Delhi Shops and Establishments Act 1954: Rules & 2026 Changes
Table of Contents
Delhi has two versions of its shop law in effect at once. The 1954 Act is what applies to your business today. The Delhi Legislative Assembly passed the 2026 Amendment Act, the President signed it, and the Government published it, but it has not commenced. None of its new provisions or limits apply yet.
The Delhi Shops and Establishments Act, 1954 governs working hours, leave, wages, and conditions of service for shops, offices, and commercial establishments across the National Capital Territory (NCT). It applies to every establishment, regardless of size, until the 2026 amendment takes effect, at which point the threshold rises to 20 employees.
Key Points
- Registration under Section 5 has been kept in abeyance since 1990. Delhi is one of the rare regions where establishment registration is not required.
- A working day is capped at 9 hours, and the working week is capped at 48 hours, with overtime payable at twice the normal rate.
- Privilege leave is 15 days per year, in addition to 12 days of sick or casual leave.
- Penalties under Section 40 remain between ₹25 and ₹250, unchanged since 1954.
- The 2026 amendment raises the day to 10 hours and permits women on night shifts, but only once a commencement date is notified
Which Version of the Delhi Shops and Establishments Act Applies Now?
Below is a breakdown of the regulatory position as of September 2026.
| Delhi S&E Act, 1954 | Amendment Act, 2026 | |
|---|---|---|
| Status | In force today | Notified, not yet commenced |
| Applies to | Every establishment, any size | Establishments with 20 or more employees |
| Daily hours | 9 hours | 10 hours (including rest and meal breaks) |
| Weekly hours | 48 | 48, with the overtime week capped at 60 |
| Overtime cap | 150 hours a year | 144 hours a quarter |
| Continuous work before a break | 5 hours | 6 hours |
| Spread-over | 10.5 hours in a commercial establishment, 12 in a shop | 12 hours for all |
| Women at night | Prohibited under Section 14, but exempted since August 2025 | Permitted with written consent and safeguards |
| Minimum employment age | 12 | 14 |
Legislative Background: The Legislative Assembly passed the Bill on 9 January 2026. Presidential assent followed on 23 February 2026, making it Act No. 3 of 2026, and the Delhi Government published it on 11 March 2026. But the Act itself says it comes into force on a date the Government will notify separately, and that notification has not been issued.
What does this mean in practice? Employers must continue to follow the 1954 regulations today. However, businesses should begin preparing for the 2026 provisions now, as a commencement notification may be issued on short notice, requiring immediate adjustments to rosters, payroll systems, and HR policies.
Why does Delhi have no Shops and Establishments Registration?
Unlike most states that mandate registration, Delhi operates under a distinct 1990 administrative directive.
Section 5 of the Act requires the occupier of every establishment to file a statement with the Chief Inspector within 90 days and obtain a registration certificate. In January 1990, the Delhi Administration decided to abolish registration requirements for shops and commercial establishments. It approached the Central Government to amend Sections 5, 6, and 7 and, pending that amendment, kept registration, renewal, and amendment in abeyance.
That abeyance still stands. So a Delhi business does not obtain a shop and establishment certificate the way a Mumbai or Bengaluru business does.
Two duties survive, and they are often missed. Under Section 6, any change in the particulars you would have filed must be notified to the Chief Inspector within 30 days. Under Section 7, closure of an establishment must be notified within 15 days.
The practical consequence shows up at the bank counter. When banks or commercial partners request a Shop and Establishment registration certificate, Delhi-based businesses are unable to provide one. Businesses explain the abeyance and offer other proof of establishment instead.
Who does the Delhi Shops and Establishments Act Cover?
The Act extends to the whole of the National Capital Territory and covers shops, commercial establishments, residential hotels, restaurants, eating houses, theatres, and other places of public amusement.
A shop means any premises that sell goods, retail or wholesale, or render services to customers, including an attached office, store-room, godown, or warehouse.
A commercial establishment includes any premises where a trade, business, or profession is conducted. The definition expressly names registered societies and charitable trusts carrying on business, journalistic and printing establishments, contractors and auditors, quarries and mines outside the Mines Act, and private educational institutions run for gain. It also covers premises used for banking, insurance, stocks, brokerage, or produce exchange.
Exclusions and Exemptions: Section 46 exempts the offices of the Central Government and the Delhi Administration, local authorities, the railway administration, the Reserve Bank of India, the DDA, the Delhi Transport Corporation, Delhi University, airline corporations, and telegraph, telephone, and postal services. Factories registered under the Factories Act are excluded from the definition of a shop or commercial establishment.
