Shops and Establishments Act India Compliance Software 2026
Every shop and commercial establishment in India must register under the state Shops Act and maintain employee registers. MICS HRMS maintains all Shops Act registers, tracks renewals, and alerts for compliance gaps.
MICS Team··5 min read
Shops and Establishments Act India Compliance Software 2026
Every shop, commercial establishment, hotel, restaurant, theatre, and office in India must register under its state's Shops and Commercial Establishments Act. The Act is administered by state governments — each state has its own version with somewhat different provisions, but all cover working hours, weekly offs, holidays, employee registers, and employment conditions.
Non-registration and non-maintenance of required registers are among the most common labour compliance violations found during state labour department inspections of small and medium businesses.
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What the Shops Act Requires
Registration
- Every establishment must register with the local labour office or municipal authority within 30 days of commencing operations
- Registration certificate must be displayed prominently in the establishment
- Annual renewal required in most states
- Penalty for non-registration: varies by state, typically Rs. 1,000-5,000 per day of non-compliance
Working Hours
- Maximum hours: typically 9 hours per day and 48-54 hours per week
- Spread-over: typically not exceeding 12 hours including rest intervals
- Overtime: hours beyond normal working hours compensated at double rate
Weekly Off
- Mandatory 1 day off per week
- In establishments open 7 days, staff must have a staggered day off
- If weekly off is Sunday: compensatory off on another day if made to work on Sunday
Leave Entitlement (varies by state)
- Casual Leave: typically 12 days per year
- Sick Leave: typically 12 days per year
- Privilege/Earned Leave: typically 15 days after 1 year of service
National and Festival Holidays
- Mandatory national holidays: Republic Day, Independence Day, Gandhi Jayanti
- State-specific holidays vary — Maharashtra has Gudi Padwa, Kerala has Onam, etc.
Registers and Records
- Register of employees: Form 5 or equivalent — name, designation, wages, joining date
- Register of wages: Form 13 or equivalent — monthly wages paid
- Register of attendance: Form 7 or equivalent — daily attendance
- Register of leave: Form 15 or equivalent — leave balance and taken
- Register of overtime: hours and compensation
- All registers must be maintained at the establishment and available for inspection
Notices
- Notice of hours of work: displayed on premises
- Weekly holiday notice: displayed
- Minimum wages notice: displayed
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State-Specific Variations
Major states with distinct provisions:
- Maharashtra: Bombay Shops and Establishments Act — computerised registration on Shramsuvidha portal
- Delhi: Delhi Shops and Establishments Act — district-wise registration
- Karnataka: Karnataka Shops and Commercial Establishments Act — e-seva registration
- Tamil Nadu: Tamil Nadu Shops and Establishments Act — online registration
- Telangana: Telangana Shops and Establishments Act
Each state has specific form numbers, submission formats, and portals.
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MICS Shops Act Compliance Features
Registration Tracking
- Registration details per establishment: certificate number, validity date, issuing authority
- Multi-state: different registration records for each state
- Renewal alert: 60 days before certificate expiry
- Renewal facilitation: documentation support for annual renewal
Employee Register (Form 5 / equivalent)
- Auto-generated from HRMS employee master
- All required fields: name, father's name, residential address, joining date, designation, department, wages
- New joiners automatically added
- Exits automatically marked
- Printable in state-specific format
Attendance Register (Form 7 / equivalent)
- Daily attendance auto-populated from biometric attendance data
- State-specific format for printing
- Monthly attendance register: ready for labour inspector
Wages Register (Form 13 / equivalent)
- Monthly wages paid per employee: basic, allowances, gross, deductions, net
- Auto-generated from payroll data
- Employer signature column for physical registers
Leave Register (Form 15 / equivalent)
- Leave entitlement, taken, and balance per employee
- State-specific leave categories as mandated by the state Act
Overtime Register
- Hours worked beyond normal duty
- Overtime rate applied
- Compensation amount per employee
Holiday Schedule
- State-specific mandatory holidays pre-loaded
- Festival holidays per establishment: customised
- Holiday notice: printable for display at premises
Working Hours Notice
- Printed notice of working hours in prescribed format
- State-specific requirement: some states require in regional language also
Inspection Readiness
- All registers available in print format for inspector
- MICS generates a compliance dashboard: what is up to date, what needs attention
- Document folder: registration certificate, renewal receipts, inspection reports
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Pricing
- Shops Act compliance module: included in MICS HRMS subscription
- Multi-state Shops Act compliance (up to 5 states): no additional charge
- Registration assistance (new establishment): Rs. 5,000 per state
- Shops Act compliance audit: Rs. 15,000 one-time (all registers reviewed, gaps identified)
Free Shops Act compliance demo: +91 9355273535 | admin@mics.asia
Shops ActEstablishments ActComplianceIndiaLabour Law
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