees in shops, commercial undertakings, restaurants, etc., All commercial establishments must abide by The Weekly Holiday Act, 1942 enacted by the Central Government which governs the grant of holidays. However, there is no specific Central Government Act which comprehensively governs hours of work, payment of wages, health and safety in commercial establishments. To bridge this gap, state Governments have enacted a Shop and Establishment Act to help regulate the conduct of commercial establishments within their jurisdiction. To know more, read the article on “Shops and Establishment Act in India”.

Delhi Shops and Establishments Act

The Delhi Shops and Establishments Act, applied to all shops, establishments and commercial establishments operating within the State of Delhi. The Delhi Shops and Establishments Act defines a "shop" as:

""shop" means any premises where goods are sold either by retail or wholesale or where services are rendered to customers and includes an office, a store-room, godown, warehouse or workhouse or workplace, whether in the same premises or otherwise, used in or in connection with such trade or business but does not include a factory or a commercial establishment."

The Delhi Shops and Establishments Act defines an "establishment" as:

""establishment" means a shop, a commercial establishment, residential hotel, restaurant, eating-house, theatre or other places of public amusement or entertainment to which this Act applies and includes such other establishment as Government may, by notification in the Official Gazette, declare to be an establishment for the purpose of this Act."

The Delhi Shops and Establishments Act defines a "commercial establishment" as:

""commercial establishment" means any premises wherein any trade, business or profession or any work in connection with, or incidental or ancillary thereto is carried on and includes a society registered under the Societies Registration Act, 1860 (21 of 1860), and charitable or other trust, whether registered or not, which carries on any business, trade or profession or work in connection with, or incidental or ancillary thereto, journalistic and printing establishments, contractors and auditors establishments, quarries and mines not governed by the Mines Act, 1952 (35 of 1952), educational or other institutions run for private gain, and premises in which business of banking, insurance, stocks and shares, brokerage or produce exchange is carried on but does not include a shop or a factory registered under the Factories Act, 1948 (43 of 1948), or theatres, cinemas, restaurants, eating houses, residential hotels, clubs or other places of public amusements or entertainment."

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Delhi Shops and Establishments Act Registration

All shops, establishments and commercial establishments commencing operations in the State of Delhi must apply for Delhi Shops and Establishments Act Registration within 90 days of commencing operations. The application form must contain information in the prescribed format and include:

The name of the employer and the manager, if any;
The postal address of the establishment;
The name, if any, of the establishment,
The category of the establishment, i.e., whether it is a shop, commercial establishment, residential hotel, restaurant, eating house, theatre or other places of public amusement or entertainment;
The number of employees working about the business of the establishment;

Highlights of the Delhi Shops and Establishments Act

Hours of Work in Delhi

As per the Delhi Shops and Establishments Act, it states that no adult requires to work for more than nine hours on any day or 48 hours in any week. For any work in excess of nine hours on any day or more than 48 hours in any week, must pay them overtime wages.

Further, the period of work of an adult employee must 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.

Employment of Child, Young Person or Woman

In the State of Delhi, 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. Also, it does not permits young person to work about the business or an establishment for more than six hours a day.

Holiday for Shops and Establishments in Delhi

Every employee working for a shop or establishment in Delhi should be allowed at least twenty-four consecutive hours of rest (weekly holiday or close day) every week. In addition to the close day, every shop and commercial establishment shall remain closed on three of the National holidays each year as the Government notification in the Official Gazette.

To obtain Delhi Shops and Establishments Act Registration, visit IndiaFilings.com