Assam Shops and Establishments Act: Rules & Employer Duties
Table of Contents
The Assam Shops and Establishments Act, 2022 came into force on 21 March 2025, officially repealing and replacing the 1971 Act. Subsequent amendments in September 2026 replaced traditional registration with an online intimation process for establishments with fewer than ten employees, while transitioning larger establishments under the central Occupational Safety, Health and Working Conditions (OSH) Code.
Key Takeaways
- Know which law applies today: the 2022 Act, not the 1971 Act that most guides still describe.
- Follow the stages of change: the March 2025 Act, the October 2025 ordinance, and the 2026 amendments.
- Identify whether your establishment requires online intimation or falls under the OSH Code.
- Review the rules on hours, overtime, weekly rest, and leave.
- Adhere to updated requirements regarding mandatory appointment letters, employee identity cards, and statutory notices for closure or retrenchment.
What is the Shops and Establishments Act in Assam?
The Assam Shops and Establishments Act governs conditions of work and employment across retail shops, commercial establishments, and public entertainment venues in the state. The Act regulates conditions of employment in covered establishments across Assam, including:
- Shops and commercial establishments engaged in trade, business, or services.
- Employees working in such establishments, including persons engaged through an outsourcing agency where covered by the applicable provisions.
- Branches and offices located in Assam, even where the parent company or head office is outside the state.
- Matters such as registration, working hours, leave, holidays, wages, welfare, records, and other employment conditions.
Applicability may vary based on the nature of the establishment, employee strength, and applicable exemptions or thresholds under the current law.
What Changed in 2025-26: A Timeline
Assam’s shops and establishments framework underwent significant changes during 2025–26, including the repeal of the 1971 Act, changes to registration requirements, and subsequent amendments aligned with the evolving labour-law framework.
| Date | Key Development |
|---|---|
| 13 & 21 March 2025 | The Assam Shops and Establishments Act, 2022 received assent and was published in the Gazette, repealing the 1971 Act. |
| October 2025 | An amendment ordinance increased the registration threshold under Section 6(1) from five to twenty workers and substituted Sections 11 and 13. |
| 21 November 2025 | The four central Labour Codes, including the Occupational Safety, Health and Working Conditions Code, 2020, have come into force. |
| 9 February 2026 | Assam Act VII of 2026 further amended the Shops and Establishments Act. |
| 31 August & 2 September 2026 | Assam Act XVII of 2026 received assent and was published, introducing further substantial amendments. |
What the September 2026 Amendment does
The September 2026 amendment introduced six primary regulatory shifts:
- Replaces legacy registration provisions with an online intimation framework for small establishments.
- Aligns establishments with 10 or more workers under the central OSH Code.
- Establishes structured statutory guidelines for establishment closure and retrenchment.
- Makes appointment letters and ID cards mandatory for employees.
- Introduces enhanced penalties and a structured adjudication and appeal mechanism.
- Aligns the definition of wages with that under the central Labour Codes.
Who is Covered Today
The Act covers shops, commercial establishments, establishments for public entertainment and amusement, and similar non-factory workplaces. The amended Act categorizes establishments into two distinct compliance tiers based on workforce size:
| Group | What applies |
|---|---|
| Fewer than 10 employees | Must file an online intimation via the state portal. Self-certified documentation is permissible. |
| 10 or more employees | Registration and safety duties move to the OSH Code. The state Act applies where the Code does not cover the subject. |
Establishments classified as commercial entities that meet the applicability criteria of the central OSH Code are governed directly by its provisions. The amendment ties these exemptions to the Code’s own coverage.
Assam Shops and Establishments Registration & Intimation: Steps and Deadlines
Registration and intimation under the Assam Shops and Establishments Act, 2022 are processed through the state’s EoDB portal.
- Obtain a UBIN: Acquire the Unique Business Identification Number before applying for services through the portal.
- Procure a trade license from the relevant authority, where applicable, before applying for registration or intimation.
- Determine the applicable requirement: Classify establishments with fewer than 10 workers under the online intimation requirement and establishments with 10 or more workers under the applicable Occupational Safety, Health and Working Conditions Code framework.
- File within the prescribed period: Submit the required intimation within 60 days of commencing business, and ensure existing establishments comply within the period prescribed under the relevant amendment.
- Report changes: Notify changes to registered particulars within 30 days.
Transitional and Legacy Requirements
The original Section 6 of the 2022 Act applied to establishments with five or more workers and provided for registration certificates, Labour Identification Numbers (LINs), a five-year validity period, and specified renewal requirements. Because these provisions were superseded by the 2026 amendments, employers holding legacy registration certificates must verify their updated compliance requirements on the state Labour Department portal.
Fees and Portal Information
Legacy portals and outdated government pages may still display fee structures from the repealed 1971 Act. Employers must not rely on obsolete schedules and should verify all current fees directly on the official portal. They should verify the current fee and registration requirements on the official portal before filing.
Working Hours, Rest, and Overtime
Under the Assam Shops and Establishments Act, 2022:
- Working hours: Maximum of 9 hours per day and 48 hours per week, with a 30-minute rest break after five consecutive hours. Limited exemptions may apply to urgent work and certain highly skilled employees.
- Overtime: Payable at twice the ordinary wage rate, subject to a maximum of 125 hours in any three-month period and prior employee consent. The applicable overtime amount may be calculated using an overtime calculator.
- Weekly rest: Employees are entitled to 24 consecutive hours of rest each week. Where not provided, compensatory leave must be granted within two months. Work on a rest day is payable at twice the ordinary rate.
- Wages: The Act adopts the Labour Codes’ definition of wages, including basic pay, dearness allowance, and retaining allowance, and applies the applicable 50% rule to other components.
