Shop and Establishment Act, 1953 is a regulation managed by the department of labor. The act covers any shop or establishment which is engaged in trading whether it’s (retail or wholesale) or any kind of business. Apart from commercial units, the act includes the establishment that offers professional services such as printing, banking, educational institution, charitable trusts, stock trading, etc. Additionally, restaurants, residential hotels, and places of amusements are also included in the purview of this act.
Meanwhile, the organizations that are exempted under this act are bank offices, Food Corporation of India, health care centers concerning handicap and mentally unfit, Railways dining cars, Offices regulated under the central or state government, local authorities, railway services, public conservation system, sanitation, industries serving water, power, light to the public, water transport service, postal, telegraph or telephone services.
The organizations that have employed 10 or more employees ever in their tenure of establishment or shop qualify for the act, irrespective of the reduction in the number of an employee from 10. It’s a statutory requirement that must get fulfilled by the employer under the guidelines of the act, where the purpose of the shop and establishment act is to have the basic defined rules and regulations for functioning of the establishment in a coherent manner. However, the act aims towards providing regulation in shops, commercial units, etc., and keeps a check system on employment of the young person, women, leave, payment of wages, and health standards, etc.