THE BOMBAY SHOPS AND

ESTABLISHMENTS
ACT,1948
 INTRODUCTION
The Bombay Shops & Establishments Act,1948 is applicable
to regulate the service condition, working hours, leaves,
weekly offs etc., of those who work in shops, commercial
establishments, residential hotels, theatres and other places of
public amusements etc.

Employees working in shops & commercial establishments

had no protection in respect of working conditions.

An attempt was made in the year 1935 but it was not favoured
by the then govt. The govt. itself carried out investigations, as
a result the provincial Govt. of Bombay passed an Act namely
the Bombay shops & Establishment Act,1939.
There after the govt. conducted a survey in order to know the
improvement in working conditions & it was found that the employee
were exploited.

The govt. appointed a committee under the chairmanship of

Mr.Shantilal Shah to make an enquiry in the working of the Act.

The committee submitted report on 31st Dec 1947 & suggested certain
recommendations in order to improve the working conditions.

On 13th of Oct. 1948 the govt. passed a bill & received Governor
General’s assent on 11th Jan. 1949.The Act came into force on the
same date & it came to be known as the “Bombay shops &
Establishments Act, 1948”
VARIOUS ESTABLISHMENTS
UNDER THE ACT
Shops
Commercial establishments
Residential hotels
Restaurants
Eating houses
Theatres
Other establishments as specified under the Act
 OBJECT
The main object of the Act is to regulate the
working conditions of the people employed in
various establishments & also to protect them from
exploitation. The Act is a social security
legislation.
Its main concern is hygienic & health-aid welfare
of the people employed in various establishments.
 SCOPE
It extends to whole of Maharashtra.
It shall in the first instance come into force in the
local areas specified in the schedule 1.
The State Govt. may direct that all or any of the
provisions shall come into force in such other local
areas having population of 25,000 or more.
The State Govt. may also direct all or any of the
provisions shall come into force in such local areas
having population less than 25,000.
APPLICATION
Section 5 deals with the application of the Act to the other
establishments & persons.
The establishments of state and central govt. are exempted
from all provisions of the act.
The State Govt. by notification in Official Gazette, declare
any establishment or person or class of persons to whom
this Act does not apply, to be an establishment or person
or class of persons to whom this Act thereof shall be
applicable with such modification & from such date as
may be specified in the notification.
DEFINITIONS
 COMMERCIAL ESTABLISHMENT
[SEC. 2(4)]
 The organisation to be called as commercial establishment must possess
two things:-
A. It must be an organised activity for carrying on business trade or
profession.
B. such activity must be carried on in a commercial manner.
 Such commercial establishments include any-
1. Legal practitioner
2. medical practitioner
3. Architect
4. Engineer
5. Accountant
6.Tax consultant
7. Other technical or professional consultant
8. All charitable & other trust
 Any establishment which carries on any trade, profession or business,
whether for the purpose of gain or not.
 ESTABLISHMENT [SEC. 2(8)]
Means a shop, commercial establishment, residential
hotel, restaurants, theatres, or other places of public
amusement to which this Act applies.
The State Govt. is empowered to declare any other
establishment to be a establishment for the purpose of
this Act by giving notification.
 SHOPS [SEC. 2(27)]
Where goods are sold to the customers, sales may be
wholesale basis or retail, or services are rendered to a
customer.
Such shops include offices, store-rooms, warehouse
or work place.
It dose not include factories, commercial
establishments, residential hotels, restaurants, theatres
& other places of public amusement.
 REGISTRATION OF
ESTABLISHMENT [SEC. 7-9]

SEC.7 :- Registration of establishment.

