Background
The Delhi Shops and Establishments Act, 1954 was enacted to regulate conditions of work and employment in shops, commercial establishments, restaurants, theatres and other establishments in the National Capital Territory of Delhi. The Act lays down provisions related to registration, hours of work, rest intervals, opening and closing hours, holidays, wages, leave, health and safety, employment of women and children, and other aspects of working conditions.
Applicability
The Act applies to all shops, commercial establishments, residential hotels, restaurants, eating houses, theatres, and other places of public amusement or entertainment within the National Capital Territory of Delhi. It covers employers, employees, and occupiers of establishments regardless of size, subject to specific exemptions notified by the Government.
Compliance requirements under the Act in accordance with the Rule
The occupier of an establishment must apply for registration within 90 days from the commencement of work. The application must be submitted online via the Shop and Establishment Portal of the Labour Department. On submission of the application, the registration certificate is generated in Form C. The certificate must be renewed every twenty-one years on payment of the prescribed fee. Application for renewal must be made in Form L within 30 days of expiry.
The Shops and Establishment Registration Certificate shall be prominently displayed at the establishment at all times.
The occupier shall notify any change in information provided at the time of registration within 30 days of such change, online on the Shop & Establishment Portal of the Labour Department, Government of NCT of Delhi.
The occupier shall notify the Chief Inspector in writing within fifteen days of closing the establishment.
No adult shall be employed or allowed to work about the business of an establishment for more than ten hours inclusive of rest interval and lunch break on any day or 48 hours in any week and the occupier shall fix the daily periods of work accordingly: Provided that during any period of stock taking or making of accounts or any other purpose as may be prescribed, any adult employee may be allowed or required to work for more than the hours fixed in this section, but not exceeding sixty hours in any week subject to the conditions that the aggregate hours so worked shall not exceed one hundred forty four hours in a quarter
Employers must give advance intimation of at least three days to the Chief Inspector where adult workers are required to work overtime. The intimation must specify the purpose of overtime, the date(s) and probable time or period of overtime, and the number of employees required.
No person shall work in two or more establishments, or in an establishment and a factory, in excess of the period allowed under this Act.
No adult employee shall work over 6 hours continuously without a 30-min break. Interval timing must be fixed in advance, valid for 3+ months. Daily work (incl. breaks) must not exceed 12 hrs
No child shall be required or allowed to work in any establishment, even if they are a member of the employer’s family.
Young persons cannot work for more than 6 hours a day, or more than 3.5 hours continuously without a 30-minute break. The total spread including rest shall not exceed 8 hours per day.
No young person or woman shall be allowed to work in any establishment between 9 p.m. and 7 a.m. during summer, or between 8 p.m. and 8 a.m. during winter.
Shops and commercial establishments must open and close within hours fixed by the Government. Customers present at closing time may be served for up to 15 minutes beyond the fixed hour.
Shops and commercial establishments must remain closed on a weekly close day and on three National Holidays notified by the Government. Different close days may be specified for different areas or classes of establishments.
A shop may open on a close day if it coincides with a festival, Mahurat day, or the start of its financial year, provided that at least 24 hours’ notice is given to the Chief Inspector. In such cases, the shop must close on one of the two days immediately before or after that close day. Intimation must be made via Form E.
Every employee shall be given at least 24 consecutive hours of rest each week. For establishments observing a close day, this holiday shall coincide with that close day.
No wage deduction shall be made on account of a close day or holiday. Daily wage earners must be paid their full daily wage, while piece-rate workers must be paid the average wages earned during the week.
Employers must fix wage periods not exceeding one month. Wages must be paid in cash within seven days after the end of the wage period, on a working day.
Where employment is terminated, wages earned must be paid before the expiry of the second working day following termination.
Wages shall be paid without deduction except as permitted under the Act, including fines, absence from duty, loss or damage caused, house accommodation, authorised amenities, recovery of advances, income tax, court orders, provident fund contributions, or cooperative society payments. Employers must record such deductions in a register and provide explanations to the employee concerned.
Employees are entitled to 15 days of privilege leave after 12 months of continuous service and 12 days of casual/sick leave annually. After 4 months of service, 5 days of privilege leave accrue for each completed period; after 1 month, 1 day of casual leave accrues. Unused privilege leave can be carried forward but not exceeding three times annual entitlement. Employers must record leave applications and cannot deny leave arbitrarily.
Employees shall be paid for the period of leave at a rate equal to the daily average wages earned during the preceding three months, excluding overtime but including dearness allowance.
Any contract or agreement requiring an employee to relinquish rights conferred by the Act is null and void to that extent.
Establishments must be kept clean and free from effluvia. Prescribed cleaning methods include lime washing, painting, and disinfection at fixed intervals. Special provisions apply to walls, ceilings, woodwork, rubbish disposal, and drainage.
Establishments must be sufficiently lighted and ventilated during working hours. Employers must also ensure proper arrangements for drinking water.
Establishments must take prescribed precautions against fire. Smoking or use of naked lights near inflammable material is strictly prohibited.
Provisions of the Workmen’s Compensation Act, 1923 and applicable rules shall apply to employees in case of accidents.
No employee with three months’ continuous service shall be dismissed without one month’s written notice or wages in lieu, except for misconduct. Misconduct includes insubordination, illegal strikes, habitual absence, theft, fraud, negligence, drunkenness, and wilful damage to property.
Where exempted retail trade or business is carried on along with non-exempt trade or business, the exemption shall not extend to the latter.
No person shall conduct retail trade near a shop or establishment before opening, after closing, or on a close day. Violators will be deemed occupiers of the shop and liable under the Act.
Employers must maintain a bound register in Form G for wages, deductions, overtime, and advances. The pages must be serially numbered.
Where establishments are exempt from observing a close day, the occupier must display Form J specifying weekly holidays before the relevant Saturday.
All registers must be updated by midday of the following day; attendance must be recorded the same day. Notices must be clearly visible and renewed if defaced. Records must be preserved until the end of the following year.
Every occupier shall display Form K in the establishment, showing the close day, working hours, and rest interval.
Every employee must be furnished with a letter of appointment including details of the employer, establishment, employee particulars, hours of work, wages, designation, date of appointment, and benefits if any.
35. Young person to work during day time in Delhi (Section 14(1))
No young person shall be required or permitted to work whether as an employee or otherwise in any establishment during night.
36. Young person to work during day time in Delhi (Section 14(2))
Women shall be entitled to be employed in all establishments to work and they may also be employed, with their consent between 9.00 PM to 7.00 AM during the summer season and between 8:00 PM to 8:00 AM during the winter season subject to the conditions at sub-clause (i) to (vi)
Penalties & Punishment
Under Section 40 of the Act, for any contravention of its provisions, the proprietor, employer, or manager shall, upon conviction, be punished with a fine of not less than Rs. 25 and which may extend to Rs. 250. In some cases, additional penalties are provided for contravention of specific sections, including daily fines for continuing offences.
U/s 30(3)-(5):If a Magistrate finds that an employee was dismissed without reasonable cause or without proper notice or pay, they may award compensation, in addition to one month’s salary: up to one month’s salary if the employee earned Rs. 100 or less, and up to Rs. 100 if the salary exceeded Rs. 100. This compensation is in addition to any fine under Section 40. An employee receiving compensation under this provision cannot file a civil suit for the same claim.
If any person contravenes the provisions of section 33, he shall be liable, on conviction, to a fine of Rs. 5 for every day on which the contravention occurs or continues.
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