1.

Which of the following statements regarding the shop and establishment act are correctThe act is regulated by the department of labour of the respective state.The act is uniform to all the states.Factories are not covered under the act.Select the correct options1.Only i2.Only i and ii3.Only i and iii.4.All of the above.

Answer» Correct Answer - Option 3 :

Only i and iii.


The correct answer is Only i and iii.

  • The Shops and Establishment Act is important legislation for the regulation of businesses in the states of India.
  • The act is promulgated by the state and differs from one state to another.
  • The act is regulated by the department of labour of the respective state.

 Important Features of the Act

  • The act basically includes laws and regulations relating to
  • The regulation of working hours.
  • Payment of wages.
  • Leave or Holiday.
  • The terms of service
  • Any other conditions of work for people working in various establishments.
  • The rules of this act are applicable to people working in
  • Commercial Establishments
  • Shops
  • Other establishments notified by the government.
  • The act also regulates societies, charitable trusts, an educational institution for gain and premises in which activities like banking, insurance, and stock or share brokerage is carried on.
  • However, factories are not covered by the shops and establishments act and are regulated by the Factories act 1948.
  • Any shop or commercial establishment that commences operation must apply to the Chief Inspector for a Shop and Establishment Act License within time.
  • On successful submission and review by the Chief Inspector, the Certificate of registration is issued.
  • The registration certificate must be prominently displayed at the shop or commercial establishment and renewed periodically, as per the act.
  • In case of closure, the occupier should notify the Chief Inspector in writing within fifteen days of closing, who after reviewing may cancel the registration.
  • The Chief Inspector is appointed by the respective state government and hold power as provided by the Shops and Establishment Act.


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