SEC.8 :- Changes to be communicated to the inspector.
SEC.9 :- Closing of establishment to be
communicated to the inspector.
 SEC.7
SEC.7(1) :- Within the period specified in sub-section
(4), the employer of every establishment shall send to
the Inspector of the local area concerned a statement,
in a prescribed form(form A), together with such fees
as may be prescribed, containing:
1.The name of the employer & the manager.
2.The postal address of the establishment.
3.Name, if any, of the establishment.
4.Category of the establishment (shop,
theatre, hotel, etc)
5.Other particulars as may be prescribed.
SEC.7(2) :- On receipt of the statement & fees, the
Inspector shall, on being satisfied about correctness of the
statement, register the establishment in a prescribed form &
issue a registration certificate to the employer that has to be
displayed at the establishment.
SEC.7(2A) :- A registration certificate shall be valid upto
the end of the year for which it is granted. An application
for the renewal shall be submitted not less than 15 days
from the date of expiry of the registration & it shall be
accompanied by such fees & the renewed registration
certificate shall be in such form as may be prescribed.
SEC.7(2AA) :- If the application is submitted after expiry
but within 30 days after the date of expiry of the registration
certificate , such application shall be accompanied by an
additional fees as late fees that is equal to 50% of the fee
payable for renewal of a registration.
SEC.7(3) :- In the event of any doubt or difference of
opinion between the employer & the Inspector, the
Inspector shall refer the matter to the prescribed
authority & after proper enquiry it shall decide the
category of such establishment.

SEC.7(4) :- Within 30 days from the day mentioned

in the application, the statement together with the fees
shall be sent to the Inspector.
 SEC.8
It relates to change in respect of any of the particulars
contained in the statement submitted for getting
registration certificate.
If there is any change in the said particulars, the
employer has to notify the same to the inspector by
applying in the prescribed form (form E) accompanied
by the prescribed fee and get the registration form
suitably amended.
 SEC.9
The employer shall within 10 days on closing his
establishment, notify to the Inspector in writing. On
receiving such information & being satisfied about its
correctness, the Inspector removes such establishment
from the register & cancels the registration.
It is further provided that if the Inspector does not
receives notice but is otherwise satisfied that the
establishment has been closed, he on his own, may cancel
the registration.
SHOPS & COMMERCIAL
ESTABLISHMENTS [SEC.10 TO 18]
 Opening & closing hours of shops [sec.(10-11)]
1. No shop dealing in perishable goods such as milk, fruits and other
goods notified by the State Govt. shall on any day be opened earlier than 5
a.m. Other than those specified, shall on any day be opened earlier than 7
a.m.
 The state Govt. has fixed later opening hours for different classes of shops or
for different areas.
 Sec.11 states that –
1. Other than those specified below shall on any day be closed later
than 8.30 p.m.
2.Shops of pan bidi, cigarettes & other ancillary articles shall on any
day be closed later than 11 p.m.
Provided that any customer who was being served or was waiting to be
served at such closing hour may be served during the quarter of an hour
immediately following such hours. The State Govt. may fix earlier closing
hours for different classes of shops or for different areas.
PROHIBITION OF HAWKING
SEC.12
 No person shall carry on in or adjacent to a street or a public place
the sale of any good before the opening & closing hours fixed for
the shop dealing in the same type of goods.
1. It is provided that nothing in the subsection shall be applied to the
sale of newspaper.
2. Any person violating the provision shall be liable to have his
goods seized by an Inspector.
3. The goods seized shall be returned to the person on his depositing
of Rs.25 as security for his appearance in the court.
4. If fails to deposit, goods seized shall be produced before a
Magistrate for temporary custody.
5. Where no prosecution is instituted for contravention of above
section, the Magistrate shall direct their return to the person for
whom they were seized.
6. Provision for the Code of Criminal Procedure, shall so far as they
may be applicable, apply to the disposal of goods seized under the
section.
 OPENING & CLOSING HOURS OF
COMMERCIAL ESTABLISHMENT
SEC.13

No commercial establishment shall be opened earlier

than 8.30 a.m. & closed later than 8.30.p.m.
Subject to the provisions, the State Govt. may fix
later the opening & closing time of different classes
of establishments or for different areas.
 DAILY & WEEKLY HOURS OF
WORK IN SHOPS &
ESTABLISHMENTS SEC.14

