LexThe Delhi Shops and Establishments Act,1954
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Open in Lexace · Ask the AI about this actThe Delhi Shops and Establishments Act, 1954
Arrangement of Sections
1. SHORT TITLE, EXTENT, COMMENCEMENT AND APPLICATIO N.
2. DEFINITIONS.
3. RIGHTS AND PRIVILEGES UNDER OTHER LAW, ETC. NOT AFFECTED.
4. EXEMPTIONS.
5. REGISTRATION OF ESTABLISHMENTS.
6. CHANGE TO BE COMMUNICATED TO THE CHIEF INSPECTOR .
7. CLOSING OF ESTABLISHMENT TO BE COMMUNICATED TO T HE CHIEF
INSPECTOR.
8. EMPLOYMENT OF ADULTS, HOURS OF WORK.
9. RESTRICTION ON DOUBLE EMPLOYMENT.
10. INTERVAL FOR REST AND MEALS
11. SPREAD OVER.
12. PROHIBITION OF EMPLOYMENT OF CHILDREN.
13. EMPLOYMENT OF YOUNG PERSONS-HOURS OF WORK.
14. YOUNG PERSONS AND WOMEN TO WORK DURING DAY TIME .
15. OPENING AND CLOSING HOURS OF SHOPS AND COMMERCI AL
ESTABLISHMENT
16. CLOSE DAY.
17. PERIOD OF REST (WEEKLY HOLIDAY)
18. WAGES FOR THE HOLIDAY.
19. TIME AND CONDITIONS OF PAYMENT OF WAGES.
20. DEDUCTIONS WHICH MAY BE MADE FROM WAGES.
21. CLAIMS RELATING TO WAGES.
22. LEAVE.
23. WAGES DURING LEAVE.
24. CONTRACTING OUT
25. CLEANLINESS.
26. LIGHTING AND VENTILATION.
27. POWER TO ENFORCE CLEANLINESS ETC
28. PRECAUTION AGAINST FIRE.
29. ACCIDENTS.
30. NOTICE OF DISMISSAL.
31. PROVISIONS IN RESPECT OF SHOPS AND COMMERCIAL E STABLISHMENTS
WHERE MORE THAN ONE BUSINESS IS CARRIED ON.
32. PROVISIONS AS TO TRADING ELSEWHERE THAN IN SHOP S.
33. RECORDS.
34. EMPLOYER TO FURNISH LETTERS OF APPOINTMENT TO E MPLOYEES.
35. INSPECTION OF REGISTERS AND CALLING FOR INFORMA TION.
36. APPOINTMENT OF INSPECTORS.
37. POWERS AND DUTIES OF INSPECTOR.
38. INSPECTORS TO BE PUBLIC SERVANTS.
39. PROTECTION TO PERSONS ACTING UNDER THIS ACT.
40. PENALTIES.
41. WILFULLY MAKING FALSE ENTRIES.
42. PENALTY FOR OBSTRUCTING INSPECTOR.
43. DETERMINATION OF EMPLOYER FOR THE PURPOSE OF TH IS ACT.
44. EXEMPTION OF OCCUPIER FROM LIABILITY IN CERTAIN CASES.
45. COGNIZANCE OF OFFENCE.
46. SAVINGS.
47. POWER TO MAKE RULES.
48. REPEAL OF PUNJAB TRADE EMPLOYEES ACT, 1940 AS E XTENDED TO THE
UNION TERRITORY OF DELHI.
49. APPLICATION OF GENERAL CLAUSES ACT
THE DELHI SHOPS AND ESTABLISHMENTS
ACT, 1954
(7 of 1954)
[19th June, 1954 ]
PREAMBLE
An Act to amend and consolidate the law relating to the regulation of hours of work, payment
of wages, leave, holidays, terms of service and oth er conditions of work of persons employed in
shops, commercial establishments, establishments fo r public entertainment or amusement and
other establishments and to provide for certain matters connected therewith.
It is hereby enacted as follows:—
1. Short title, extent, commencement and applicatio n. —(1) This Act may be called the
Delhi Shops and Establishments Act, 1954.
(2) It extends to the whole of Union Territory of Delhi.
(3) It shall come into force on such date 1 as Government may, by notification in the Official
Gazette, appoint in this behalf.
(4) It shall apply in the first instance only to th e Municipal Areas, Notified Areas and
Cantonment limits of Delhi, New Delhi, Shahadra, Ci vil Lines, Mehrauli, Red Fort and Delhi
Cantonment but Government may, by notification in t he Official Gazette, direct that it shall come
into force in any other local area or areas or shal l apply to such shops or establishments or class
of shops and establishments in such other areas as may be specified in the notification.
