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The Shop and Establishments Act: What are the rights and privileges of employees?

The Shops and Establishments Act protects the following rights for employees: 

The following are the rights and privileges of the employees under Shops and Establishments Act.

1.Hours of Work in Descent 

The maximum number of hours a person may work in a week is 48 or 9 in a single day. A employee may work overtime if (a) the total number of overtime hours they work each quarter does not exceed 50; and (b) they receive two times the amount of their regular hourly salary.

2. Proper spacing should be maintained between rest and meals

Every five hours of continuous work should be interrupted by a half-hour break. Furthermore, he is not allowed to work more than 10 hours a day, including his rest period.

3. Conditions for Employing Young Persons

The minimum employment age is 14, below which child labor is prohibited. Between the ages of fourteen and eighteen is considered a ‘young person’. 

Young people should not work more than thirty hours a week, excluding meals and rest. 

Do not work them longer than three hours without a break of at least half an hour between intervals.

4.Entitlement of ‘Day Off’ in a Week

The employee shall not be required to work- (a) on the closed days (sanctioned holidays) of an establishment or (b) on any other day of the week; and (c) before the opening or closing time of an establishment; (If a watchman works on an off day, he must be allowed another off day the following week.)

5.Right to Holidays or Double Wages 

During (a) Independence, Republic, and Mahatma Gandhi’s birthdays, mandatory holidays will be sanctioned, and employees will be paid for them; as well as 3 other holidays (with wages) in connection with officially declared festivals; and (c) When an employee works on a holiday like this, he should be paid double what he earns per hour.

6.Right to Take Leave(s)

A day of earned leave may be earned for every 20 days of employment. Every 15 days, young employees have a gap.

An employee who is terminated, dismissed, or resigns during the calendar year is entitled to be paid in lieu of any unavailed leave.

A person’s unused leave becomes a part of his leaves in the following year, provided there are no more than 30 unclaimed leaves in the year. For young people, it is 40.

In addition to the mandatory seven days of sick leave and seven days of casual leave, these leaves are also available.

7.Period During Which the Wages Are to be Paid

A fixed period of one month shall be set for the payment of these wages.

All employees are entitled to receive their wages within seven days of being due 

The employer must pay the employee’s wages and any unclaimed leave remuneration/wages within two days of termination. Payouts for resignations are made within the next pay day.

A penalty compensation of up to 8 times the withheld wages can be awarded for non-payment of the above. 

8. Right to be Given Notice Before Removal

One month’s notice is required for the removal of an employee. This rule does not apply if an employee is removed for misconduct, or if he has not been a member of the team for three consecutive months.

A penalty of two months’ salary may be imposed on an employee who is removed without notice/pay.

9. Conditions of Employment for Female Employees:

There shall be no requirement for female employees to work during the night in establishments except in hospitals, nursing homes, hospitals, infirmaries, orphanages, and asylums. During the first six weeks following a woman’s confinement or miscarriage, no employer shall knowingly employ her in any establishment.

10.Maternity Benefits: 

In the six weeks immediately preceding and six weeks following delivery, every woman who worked continuously for a minimum of six months shall be eligible for maternity benefits.


It is also important to note that there are some responsibilities as well as the above rights. An employee is required to give his employer seven days’ notice before terminating his employment. If the wages are not paid within seven days, the employer is liable to forfeit them.

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