The Schedule to the Act also exempts specific categories from specific sections. Doctors, legal practitioners, and foreign news agencies are exempt from all provisions. Barbers, chemists, newspaper offices, petrol pumps, and transport establishments are exempt from the opening and closing hour provisions under Sections 15 and 16.
Working Hours under the Delhi Act
These are the limits in force today.
| Rule | Limit under the 1954 Act |
|---|---|
| Daily hours | 9 hours |
| Weekly hours | 48 hours |
| Overtime week | Up to 54 hours during stock-taking or accounts |
| Overtime year | Aggregate not exceeding 150 hours |
| Overtime rate | Twice the normal hourly rate |
| Continuous work | No more than 5 hours without a break |
| Rest interval | At least 30 minutes |
| Spread-over | 10.5 hours in a commercial establishment, 12 hours in a shop |
| Weekly rest | At least 24 consecutive hours |
Common compliance misconceptions include the belief that overtime requires advance notice. Employers should provide the Chief Inspector with at least three days’ written notice prior to scheduling extended working hours. And for calculating the overtime rate, the Act defines the day as 8 hours, not 9, which increases the hourly rate.
Section 9 also bars double employment: a person cannot work at two establishments, or at an establishment and a factory, beyond the total hours the Act allows.
An attendance system that tracks daily hours against the 9-hour line and the annual overtime total keeps this visible. Your working hours policy should also carry the Delhi figures rather than a national template.
Leave and Holidays under the Delhi Act
| Entitlement | Rule under Section 22 |
|---|---|
| Privilege leave | Not less than 15 days after every 12 months of continuous employment |
| Privilege leave, part year | Not less than 5 days for every completed 4 months of service |
| Sick or casual leave | Not less than 12 days in every year |
| Casual leave, part year | Not less than 1 day for every completed month |
| Watchman or caretaker entitlement | Not less than 30 days’ privilege leave |
| Accumulation | Privilege leave up to three times the annual entitlement, so 45 days |
| Sick and casual leave | Cannot be accumulated |
Under Section 23, leave pay is calculated as the daily average of wages earned on days actually worked during the preceding 3 months, excluding overtime but including dearness allowance.
Termination or resignation triggers leave encashment. If an employee is discharged before taking the privilege leave due, or resigns after being refused such leave, the employer must pay full wages corresponding to the accrued leave balance.
Under Section 16, every shop and commercial establishment must also remain closed on the weekly close day and on three national holidays each year, as notified by the Government. Our guide to leave laws in India sets out how Delhi compares with other states.
Women and Night Work in Delhi
Section 14 of the 1954 Act prohibits any woman or young person from working at night. The summer window is 9 pm to 7 am, covering April to September, and the winter window is 8 pm to 8 am, October to March.
An exemption has lifted that prohibition. By notification F.No.28/Addl.LC/Exemp/S&E Act/2021/2438 dated 7 August 2025, the Delhi Labour Department exempted all shops and establishments, except liquor shops, from Sections 14, 15 and 16. That notification removed the earlier requirement for each employer to apply for individual permission.
What will the 2026 amendment do? It replaces Section 14 entirely, allowing women to work in all establishments, including at night, with written consent and these safeguards:
- CCTV surveillance at the workplace
- Security arrangements for women employees
- Safe transport during night shifts, including for employees engaged through contractors
- At least two women employees are present during the night shift
- Full compliance with the POSH Act
- Prohibition of employment during the six weeks immediately following confinement or miscarriage.
For young individuals, the absolute ban on night work remains in place. This six-week rule operates in conjunction with entitlements guaranteed under the Maternity Benefit Act.
Other Employer Duties in Delhi
Appointment letters are compulsory: Section 34 requires the employer to furnish every employee with a letter of appointment stating the employer’s name, the establishment’s name and postal address, the employee’s name, father’s name and age, the hours of work, and the date of appointment. This has been Delhi law since 1954, long before the OSH Code made it a national requirement.
Payment of Wages (By the 7th of Every Month): Section 19 caps the wage period at one month and requires wages to be paid in cash before the 7th day following the end of the wage period. Where employment is terminated, wages are due before the expiry of the second working day after termination.
