Shops and Establishments Act in Andaman & Nicobar Islands
Table of Contents
On 19 November 2025, the President amended the Shops and Establishments Act in Andaman & Nicobar Islands (formerly the Andaman and Nicobar Islands Shops and Establishments Regulation, 2004). Subsequently, in August 2026, the 2005 Rules were updated. The law now applies only to establishments with 20 or more employees and allows a 10-hour workday. This guide explains what it now requires of employers.
Key Takeaways
- The law now applies only to establishments with 20 or more employees.
- Daily working hours have increased from 9 to 10 hours, subject to a weekly limit of 48 hours.
- A registration certificate no longer needs to be renewed and remains valid until closure.
- Women can now work night shifts, but only with written consent and prescribed safeguards.
What is the Andaman and Nicobar Islands Shops and Establishments Regulation, 2004?
The Regulation (No. 1 of 2004) is the primary law governing working conditions in shops and establishments on the islands. As the Union Territory has no legislature, the President promulgated it under Article 240 of the Constitution. It has the same force as an Act of Parliament.
The Lieutenant Governor serves as the Administrator, while the Labour Commissioner and Inspectors are responsible for enforcement. Prescribed forms and registers are detailed in the 2005 Rules, as amended on 12 August 2026.
Who does the Shops and Establishments Act in Andaman & Nicobar Islands Cover?
The law covers shops, commercial establishments, hotels, lodging houses, restaurants, theatres and other places of public amusement. The Act covers apprentices as employees but excludes the employer’s family members who are dependents.
Headcount Test and Exempted Establishments
Earlier, the law applied to all establishments. Currently, it applies only to establishments employing 20 or more persons on any day in the preceding 12 months. 4 categories remain exempt from coverage: government offices (excluding commercial undertakings), public utilities, charitable institutions caring for the sick or destitute, and legal or medical practices with up to 20 employees.
What did the 2025 Amendment Change?
| Provision | Before the Amendment | After the Amendment |
|---|---|---|
| Coverage | All establishments | Establishments with 20 or more employees |
| Registration | Application in the prescribed form | Online application and certificate |
| Renewal | Periodic renewal required | Renewal provision omitted |
| Daily working hours | 9 hours | 10 hours |
| Daily hours, including overtime | 10 hours | 12 hours |
| Overtime limit per quarter | 50 hours | 144 hours |
| Rest interval | After 5 hours of work | 30 minutes after 6 hours of work |
| Night work by women | Prohibited | Permitted from 7 PM to 6 AM, subject to consent |
Key Provisions of the Shops and Establishments Act in Andaman & Nicobar Islands
Registration and Certificate Validity
- Application and issue: Employers must apply for Form A within 30 days of starting business on the Labour Department’s online services portal. Upon submission of Form A, the registration certificate (Form B) is automatically issued online without requiring prior inspection or approval.
- Fees: Registration fees must be paid online and are structured as follows: ₹1,000 for 20-29 employees, ₹1,500 for 30-49 employees, and ₹2,000 for 50 or more employees.
- Validity, changes and closure: Earlier, a certificate had to be renewed. Now, it is valid for the lifetime of the establishment. However, changes in particulars must be reported in Form C, and closure intimated, within fifteen days. In the event of closure, the registration certificate automatically lapses.
- Display: The certificate must be displayed prominently, and the name board must be in English or Hindi, with any other language below.
Working Hours and Overtime
- Daily and weekly limits: Adult employees may work up to 10 hours daily and 48 hours weekly. With overtime, the working day and the spread-over cannot exceed twelve hours.
- Overtime: Overtime is paid at twice the normal rate and is limited to 144 hours in any 3 continuous months.
- Rest interval: An adult cannot work for more than 6 hours without a rest of at least 30 minutes.
- Operating hours and weekly holidays: Establishments can now remain open every day, at all hours. However, every employee gets one paid weekly holiday on a rotating basis, as notified in Form E, with a copy to the Registering Officer. Work on that day earns a paid compensatory holiday within thirty days.
- Young persons and children: A young person aged 14 to 18 can work 5 hours a day, with an hour’s rest after 3 hours. The spread-over is limited to 8 hours, and night work between 7 PM and 6 AM is not allowed. Children below 14 cannot be employed.
Leave and Holidays
- Earned leave: Employees accumulate 15 days of earned leave after completing 240 working days within a 12-month period. Leave can be accumulated up to 45 days and availed up to 3 times a year, provided a seven-day advance notice is given.
- Sick and casual leave: After twelve months of service, employees become eligible for twelve days each of sick and casual leave. Employees can also apply for casual leave in case of an accident or death in their family.
- Leave wages: Wages for leave and holidays equal the daily average of the previous month, without overtime. Wages for leave of five days or more are paid in advance on request, and unused earned leave is paid in full at the time of resignation.
- Holidays: Employees get 3 paid national holidays: 26 January, 15 August and 2 October. In addition, the Administrator notifies five paid festival holidays each year.
Employment of Women at Night
While night shifts for women were previously prohibited, they are now permitted subject to five mandatory statutory conditions that employers must display prominently.
- Consent and hours: A woman may work between 7 p.m. and 6 a.m. only with her written consent, and for no more than 10 hours a day. A change between day and night shifts requires a 12-hour gap, and the maternity provisions of the Code on Social Security, 2020, still apply.