No employee shall be allowed to work in any shop or

commercial establishment for more than 9 hrs in any
day & 48 hrs in a week.
Any employee may be allowed to work for any period
in excess of the time limit fixed but such period shall
not exceed 6 hrs in any week.
On not more than 6 days in a year which the State
Govt. may fix by rules for the purpose of making of
accounts, stock taking settlements or other prescribed
occasions, any employee may be required to work in
access of the period fix but such access period shall
not exceed 24 hrs.
INTERVAL FOR REST [SEC.15]
If the workers or employees work for a long period they
are fatigued & hence, it is very essential to give them rest
at an interval.
The period of work of an employee shall not exceed 5 hrs
for continuous work & that they shall be allowed an
interval for rest of atleast one hour.
Provided that –
1. For employees in a commercial establishment engaged
in any manufacturing process, the interval for rest shall be
atleast half an hour.
2.The State Govt. may on an application made to that
behalf by the union permit the reduction of the interval for
rest to half an hour.
 SPREAD-OVER IN SHOPS &
COMMERCIAL ESTABLISHMENTS
[SEC.16]
In respect to spread over in shops – it shall not exceed
11 hrs in any day.
Provided that if any shop is on any day entirely closed
for a continuous period of not less than 3 hrs the
spread-over shall not exceed 12 hrs in that day.
It is further provided that where an employee works
on any day in accordance with the provisions of
sec(14), the spread-over shall not exceed 14 hrs in any
such day.
 SPREAD-OVER IN COMMERCIAL
ESTABLISHMENT [SEC.17]

Not exceed 11 hrs in any day provided that the Govt.

may increase the spread-over period subject to certain
conditions.
 HOLIDAY IN A WEEK IN SHPOS &
COMMERCIAL ESTABLISHMENTS
[SEC.18]
 Every shop & commercial establishment shall remain closed on
one day of the week.
 Any shop or commercial establishments may remain open on any
day notified as close day, if the employer has notified to the
Inspector atleast 7 days before doing so.
 It shall not be lawful for an employer to call an employee
for work on a day on which such shop or commercial
establishment remain closed.
 No deductions shall be made from the wages of the employee on
account of which the shop or establishment has remain closed.
 RESIDENTIAL HOTELS,
RESTAURANTS & EATING HOUSES
[SEC.19 TO 25]

 Sec.19 :- Opening & closing hours of restaurants & eating houses.

