Arunachal Pradesh Shops and Establishments Act: Rules & Updates
Table of Contents
The Shops and Establishments Act in Arunachal Pradesh is a state law. It requires shops, offices, hotels, and restaurants to register with the state. It also sets basic rules on working hours, weekly rest, and leave. Although the four Central Labour Codes came into force on 21 November 2025, they operate alongside the state Act rather than replacing it. They did not replace it. Employers register online through the state’s EoDB portal.
Key Takeaways
- Understand why this Act is a state law and not part of the four central labour codes.
- Learn what actually changed in 2025-26, and what did not.
- Follow the registration route: UBIN first, then labour registration, then a trade license.
- Review the working hours, weekly rest, overtime, and wage-payment rules that apply to your staff.
- Check the leave and holiday entitlements, and identify the official sources for verifying exact statutory rates and figures.
- Use the compliance checklist and FAQs at the end to review your own establishment.
What is the Shops and Establishments Act in Arunachal Pradesh?
The Shops and Establishments Act regulates working conditions in shops, offices, hotels, restaurants, places of entertainment, and other non-factory establishments in Arunachal Pradesh. It generally covers registration, working hours, rest intervals, holidays, and leave.
Because shops and establishments legislation is enacted at the state level, specific rules and requirements are tailored to Arunachal Pradesh. The Arunachal Pradesh Government’s EoDB portal explicitly lists registration and renewal under the Arunachal Pradesh Shops and Establishments Act, 1966. The exact statutory title and applicable provisions should be verified with the Arunachal Pradesh Labour and Employment Department before being cited in any legal or regulatory document.
Which Establishments are Covered?
The legislation generally applies to non-factory establishments engaged in trade, business, or services, including:
- Retail and wholesale shops;
- Offices, including IT and professional service establishments;
- Hotels, lodges, restaurants, and eating houses;
- Cinemas and other places of entertainment; and
- Clinics, coaching centers, and similar service establishments.
Factories are generally governed by separate factory legislation. Establishments involved in manufacturing must additionally comply with the Factories Act, 1948. Exemptions based on the size or nature of an establishment should be determined by reference to the applicable legislation and rules.
How do the 2025-26 Labour Codes Change Arunachal Pradesh’s Labour Laws?
The Labour Codes affect shops and establishments primarily by regulating wages, social security, industrial relations, and occupational safety. They operate alongside the state’s Shops and Establishments framework, including its registration requirements.
On 21 November 2025, the Government of India brought all four Labour Codes into force, consolidating 29 central labour laws as confirmed by the Press Information Bureau.
What Changed and What did Not
| Regulatory Element | Position in 2025-26 | Source |
|---|---|---|
| Four labour codes | In force from 21 November 2025 | Ministry of Labour and Employment, PIB release |
| State rules under the codes | Wages, Industrial Relations, Social Security and OSH rules for Arunachal Pradesh became operative on the same date | Arunachal Pradesh labour department |
| Central rules under the codes | Notified on 8 May 2026 | Ministry of Labour and Employment |
| Transition period | Savings clause under Section 164(2)(b) of the Code on Social Security runs to 20 November 2026 | Code on Social Security, 2020 |
| State Shops and Establishments law | Remains in effect; no official notification repealing or replacing the state law has been issued. | Arunachal Pradesh labour department and EoDB portal |
What this Means for Your Payroll and HR Policies
While the Code on Wages standardizes wage definitions and payment schedules, the Code on Social Security governs PF, ESI, gratuity, and maternity benefits, and the Industrial Relations Code regulates standing orders and dispute resolution.
Consequently, Shops and Establishments registration and Labour Code compliance function as complementary statutory mandates. Employers must comply with the applicable registration requirements for their establishment as well as the employment, wage, social security, and workplace obligations under the Labour Codes.
How to Register under the Shops and Establishments Act in Arunachal Pradesh
Registration is completed online via the state’s EoDB portal through a three-step process that employers must carefully follow.
Step 1: Obtain a Unique Business Identification Number (UBIN)
Obtain a Unique Business Identification Number (UBIN) before applying for services through the portal. Keep the following business details and documents ready:
- Business name and address;
- Constitution of the business (proprietorship, partnership, company, etc.);
- Owner’s identity proof; and
- Proof of premises.
