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The HImachal Pradesh Shops and Commercial Establishments Act, 1969

Himachal Pradesh · state statute
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THE HIMACHAL PRADESH SHOPS AND COMMERCIAL 
ESTABLISHMENTS ACT, 1969 
ARRANGEMENT OF SECTIONS 
Sections: 
1.  Short title, extent, commencement and applicati on. 
2.  Definitions. 
3.  Act not applicable to certain establishments an d persons. 
4.  Provisions of section 9 and sub-section (1) of section 10 not 
applicable to certain establishments. 
5.  Power of Government to extend provisions of the  Act. 
6.  Conditions of employment for young persons. 
7.  Hours of employment. 
8. Intervals for rest or meals. 
9.  Opening and closing hours. 
10. Close-day. 
11.  Employees off day in a week. 
12.  Holidays. 
13.  Registration of establishments. 
14.  Leave. 
15.  Wages for close days and during leave period. 
16.  Wage period. 
17.  Deduction from wages. 
18.  Realisation of compensation. 
19.  Enforcement and inspection. 
20.  Records. 
21.  Inspection of registers and calling for inform ation. 
22.  Notice of removal. 
23.  Notice by employee. 
24.  Provisions as to trading elsewhere than in est ablishment.  
25.  Penalties. 
26.  Protection of officers and their agents from p ersonal 
liability.  
27.  Power to grant exemptions. 
2  THE HIMACHAL PRADESH SHOPS AND COMMERCIAL ESTABL ISHMENTS ACT, 
1969 
28.  Prohibition of employment of children. 
29.  Conditions of employment of women. 
30.  Maternity benefit. 
31.  Bar of legal practitioners in certain proceedi ngs. 
32.  Saving of certain rights and privileges. 
33.  Cognizance of offence. 
34.  Power to make rules. 
35.  Repeal and savings. 
THE HIMACHAL PRADESH SHOPS AND COMMERCIAL 
ESTABLISHMENTS ACT, 1969 
(ACT NO. 10 OF 1970) 
1 
(Received the assent of the President on the 3 rd March, 1970 and was 
published in the Rajpatra, Himachal Pradesh (Extra- ordinary), dated the 1 st 
July, 1970, pp. 563-580).  
An Act to provide for the regulation of conditions of work and 
employment in shops and commercial establishments. 
Amended, repealed or otherwise affected by ,- 
(i)  The Himachal Pradesh Adaptation of Laws (State and 
Concurrent Subjects) Order, 1973, published in the Rajpatra, 
Himachal Pradesh (Extra-ordinary), dated the 20 
th January, 
1973, pp. 91-112, effective from 25 th  January, 1971. 
(ii)  H.P. Act No.15 of 2004 2 published in the Rajpatra, Himachal 
Pradesh (Extra-ordinary), dated 6 th  August, 2004, pp. 1474-
1476. 
(iii)  H.P. Act No. 27 of 2012 3 published in the Rajpatra, 
Himachal Pradesh, dated 8th May, 2012, pp. 959-962. 
BE it enacted by the Legislative Assembly of Himachal Pradesh in the 
Twentieth Year of the Republic of India as follows:- 
1. Short title, extent, commencement and application.- (1) This Act 
may be called the Himachal Pradesh Shops and Commer cial Establishments 
Act, 1969. 
                                                 
1. For Statement of Objects and Reasons, see the Ra jpatra, Himachal Pradesh (Extra-
ordinary), dated the 31 st  May, 1969, p. 464. 
2. Passed in Hindi by the Himachal Pradesh Vidhan S abha. For Statement of Objects 
and Reasons the Rajpatra, Himachal Pradesh (Extra-ordinary), dated 1 st  July, 2004, 
pp. 1085 and 1089. 
3. Passed in Hindi by the Himachal Pradesh Vidhan S abha. For Statement of Objects 
and Reasons see the Rajpatra, Himachal Pradesh, dat ed 3 rd  April, 2012, pp. 23-24 
and 25-26. 
THE HIMACHAL PRADESH SHOPS AND COMMERCIAL ESTABLISHMENTS  3 
ACT, 1969  
(2) It extends to the whole of the [State] 1 of Himachal Pradesh. 
(3) It shall come into force at once. 
(4) It shall apply in the first instance to the lim its of the Simla 
Municipal Corporation and to the municipal areas an d cantonment limits; but 
the Government may by notification in the Official Gazette, direct that it shall 
come into force in any other local area or shall apply to such establishments or 
class of establishments in such other areas as may be specified in the 
notification. 