COMMENTS
The Act, which received the assent of the President on 19th June, 1954, came into force with
effect from the 1st of February, 1955, vide Notification No. F.5/51-1 & L, dated 17th January,
1955. The Act will apply only in Delhi and not outs ide Delhi. The provisions of the Act will apply to
the shops and establishments located in Delhi and n ot to any establishment working outside
Delhi. Thus, the office which the petitioner had in Iraq by itself cannot be termed as an
establishment to be covered under the Act. Also it has been held by the Delhi High Court that the
mere fact that the business of the petitioner is be ing carried on from that office so the petitioner’s
officer in Delhi could not be treated as an establi shment to be covered under the Act; Bhandari
Builders Pvt. Ltd. v. M.K. Seth, 1988 (15) DRJ 77 (SN).
The Supreme Court has observed that the preamble is a key to the enactment and it may
legitimately be construed to solve any ambiguity or to fix the meaning of words which may have
more than one, or to keep the effect of the statute within its real scope, whenever the enacting
part is in any of these respects open to doubt. The scope of the Act is a progressive piece of
legislation and design to settle the disputes on a new pattern hitherto intention to judicial
machinery set in the country. The object of all lab our legislation is to ensure fair wages and to
prevent disputes so that production might not be adversely affected.
2. Definitions. —In this Act, unless the context otherwise requires ,—
(1) “adult” means a person who has completed his e ighteenth year of age;
(1A) “apprentice” means a person, who is employed, whether on payment of wages or not,
for the purpose of being trained in any trade, craf t or employment in any
establishment;
(2) “child” means a person who has not completed h is twelfth year of age;
(3) “close day” means the day of the week on which a shop or establishment remains
closed;
(4) “closing hour” means the hour at which the sho p or commercial establishment closes;
(5) “commercial establishment” means any premises wherein any trade, business or
profession or any work in connection with, or incid ental or ancillary thereto is carried
on and includes a society registered under the Soci eties Registration Act, 1860 (21 of
1860), and charitable or other trust, whether regis tered or not, which carries on any
business, trade or profession or work in connection with, or incidental or ancillary
thereto, journalistic and printing establishments, contractors and auditors
establishments, quarries and mines not governed by the Mines Act, 1952 (35 of
1952), educational or other institutions run for pr ivate gain, and premises in which
business of banking, insurance, stocks and shares, brokerage or produce exchange is
carried on, but does not include a shop or a factor y registered under the Factories
Act, 1948 (43 of 1948), or theatres, cinemas, resta urants, eating houses, residential
hotels, clubs or other places of public amusements or entertainment;
(6) “day” means a period of twenty-four hours begi nning at mid-night:
Provided that in the case of an employee whose ho urs of work extended beyond mid-
night, day means the period of twenty-four hours be ginning when such employment
commences irrespective of mid-night;
(7) “employee” means a person wholly or principall y employed, whether directly or
otherwise, and whether for wages (payable on perman ent, periodical, contract, piece-
rate or commission basis) or other consideration, a bout the business of an
establishment and includes an apprentice and any pe rson employed in a factory but
not governed by the Factories Act, 1948 (43 of 1948 ), and for the purpose of any
matter regulated by this Act, also includes a perso n discharged or dismissed whose
claims have not been settled in accordance with this Act;
(8) “employer” means the owner of any establishmen t about the business of which
persons are employed, and where the business of suc h establishment is not directly
managed by the owner, means the manager, agent or r epresentative of such owner in
the said business;
(9) “establishment” means a shop, a commercial est ablishment, residential hotel,
restaurant, eating-house, theatre or other places o f public amusement or
entertainment to which this Act applies and include s such other establishment as
Government may, by notification in the Official Gaz ette, declare to be an
establishment for the purpose of this Act;
(10) “factory” means a factory as declared or regi stered under the Factories Act, 1948 (43
of 1948);
(11) “family” means the husband, wife, son, daught er, father, mother, brother, sister or
grandson of an employee, living with and wholly dependent on such employee;
(12) “Government” means the *Chief Commissioner, D elhi;
(13) “holiday” means a day on which an establishme nt shall remain closed or on which an
employee be given a holiday under the provisions of the Act;
(14) “hours of work” or “working hours” means the time during which the persons
employed are at the disposal of the employer exclus ive of any interval allowed for rest
and meals and “hours worked” has corresponding mean ing;
(15) “inspector” means an Inspector appointed unde r section 36 of the Act;
(16) “leave” means leave as provided for under thi s Act;
(17) “occupier” means a person owning or having ch arge or control of establishment and
includes the manager, agent or representative of su ch occupier;
(18) “opening hour” means the hour at which a shop or commercial establishment opens
for the service of a customer;
(19) “prescribed” means prescribed by rules made u nder this Act;
(20) “register of establishments” means a register maintained for the registration of
establishments under this Act;
(21) “registration certificate” means a certificat e showing the registration of an
establishment;
(22) “religious festival” means any festival which the Government may by notification in the
Official Gazette declare to be a religious festival for the purposes of this Act;
(23) “residential hotel” means any premises in whi ch business is carried on for the supply
of dwelling accommodation and meals on payment of a sum of money by a traveller
or any member of the public or a class of the public and includes a club;
(24) “restaurant” or “eating house” means any prem ises in which is carried on wholly or
principally the business of the supply of meals or refreshment to the public or a class
of the public for consumption on the premises;
(25) “retail trade or business” includes the busin ess of a barber or hair-dresser, the sale of
refreshment of intoxicating liquors, and retail sales by auction;
(26) “schedule” means a schedule appended to this Act;
(27) “shop” means any premises where goods are sol d either by retail or wholesale or
where services are rendered to customers, and inclu des an office, a store-room,
godown, warehouse or workhouse or work place, wheth er in the same premises or
otherwise, used in or in connection with such trade or business but does not include a
factory or a commercial establishment;
(28) “spread-over” means the periods between the c ommencement and the termination of
the work of an employee on any day;
(29) “summer” means the period covering the months of April, May, June, July, August and
September;
(30) “wages” means wages as defined in section 2 o f the Minimum Wages Act, 1948 (11 of
1948);
(31) “week” means the period of seven days beginni ng at mid-night on Saturday;
(32) “winter” means the period covering the months of October, November, December,
January, February and March;
(33) “year” means the calendar year;
(34) “young person” means a person who is not a ch ild and has not completed his
eighteenth year of age.
