Every state in India has its own Shops and Establishment Act, regulated by the Labour Department. This Act covers all shops and commercial establishments operating within the state, providing them with legal recognition.
Shops under the Act include premises for selling goods or rendering services to customers, including offices, warehouses, etc. Commercial establishments cover banking, trading, insurance, administrative services, and places of public entertainment.
Factories and industries are governed separately under the Factories Act, 1948 and Industries (Development and Regulation) Act, 1951.
Is it necessary to take approval from the labor department?
Yes, every business must seek approval from the Department of Labor under the Shops and Establishment Act.
What are the different types of leave available to an employee under the Act?
Employees are entitled to privilege leave, sickness leave, and casual leave as per the Act.