2. Definitions.- (1) In this Act, unless the context otherwise require:- 
(i)  “closed” means not open for the service of any  customer 
or for any other purpose whatsoever relating to business; 
(ii)  “close-day” means the day of the week on whic h a shop 
or commercial establishment remains closed; 
(iii)  “closing-hour” means the hour at which a sho p or 
commercial establishment closes; 
(iv)  “commercial establishment” means any premises  wherein 
any business, trade or profession is carried on for  profit, 
and includes journalistic or printing establishment  and 
premises in which business of banking, insurance, s tocks 
and shares, brokerage or produce exchange is carrie d on 
or which is used as hotel, restaurant, boarding or eating 
house, theatre, cinema or other place of public ent er-
tainment or any other place which the Government ma y 
declare, by notification, to be a commercial establishment 
for the purposes of this Act; 
(v)  “day” means a period of twenty-four hours begi nning at 
midnight: 
Provided that in the case of any employee whose 
hours of work extend beyond midnight, “day” means t he 
period of twenty-four hours beginning from the time  
when such employment commences; 
(vi)  “employee” means any person employed, whether  
directly or otherwise, about the business of an 
establishment for the owner or occupier thereof eve n 
though he receives no reward for his labour and inc ludes, 
for the purpose of any matter regulated by this Act , a 
person discharged or dismissed whose claims have no t 
been settled in accordance with this Act, and perso ns 
employed in any factory but not governed by the 
Factories Act, 1948 (Central Act, 63 of 1948); 
                                                 
1. Substituted for “Union territory” by A.O. 1973, effective from 25 th  January, 1971. 
4  THE HIMACHAL PRADESH SHOPS AND COMMERCIAL ESTABL ISHMENTS ACT, 
1969 
(vii)  “employer” means a person having charge of o r owning 
or having ultimate control over the affairs of an 
establishment and include members of the family of an 
employer, a manager, agent or other person acting i n the 
general management or control of the establishment; 
(viii)  “establishment” means a shop or a commercia l 
establishment; 
(ix)  “factory” has the meaning assigned to it in t he Factories 
Act, 1948 (Central Act: 63 of 1948); 
(x)  “family” in relation to an employer, means:- 
(i)  spouse; 
(ii)  children and step-children; and 
(iii) parents, sisters and brothers if residing wit h and 
wholly dependent upon him; 
(xi)  “festival” means any festival which the Gover nment may, 
by notification, declare to be a festival for the purposes of 
this Act; 
(xii)  
1[XXXXXXXXXXXXXXXXXXXXX] 
(xiii)  “hours of work” or “working hours” means th e time 
during which the persons employed are at the dispos al of 
the employer exclusive of any interval allowed for rest 
and meals; 
(xiv)  “inspector” means an inspector appointed und er this Act;  
(xv)  “leave” means leave as provided for in sectio n 14; 
(xvi)  “manager” in relation to an establishment wh ere five or 
more persons are employed or an establishment whose  
owner does not ordinarily carry on the business 
personally, means a person declared as such by the 
employer in the prescribed manner; 
(xvii)  “night” means a period of twelve consecutiv e hours 
which shall include the interval between 8 P.M. to 6 
A.M.; 
(xviii)  “notification” means a notification publis hed under 
proper authority in the Official Gazette; 
(xix)  “Official Gazette” means Rajpatra, Himachal Pradesh; 
(xx)  “opened” means opened for the service of any customer 
or for any business connected with the establishment; 
                                                 
1. The definition of ‘Government’ omitted by A.O. 1 973, effective from 25 th  January, 
1971. 
THE HIMACHAL PRADESH SHOPS AND COMMERCIAL ESTABLISHMENTS  5 
ACT, 1969  
(xxi)  “opening hour” means the hour at which an es tablishment 
opens;  
(xxii)  “prescribed” means prescribed by rules made  under this 
Act;  
(xxiii)  “quarter” means a period of three months c ommencing on 
the first day of January, first day of April, first day of July 
or first day of October, every year; 
(xxiv)  “retail trade or business” includes the bus iness of a barber 
or hair dresser, the sale of refreshments or intoxi cating 
liquors, and retail sales by auction; 
(xxv)  “register of establishments” means a registe r maintained 
for the registration of establishments under this Act; 
(xxvi)  “registration certificate” means a certific ate showing the 
registration of an establishment; 
(xxvii)  “shop” means any premises where any trade or business 
is carried on or where services are rendered to cus tomers, 
and includes offices, store-rooms, godowns, sale de pots 
or warehouses, whether in the same premises or 
otherwise, used in connection with such trade or business, 
but does not include a commercial establishment or a 
shop attached to a factory where the persons employ ed in 
the shop are allowed the benefits provided for work ers 
under the Factories Act, 1948 (Central Act No. 63 o f 
1948); 
(xxviii)  “spread-over” means the period between th e 
commencement and the termination of work of an 
employee on any day; 
(xxix)  “wages” shall have the meaning assigned to it in the 
Payment of Wages Act, 1936 (Central Act No. 4 of 
1936); 
(xxx)  “wage period” means the period after which t he wages of 
an employed person shall be paid; 
(xxxi)  “week” means the period between midnight on  Saturday 
and  midnight on the following Saturday; 
(xxxii)  “young person” means a person who has atta ined the age 
of fourteen years but has not attained the age of e ighteen 
years; and 
1[(xxxiii)  “year” means any year reckoned according  to British 
Calendar.]  