COMMENTS
Sub-section 2(2) “Child”
Although a child has been defined a person who has not completed his twelfth year of age
but it is to be read as fourteen year. It is pertin ent to state that the employment of children as
domestic servants in dhabas (Roadside eateries), re staurants, hotels, motels, teashops, resorts,
spas or in other recreational centres has been bann ed from October 10, 2006 not only in Delhi
but all over India. The ban, notified by the labour ministry has been imposed under the Child
Labour (Prohibition & Regulation Act, 1986. The dec ision has been taken on the recommendation
of the Technical Advisory Committee on Child Labour.
The committee had stated that the occupations menti oned were hazardous for children and
had recommended their inclusion in the occupations which are prohibited for persons below 14
years under the Child Labour (Prohibition & Regulation) Act, 1986.
Sub-section (5)—“Commercial Establishment”
(i) In the first instance a place in order to fall within the definition of “commercial
establishments” must be “premises”. Secondly, it sh ould be premises wherein (a) any trade,
business or profession is carried on, or (b) any wo rk in connection with or incidental or ancillary
thereto is carried on. Sub-clause (b) is only ancil lary to (a); Chief Commissioner, Delhi v.
Federation of Indian Chambers of Commerce and Indus try, New Delhi, 1974 II LLJ 21 (SC): 45
FJR 306: (1974) Lab IC 1004.
(ii) A religious body is not an establishment withi n the meaning of the Act and, therefore, the
Act does not apply to such a body; Sanatan Dharam Sabha v. Johri Mal, 1982 RLR 512 (Del.
HC).
Since the definition of commercial establishment in cludes the institution run for private gain,
obvious private educational institutions will be covered under the Act.
Sub-section 13—”Holiday”
Holidays are off days granted by the employer to th e employees either voluntarily or
compulsorily under the force of law. The Dictionary meaning of a ‘Holiday’ is ‘A day on which
ordinary occupations (of an individual or a communi ty) are suspended; a day of festivity,
recreation or amusement’. (Oxford English Dictionar y, Vol. V). The introduction of paid holidays
for workers, both in law, and in practice, is based on the one hand on the ‘employees’ right to
leisure and to the opportunity of developing his pe rsonality and, on the other, on the necessity of
preserving or restoring his health and strength in the interests of production and service to be
rendered. Holidays with pay, if they are properly u tilized, may provide a real and complete escape
from the ideal means of relaxation and afford abund ant opportunity of gaining material and social
experience under different conditions and workers g enerally undertake factory work because of
necessity.
Employees return to their jobs with fresh enthusias m and renewed reserves of strength after
spending their holidays under suitably restful cond itions. This is confirmed by the conclusion
reached in the many recent studies of the psycholog y or work, especially in the field of
productivity. The quicker industrial rhythm and the monotony of the work caused by modern
mechanization render it essential to grant regular rest periods if workers are not to succumb to
physical overstrain and to the weakening of their m orale and if their health and working capacity
are to be preserved. However, there are no fixed holidays and/or prescribe under the Act.
Sub-section (14)—“working hours”
The phrase “working hours” or “hours of work” as de fined in this sub-section means the time
during which the persons employed are at the dispos al of the employer exclusive of any interval
for rest and meals and “hour worked” has a correspo nding meaning. The use of the expression,
“at the disposal of the employer” is not without an y significance. It indicates that the person so
employed must be available to work and to be under the control or supervision of the employer
during the working hours and it seems to be immater ial whether the person so employed has
worked during the entire working hours or not or wh ether the employer has taken any work from
him. The only obligation appears to be that he must remain at the disposal of the employer
throughout the working hours fixed under the Act, e xcluding of course the time allowed for rest
and meals.
