13/08/2016
The Delhi Shops Act, 1954 :-
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 other conditions of work of persons employed in shops, commercial establishments, establishments for 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 application.
(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 date1 as Government may, by notification in the Official Gazette, appoint in this behalf.
(4) It shall apply in the first instance only to the Municipal Areas, Notified Areas and Cantonment limits of Delhi, New Delhi, Shahadra, Civil Lines, Mehrauli, Red Fort and Delhi Cantonment but Government may, by notification in the Official Gazette, direct that it shall come into force in any other local area or areas or shall 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 outside Delhi. The provisions of the Act will apply to the shops and establishments located in Delhi and not 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 being carried on from that office so the petitioner's officer in Delhi could not be treated as an establishment 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 labour 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 eighteenth 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, craft or employment in any establishment;
(2) "child" means a person who has not completed his 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 shop or commercial establishment closes;
(5) "commercial establishment" means any premises wherein any trade, business or profession or any work in connection with, or incidental or ancillary thereto is carried on and includes a society registered under the Societies Registration Act, 1860 (21 of 1860), and charitable or other trust, whether registered 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 private 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 factory registered under the Factories Act, 1948 (43 of 1948), or theatres, cinemas, restaurants, eating houses, residential hotels, clubs or other places of public amusements or entertainment;
(6) "day" means a period of twenty-four hours beginning at mid-night:
Provided that in the case of an employee whose hours of work extended beyond mid-night, day means the period of twenty-four hours beginning when such employment commences irrespective of mid-night;
(7) "employee" means a person wholly or principally employed, whether directly or otherwise, and whether for wages (payable on permanent, periodical, contract, piece-rate or commission basis) or other consideration, about the business of an establishment and includes an apprentice and any person 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 person discharged or dismissed whose claims have not been settled in accordance with this Act;
(8) "employer" means the owner of any establishment about the business of which persons are employed, and where the business of such establishment is not directly managed by the owner, means the manager, agent or representative of such owner in the said business;
(9) "establishment" means a shop, a commercial establishment, residential hotel, restaurant, eating-house, theatre or other places of public amusement or entertainment to which this Act applies and includes such other establishment as Government may, by notification in the Official Gazette, declare to be an establishment for the purpose of this Act;
(10) "factory" means a factory as declared or registered under the Factories Act, 1948 (43 of 1948);
(11) "family" means the husband, wife, son, daughter, father, mother, brother, sister or grandson of an employee, living with and wholly dependent on such employee;
(12) "Government" means the *Chief Commissioner, Delhi ;
(13) "holiday" means a day on which an establishment 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 exclusive of any interval allowed for rest and meals and "hours worked" has corresponding meaning;
(15) "inspector" means an Inspector appointed under section 36 of the Act;
(16) "leave" means leave as provided for under this Act;
(17) "occupier" means a person owning or having charge or control of establishment and includes the manager, agent or representative of such 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 under this Act;
(20) "register of establishments" means a register maintained for the registration of establishments under this Act;
(21) "registration certificate" means a certificate 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 which 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 premises 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 business 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 sold either by retail or wholesale or where services are rendered to customers, and includes an office, a store-room, godown, warehouse or workhouse or work place, whether 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 commencement 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 of the Minimum Wages Act, 1948 (11 of 1948);
(31) "week" means the period of seven days beginning 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 child 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 pertinent to state that the employment of children as domestic servants in dhabas (Roadside eateries), restaurants, hotels, motels, teashops, resorts, spas or in other recreational centres has been banned 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 of the Technical Advisory Committee on Child Labour.
The committee had stated that the occupations mentioned 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) Name of employer. In the first instance a place in order to fall within the definition of "commercial establishments" must be "premises". Secondly, it should be premises wherein (a) any trade, business or profession is carried on, or (b) any work in connection with or incidental or ancillary thereto is carried on. Sub-clause (b) is only ancillary to (a); Chief Commissioner, Delhi v. Federation of Indian Chambers of Commerce and Industry, New Delhi, 1974 II LLJ 21 (SC): 45 FJR 306: (1974) Lab IC 1004.