                                                 
1. Substituted vide H.P. Act No. 15 of 2004. 
6  THE HIMACHAL PRADESH SHOPS AND COMMERCIAL ESTABL ISHMENTS ACT, 
1969 
(2) For the purposes of this Act, any employment in the service of the 
employer of an establishment whether within the est ablishment or outside it, 
which relates to or is connected with or is ancilla ry to the business carried on 
at the establishment shall be deemed to be employme nt about the business of 
the establishment. 
3. Act not applicable to certain establishments and  persons.-  
Nothing in this Act shall apply to- 
(a)  offices of or under the Central Government or any State 
Government or the Government of Himachal Pradesh (e xcept 
commercial undertakings), the Reserve Bank of India , any 
railway administration or any local authority; 
(b)  any railway service, air service, water transp ort service, 
tramway, postal, telegraph or telephone service, an y system 
of public conservancy or sanitation or any industry , business 
or undertaking which supplies power, light or water  to the 
public; 
(c) railway dinning cars; 
(d)  offices of lawyers; 
(e)  any person employed about the business of any establishment 
mentioned in clauses (a) to (d); 
(f)  any person whose hours of employment are regul ated by or 
under the Factories Act, 1948, (Central Act, 63 of 1948), 
except the provisions of sub-sections (3), (4) and (5) of 
section 7 of this Act in so far as they relate to e mployment in 
a factory; 
(g)  any person whose work is inherently intermitte nt; 
(h)  establishments of stamp vendors and petition w riters. 
4. Provisions of section 9 and sub-section (1) of s ection 10 not 
applicable to certain establishments.- (1) Nothing in section 9 and sub-
section (1) of section 10 shall apply to:-  
(a)  clubs, hotels, restaurants, boarding houses, s talls and 
refreshment rooms at railway stations; 
(b)  shops of barbers and hair dressers; 
(c) establishments dealing exclusively in meat, fis h, 
confectionery, poultry, eggs, dairy produce (except  ghee), 
bread, sweets, chocolates, ice, ice-cream, cooked f ood, fresh 
fruit, flowers or vegetables; 
(d)  shops dealing exclusively in medicines or medi cal or surgical 
requisites or appliances and establishments for the  treatment 
or care of the sick, infirm, destitute or mentally unfit; 
THE HIMACHAL PRADESH SHOPS AND COMMERCIAL ESTABLISHMENTS  7 
ACT, 1969  
(e)  shops dealing in articles required for funeral s, burials or 
cremations;  
(f)  shops dealing exclusively in pans (betel leave s), biris or 
cigarettes, or liquid refreshments sold retail for consumption 
on the premises; 
(g) shops dealing exclusively in newspapers or peri odicals, editing 
and despatching sections of newspaper offices and o ffices of 
news agencies; 
(h)  places of public entertainment except cinema h ouses; 
(i)  establishments for the retail sale of petrol a nd petroleum 
products used for transport; 
(j)  shops in regimental institutes, garrison shops  and troop 
canteens in cantonments; 
(k)  tanneries; 
(l)  establishments engaged in retail trade carried  on at an 
exhibition or show, if such retail trade is subsidi ary or 
ancillary only to the main purpose of the exhibition or show; 
(m)  oil mills not registered under the Factories A ct, 1948 (Central 
Act. 63 of 1948);  
(n) brick and lime kilns;  
(o)  commercial establishments engaged in the manuf acture of 
bronze and brass utensils so far as it is confined to the process 
of melting in furnaces; 
(p)  saltpetre refineries;  
(q)  establishments of commercial colleges of short -hand or type-
writing and other educational academies;  
(r)  booking offices of passenger and goods transpo rt companies;  
(s)  establishments dealing exclusively in green an d dry fodder 
and chaff cutting; and 
(t)  cycle stands, and cycle, repairs shops. 
(2)  Nothing in sub-section (1) of section 10 shall apply to:- 
(i)  establishments of cinema houses; 
(ii)  establishments dealing in hides and skins; 
(iii)  ice factories; 
(iv)  establishments engaged exclusively in repairs  of cycles or 
motor vehicles or the service of motor vehicles (no t being an 
establishment dealing in cycles or motor vehicles o r 
exclusively in spare parts thereof); 
8  THE HIMACHAL PRADESH SHOPS AND COMMERCIAL ESTABL ISHMENTS ACT, 
1969 
(v)  establishments dealing exclusively in providin g on hire tents, 
chhauldaries and other articles such as crockery, f urniture, 
loud speakers, gas-lights and fans required for cer emonial 
purposes; and 
(vi)  establishments dealing exclusively in the ret ail sale of 
phullian, murmara, sugar coated gram, reories or other similar 
commodities. 
5. Power of Government to extend provisions of the Act.- (1) Not-
withstanding anything contained in section 3 or sec tion 4, the Government 
may, if it considers it necessary in the public int erest so to do, by notification, 
declare that any class of establishments or persons  specified therein shall not 
be exempted from the operation of such provisions o f this Act as may be 
specified in the notification and that the provisio ns of this Act specified in 
such notification shall apply to such class of esta blishments or persons, as the 
case may be. 
(2) Every notification issued under sub-section (1)  shall, as soon as 
possible after it is issued, be laid before the Legislative Assembly. 