- Transport and facilities: Employers must provide free pick-up and drop-off, a separate dining area, and toilets, washrooms, and drinking water near the workplace. Where residential boarding is provided, it must be for females only and under the supervision of female wardens. Additionally, establishments must provide a creche with a dedicated caretaker where statutorily required.
- Safety and supervision: The workplace and the passages to toilets and washrooms need CCTV cameras and good lighting. At least two women workers on each night shift act as Special Welfare Assistants. Medical help and a telephone must be available in emergencies.
- Prevention of harassment and reporting: Employers must comply with the Sexual Harassment of Women at Workplace Act, 2013, prevent harassment, and report any untoward incident to the Inspector and the police station.
- Hazardous processes: Pregnant women cannot work in hazardous processes involving carcinogenic or teratogenic substances. Other women in such processes must receive training, instruction on escape routes, and personal protective equipment.
Termination of Service
- Notice and cause: Employees with over 6 months of continuous service may be terminated only for reasonable cause, with one month’s written notice or wages in lieu thereof.
- Appeal and revision: Employees can appeal to the prescribed authority. The authority can award one month’s pay for each completed year of service, up to a maximum of six months’ pay. Either party can then seek revision before the District Judge.
Registers, Records and Notices
- Wage records: Employers must maintain a register of wages in Form I and give each employee a wage slip in Form II at least one day before payment.
- Attendance and other registers: Firms must record attendance in the Form III muster roll within 3 hours of the start of work. Registers of overtime, leave and employees must be maintained in Forms IV, V and VI.
- Retention: Employers must retain the establishment’s registers for 3 years. Leave orders and medical certificates are stored until 31 March of the following year.
Penalties
- Contravention of the Regulation: A first offense carries a penalty fine of up to ₹500. A repeat conviction, or a false or missing entry in a register, can result in imprisonment for up to 3 months, a fine of up to ₹1,000, or both.
- Other offenses: A breach of the Rules can result in a fine of up to ₹50, and obstructing an Inspector can result in a fine of up to ₹250.
How do the Labour Codes Apply to Shops and Establishments in the Andaman & Nicobar Islands?
Labour is a Concurrent List subject under the Constitution of India, allowing both central laws and Union Territory-specific regulations to apply concurrently. The four Labour Codes were brought into force on 21 November 2025, with the corresponding central and Union Territory rules coming into effect on 8 May 2026.
The Labour Codes did not repeal the Shops and Establishments Regulation in the Andaman & Nicobar Islands. Instead, the amended rules outline 3 primary areas in which the new Labour Codes and the Shops and Establishments Regulation co-exist and apply jointly.
- Coverage and registration: The OSH Code applies to establishments with ten or more workers. Registration obtained under the local Shops and Establishments Regulation also satisfies compliance under the OSH Code.
- Overlapping provisions: The OSH Code governs safety, health, and welfare standards, while the local Regulation addresses specific operational aspects not explicitly covered by the Code.
- Minimum wages: Minimum wage rates are now determined under the Code on Wages and are subject to statutory revision every 6 months.
Conclusion
The Shops and Establishments Act in Andaman & Nicobar Islands now applies only to establishments with twenty or more employees. For covered establishments, registration is a one-time online process, accompanied by compliance with daily working-hour limits (10 hours per day), leave rules, night-shift conditions, and overall Labour Code mandates.
Suggested Reading
FAQs
Is Registration under the Shops and Establishments Act in Andaman & Nicobar Islands Required for a Shop with Ten Employees?
No. The local Regulation applies only to establishments employing 20 or more persons, placing a 10-employee shop outside its purview. However, because the OSH Code applies to establishments with 10 or more workers, the shop must obtain registration under the Code.
Does a Registration Certificate under the Shops and Establishments Act in Andaman & Nicobar Islands Need to be Renewed
No. Earlier, a certificate had to be renewed. The 2025 amendment removed the renewal requirement, and a certificate is now valid for the lifetime of the establishment. The registration remains valid indefinitely unless and until the employer formally reports the establishment’s closure.
What are the Working Hours under the Shops and Establishments Act in Andaman & Nicobar Islands?
An adult employee may work up to 10 hours per day and 48 hours per week. Including overtime, the workday may extend to 12 hours. Overtime must be paid at twice the ordinary rate and is limited to 144 hours per quarter.
Can Women Work Night Shifts under the Shops and Establishments Act in Andaman & Nicobar Islands?
Yes. A woman can work between 7 p.m. and 6 a.m. with her written consent. In return, employers must provide free transport, CCTV coverage, Special Welfare Assistants on each shift, and all other statutory safeguards prescribed under the applicable Rules.
How Much Earned Leave is Admissible under the Shops and Establishments Act in Andaman & Nicobar Islands?
An employee earns 15 days of paid leave upon completing 240 days of work within a 12-month period. This leave can accumulate up to 45 days. Additionally, employees become eligible for 12 days of sick leave and 12 days of casual leave upon completing one year of continuous service.
How does the Shops and Establishments Act in Andaman & Nicobar Islands Differ from State Laws?
It differs in two key aspects. First, as a Union Territory law, it was promulgated by the President of India under Article 240 of the Constitution, rather than enacted by a state legislature. Second, its rules explicitly define its harmonious application alongside the OSH Code, ensuring that whichever provision is more beneficial to the employee takes precedence.
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