The Shops and Establishments Act is a state law, not a central one, each state runs its own version, regulating working hours, holidays and conditions for shops, offices and commercial establishments that the Factories Act doesn’t cover.

Why this is the law that actually governs most office employers

Typical coverage includes establishment registration with the state labour department, working hours, commonly around 9 hours a day and 48 a week as a general pattern though the exact figure varies by state, a weekly off requirement, a weekly holiday of at least 24 consecutive hours, holiday and overtime pay rules, and baseline leave entitlements. This matters more than it might seem for most employers using HR software: IT, services and other office-based companies are governed by their state’s Shops and Establishments Act for day-to-day working-hours and leave compliance, not the Factories Act, which applies only to manufacturing premises. Because it’s a state law, it sits outside the four central labour codes directly, though individual states may harmonize their own Act over time as the codes’ state rollout continues.

Frequently asked questions

Does the OSH Code replace my state’s Shops Act?

Not directly, Shops and Establishments Acts are separate state legislation, unaffected by the central labour codes in the same way factory-specific law is.

Do working hour rules differ by state under this Act?

Yes, meaningfully, always check your specific state’s version rather than assuming a single national standard applies.

Does this Act apply to a fully remote company?

Generally yes, registration is typically tied to where the establishment is based, not whether staff work from an office.

See the Factories Act for the manufacturing-specific counterpart to this law.