Sub-section (16)—”Leave”
The expressions ‘leave means leave of absence, that is to say, the permission obtained by
an employee from his employer relieving him from th e duty of attending the work with or without
pay. The dictionary meaning of the word ‘leave’ bei ng permission, unless such permission is
given or leave sought is granted, it cannot be said that the person seeking leave can absent
himself from duty in an unauthorised manner; Industrial Tribunal v. Rabindra Nath Sen , 1963 I
LLJ 582.
Sub-section (22)—“religious festival”
The expression, “religious festival” has been defin ed to mean any festival which the
Government may, by notification in the Official Gaz ette, declare to be religious festival for the
purpose of this Act. By Notification No. F 12 (54) I & L dated 31st January, 1956 published in the
Delhi State Gazette Part V dated 9th February, 1976 at page 69, the Government has declared
Holi, Dussehra, Janam Ashtami, Chet Shudi Parwa, Ba isakhi, Guru Nanak’s Birthday, Guru
Govind Singh’s Birthday, Id-ul-Zuha, Id-ul-Fitar, C hristmas, Lord Mahavir’s Birthday as the
religious festivals in exercise of the powers confe rred on it by this sub-section. The definition has
been given in the context of sub-clause (ii) of sub -section (3) of section 16 of the Act which
enables the occupier of a shop or commercial establ ishment to open his shop or commercial
establishment on a close day in case such a day happens to coincide with a religious festival.
Sub-section (24)—“restaurant” or “eating house”
“Restaurant” or “eating house” as defined in this s ub-section means any premises in which is
carried on wholly or principally the business of th e supply of meals or refreshments to the public
or a class of the public for consumption on the pre mises. The Lt. Governor, Delhi issued a
notification in exercise of the powers conferred on him by sub-section (9) of section 2 declaring all
canteens and clubs which were not residential hotel s, restaurants, eating houses or other places
of public amusement or entertainments, to be “estab lishments” within the meaning of the Act;
Notification No. F 2(11) 79, dated 23rd September, 1976, published in the Delhi Gazette Part IV,
dated October, 1976.
Sub-section (27)—”Shops”
The word ‘shop’ has acquired an expanded meaning. W here in a premises any economic
activity is carried on leading to sale or purchase, that premises will have to be held a ‘shop’ for
the purpose of the Act, even though there is no act ual giving or taking of goods in such premises.
If the business carried on a premises results in ha ving some nexus with the purchase or sale of
goods. It is sufficient to be ‘shop’; Southern Agencies, Rajamundry v. Andhra Pradesh
Employees’ State Insurance Corporation, 2001 LLR 93 (SC).
Sub-section (28)—”spread over”
The period between the commencement and the termina tion of the work of an employee on
any day is called “spread over”. The spread over in respect of shops is 12 hours and in respect of
other establishments is 10 ½ hours.
An establishment can be both, i.e., a shop and an establishment
While elaborating the scope and meaning of “Shops a nd Establishments”, the Supreme Court
has held that a Company having several offices enga ged in import and export, clearing and
forwarding of cargo, travel and tourism and courier services will be both a Shop and Commercial
Establishment; Air Freight Ltd. v. State of Karnataka, 1999 LLR 1008 (SC).
3. Rights and privileges under other law, etc. , not affected. —Nothing in this Act shall
affect any rights or privileges which an employee i n any establishment is entitled to at the date
this Act comes into force or under any other law, c ontract, custom or usage applicable to such
establishment or an 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.
COMMENTS
A plain reading of this section would go to show th at it has a limited operation confined to a
particular date, i.e., the date on which this Act came into force. On tha t day if a right or privilege
had accrued to any employee under any other law, co ntract, custom or usage, and if that right or
privilege was more favourable or advantageous to hi m than those declared under this Act, the
employee was entitled to retain that right or privilege.
4. Exemptions. —Notwithstanding anything contained in this Act, th e provisions of this Act
mentioned in the third column of the Schedule shall not apply to the establishment, employees
and other persons mentioned against them in the second column of the said Schedule:
Provided that the Government, may, by notification published in the Official Gazette, add to,
omit or alter any of the entries of the said Schedu le, and on the publication of such notification,
the entries in either column of the said Schedule shall be deemed to be amended accordingly.
COMMENTS
The provisions of this section shall be given effec t to irrespective of the other provisions of
the Act. The provisions of this Act mentioned in th e third column of the Schedule shall not apply
to the establishments, employees and other persons mentioned against them in the second
column of the said Schedule. This section also empo wers the Government by notification in the
Official Gazette to add to, omit, or alter any of the entries in the Schedule.