Leave Entitlements
Under the Assam Shops and Establishments Act, 2022, employees are entitled to the following leave:
| Leave | Entitlement |
|---|---|
| Weekly holiday | Paid, as described above |
| Casual leave | Eight days with wages in every calendar year, credited quarterly |
| Earned leave | One day for every twenty days of work, accumulating up to 45 days |
| Medical leave | Seven days with wages in a year |
Employees who have worked for at least 90 days within the past six months qualify for earned leave. Leave wages are calculated based on the average daily earnings over the preceding three months, excluding overtime.
Companies must maintain up-to-date leave registers and ensure that all calculations comply with the revised 50% wage definition under the central Labour Codes.
Women Employees, Night Work, and Welfare Rules
The Assam Shops and Establishments Act, 2022 prohibits discrimination against women in recruitment, training, transfer, promotion, and wages.
- Night work: Women may work between 6:00 a.m. and 9:00 p.m. Working outside these hours requires written consent and arrangements for safety, transport, and rest.
- Welfare facilities: Employers must provide drinking water, separate latrines and urinals, first-aid facilities, and a canteen or crèche where prescribed conditions apply.
- Health and safety: Establishments must maintain appropriate waste disposal, lighting, ventilation, and fire safety measures, including compliance with applicable fire safety legislation.
Appointment Letters, ID Cards, Closure and Retrenchment
The Assam Shops and Establishments Act, 2022 requires employers to provide every employee with an appointment letter and identity card. Existing employees must receive these within the prescribed transition period following the latest amendment. Employers should verify the specific commencement date and transition deadlines in the official Gazette notification.
The Act prescribes the following requirements for establishment closure and employee retrenchment:
- Closure: At least 60 days’ prior written notice, stating the reasons, affected employees, and proposed closure date.
- Temporary closure: At least 30 days’ notice where the closure is expected to exceed seven days.
- Retrenchment compensation: Employees with at least one year of continuous service are entitled to the prescribed notice and to compensation equal to 15 days’ average wages for each completed year of service.
- Unavoidable circumstances: Compensation may be limited to three months’ average wages. Financial difficulties, unsold stock, and lease expiry do not qualify as unavoidable circumstances.
Records, Inspections and Penalties
Employers must maintain all statutory registers, annual returns, leave records, wage records, and appointment letters and produce them for inspection when required. Inspectors-cum-Facilitators may enter establishments, inspect records, and require relevant documents.
| Offense / Contravention | Prescribed Penalty |
|---|---|
| General contravention | Fine up to ₹50,000, along with ₹2,000 per day for continuing contravention |
| Contravention relating to intimation or specified closure requirements | Fine up to ₹10,000, along with ₹100 per day for continuing contravention |
| Obstructing an inspector or refusing required facilities | Fine up to ₹1 lakh, imprisonment up to three months, or both |
| Refusing to produce documents | Fine up to ₹2 lakh, imprisonment up to three months, or both |
A Deputy Labour Commissioner acts as the Adjudicating Authority. An appeal may be filed with the Labour Commissioner within three months and must be disposed of within 90 days of receipt. The court may direct that at least half of the fine be paid to the affected employee as compensation.
Compliance Checklist for Employers in Assam
- Obtain a UBIN: Obtain the Unique Business Identification Number before submitting any application through the EoDB portal.
- Classify the establishment: Determine applicability under local intimation requirements or the OSHWC Code based on overall employee strength.
- Meet filing deadlines: Submit the required intimation within the prescribed 60-day period and monitor applicable deadlines.
- Issue appointment letters and ID cards to all employees within the prescribed transition period.
- Comply with working-hour limits: Observe the maximum of 9 hours per day and 48 hours per week, including the prescribed rest interval.
- Pay and record overtime: Pay overtime at twice the ordinary rate, obtain the required employee consent, and keep overtime within 125 hours in any three-month period.
- Maintain leave records: Accurately record casual, earned, and medical leave entitlements and usage.
- Plan for closure or retrenchment: Comply with applicable notice and compensation requirements before closing an establishment or retrenching employees.
- Maintain inspection-ready records: Keep prescribed registers, returns, wage and leave records, and employment documents available for inspection.
Conclusion
Assam’s labour compliance framework is increasingly aligning with the Central Labour Codes. Employers should therefore treat compliance as an ongoing process, supported by accurate records, timely filings, and regularly updated employment practices.
As the framework continues to develop, establishing adaptable internal compliance mechanisms ensures ongoing readiness for statutory updates.
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Frequently Asked Questions
Are Commercial Establishments in Assam Required to Pay Professional Tax?
Yes. Professional Tax in Assam is a separate statutory levy and remains applicable independently of the Shops and Establishments Act.
Does the Act Prescribe Minimum Wages for Shop Employees?
No. Minimum wages in Assam are prescribed separately by the state under the applicable wage legislation and notifications.
Are Outsourced or Agency Workers Covered?
The definition of employee may include persons engaged through an outsourcing agency. Employers must assess current statutory guidelines and contractor agreements to determine if agency workers count toward headcount thresholds.
Which Paid Holidays are Required?
Employees are entitled to eight paid festival holidays each year, including 26 January, 15 August, and 2 October. The remaining five holidays are determined in accordance with applicable requirements and in agreement with employees.
Does the Act Apply to a Branch of a Company Based Outside Assam?
Yes. An establishment located in Assam is subject to the applicable state requirements, regardless of where its parent or head office is located. Employee thresholds should generally be assessed with reference to the employees working at the Assam establishment.
Is Maternity Leave Governed by this Act?
No. Maternity benefits are governed separately under the Code on Social Security, 2020 and other applicable provisions. Covered employees may be entitled to up to 26 weeks of maternity benefit for the first two surviving children, subject to the applicable eligibility requirements. A maternity leave application template can help your team handle requests.
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