Companies under Shops and Establishment Act


Please advise what companies are considered under the shops and establishments act and where does a construction company fall?

Thank you.


In addition to my question, it this act applicable for a Construction company

thank you …


Hey Ludy,

Please find below a link which will help you to answer this query. This is a state subject so every state has prescribed the applicability and exemptions.

Hope this helps.

Community Manager.


Dear Kaulin,

Thank you -
Please interpret with me,

Is my understanding correct when I say a construction company office is excepted as it is called a commercial establishment since it is there for administrative service only coz the employees are engaged in office work?

Thank you for reverting :slight_smile:


Hi Ludy,

Hope you are doing great! :slight_smile:

Other than the registration with Shops and Establishments Act of the State, if the organization comes under the definition of ‘Industry’ and have 100 or more workmen threshold as prescribed under the Industrial Disputes Act, 1947, and Industrial Employment (Standing Orders) Act, these laws will be applicable.

If the organization employs, or had employed on any day of the preceding twelve months, ten or more building workers in any building or other construction work, the Building and Other Construction Workers (Regulation of Employment. And Conditions of Service) Act, 1996 will be applicable.
For further clarity, the building workers employed in different relays in a day either by the employer or the contractor shall be taken into account in computing the number of building workers employed in the establishment.

Hope this helps.

Bhuvana Anand

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