6. Conditions of employment for young persons.- (1) The total 
number of hours worked by a young person employed a bout the business of 
an establishment, exclusive of interval for meals a nd rest, shall not exceed 
thirty hours in anyone week or five hours in any one day. 
(2) A young person employed about the business of a n establishment 
shall not be employed continuously for more than th ree hours without an 
interval of at least half an hour for meals or rest. 
(3) Government may prescribe further conditions in respect of the 
employment of young persons employed about the busi ness of establishment 
or any class of them, including, if it thinks fit, conditions with respect to the 
daily period of employment of those persons, and no  such person shall be 
employed otherwise than in accordance with those conditions. 
(4) In the case of any contravention of, or failure  to comply with, the 
provisions of this section, the employer shall be l iable, on conviction, a fine 
which shall not be less than 1[four thousand rupees but which may extend to 
six thousand rupees]. 
(5) Where in proceedings for an offence under this section, the person 
respect of whom the offence was committed was a you ng person, and he 
appears to the court to have been at the date of th e commission of the offence 
a young person, he shall, for the purposes of this Act, be presumed at that date 
to have been a young person unless the contrary is proved. 
                                                 
1. The words “five hundred rupees” substituted for the words “fifty rupees” and 
words “two thousand rupees” for the words “two hund red rupees” respectively 
vide Act. No. 15 of 2004 and again the words “four thousand rupees but which 
may extend to six thousand rupees” substituted for the words “five hundred rupees 
but which may extend to two thousand rupees” vide H .P. Act No. 27 of 2012. 
THE HIMACHAL PRADESH SHOPS AND COMMERCIAL ESTABLISHMENTS  9 
ACT, 1969  
7. Hours of employment.- (1) Subject to the provisions of this Act, 
no person shall be employed about the business of a n establishment for more 
than forty-eight hours in any one week and nine hours in any one day. 
(2) On occasions of seasonal or exceptional pressur e of work, a 
person employed in an establishment may be employed  about the business of 
the establishment in excess of the working hours specified in sub-section (1): 
Provided that- 
(a) the total number of overtime hours worked by an  employee does 
not exceed fifty within a period of any one quarter; and 
(b) the persons employed overtime shall be paid rem uneration at 
twice the rate of his normal wages calculated by the hour. 
Explanation.- For the purposes of clause (b) of the proviso to th is 
sub-section and of sections 10 and 12, “normal wage s” means basic wages 
plus such allowances including the cash equivalent of the advantages accruing 
through the concessional sale to workers of foodgra ins and other articles as 
any worker is for the time being entitled to, but does not include bonus. 
(3) No employer shall, on any day or in any week, e mploy about the 
business of the establishment any person who has be en previously employed 
on that day or in that week in another establishmen t or factory for a longer 
period which together with the time during which he  has been previously 
employed on that day, or in that week in such other  establishment or factory, 
exceeds the number of hours permitted by this Act. 
(4) In any proceedings against the employer of an e stablishment for a 
contravention of the provisions of sub-section (3),  it shall be a defence to 
prove that the employer did not know and could not with reasonable diligence 
ascertain that the person was previously employed b y the employer of the 
other establishment or factory. 
(5) No person shall work about the business of an e stablishment or 
two or more establishments or an establishment and a factory in excess of the 
period during which he may be lawfully employed under this Act. 
8. Intervals for rest or meals.- (1) Subject to the provisions of 
section 6, no employee except a chowkidar, watchman  or guard, shall be 
allowed to work in an establishment for more than f ive hours before he has 
had an interval for rest of at least half an hour: 
Provided that the Government may, by notification, fix such interval 
or rest in respect of any class of establishments f or the whole of the Himachal 
Pradesh or any part thereof as it may consider necessary. 
(2) The period of work of an employee in an establishment shall be so 
fixed that, inclusive of his interval for rest, the  spread over shall not be more 
than ten hours in a day. 
9. Opening and closing hours.- The Government shall, by 
notification, fix the opening and closing hours of all classes of establishment 
10  THE HIMACHAL PRADESH SHOPS AND COMMERCIAL ESTAB LISHMENTS ACT, 
1969 
and different opening and closing hours may be fixe d for different classes of 
establishments and for different areas: 
Provided that the Government may allow an establishment attached to 
a factory to observe such opening and closing hours  as the Government may 
direct. 
10. Close-day.- (1) Save as otherwise provided by this Act, every 
establishment shall remain close on such day in a week as may be prescribed: 
Provided that, in the case of an establishment atta ched to a factory, 
the employer may substitute the close-day of such e stablishment so as to 
correspond to the substituted close-day of the fact ory in the same manner and 
subject to the same conditions as are laid down in this behalf in the Factories 
Act, 1948 (Central Act No. 63 of 1948). 
(2) (i) The employer of an establishment shall in t he prescribed form 
intimate to the prescribed authority the working ho urs, the day in a week, 
referred to in clause (b) of section II and the per iod of interval of the 
employed person, within fifteen days of the date of  registration of the 
establishment. 
