Shops and Other Commercial Establishments

Every state has its own Shops and Establishment Act (Shop Act) with regard to shops and commercial establishments. For example, the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 is applicable to shops and commercial establishments in Maharashtra employing 10 or more employees.

These Shop Acts regulate the conditions of work and employment in shops, commercial establishments, residential hotels, restaurants, eating houses, theatres, and other places of public amusement or entertainment, as applicable from state to state.

The Shop Act is applicable to all persons employed in a shop or commercial establishment with or without wages, except members of the employer’s family. It does not apply to workmen in a factory or in an establishment attached to a factory to whom benefits under the Factories Act, 1948, are applicable. The typical provisions include registration of establishments, working hours, holidays, leaves, penalties, etc.

Further, pursuant to the Government Circular dated 30 April 2026, the Maharashtra Labor Department has clarified that establishments registered under Section 3 of the Occupational Safety, Health and Working Conditions Code, 2020 are not required to obtain a separate registration under the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017. However, the substantive provisions of the Maharashtra Shops and Establishments Act, including provisions governing leave entitlements, spread-over hours, etc., continue to apply, except to the extent they are inconsistent with the Labor Codes, in which case the corresponding provisions of the applicable Labor Code shall prevail by virtue of Article 254 of the Constitution of India.