1. No restaurant or eating houses shall be opened earlier than 5
a.m. & closed later than 12 midnight.
2. An employee shall be required to come to work not earlier than
4.30 a.m. & not required to work later than 00.30 a.m.
3. Any customer who was being served or waiting to be served at
closing hours, he may be served during the quarter of an hour
immediately following such hours.
4. The State Govt. may fix later opening & earlier closing of such
places.
 Sec. 20 :- Before the opening & after the closing of such places
no goods of the kind sold in such shops shall be sold except for
consumption.
 Sec.21 :- Daily & weekly hours of work.
1. No employee shall be required to work for more than 9 hrs
in a day & 48 hrs in a week.
2. Any employee may be required to work in excess of the
period fixed. If such period does not exceed 3 hrs in a day.
 Sec.22 :- Interval for rest.
1. The period of continuous work of an employee shall not
exceed 5 hrs & no employee shall be required to work more
than 5 hrs before he has given an interval of atleast one hour.
2. Provided that the state Govt. may reduce the time for
interval to half an hour on an application made by an employee
or the trade union.
Sec.23 :- Spread over of an employee in hotels,
restaurants & eating places shall not exceed 12 hrs in
a day.
Sec.24 :- Holiday in a week.
1. Every employee shall be given atleast one day in a
week as holiday.
2. No employer shall call on any employee for work
on a day on which such employee has a holiday.
3. No deductions shall be made from the wages of an
employee on account of any holiday. If an
employee is employed on daily wages he shall be paid
his daily wages for the holiday
Sec. 25 :- Employer to furnish identity card to
employee.
The employer shall furnish every employee an
identity card which shall be produced by the
employee on demand by an Inspector. Such card shall
contain the following & such other particulars as may
be prescribed namely :
1. The name of the employer.
2. The name, if any, & the postal address of
the establishment.
3. The name & age of the employee.
4.The hours of work, the interval for rest &
the holiday of the employee.
5. The signature (with date) of the employer or
Manager.
 THEATRES OR OTHER PLACES OF
PUBLIC AMUSEMENT OR
ENTERTAINMENT [SEC.(26 TO 31)]
 Sec.26 :- Closing hours.
No theatre or other places of public amusement or entertainment
shall, on any day, be closed later than 00.30 a.m.
 Sec.27 :- No goods of the kind sold in a shop shall be sold in any
theatre or other places of public amusement or entertainment except
for consumption on premises.
 Sec.28 :- Daily & weekly hours of work.
1. No employee shall be required to work for more than 9 hrs in
any day & 48 hrs in any week.
2. Any employee may be required to work for any period in
excess of the time limit fixed, if such period does not exceed 6 hrs in
any week.
 Sec.29 :- Interval for rest
The period of work of an employee shall be so fixed that no
period of continuous work shall exceed 5 hrs & that no
employee shall be required to work for more than 5 hrs before
he has had an interval for rest of atleast one hour.
The State Govt. may on application made on behalf of the
union may permit the reduction of the time for rest to half an
hour.
 Sec.30 :- Spread-over.
The spread-over of an employee shall not exceed 12 hrs in a
day.
 Sec.31 :- Holidays in a week.
1. Every employee shall be given atleast one day in a week
as holiday.
2. No employer shall call on any employee for work on a
day on which such employee has a holiday.
3. No deduction shall be made from the wages of an
employee on account of any holiday given to him. If an
employee is employed on a daily wage he shall be paid his
daily wage for the holiday given to him.
LEAVE WITH WAGES
[SEC.(35 TO 38)]
 Sec.35 :- Leave
1. Every employee who has been employed for not less than 3
months in a year, shall for every 60 days on which he has
worked during the year be allowed leave for a period of not
more than 5 days.

2. Every employee who has worked for not less than 540 days
during a year irrespective of the date of commencement of his
service, shall be allowed leave, consecutive or otherwise, for a
period of not less than 21 days. It is provided further that such
leave can be accumulated upto a maximum period of 42 days.
3. It should be made clear to every employee that the leave
allowed shall be inclusive of the days during the period of such
leave, on which a shop or commercial establishment remain
closed.
4. If an employee entitled to leave is discharged by
his employer before he has been allowed the leave,
or if, having applied for & having been refused the
leave, he quits his employment before he has been
allowed the leave, the employer shall pay him the
amount payable under sec.36.

5. If an employee entitled to leave, refused the

leave, he may give intimation to the Inspector. The
Inspector shall enter it in a register kept in such form
as may be prescribed. The employee shall also send a
copy of such intimation to his employer, & thereupon,
the employee shall be entitled to carry forward the
unavailed leave without any limit.
6. Every employee, irrespective of his period of
employment, shall be entitled to additional holiday such
as 26th Jan, 1st May, 15th Aug & 2nd Oct every year. For
holiday on these days he shall be paid wages at rate
equivalent to the daily average of his wages provided. If
the employee is made to work on all or any of these days,
he shall be paid double the amount of the daily average
wages.
Sec.36 :- Pay during leave.
Every employee shall be paid for the period of
his leave at a rate equivalent to the daily average of his
wages for the days on which he actually worked during
the preceding 3 months, exclusive of any earnings in
respect of over time.
Sec.37 :- Payment when to be made.
An employee who has been allowed leave
under sec.35, before his leave begins, be paid half the total
number due to him for the period of such leave.
Sec.38 :- Application & amendment of the.
Payment Of Wages Act.