(ii) The employer of an establishment may change th e working hours 
and the period of interval once in a quarter by giv ing intimation in the pres-
cribed form to the prescribed authority at least fi fteen days before the change 
is to take place. 
(3) Notwithstanding anything contained in sub-secti on (1), the 
employer of an establishment may open his establishment on the close day if:- 
(a)  such day happens to coincide with a festival; and 
(b)  employees required to work on that day are pai d remuneration 
at double the rate of their normal wages calculated  by the 
hour. 
11. Employees off day in a week.- No employee shall be allowed or 
required to work:- 
(a)  on a close-day, in any establishment which is required to 
(observe) a close-day;  
(b)  on one day in a week, in any other establishme nt; and  
(c)  before the opening hours of the establishment and after the 
closing hours of the establishment: 
Provided that a watchman may be allowed or required  to work on an 
off day under this section, if he is allowed another off day in the week. 
12. Holidays.- Every employee in an establishment shall be allowed:- 
(a)  a holiday with wages on the Independence Day, Republic 
Day and Mahatma Gandhi’s birthday; and 
THE HIMACHAL PRADESH SHOPS AND COMMERCIAL ESTABLISHMENTS  11 
ACT, 1969  
(b)  three other holidays with wages in a year in c onnection with 
such festivals as the Government may declare from t ime to 
time by notification: 
Provided that an employee required to work on any such holiday shall 
be entitled to remuneration at twice the rate of his normal wages calculated by 
the hour. 
13. Registration of establishments.- (1) Within the period specified 
in sub-section (3), the employer of every establish ment shall send to the 
prescribed authority a statement in the prescribed form accompanied by such 
fees as may be prescribed and containing:- 
(a)  the name of the employer and the manager, if a ny;  
(b)  postal address of the establishment; 
(c)  the name, if any, of the establishment; 
(d)  number of persons employed in the establishmen t; and  
(e)  such other particulars as may be prescribed. 
(2) (i) On receipt of the statement and the prescri bed fee, the 
prescribed authority shall, on being satisfied abou t the correctness of the 
statement, register the establishment in the regist er of establishments in such 
manner as may be prescribed and shall issue in the prescribed form a 
registration certificate to the employer. The regis tration certificate shall, on 
demand by the Inspector, be shown to him by the employer. 
1[(ii) The registration certificate shall, on paymen t of the prescribed 
fee, be renewed for a period of five years.] 
(3) Within thirty days from the date mentioned in c olumn 2 of the 
Table below in respect of an establishment mentioned in column 1 thereof, the 
statement together with the prescribed fee shall be  sent to the prescribed 
authority under sub-section (1):- 
THE TABLE 
Establishment 
 
1 
Date from which the period of 30 
days is to commence 
2 
(i)  Establishment existing in areas 
to which this Act applies or to 
which it is made applicable 
subsequently. 
(ii)  New establishment in such 
areas. 
The date on which this Act comes 
into force or the date on which the 
Act is made applicable subsequently 
as the case may be. 
The date on which the establishment 
commences its work. 
                                                 
1. Clause (ii) substituted vide H.P. Act No. 15 of 2004. 
12  THE HIMACHAL PRADESH SHOPS AND COMMERCIAL ESTAB LISHMENTS ACT, 
1969 
(4) It shall be the duty of the employer to notify to the prescribed 
authority in the prescribed form any change in resp ect of any information 
contained m his statement under this section within  seven days after the 
change has taken place and the prescribed authority  shall on receiving such 
notice and on being satisfied about its correctness  make the change in the 
register of establishments in accordance with such notice and shall amend the 
registration certificate, if necessary. 
(5) The employer shall, within ten days of his clos ing the 
establishment, notify to the prescribed authority in writing accordingly and the 
prescribed authority shall, on receiving the inform ation and on being satisfied 
about its correctness, remove the name of such establishment from the register 
of establishments and cancel the registration certificate.  
14. Leave.- (1)(a) Every employee who has been in employment fo r 
not less than twenty days in any year shall be entitled to one days earned leave 
for every such twenty days: 
Provided that a young person shall be entitled to o ne day’s earned 
leave for every fifteen days of employment. 
(b) If an employee is discharged or dismissed from or leaves service, 
he shall be entitled to wages in lieu of the unavai led leave at the rates laid 
down in clause (a). 
(c) In calculating leave under this section, fracti on of half a day or 
more shall be treated as one day’s leave, and fract ion of less than half a day 
shall be ignored. 
(d) If an employee does not in anyone year take the whole of the leave 
allowed to him under clause (a), any leave not take n by him shall be carried 
forward and added to the leave to be allowed to him in the succeeding year: 
Provided that:- 
(i)  subject to any specific agreement between the employer and 
the employee, the total number of days of leave tha t may be 
carried forward to a succeeding year shall not exce ed forty in 
the case of a young person or thirty in any other case; 
(ii)  the provisions of this section shall not oper ate to the prejudice 
of any rights to which an employee may be entitled under any 
other law or under the terms of any award, agreemen t or 
contract of service; 
(iii)  where such award, agreement or contract of s ervice provides 
for a longer leave with wages or weekly holidays th an those 
provided under this section, the employee shall be entitled to 
such longer leave or weekly holidays as the case may be. 
