The Kerala Shops and Commercial Establishments Act (Kerala S&E Act) regulates the working conditions of employees in shops, offices, restaurants, hotels, and other commercial establishments in Kerala. Every covered establishment must register and comply with provisions on working hours, leave, overtime and employment conditions. Here is the complete guide for employers in Kerala.
Which Establishments Are Covered?
- Shops: Any premises where goods are sold (retail or wholesale)
- Commercial establishments: Offices, premises used for commercial activity — includes software companies, banks, insurance offices, legal firms, CA offices, hospitals, hotels, restaurants, theatres, amusement parks
- Factories registered under the Factories Act are NOT covered (they have their own regime)
- Establishments with even 1 employee need to comply — registration required
Registration — Form A
- Register with the Inspector of Labour (District Labour Office) within 30 days of commencement
- Submit Form A — with details of employer, name of establishment, address, nature of business, number of employees
- Registration certificate must be displayed prominently at the workplace
- Online registration available through the Labour Department portal in Kerala
- Renew annually before December 31 each year
Working Hours and Rest
- Maximum working hours: 9 hours per day and 48 hours per week
- Overtime: Permissible up to 10 hours per day and 54 hours per week — overtime wages at twice the normal rate
- Spread-over: Total working period (including rest interval) must not exceed 10.5 hours
- Weekly holiday: Every employee is entitled to at least one full day off per week
- Rest interval: At least 30 minutes after every 5 hours of work
Leave Entitlements
- Earned leave (Privilege leave): 1 day for every 20 days of work = approximately 12 days per year (after 1 year of service)
- Sick leave: 12 days per year (with pay) after 3 months of service
- Casual leave: As per the establishment's policy (typically 12 days)
- Festival holidays: 26 festival holidays per year (at least 5 in December/January) — may vary by notification
Other Provisions
- Night shifts for women: Permitted only with adequate safety measures and consent (post 2021 amendment)
- Prohibition of child labour: No child (below 14 years) shall be employed
- Employment card (Form D) must be maintained for each employee
Conclusion
Kerala Shops and Establishments Act compliance is mandatory for every office, shop and commercial establishment in Kerala — covering registration, working hours, leave and employment conditions. SPOTON provides labour law compliance services including S&E Act registration, annual renewal and employee register maintenance for businesses across Kerala. Contact us for expert labour law compliance services.
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