The Shop & Establishment Act regulates the functioning of businesses wherein any trade is carried out. Not only does this apply to commercial establishments but also to charitable trusts, profit-run educational institutions and other premises having a brokerage, stock or insurance activities carried out. Some of the areas that fall under the regulations of the Shop & Establishments Act are the rest interval for workers, opening and closing hours, maternity leave, sick and causal leave along with rules regarding overtime work, national and religious holidays, and so on.
Workers in the unorganised sector don’t have any other governing body to ensure that their rights and working conditions are as they should be. This is the reason for implementing the Shop Act License. Although the rules of the Shop/Trade License vary from one state to the other, it brings about a certain amount of consistency within a given area – in terms of leaves given, work hours, payments, etc.