(2) Leave provided in clause (a) of sub-section (1)  shall not, when 
applied for, be refused except for a valid reason t o be communicated in 
writing by the employer to the employee within fift een days of the 
application: 
THE HIMACHAL PRADESH SHOPS AND COMMERCIAL ESTABLISHMENTS  13 
ACT, 1969  
Provided that the leave so refused shall, if applie d for again, be 
granted within thirty days of the date of the application. 
(3) (a) For the purpose of computing the period dur ing which an 
employee has been in employment within the meaning of clause (a) of sub-
section (1), the period during which he was on leave under this section and the 
off days in a week referred to in section 11, shall be included. 
(b) The unavai1ed leave of an employee shall not be  taken into 
consideration in computing the period of any notice  required to be given 
before discharge, removal or dismissal. 
(4) Notwithstanding anything contained in the foregoing sub-sections, 
every employee in an establishment shall be allowed  with wages seven days 
casual leave and seven days sick leave in a year. 
15. Wages for close days and during leave period.- (1) Any person 
employed in or about an establishment, for a period  of fifteen days or more 
shall receive, for every off day in a week referred  to in section 11, wages at 
the rate not less than the average daily wages earned by him for days on which 
he worked during the week immediately preceding every such off day. 
(2) For the leave allowed to him under section 14, an employee shall 
be paid at the rate equal to the daily average of h is total full time earnings for 
the days on which he worked during the month immedi ately preceding his 
leave, exclusive of any overtime and bonus but incl usive of dearness 
allowance and the cash equivalent of the advantage accruing through the 
concessional sale to the employee of food grains and other articles. 
(3) An employee who has been allowed leave for not less than five 
days in the case of a young person and four days in  any other case shall, on 
demand, before his leave begins, be paid the wages due for the period of leave 
allowed. 
16. Wage period.- (1) Every person responsible for the payment of 
wages to an employee shall fix a period in respect of which such wages shall 
be payable. 
(2) No wage period shall exceed one month. 
(3) The wages of every person employed shall be pai d before the 
expiry of the seventh day form the date on which the wages became due. 
(4) Where the employment of any person is terminate d by or on 
behalf of the employer the wages earned by him and the remuneration in lieu 
of unavailed period of due leave shall be paid befo re the expiry of the second 
working day after such termination and where an emp loyee quits his 
employment on or before the next payday: 
Provided that no claim under this section shall be entertained unless it 
is preferred within six month from the date of its accruing except under 
special circumstances at the discretion of the Chie f Inspector of Shops and 
Commercial Establishments, Himachal Pradesh. 
14  THE HIMACHAL PRADESH SHOPS AND COMMERCIAL ESTAB LISHMENTS ACT, 
1969 
17. Deduction from wages.- The wages of an employee shall be paid 
to him without deductions of any kind except those authorised by or under the 
Payment of Wages Act, 1936, (Central Act No. 4 of 1 936), in so far as such 
deductions are applicable to the employee, and in such manner, to such extent 
and subject to such conditions, as are specified in that Act. 
18. Realisation of compensation.- (1) In case of contravention of the 
provisions of section 16, if a Magistrate is satisf ied that the employee has not 
been paid his due wages, he shall direct the employ er to pay the wages along 
with compensation not exceeding eight times the amount of wages with held. 
(2) The amount of wages with held and compensation payable under 
this section shall, for the purposes of its recover y, be deemed to be a fine 
imposed under this Act in addition to the penalty i mposed under section 25 
and shall be realised as such. 
19. Enforcement and inspection.- (1) The Government may, by noti-
fication appoint such persons as it thinks fit to b e Inspectors for the purposes 
of this Act within such local limits as it may assign to them. 
1[(2) The Government may, by notification, appoint a ny person to be 
the Chief Inspector, Additional Chief Inspector, De puty Chief Inspector, or 
Assistant Chief Inspector of Shops and Commercial E stablishments, who 
shall, in addition to the powers conferred on them under this Act, exercise the 
powers of Inspector within their respective jurisdiction.] 
(3) Subject to any rules made by the Government in this behalf, an 
Inspector may, within the local limits for which he is appointed,- 
(a)  enter at all reasonable times and with such as sistants, if any, 
being persons in the service of Government or of an y local 
authority, as he thinks fit, any place which is, or which he has 
reason to believe to be, an establishment; 
(b)  make such examination of the premises and of a ny prescribed 
registers, records and notices and take on the spot  or 
otherwise evidence of any persons, as he may deem necessary 
for carrying out the purposes of this Act; and 
(c)  exercise such other powers as may be necessary  for carrying 
out the purposes of this Act: 
Provided that no person shall be compelled under th is section to 
answer any question or give any evidence tending to incriminate himself. 
(4) Every Inspector appointed under this section shall be deemed to be 
a public servant within the meaning of section 21 o f the Indian Penal Code 
(Central Act 45 of 1860). 