Step 2: Register with the Labour and Employment Department
Register the establishment with the Arunachal Pradesh Labour and Employment Department. The Department handles registration of new and existing establishments, license applications and renewals, and notices of occupation.
Registration is governed by the applicable Shops and Establishments legislation. The prescribed timeline for registration after commencement of business should be verified from the applicable legislation, as the portal does not specify it.
Step 3: Apply for a Trade Licence, if Your Business Needs One
A trade license is issued by the Department of Trade and Commerce. The portal provides services for new licenses, renewals, and changes to listed items.
A trade license is separate from Shops and Establishments registration. Where both are applicable, obtaining one does not substitute for the other.
| Step | Authority | Deliverable / Output |
|---|---|---|
| 1. UBIN | State EoDB portal | Unique business identification number |
| 2. Establishment registration | Labour and Employment Department | Registration certificate under the Act |
| 3. Trade license | Trade and Commerce Department | License to trade in listed items |
Fees, Renewal and Documents for Shops and Establishments Registration
Registration and renewal under the Shops and Establishments framework are subject to prescribed fees. The Arunachal Pradesh EoDB portal provides the applicable fee structure as a downloadable schedule rather than displaying the amounts on the webpage.
Employers should verify the schedule before submission, ensure timely annual renewals, and prominently display the registration certificate in the workplace as mandated by law. Ensure timely renewal and keep the registration certificate displayed at the workplace, where required.
Working Hours, Weekly Off and Overtime
Working hours in Arunachal Pradesh are governed jointly by the state’s wage rules and the applicable Shops and Establishments Act. The wage rules outline the following key requirements:
- Working hours: Under the Code on Wages (Arunachal Pradesh) Rules, 2022, the standard working day is 8 hours.
- Rest intervals: Total rest intervals are generally limited to 1 hour per day.
- Weekly rest day: Employees are entitled to 1 rest day each week, ordinarily Sunday, unless an approved arrangement provides otherwise.
- Overtime: Work beyond normal working hours constitutes overtime and must be paid at not less than twice the ordinary rate of wages.
- Record-keeping: Overtime should be recorded separately in the wage register, as it may affect bonus and deduction calculations.
- Other limits: The Shops and Establishments legislation may prescribe additional requirements relating to daily and weekly working-hour limits, spread-over, and night shifts. These limits should be verified from the applicable Act and Rules before being incorporated into employment policies.
Women Employees and Night Work
Night shifts for female employees are permitted subject to specific statutory conditions. Under Arunachal Pradesh labour regulations, employers must evaluate two key compliance frameworks: the conditions set out in the Act and the safety provisions in the Occupational Safety, Health and Working Conditions Code.
Common conditions include the employee’s written consent, safe transportation, and adequate workplace security. All safety arrangements and employee consents must be formally documented in writing.
Leave and Holiday Entitlements
Employees in covered establishments are statutorily entitled to leave provisions under the Act. The usual categories are earned leave, casual leave, sick leave, and festival or national holidays. Exact days and eligibility rules differ by state, so confirm the figures for Arunachal Pradesh in the Act and rules before you frame your leave policy.
The following two entitlements are clearly governed by statutory rules:
- Maternity benefit: Under the Code on Social Security, 2020 (which superseded the Maternity Benefit Act, 1961 on 21 November 2025), covered establishments must provide 26 weeks of paid maternity leave for the first two children.
- Public holidays: Employees are entitled to holidays as prescribed under the applicable law and notified holiday schedule. Establishing a structured grievance procedure also helps resolve disputes regarding rejected leave requests.
For a state-by-state view of entitlements, read our guide to leave laws in India. If an employee’s leave request is rejected, a clear grievance process helps reduce disputes.
Wages, Registers and Records
Wage payment follows the Code on Wages and the state’s rules. Wages must be disbursed by the 7th of the following month, regardless of the establishment’s workforce size. Dearness allowance is revised twice a year, before 1 April and before 1 October.
Minimum wages in Arunachal Pradesh are set by skill and area. The last officially confirmed minimum wage notification was issued on 1 April 2016. It sets the rates at ₹200-₹240 per day, depending on skill level and area. The Code on Wages requires a review at least every five years, so a revision may be published at any time.
