Shops and Establishments Act in Delhi

Who it applies to

The Act applies to shops, commercial establishments, offices, hotels, restaurants, eating houses, theatres, and other places of public entertainment or amusement operating within the National Capital Territory of Delhi. It covers the employer (the occupier) and the people employed there, including part-time and contract staff. A few categories, such as central or state government offices and certain establishments covered by the Factories Act, are exempt.

Registration is tied to running an establishment in Delhi rather than to a high headcount. Once you employ even one worker, you fall within the Act and must register the establishment. There is no separate "intimation only" track under the Delhi Act for small employers in the way some states run one. Compliance obligations such as registers, leave, and working-hour records scale up as your worker count grows, and establishments with 20 or more employees draw closer inspection scrutiny.

Register within: Within 90 days of the day the establishment commences work, the employer must submit Form A to register. Apply early, because the certificate is often asked for when opening a current account or signing a commercial lease..

How to register

1. Create a login on the Delhi Labour Department portal using your email, mobile number, and PAN
2. Open the Shops and Establishments registration service and fill Form A with the establishment, employer, and employee details
3. Upload the supporting documents in the formats the portal accepts
4. Pay the registration fee, which is calculated on the number of employees on a banded scale
5. Submit the application, after which it is processed and the certificate is generated online
6. Download and print the registration certificate and display it at the establishment

Documents required

• Form A application with establishment name, address, and nature of business
• Identity and address proof of the employer or occupier (PAN, Aadhaar, voter ID, or passport)
• PAN of the business entity and proof of the business address (rent agreement or ownership document plus a recent utility bill)
• Photograph of the establishment along with the employer's photograph
• Details of employees and category of establishment (shop, office, restaurant, and so on)
• For companies or partnerships, the incorporation certificate or partnership deed and a list of directors or partners

Working hours and overtime

No adult worker may be required to work more than 9 hours in a day or 48 hours in a week. Time worked beyond these limits is overtime. No worker is to be kept on continuous work for more than 5 hours without a rest interval, and total spread-over in a day is capped including breaks.

Weekly off and leave

Every establishment must give each worker at least one full day off in a week as a paid weekly holiday. Hours worked on the weekly off, where permitted, count toward overtime.

A worker who has been in continuous service and worked the qualifying number of days (240 days in a year) earns privilege or earned leave at the rate of about 15 days of paid leave for the following year. The Act also provides casual and sick leave during the year, commonly amounting to around 12 days combined, paid at the normal wage rate. Maternity benefit follows the central Maternity Benefit Act, which gives 26 weeks for the first two children.

Women working night shifts

Women may now be employed on night shifts in Delhi following the government's exemption from the daytime-only restriction in Section 14, but only where the employer meets the prescribed safeguards. These include the woman's written consent, safe and free transport to and from the workplace, adequate security and lighting, separate facilities such as washrooms and rest areas, and deployment in groups rather than alone. Without these conditions in place, women cannot be required to work at night.

Penalties

Operating without registration, or breaching provisions on working hours, leave, weekly off, or registers, is an offence under the Act. It attracts fines that the rules prescribe, and delayed registration can draw a per-day penalty plus inspection notices. Repeat or continuing contraventions can mean higher fines and, in serious cases, action against the establishment's operations. Failure to maintain the required attendance and hours-of-work registers is itself a separate offence.

Renewal

The Delhi registration certificate is issued with long validity (now generally up to 21 years), so frequent renewal is not required in the way it once was. You must, however, notify the department of any change in the details on the certificate, such as a new address, change in the number of employees, or closure of the establishment, within the prescribed time, and apply for amendment of the certificate where needed.

Portal: Labour Department, Government of NCT of Delhi.

FAQs

Do I have to register if I run a small office in Delhi with just two staff?

Yes. The Act applies to commercial establishments and offices in Delhi regardless of size, so even a two-person office must register by filing Form A within 90 days of starting work.

How long does the registration take and when do I get the certificate?

Once you submit Form A with correct documents and pay the fee on the Labour Department portal, the certificate is generated online. In most cases you can download and print it shortly after applying, rather than waiting weeks.

Can I make women employees work the night shift at my Delhi establishment?

You can, because the Delhi government has exempted establishments from the daytime-only rule for women, but only if you provide the prescribed safeguards: written consent, safe transport, security, proper facilities, and group deployment. Skip these and night employment of women is not allowed.

What is the working-hour cap and how is overtime paid?

An adult worker can be asked to work up to 9 hours a day and 48 hours a week. Anything beyond that is overtime, paid at twice the ordinary rate of wages, and no worker should run more than 5 hours without a rest break.

What happens if I do not register or miss the 90-day window?

Running an unregistered establishment is an offence. You can face fines under the rules, a per-day penalty for late registration, and inspection notices. Banks and landlords also commonly ask for the certificate, so the practical cost of not having it is high.