20. Records.- (1) The employer of every establishment shall, in t he 
prescribed form and manner, keep exhibited in the e stablishment a notice 
                                                 
1. Sub-section (2) substituted vide H.P. Act No. 27  of 2012. 
THE HIMACHAL PRADESH SHOPS AND COMMERCIAL ESTABLISHMENTS  15 
ACT, 1969  
setting forth the close-day, the working hours and the period of interval of 
employed persons, if any, and such other particulars as may be prescribed. 
(2) The employer of any establishment, about the bu siness of which 
persons are employed, shall in the prescribed form and manner, keep a record 
of the working hours, rest intervals and the accoun t of leave taken by every 
person employed about the business of an establishment, and particulars of all 
overtime employment shall be separately entered in the record. 
(3) The employer of every establishment, about the business of which 
persons are employed, shall mark the attendance of every employee in the 
register maintained for the purpose within one hour  of the start of duty and in 
the case of overtime every entry regarding the comm encement or closure of 
overtime shall respectively be made before or after  such commencement or 
closure. 
(4) The employer of every establishment shall keep a photograph of 
each employee who has completed three months’ conti nuous service in the 
establishment: 
Provided that where such employee fails to supply such photograph to 
the employer within fifteen days of the completion of such service, his failure 
so to do shall he recorded by the employer under th e signature of the 
employee. 
(5) The employer of every establishment shall for t he purpose of this 
Act maintain such other records, registers and disp lay such other notices as 
may be prescribed. 
(6) In case of any contravention of the foregoing p rovisions of this 
section, the employer of an establishment shall be liable, on conviction, to a 
fine not exceeding 1[two hundred rupees] rupees for every day on which the 
contravention occurs or continues. 
(7) If any person, with intent to deceive, makes, or causes or allows to 
be made, in any such record, register or notice as aforesaid an entry which is 
to his knowledge false in any material particular, or willfully omits or causes 
or allows to be omitted from any such records, regi ster or notice an entry 
required to be made therein, he shall be liable, on conviction, to imprisonment 
for a term not exceeding three months or to a fine which shall not be less than 
2[four thousand rupees but which may extend to six t housand rupees] or to 
both. 
                                                 
1. The words “fifty rupees” substituted for the wor ds “five rupees” vide H.P. Act No. 
15 of 2004 and again the words “ two hundred rupees ” substituted ’ for the words 
“fifty rupees” vide H.P. Act No. 27 of 2012. 
2. The words “five hundred rupees” substituted for the words and sign “twenty- five 
rupees” the words “two thousand rupees” for the wor ds “two hundred rupees” 
respectively vide H.P. Act No. 15 of 2004 and again  the words “four thousand 
rupees but which may extend to six thousand rupees”  substituted for the words 
“five hundred rupees but which may extend to two th ousand rupees” vide H.P. Act 
No. 27 of 2012. 
16  THE HIMACHAL PRADESH SHOPS AND COMMERCIAL ESTAB LISHMENTS ACT, 
1969 
21. Inspection of registers and calling for information.-  (1) It shall 
be the duty of every employer of an establishment t o make available for 
inspection of such officer, as may be prescribed, a ll accounts or other records 
to be kept for the purposes of this Act, and to giv e such officer any other 
information in connection therewith as may be required. 
(2) Whoever contravenes the provisions of sub-section (1) or willfully 
obstructs the inspecting authority in exercise of t he powers under this Act or 
conceals or prevents any employee in an establishment from appearing before 
or being examined by the authority, shall be liable , on conviction, to a fine 
which shall not be less than 1[four thousand rupees and may extend to seven 
thousand rupees]. 
22. Notice of removal.-  (1) No employee shall be removed from 
service unless and until one month’s previous notic e or wages in lieu thereof 
has been given to him: 
Provided that- 
(a)  no employee shall be entitled to such notice o r wages in lieu 
thereof if he is removed on account of misconduct, after 
giving him an opportunity to explain the charge or charges 
against him in writing; 
(b)  no employee shall be entitled to one month’s n otice or wages 
in lieu thereof unless and until he has been in the  service of 
the employer continuously for a period of three months. 
(2) In any case instituted for a contravention of t he provisions of sub-
section (1), if a Magistrate is satisfied that an e mployee has been removed 
without reasonable cause, the Magistrate shall, for  reasons to be recorded in 
writing, award compensation to the employee equival ent to two month’s 
wages: 
Provided that no such claim shall be entertained un less it is preferred 
by the employee within six months from the date of his removal. 
(3) The amount payable as compensation under this section shall be in 
addition to, and recoverable as, fine payable under section 25. 
(4) No person who has been awarded compensation under this section 
shall be entitled to institute a civil suit in respect of the same claim. 
23. Notice by employee.-  (1) No employee, who has been in the 
service of the employer continuously for a period o f three months, shall 
terminate his employment unless he has given to his  employer ten days 
previous notice or wages in lieu thereof. 
                                                 
1. The words “five hundred rupees” substituted for the words and sign “twenty-five 
rupees” and the words “two thousand rupees” substit uted for the words “two 
hundred rupees” respectively vide Act No. 15 of 200 4 and again the words “four 
thousand rupees but which may extend to six thousan d rupees” substituted for the 
words “five hundred rupees and may extend to two th ousand rupees” vide H.P. 