(ii) A religious body is not an establishment within 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 includes 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 the 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 community) are suspended; a day of festivity, recreation or amusement'. (Oxford English Dictionary, 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 personality 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 utilized, may provide a real and complete escape from the ideal means of relaxation and afford abundant opportunity of gaining material and social experience under different conditions and workers generally undertake factory work because of necessity.
Employees return to their jobs with fresh enthusiasm and renewed reserves of strength after spending their holidays under suitably restful conditions. This is confirmed by the conclusion reached in the many recent studies of the psychology 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 morale 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 defined in this sub-section means the time during which the persons employed are at the disposal of the employer exclusive of any interval for rest and meals and "hour worked" has a corresponding meaning. The use of the expression, "at the disposal of the employer" is not without any 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 immaterial whether the person so employed has worked during the entire working hours or not or whether 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, excluding 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 the duty of attending the work with or without pay. The dictionary meaning of the word 'leave' being 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 defined to mean any festival which the Government may, by notification in the Official Gazette, 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, Baisakhi, Guru Nanak's Birthday, Guru Govind Singh's Birthday, Id-ul-Zuha, Id-ul-Fitar, Christmas, Lord Mahavir's Birthday as the religious festivals in exercise of the powers conferred 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 establishment 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 sub-section means any premises in which is carried on wholly or principally the business of the supply of meals or refreshments to the public or a class of the public for consumption on the premises. 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 hotels, restaurants, eating houses or other places of public amusement or entertainments, to be "establishments" 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. Where 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 actual giving or taking of goods in such premises. If the business carried on a premises results in having 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 termination 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
hile elaborating the scope and meaning of "Shops and Establishments", the Supreme Court has held that a Company having several offices engaged 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).
THE DELHI SHOPS & ESTABLISHMENT ACT, 1954
3.
Rights and privileges under other law, etc. not affected
Nothing in this Act shall affect any rights or privileges which an employee in any establishment is entitled to at the date this Act comes into force or under any other law, contract, 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 that it has a limited operation confined to a particular date, i.e., the date on which this Act came into force. On that day if a right or privilege had accrued to any employee under any other law, contract, custom or usage, and if that right or privilege was more favourable or advantageous to him than those declared under this Act, the employee was entitled to retain that right or privilege.
4.
Exemptions
Notwithstanding anything contained in this Act, the 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 Schedule, 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 effect to irrespective of the other provisions of the Act. The provisions of this Act mentioned in the 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 empowers the Government by notification in the Official Gazette to add to, omit, or alter any of the entries in the Schedule.
*5.
Registration of Establishment
(1) Within the period specified in sub-section (5), the occupier of every establishment shall send to the Chief 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 any;
(b) the postal address of the 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, eating house, theatre or other place of public amusement or entertainment;
(e) the number of employees working about the business of the establishment; and
(f) such other particulars as may be prescribed.
(2) On receipt of the statement and the fees, the Chief Inspector shall, on being satisfied about the correctness of the statement, register the 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 prominently 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 opinion between an occupier and Chief Inspector as to the category to which an establishment should belong, the Chief Inspector shall refer the matter to the Government which shall, after 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 column 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):
Establishments date from which the period of 90 days is to commence
1 2
(i) Establishments existing in municipal areas, notified areas, and cantonment limits of Delhi, New Delhi, Shahdara, Civil Lines, Mehrauli, Red Fort and Delhi Cantonment. The date on which this Act comes into force
(ii) Establishments existing in local areas in which this Act is brought into force by notification under sub-section (4) of section 1.
The date on which this Act comes into force in the local areas concerned
(iii) New establishments in areas mentioned in clauses (i) and (ii) of this sub-section.
The date on which the establishment 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 prescribed form any change in respect of any information contained in his statement under sub-section (1) of section 5 within thirty days after the change has taken place. The Chief Inspector shall on the receipt of such notice and the prescribed fee 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, or issue a fresh registration certificate, if necessary.
7.
Closing of establishment tobe communicated to the Chief Inspector
The occupier shall within fifteen days of his closing the establishment, notify to the Chief Inspector in writing accordingly. The Chief Inspector shall on receiving the information and being satisfied about the nature of closure remove such establishment from the register of establishments and cancel the registration certificate:
Provided that the Chief Inspector may not, if satisfied 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.