Dear Friends,

We are a buying house in Delhi with 3 separate branches, and we also have 15 branches in different states. Kindly advise whether the Shops and Establishments Act is applicable in Delhi. If it is applicable, is it necessary to obtain a license for all our branches or is one sufficient?

Thanks & Regards,

Sanjeev

From India, Delhi
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Dear Sanjeev,

Every Shops and Establishments Act is a State legislation applicable to those business entities falling within the definitions of 'shop' or 'establishment' as defined under the same and situated within the particular State. In addition, it is basically unit-specific, i.e., each and every unit of the same common business entity like branches situated in different places within the State would be treated as a separate establishment for the purposes of the Act. Likewise, the branches of the entity, if situated in different States, would be covered under the particular State's S&E Act only.

It follows, therefore, that you have to take registration under the Delhi S&E Act for the 3 branches in Delhi separately and 15 other branches situated in different States under each State Act on a branch-wise basis.

From India, Salem
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Is it applicable on virtual office also?
From India, New Delhi
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Dear Indu,

You've raised a question which seems apparently simple but requires a lot of analysis to find an appropriate answer as 'teleworking', 'remote working', or 'work from home' has made a paradigm shift in the employment pattern in certain types of industries across the globe in the wake of the COVID-19 outbreak. Even the concept of "hybrid office" has come into vogue where sometimes the employees are required to work in their physical office premises, and the rest of the time to work from their homes. To my understanding, in certain industries like IT, ITES, Telemarketing, etc., it is going to be a permanent arrangement in view of economies of space, commutation, and ease of operations. The existing Indian Labor Laws, most of which are more than 60 years old, are silent about this new pattern of employment or new class of workforce. However, the Code on Social Security, 2020 includes such employees like gig workers, platform workers within its purview for employment rights and benefits in tune with the ILO Convention no.177.

Therefore, the answer to your query is "YES" only.

From India, Salem
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