Act No. 27 of 2012. 
THE HIMACHAL PRADESH SHOPS AND COMMERCIAL ESTABLISHMENTS  17 
ACT, 1969  
(2) Where an employee contravenes the provisions of  sub-section (1), 
his employer may forfeit his unpaid wages for a per iod not exceeding ten 
days. 
24. Provisions as to trading elsewhere than in esta blishment.-  
Save as otherwise provided by any law for the time being in force, it shall not 
be lawful in any locality to carry on in any place not being an establishment, 
retail trade or business of any class at any time i f it is unlawful in that locality 
to keep an establishment open for the purpose of su ch retail trade or business, 
and if any person carries on any trade or business in contravention of this 
section, this Act shall apply as if he were the emp loyer of the establishment 
which was being kept open in contravention of this Act. 
1[25. Penalties.- Subject to the other provisions of this Act, whoeve r 
contravenes any of the provisions of this Act or the rules made thereunder and 
no penalty has been provided for such contravention  in this Act, shall be 
liable, on conviction, to a fine which shall not be  less than one thousand 
rupees but which may extend to five thousand rupees for the first offence, and 
not less than three thousand rupees but which may e xtend to eight thousand 
rupees for every subsequent offence] 
2[25-A. Composition of certain offences .- 3[(1) Save as provided in 
sub- section (7) of section 20, any offence may, ei ther before or after the 
institution of prosecution, be compounded by any of ficer not below the rank 
of Assistant Chief Inspector of Shops and Commercia l Establishments, 
authorized by the Government, by notification, for an amount which shall not 
be less than one thousand rupees but shall not exceed five thousand rupees.] 
(2) Whereas offence has been compounded under sub-s ection (1), the 
offender, if in custody, shall be discharged and no further proceedings shall be 
taken against him in respect of such offence: 
Provided that if a person commits similar offence a gain within the 
period of one year from the date of composition of first offence, the same 
shall not be compounded.] 
26. Protection of officers and their agents from personal liability.- 
No suit, prosecution or other legal proceeding shal l lie against any public 
servant or any other person in the service of the C entral or State Government, 
or the Government of Himachal Pradesh, acting under  direction of any such 
public servant, for anything in good faith done or intended to be done in 
pursuance of the provisions of this Act or of any rule made thereunder. 
27. Power to grant exemptions.- The Government may, if it 
considers it necessary in the public interest so to  do, by notifications, exempt 
for any period it considers desirable any establish ment or class of 
establishments from the operation of all or any of the provisions of this Act. 
                                                 
1.  Section 25 amended vide H.P. Act No. 15 of 2004  and substituted vide Act No. 27 
of 2012. 
2. Section 25-A inserted vide H.P. Act No. 15 of 20 04. 
3. Sub-section (1) of section 25-A substituted vide  Act No. 27 of 2012. 
18  THE HIMACHAL PRADESH SHOPS AND COMMERCIAL ESTAB LISHMENTS ACT, 
1969 
28. Prohibition of employment of children.- No child who has not 
completed the age of fourteen years shall be employed in any establishment. 
29. Conditions of employment of women.- (1) No women shall be 
required or allowed to work whether as an employee or otherwise in any 
establishment during night: 
Provided that nothing in this sub-section shall app ly to an 
establishment which is engaged in the treatment or care of the sick, the infirm, 
the destitute or the mentally unfit. 
(2) No employer of any establishment shall knowingl y employ a 
woman and no woman shall engage in employment in an y establishment 
during six weeks following the day of her confinement or miscarriage. 
(3) The Government may prescribe further conditions  in respect of 
employment of women employed about the business of establishments or any 
class of them, including, if it thinks fit, conditi ons with respect to the daily 
period of employment, leave and other matters, and no woman shall be 
employed otherwise than in accordance with these conditions. 
30. Maternity benefit.- (1) Every woman employed in an 
establishment who has been continuously employed in that establishment or in 
establishments belonging to the employer of that establishment for a period of 
not less than six months preceding the date of her delivery shall be entitled to 
receive, and the employer shall be liable to make t o her, a payment of 
maternity benefit which shall be prescribed by the Government for every day 
during the six weeks immediately preceding and incl uding the day of her 
delivery and for each day of six weeks following her delivery: 
Provided that no such payment shall be made for any  day on which 
she attends work and receives payment therefor duri ng the six weeks 
preceding her delivery. 
(2) The manner in which the maternity benefit shall  be payable may 
be prescribed by the Government. 
31. Bar of legal practitioners in certain proceedin gs.- Notwith-
standing anything contained in the law relating to legal practitioners for the 
time being in force, no legal practitioner shall be permitted to appear, plead or 
act for the employer or the employee in any proceed ings before a court, 
between an employer and an employee arising out of the contravention of any 
of the provisions of this Act. 
32. Saving of certain rights and privileges.- Nothing in this Act 
shall affect any rights or privileges to which an employee in any establishment 
is entitled on the date this Act comes into force, 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

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