Employers should verify current rates directly with the Labour Department before running payroll. Unverified online summaries citing higher figures should not be relied upon without official documentation.
Employers must maintain the following records at the workplace and make them available during inspections:
- Registration certificate and trade license
- Wage register and wage slips
- Attendance and overtime records
- Leave records
- Any other register the Act or rules require
A reliable attendance system and payroll records make inspections easier. Retain records for the period stated in the Act and the codes.
Penalties and Inspections
- Inspections: Inspectors (or Inspector-cum-Facilitators) appointed under the Act may visit establishments, request records, and verify compliance with requirements relating to working hours, rest, leave, wages, and other conditions.
- Registration and record-keeping: The Act prescribes penalties for operating without registration, failing to display required notices, and failing to maintain prescribed records.
- Penalty amounts: Specific fine amounts are set out in the Act; employers should refer directly to the statutory penalty provisions.
- Wage violations: Separate penalties may apply under the Code on Wages. For example, payment below the minimum wage may attract a fine of up to ₹50,000 for a first offense.
- Repeat offenses: A repeat violation within five years may attract imprisonment of up to three months, a fine of up to ₹1 lakh, or both, under Section 54 of the Code on Wages.
- Separate liability: Penalties under the central Labour Codes may apply in addition to penalties prescribed under the applicable state legislation.
Compliance Checklist for Employers in Arunachal Pradesh
- Obtain a UBIN: Secure a Unique Business Identification Number via the EoDB portal before submitting operational applications.
- Register the establishment: Apply for registration with the Labour and Employment Department within the statutory timeline prescribed by the Labour and Employment Department.
- Obtain a trade license: Where applicable, obtain and maintain a trade license from the Department of Trade and Commerce.
- Renew registrations and licenses: Monitor renewal dates and ensure timely renewal of all applicable registrations and licenses.
- Comply with working-hour and rest requirements: Observe the prescribed working hours, rest intervals, and weekly day of rest.
- Pay overtime correctly: Pay at least twice the ordinary rate and maintain appropriate records.
- Ensure timely wage payments: Pay wages by the prescribed deadline and, where applicable, revise the dearness allowance before 1 April and 1 October.
- Maintain leave and attendance records: Maintain accurate records in accordance with the applicable legislation and internal policies.
- Maintain prescribed registers: Keep all required registers and records at the workplace and make them available for inspection.
- Review Labour Code compliance: Review employment and HR policies against the four Labour Codes and applicable rules before the transition period ends on 20 November 2026.
Conclusion
Labour compliance in Arunachal Pradesh is moving towards a more digital, integrated, and compliance-focused framework. Employers should move beyond one-time registrations and adopt systems for timely renewals, accurate payroll, record-keeping, and regular policy reviews. Staying prepared for evolving Labour Code requirements will help businesses remain compliant as the regulatory framework develops.
factoHR’s attendance, leave, and payroll software helps HR teams in Arunachal Pradesh keep attendance, leave, and payroll data in one place, making inspections and code changes easier to manage.
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Frequently Asked Questions
Is Shops and Establishments Registration Mandatory in Arunachal Pradesh?
Yes, registration is mandatory for covered establishments. Employers must register with the Labour and Employment Department through the EoDB portal after obtaining a UBIN. Confirm the time limit for applying in the Act’s text.
Is a Trade License the Same as Shops and Establishments Registration?
No. The Trade and Commerce Department issues the trade license. The Labour and Employment Department handles establishment registration. They are separate documents, and you may need both.
Do the New Labour Codes Replace the Shops and Establishments Act?
No. The four codes replaced 29 central laws. The state’s Shops and Establishments Act remains in effect alongside the four central Labour Codes. Employers must comply with both regulatory frameworks.
What is UBIN and why is It Needed?
UBIN stands for Unique Business Identification Number. The state’s EoDB portal requires it before you can apply for any labour or trade service.
How Many Hours Can an Employee Work in a Day?
The state wage rules fix a normal working day of eight hours, with rest intervals capped at one hour. Check the Act’s text for weekly limits and spread-over rules.
Does the 2025 Wage Revision for Government Casual Workers Apply to Private Shops?
No. That revision covers government contingent and casual workers. Private employers follow the scheduled-employment minimum wage notification.
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