*5. Registration of Establishments. —(1) Within the period specified in sub- section (5 ), the
occupier of every establishment shall send to the C hief Inspector a statement in a prescribed
form, together with such fees as may be prescribed, containing:
(a) the name of the employer and the manager, if a ny;
(b) the postal address of establishment;
(c) the name, if any, of the establishment;
(d) the category of the establishment, i.e. , whether it is a shop, commercial
establishment, residential hotel, restaurant, eatin g house, theatre or other place of
public amusement or entertainment;
(e) the number of employees working about the busi ness of the establishment; and
(f) such other particulars as may be prescribed.
(2) On receipt of the statement and the fees, the C hief Inspector shall, on being satisfied
about the correctness of the statement, register th e establishment in the Register of
Establishments, in such manner as may be prescribed and shall issue, in a prescribed form a
registration certificate to the occupier.
(3) The registration certificate shall be prominent ly displayed at the establishment and shall
be renewed at such intervals as may be prescribed in this respect.
(4) In the event of any doubt or difference of opin ion between an occupier and Chief
Inspector as to the category to which an establishm ent should belong, the Chief Inspector shall
refer the matter to the Government which shall, aft er such enquiry, as it may think proper, decide
the category of the establishment and the decision thereof shall be final for the purpose of this
Act.
(5) Within ninety days from the date mentioned in c olumn 2 below in respect of any
establishment mentioned in column 1, the statement together with fees shall be sent to the Chief
Inspector under sub-section (1):
Establishment Date from which the period
of 90 days is to commence
(i) Establishments existing in municipal The date on which this Act
areas, notified areas, and cantonment comes into force.
limits of Delhi, New Delhi, Shahdara,
Civil Lines, Mehrauli, Red Fort and
Delhi Cantonment.
(ii) Establishments existing in local areas The da te on which this Act
in which this Act is brought into force comes int o force in the local
by notification under sub-section (4) areas conce rned.
of section 1.
(iii) New establishment in areas mentioned The dat e on which the
in clauses (i) and (ii) of this sub-section estab lishment commences the
work.
6. Change to be communicated to the Chief Inspector . —It shall be the duty of the
occupier to notify to the Chief Inspector, on a pre scribed form any change in respect of any
information contained in his statement under sub-se ction (1) of section 5 within thirty days after
the change has taken place. The Chief Inspector sha ll on the receipt of such notice and the
prescribed fee and on being satisfied about its cor rectness make the change in the register of
establishments in accordance with such notice and s hall amend the registration certificate, or
issue a fresh registration certificate, if necessar y.
7. Closing of an establishment to be communicated t o the Chief Inspector. —The
occupier shall within fifteen days of his closing t he establishment, notify to the Chief Inspector in
writing accordingly. The Chief Inspector shall on r eceiving the information and being satisfied
about the nature of closure remove such establishme nt from the register of establishments and
cancel the registration certificate:
Provided that the Chief Inspector may not, if satis fied that the establishment is likely to re-
start within a period of six months, remove it from the Register of Establishment and cancel the
registration certificate.
8. Employment of adults, hours of work. —No adult shall be employed or allowed to work
about the business of an establishment for more tha n nine hours on any day or 48 hours in any
week and the occupier shall fix the daily periods of work accordingly:
Provided that during any period of stock taking or making of accounts or any other purpose
as may be prescribed, any adult employee may be all owed or required to work for more than the
hours fixed in this section, but not exceeding 54 h ours in any week subject to the conditions that
the aggregate hours so worked shall not exceed 150 hours in a year:
Provided further that advance intimation of at leas t three days in this respect has been given
in the prescribed manner to the Chief Inspector and that any person employed on overtime shall
be entitled to remuneration for such overtime work at twice the rate of his normal remuneration
calculated by the hour.
Explanation.— For the purpose of calculating the normal hourly wa ge the day shall be
reckoned as consisting of eight hours.
COMMENTS
(a) Mode for calculation of overtime wages
For any work in excess of nine hours on any day or for more than 48 hours in any week,
overtime wages are to be paid at the rate of double the wages. It is provided therein that where a
worker is required to work beyond the normal hours of work or on any day of rest, he shall be
entitled to wages at rate of twice his ordinary rat e of wages in respect of the overtime work or
work done on a day of rest, as the case may be.
The cases where a workman is paid a daily rate pres ent no difficulty. However, when
payment is made on monthly scale of pay, the daily rate of wages for a worker can be obtained
only by dividing the amount of wages for 30 days by 26. This is done because the workman is
entitled to four days as weekly rest during which p eriod he does not work. The reason is that
workman actually gets monthly wages for the work do ne only for 26 days. Thus for a workman, it
is the actual receipt for 26 days which is his mont hly scale of pay, i.e. , 30 days wages. Therefore,
a day’s wage should mean the result obtained by div iding the monthly wages by actual number of
working days, i.e. , 26 days. This principle will, however, be applica ble in case of such workers
who get monthly wages only for the actual number of working days. The formula for calculation of
the overtime wages for one hour is to divide the mo nth’s wages by 26 into the number of normal
working hours and the result so obtained by them th en multiplied by two to calculate one hour’s
overtime wages; P. Radhakrishnan Nair v. K.S.R.T.C., 1983 Lab. IC 276 (Ker. HC). Similarly, a
day’s wage should mean the result obtained by divid ing the monthly wages by actual number of
working days; K.S. Verma v. The Madhya Pradesh State Road Transport Corporation , 1979 Lab
IC 107: 1979 LLR 150.