Notice of dismissal: Under Section 30, an employee who has been continuously employed for at least three months cannot be dismissed without one month’s written notice or wages in lieu of notice, except for misconduct, which may be dismissed after a hearing. Similarly, an employee is required to provide one month’s written notice upon resignation.
Records: Section 33 requires you to display a notice of the close day; keep records of hours worked, leave taken, and rest intervals for every employee, with overtime entered separately; and display a notice of weekly working hours.
Prohibition on Contracting Out: Section 24 voids any agreement by which an employee gives up a right under the Act, whether executed prior to or following the commencement of employment.
Penalties under the Delhi Shops and Establishments Act
The penalty structures under the 1954 Act remain outdated.
| Offense / Nature of Non-Compliance | Penalty under the Act |
|---|---|
| Contravention of the Act or rules, other than Sections 33, 41, and 42 | Fine of not less than ₹25, up to ₹250 |
| Failure to keep records under Section 33 | ₹5 for every day the contravention continues |
| Wilfully making a false entry in a record or register | Up to 3 months’ imprisonment, or a fine of ₹50 to ₹250, or both |
| Obstructing an Inspector | Fine of ₹50 to ₹250 |
These statutory figures have not been revised since 1954, making Delhi’s monetary penalties the lowest among major states. Maharashtra’s cap is ₹1 lakh, and Karnataka’s night-shift breaches carry a prison term.
However, low monetary fines should not be taken as evidence of low operational risk. Section 41 carries imprisonment for false entries. Section 43 lets the authorities prosecute a partner, director, or shareholder personally. Additionally, claims for unpaid wages under Section 21 may be filed, with compensation of up to half the amount due or ₹100, as decided by an authority with civil court powers.
Where Delhi Differs from Other States
- No Registration Requirement: Section 5 registration has been held in abeyance since 1990.
- Dual Statutory Framework: The 2026 amendment is law but not in force, requiring employers to be familiar with both statutory standards.
- Nominal Financial Penalties: Fines range from ₹25 to ₹250 and have remained unchanged since 1954.
- Appointment letters since 1954. Section 34 predates the national requirement by seven decades.
- Different spread-over for shops and offices. 12 hours in a shop, 10.5 in a commercial establishment. The 2026 amendment removes this distinction.
For the rest of your Delhi obligations, including professional tax and the wider framework, see the statutory compliance guide.
Conclusion
Delhi is the easiest state to register in, because you do not register at all. It is also the hardest to plan for, because two versions of the law sit side by side.
Currently, operations must adhere to the 1954 statutory parameters: 9 hours, 48 hours a week, 150 overtime hours a year, 15 days of privilege leave, and 12 days of sick or casual leave. Build the 2026 numbers into your systems now, so a commencement notification does not catch your rosters and payroll unprepared. And whichever version applies, issue the appointment letter, because Section 34 has required it since the Act came into force.
FAQs on the Delhi Shops and Establishments Act
Is Shop and Establishment Registration Required in Delhi?
No. A Delhi Administration decision of January 1990 placed Section 5 registration in abeyance, so no certificates were issued. Two duties survive: notify any change of particulars within 30 days and close within 15 days.
Is the Delhi Shops and Establishments (Amendment) Act, 2026 in Force?
Not yet. The Assembly passed it on 9 January 2026, the President assented on 23 February 2026 as Act No. 3 of 2026, and the Government published it on 11 March 2026. It commences on a date to be notified separately by the Delhi Government, and until then, the 1954 provisions apply.
What are the Working Hours under the Delhi Shops and Establishments Act?
Nine hours a day and 48 hours a week. During stock-taking or accounts, hours may extend to 54 hours in a week. This extension is subject to an annual aggregate cap of 150 hours and 3 days’ advance intimation to the Chief Inspector. Overtime is paid at twice the normal rate, calculated based on an eight-hour day.
How Much Leave does the Delhi Act Give?
Fifteen days of privilege leave after twelve months of continuous employment, and twelve days of sick or casual leave each year. Privilege leave accumulates up to 45 days, while sick and casual leave cannot accumulate. Discharge or resignation triggers payment for untaken privilege leave.
Can Women Work Night Shifts in Delhi?
Yes, currently through an exemption. Section 14 prohibits night work for women, but a notification of 7 August 2025 exempted all shops and establishments except liquor shops from Sections 14, 15, and 16. The 2026 amendment will replace Section 14 with a permission framework requiring written consent, CCTV, security, transport, at least two women per shift, and POSH compliance.
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