Dear Friends,

We are a buying house in Delhi with 03 separate branches, we have also 15 branches in different states. Kindly suggest that shops and establishment act is applicable or not in Delhi, If it is applicable then is it necessary to take license for our all branches or one is sufficient.

Thanks & Regards


From India, Delhi
Labour Law & Hr Consultant
+1 Other

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Dear Sanjeev,

Every Shops and Establishments Act is a State Legislation applicable to those business entities falling within the definitions of ' shop ' or ' establishment' so defined under the same and situated within the particular State. In addition, it is basically unit-specific i.e., each and every unit of the same common business entity like branches situated in different places within the State would be treated as a separate establishment for the purposes of the Act. Likewise, the branches of the entity, if situated in different States, they would be covered under the particular State's S&E Act only.

It follows, therefore, that you have to take registration under the Delhi S&E Act for the 3 branches at Delhi separately and 15 other branches situated in different States under each State Act on branch wise basis

From India, Salem
indu 182

Is it applicable on virtual office also?
From India, New Delhi

Dear Indu,

You've raised a question which seems apparently simple but requires a lot of analysis to find an appropriate answer as ' teleworking', 'remote working' or ' work from home' has made a paradigm shift in employment pattern in certain type of industries across the globe in the wake of COVID-19 outbreak. Even the concept of " hybrid office " has come into vogue where some time the employees are required to work in their physical office premises and the rest of the times to work from their homes. To my understanding, in certain industries like IT and ITES, Telemarketing etc., it is going to be a permanent arrangement in view of economies of space, commutation and ease of operations. The existing Indian Labor Laws most of which are more than 60 years old are silent about this new pattern of employment or new class of work force. However, the Code on Social Security, 2020 includes such employees like gig workers, platform workers within its purview for employment rights and benefits in tune with the ILO Convention no.177.

Therefore, the answer to your query is " YES " only.

From India, Salem

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