In one case before the Supreme Court, the managemen t had prescribed 39 hours and had
agreed to pay overtime wages for any work taken in excess of such normal working hours and
upto the maximum, i.e. , 48 hours at 1½ times the ordinary rate of wages a nd beyond the
maximum, i.e. , 48 hours and upto 54 hours at double the rate of ordinary wages and the question
posed was where the employer prescribes working hou rs less than the maximum permissible in
the statute, does he incur the obligation to pay ov ertime wages at the rates prescribed in the
Tamil Nadu Shops & Establishments Act, 1947. The Su preme Court allowed the appeals filed by
the management and reversed the decision of the Hig h Court directing payment of overtime
wages by twice the ordinary rates of wages for any work beyond the prescribed 39 hours and
upto 48 hours; Philips India Ltd. v. Labour Court, Madras, AIR 1985 SC 1034: 1985 (1) LLN 633:
1985 (66) FJR 474.
However, the Allahabad High Court has held that if the workers are required to work for
additional hours but if such additional hours will be less than 48 hours in a week, the employees
will be entitled to wages and not overtime; New Victoria Mills, Unit of National Textile Corpor ation,
Uttar Pradesh Ltd. v. Labour Court (1) Kanpur, 1990 LLR 113.
Claim for overtime should be made within reasonable time. It has been held by Delhi High
Court that the claim for overtime by the employee w hen he was in Iraq or if he could not make his
claim there, he should have served a notice in writ ing upto the employer as soon as he returned
to India; Bhandari Builders v. M.K. Seth, 1988 (72) FJR 134: 1988 LLR 91: 1988(1) CLR 279.
It is, however clarified that the Delhi Shops & Est ablishments Act, 1954 is not exhaustive on
all the rights and obligations of the employers and the employees as such the provisions of
Industrial Disputes Act, 1947 being Central Act governs the matters.
For instance if an employer who proposes to effect any change prejudicial to the workmen, in
respect of any matter specified in the fourth sched ule to the Act, should give the workmen
concerned twenty one days notice under section 9A o f the Industrial Disputes Act. The real object
and purpose of section 9A of the Act is to afford a n opportunity to the workmen to consider the
effect of the proposed change and, if necessary, to represent their point of view on the proposal.
Such consultation further serves to stimulate a fee ling of common interest of the management
and workmen in industrial progress, efficiency and increased productivity. This approach on the
part of the employer would reflect his harmonious a nd sympathetic cooperation in improving the
status and dignity of the employee in accordance wi th the egalitarian and progressive trend of our
industrial jurisprudence which strives to treat cap ital and labour as co-sharers and to break away
from the tradition of labour’s subservience to capi tal. In order to achieve the object underlying
section 9A, it would be more appropriate to place o n the fourth schedule read with section 9A of
the Industrial Disputes Act, a construction liberal enough to include change of weekly rest days
from Sundays to some other week day.
The Fourth Schedule as appended to the Industrial Disputes Act, 1947 provides as follows:
“Conditions of Service for Change of which Notice is to be given
1. Wages, including the period and mode of payment ;
2. Contribution paid, or payable, by the employer to any provident fund or pension fund
or for the benefit of the workmen under any law for the time being in force;
3. Compensatory and other allowances;
4. Hours of work and rest intervals;
5. Leave with wages and holidays;
6. Starting alteration or discontinuance of shift working otherwise than in accordance
with standing orders;
7. Classification by grades;
8. Withdrawal of any customary concession or privi lege or change in usage;
9. Introduction of new rules of discipline, or alt eration of existing rules, except in so far
as they are provided in standing orders;
10. Rationalisation, standardization or improvemen t of plant or technique which is likely
to lead to retrenchment of workmen;
11. Any increases or reduction (other than casual) in the number of persons employed or
to be employed in any occupation or process or depa rtment or shift, not occasioned
by circumstances over which the employer has no control.”
For instance, in one case, it has been held that in creasing of half an hour daily by the
employees will amount to change in conditions of se rvice hence notice under section 9A of the
Industrial Disputes Act will be imperative; Director of Agriculture v. Dev Raj , 2006 LLR 1019 (HP
HC).
9. Restriction on double employment. —No person shall work about the business of an
establishment or two or more establishments or an e stablishment and a factory in excess of the
period during which he may be lawfully employed under this Act.
10. Interval for rest and meals. —(1) The period of work of an adult employee in an
establishment each day shall be so fixed that no pe riod of continuous work shall exceed five
hours and that no employee shall be required or all owed to work for more than five hours before
he had an interval for rest and meals of at least half an hour.