1. The State Govt. may by notification in the

Official Gazette, direct the subject to the provisions,
to all or any classes of establishment or employees to
whom this Act applies.
2. On the application of the provisions of the said
Act to any establishment or employee, the Inspector
appointed under the Act shall be deemed to be the
Inspector for the purpose of the enforcement of the
provisions.
HEALTH & SAFETY
[SEC.(39 TO 42)]
 Sec.39 :- Cleanliness.
The premises of every establishment shall be kept clean & free
from effluvia arising from any drain or other nuisance & shall
be cleaned at such times & by such methods as may be
prescribed such as lime washing, colour washing, painting, etc.
Rule 12 of the Maharashtra Shops & Establishments Rule
of 1961 fixes times & methods for cleaning establishments. It
states-

1. All the inside walls of the rooms, ceilings & tops of such
rooms & the passages & staircases shall be lime washed or
colour washed atleast once in every 2 years.
2. All the beams, doors, windows & other wood works
shall be either painted or varnished once in every 7 yrs.
3. The dates on which lime washing, colour washing,
painting or varnishing has to be done shall be entered in a
register maintained for this purpose.
 Sec.40 :- Ventilation.
The premises of every establishment shall be ventilated in
accordance with such standards & by such methods as may be
prescribed.
 Sec.41 :- Lighting
1. The premises of every establishment shall be
sufficiently lighted during all working hours.
2. If it appears to an Inspector that the premises is not
sufficiently lighted, he may serve on the employer an
order in writing specifying the measures to be adopted &
requiring them to be carried out before a specified date.
 Sec.42 :- Precaution against fire.
In every establishment such precaution against fire
shall be taken as may be prescribed by the Govt.
 FIRST-AID [SEC.42(A)]
 where manufacturing process is carried on, there shall be provided &
maintained a first-aid box containing such articles as may be
prescribed. A first-aid box shall contain-
1. 3 small sterilized dressings.
2. 2 medium size sterilized dressings.
3. 2 large size sterilized dressings.
4. 2 large size sterilized burn dressings.
5. 2 packets sterilized cotton-wool.
6. I pair of dressing scissors.
7. 1 bottle containing solution of iodine.
8. 1 bottle containing solution of salvolatine.
9. 1 bottle containing potassium permanganate crystals.
10. Any antidote for burn.
 PUNISHMENTS
 Contravention of certain provisions and offences - If in any
establishment there is any contravention of any section, rule or order
for which no specific punishment is provided in this Act, the employer
and the manager shall, on conviction, each be punished for each
offence with fine which shall not be less than one thousand rupees and
which may extend to five thousand rupees
 False entries by employer and manager.-If any employer or manager
with intent to deceive makes, or causes or allows to be made, in any
register, record or notice prescribed to be maintained under the
provisions of this Act or the rules made thereunder, an entry which, to
his knowledge, is false in any material particular, or wilfully omits or
causes or allows to be omitted, shall, on conviction, be punished with
fine which shall not be less than one thousand rupees and which may
extend to five thousand rupees
 Enhanced penalty in certain cases after previous conviction.- If any
employer and manager - who have been convicted of any offence are
again guilty of an offence involving a contravention of the same
provision, they shall each be punished on the second conviction with
fine which shall not be less than one thousand rupees and which may
extend to five thousand rupees; and if they are again so guilty, they shall
each be punished on the third or any subsequent conviction with fine
which shall not be less than seven thousand and five hundred rupees and
which may extend to ten thousand rupees
 Penalty for obstructing Inspector.-Whoever wilfully obstructs
an or prevents any employee in an establishment from appearing
before or being examined by an Inspector, shall, on conviction, be
punished with fine which shall not be less than one thousand
rupees and which may extend to five thousand rupees.
 BENEFITS TO WORKERS
 Wages for overtime work - Where an employee in any
establishment to which this Act applies is required to work in
excess of the limit of hours of work, he shall be entitles to wages at
the rate of twice his ordinary rate of wages.

 Right and privileges under other law etc. not affected.- Nothing
in this Act shall affect any right or privileges which an employee in
any establishment is entitled to at the date this Act comes into force
in a local area, under any other law, contract, custom or usage
applicable to such establishment or any award, settlement or
agreement binding on the employer and the employee in such
establishment, if such rights or privileges are more favourable to
him than those to which he would be entitled under this Act.
THANK
YOU