(2) The time for such interval shall be fixed by th e employer and intimated to the Chief
Inspector a week before such fixation and shall rem ain operative for a period of not less than
three months.
11. Spread over. —The periods of work on any day of an adult person shall be so arranged
that inclusive of his interval for rest or meals as required under section 10, they shall not spread
over for more than ten and a half hours in any comm ercial establishment or for more than twelve
hours in any shop.
12. Prohibition of employment of children. —No child shall be required or allowed to work
whether as an employee or otherwise, in any establi shment notwithstanding that such child is a
member of the family of the employer.
COMMENTS
Although a child has been defined a person who has not completed his twelfth year of age
but it is to be read as fourteen year. It is pertin ent to state that the employment of children as
domestic servants in dhabas (roadside eateries), re staurants, hotels, motels, teashops, resorts,
spas or in other recreational centres has been bann ed from October 10, 2006 not only in Delhi
but all over India. The ban, notified by the labour ministry has been imposed under the Child
Labour (Prohibition & Regulation Act, 1986).
The decision has been taken on the recommendation o f the Technical Advisory Committee
on Child Labour.
The committee had stated that the occupations menti oned were hazardous for children and
had recommended their inclusion in the occupations which are prohibited for persons below 14
years under the Child Labur (Prohibition & Regulation) Act, 1986.
13. Employment of young persons — Hours of work. —(1) No young person shall be
required or allowed to work about the business of an establishment for more than six hours a day.
(2) No young person shall be employed continuously for more than three and a half hours
without an interval of at least half an hour for re st or meals and the spread over shall not exceed
eight hours on any day.
COMMENTS
The persons who have completed twelve years of age but are below eighteen years fall
within the definition of “young persons” as given i n section 2 (34) of the Act. The provisions of this
section also apply to all kinds of establishments l ike the preceding section 12 of the Act. Read as
a whole, this section contemplates that (i) no youn g person can be employed or allowed to work
in any establishment for more than six hours a day; (ii) there must be an interval of at least half an
hour for rest or meals after he has continuously wo rked for three and a half hours on any day;
and (iii) the periods of work in respect of such pe rsons including the time given for rest or meals
should not exceed more than eight hours on any day. These restrictions are absolute and the
violation of any of these restrictions is an offenc e punishable under the Act.
14. Young persons and women to work during day time . —No young person, or woman
shall be allowed or required to work whether as an employee or otherwise in any establishment
between 9 p.m. and 7 a.m. during the summer season and between 8 p.m. to 8 a.m. during the
winter season.
COMMENTS
Like preceding sections 12 and 13, this section put s restrictions on the employment of young
persons and women during certain hours. It lays dow n that no young person or woman can be
required or allowed to work, whether as an employee or otherwise, between 9 p.m. and 7 a.m.
during summer and between 8 p.m. and 8 a.m. during winter. The summer season starts from 1st
April and ends on 30th September while the winter s eason starts from 1st October and ends on
31st March of the following year. The Lt. Governor has withdrawn such exemptions available to:
Akbar Hotel, Hotel Oberoi Intercontinental, Ashok H otel, The Taj Mahal Hotel and Hotel Sidharth,
New Delhi.
15. Opening and closing hours of shops and commerci al establishments. —(1) No shop
or commercial establishment on any day, be opened e arlier than such hour or closed later than
such hour, as may be fixed by the Government by gen eral or special order made in that behalf:
Provided that any customer who was being served or was waiting to be served in any shop or
commercial establishment at the closing hour so fix ed may be served during the period of fifteen
minutes immediately following such hour.
(2) Before making an order under sub-section (1), t he Government shall hold an enquiry in
such manner as may be prescribed.
(3) The Government may, for the purposes of this se ction, fix different opening hours and
different closing hours for different classes of sh ops or commercial establishments or for different
areas or for different times of the year.
COMMENTS
Opening and closing hours
The opening and closing hours of all shops, within the urban, semi-urban and rural areas of
the Union Territory of Delhi, whether comprised in the Municipal Corporation of Delhi, the New
Delhi Municipal Committee or the Delhi Cantonment B oard, are 9 a.m. and 7 p.m. respectively,
while in respect of commercial establishments withi n such territory, the opening and closing hours
are 8 a.m. and 6 p.m respectively, vide Notification No. F. 9(1)/79/LC (S), dated 19th Jul y, 1979.
Same relexations have been given and as such. 1
16. Close day. —(1) Every shop and commercial establishment shall remain closed on a
close day.
(2) In addition to the close day every shop and com mercial establishment shall remain closed
on three of the National holidays each year as the Government may by notification in the Official
Gazette specify.
(3) (i) The Government may, by notification in the Official Gazette, specify a close day for the
purposes of this section and different days may be specified for different classes of shops or
commercial establishments or for different areas.
(ii) Notwithstanding anything contained in sub-sect ion (1), the occupier of any shop or a
commercial establishment may, open his shop or comm ercial establishment on a close day, if
such a day happens to coincide with a religious fes tival, “or the Mahurat day” , the day of the
commencement of the financial year of the establish ment concerned, provided a notice to this
effect has been given to the Chief Inspector at lea st twenty-four hours before the close day and
that in lieu thereof the shop or the commercial est ablishment is closed on either of the two days
immediately preceding or following that close day.
COMMENTS
Long overdue changes in section 15 & 16 of the Act were brought about in September 2004
by the Lieutenant Governor of Delhi. (Please see Schedule I, Item No. 249).
The closing of 11 P.M. is completely optional. Shop s owner cannot be forced to keep their
shops open till then, and no employee can be made t o work till 11 P.M. against his will. The
timings depend solely on the needs and wishes of th ey owners as long as they are within the
stipulated time mentioned in the Act, i.e. 9 to 9.30 A.M. –11 P.M.
17. Period of rest (weekly holiday). —Every employee shall be allowed at least twenty-fo ur
consecutive hours of rest (weekly holiday) in every week, which shall, in the case of shops and
commercial establishments required by this Act to observe a close day, be on the close day.
18. Wages for the holiday. —No deduction shall be made from the wages of any e mployee
on account of the close day under section 16 or a holiday granted under section 17 of this Act.
If an employee is employed on a daily wage, he shal l nonetheless be paid his daily wage for
the holiday and where an employee is paid on piece rates, he shall receive the average of the
wages received during the week.
COMMENTS
It was held that the notification under Minimum Wag es Act by Delhi Administration providing
that the daily rates of wages include wages for wee kly off days will not be attracted since no rates
were fixed in respect of wages to be paid on the ba sis of piece rate; Co-operative Stores Ltd. v.
K.S. Khurana, 1988 (1) Delhi Lawyers 452: 1988 (ii) CLR 670.
19. Time and conditions for payment of wages. —(1) Every employer or his agent or the
manager of any establishment shall fix periods in r espect of which wages to the employees shall
be payable and such person shall be responsible for the payment to persons employed by him or
all wages required to be paid under this Act.
(2) No wage period so fixed, shall exceed one month.
(3) The wages of every employee in any shop or esta blishment shall be paid on a working
day before the expiry of the seventh day of the las t day of the wage period in respect of which the
wages are payable.
(4) All wages shall be paid in cash.
(5) Where the employment of any person is terminate d by or on behalf of the employer, the
wages earned by him shall be paid before the expiry of the second working day after the day on
which his employment is terminated.
20. Deductions which may be made from wages. —(1) The wages of an employed person
shall be paid to him without deduction of any kind except those specified in sub-section (2).
Explanation.— Every payment made by the employed person to the em ployer or his agent or
the manager shall for the purpose of this Act be deemed to be a deduction from wages.
(2) Deduction from the wages of an employee shall b e of one or more of the following kinds
namely:—
(i) Fines;
(ii) Deductions of absence from duty;
(iii) Deductions for damage to or loss of goods ex pressly entrusted to the employed
person for custody, or for loss of money for which he is required to account, where
such damage or loss is directly attributable to his neglect or default;
(iv) Deductions for house accommodation supplied b y the employer;
(v) Deductions for such amenities and services sup plied by the employer as the
Government may by general or special order authoris e;
Explanation.— The words ‘amenities’ and ‘services’ in this clause do not include the
supply of tools and protectives required for the purpose of employment.
(vi) Deductions for the recovery of advances or fo r adjustment of over-payments of
wages, provided that such advances do not exceed an amount equal to wages for two
calendar months of the employed person and, in no c ase, shall the monthly instalment
of deduction exceed one-fourth of the wages earned in that month;
(vii) Deductions of income tax payable by the empl oyed person;
(viii) Deductions required to be made by order of a court or other competent authority;
(ix) Deductions for subscription to, and for repay ment of advances from, any provident
fund to which the Employees’ Provident Funds and Mi scellaneous Provisions Act,
1952 (19 of 1952) applies or any recognised provide nt fund as defined in section
2(38) of the Income-Tax Act, 1961 (43 of 1961) or a ny provident fund approved in this
behalf by the Government during the continuance of such approval;
(x) Deductions for payment to co-operative societi es or to a scheme of insurance
approved by the Government.
(3) Any employer desiring to impose a fine on an em ployed person or to make a deduction for
damage or loss caused by him shall explain to him p ersonally and also in writing the act or
omission or the damage or loss, in respect of which the fine or deduction is proposed to be
imposed or made, and give him an opportunity to off er any explanation in the presence of another
person. The amount of the said fine or deduction shall also be intimated to him.
(4) The amount of fine or deduction mentioned in su b-section (3) shall be such as may be
specified by the Government. All such deductions an d realisations thereof shall beExcerpt shown. Open the full act in Lexace.