Background
The Andhra Pradesh Shops & Establishments Act, 1988 was enacted with the objective of regulating the conditions of work and employment in shops, commercial establishments, and certain other establishments. The Act provides statutory rights to employees regarding hours of work, wages, leave, holidays, health, safety, and welfare measures. It also ensures proper registration and monitoring of establishments by the authorities, aiming to balance employer–employee relations while protecting workers from exploitation.
Applicability
The Act applies to:
(i) in the first instance to all areas in which the Andhra Pradesh Shops and Establishments Act, 1966 was in force immediately before the commencement of this Act;
(ii) to such other areas in the State on such date as the Government may, by notification, specify.
Compliance requirement under the Act in accordance with the Rules
The employer of the establishment is required to register under Shops & Establishment Act of respective state within prescribed time from the date of commencement of work in the said establishment. Any employer who makes any false or incorrect statement under section 3 shall be punishable with fine which may extend to one hundred rupees.
Compliance with Weekly Holidays by Employer in Andhra Pradesh (Section 19)
Every employee in any establishment shall be allowed in each week a holiday of one whole day. Not applicable for employees whose total period of employment in the week is less than 6 days. The Government may, by notification, require in respect of any specified class of establishments that every employee therein shall be allowed in each week an additional holiday of one half-day commencing at such hour in the afternoon as may be fixed by the Government. No deduction shall be made from the wages of any employee in an establishment on account of any day or part of a day on which a holiday has been allowed. Employer shall not call the employee for work on a day which is a holiday.
Compliance with Maternity Benefits to Women Employees in Andhra Pradesh (Section 24)
The periods of absence from duty in respect of which a women employee is entitled to maternity benefit under section 25, shall be treated as authorised absence from duty, and the women employee shall be entitled to maternity benefit, but not to any wages for any of those periods.
Cleanliness of the Commercial Establishment in Andhra Pradesh (Section 26, Rule 11)
The premises of every establishment shall be kept clean and free from effluvia arising from any drain or privy or other nuisance and shall be cleaned at such times and by such methods as may be prescribed.
Precautions for Safety of Employees in Case of Fire in Establishments in Andhra Pradesh (Section 28(1), Rule 12)
Every establishment shall provide adequate means of escape in case of fire and shall also provide buckets of substantial construction full of water or sand and/or chemical fire extinguishers in suitable number and at suitable sites according to the nature of work carried on and the size of the premises.
First Aid Appliances in Establishments in Andhra Pradesh (Section 28(2), Rule 14)
In every establishment other than a shop, a first aid box shall be kept and it shall contain sterilised dressings, cotton wool, scissors, antiseptic solutions, iodine, potassium permanganate, and antidotes for burns, along with first-aid instructions.
Entitlement for Leave with Wages in a Year by Employer in Andhra Pradesh (Section 30(1),(2),(3),(7))
Annual Holidays Entitled to Employees in Andhra Pradesh (Section 31(1))
Every employee is entitled to 9 holidays with wages each year, including Republic Day (26th Jan), May Day (1st May), Independence Day (15th Aug), Gandhi Jayanthi (2nd Oct), and AP Formation Day (2nd June). Establishments shall remain closed on these days. Employers granting more than 9 holidays must submit and display the list including these 5 notified holidays.
Compulsory Enrolment of Employees to Insurance-cum Savings Scheme in Andhra Pradesh (Section 34)
Every employee with 1 year service shall subscribe to the notified insurance or insurance-cum-savings scheme. Employers must deduct and remit employee contributions and also contribute a notified percentage of annual wages to the scheme.
Fixation of Wage Period by Employer in Andhra Pradesh (Section 36)
Every employer shall fix periods in respect of which such wages shall be payable. No wage-period shall exceed one month.
Wages for Overtime Work to Employee in Andhra Pradesh (Section 37)
Twice the ordinary rate of wages shall be paid for over-time work. However, where normal work hours are less than 8 hours a day and 48 hours a week, an employee shall be entitled in respect of work in excess of such normal hours up to 8 hours a day and 48 hours a week to wages at the ordinary rate of wages, and in respect of work in excess of 8 hours a day and 48 hours a week at twice the ordinary rate of wages, in addition to wages for normal hours.
Payment of Wages by 5th Day after the Wage Period in Andhra Pradesh (Section 38(1))
The wages of every employee shall be paid before the expiry of the fifth day after the last day of the wage period in respect of which the wages are payable.
Deductions which may be Made from Wages by Employer in Andhra Pradesh (Section 40)
Wages shall be paid without deduction except those authorised, including:
Display of Notice of Acts/Omissions in Commercial Establishment i Andhra Pradesh (Section 41(2), Rule 17(i)(d))
The employer shall display at or near the main entrance of the establishment or at a conspicuous place a copy in English and in Telugu of the list of acts/omissions as approved by the Chief Inspector.
Fine to be Imposed by Employer in Andhra Pradesh (Section 41(4))
The total amount of fine in any one wage period shall not exceed three paise in the rupee of wages payable for that period. The charge in respect of which fine is imposed shall be reduced to writing and signed by the employee.
Form XII: Register of Advances by Employer in Andhra Pradesh (Rule 18(4))
The amounts of all advances to employees and all repayments of such advances shall be entered in a Register of Advances in Form XII.
Notice for Termination of Services of an Employee by Employer in Andhra Pradesh (Section 47(1), Rule 20)
No employer shall, without reasonable cause, terminate the service of an employee with continuous service of 6 months without giving one month’s notice in writing or wages in lieu. Employees with 1 year or more service are also entitled to 15 days’ average wages as service compensation for each year of continuous employment. All terminations must be in writing, and a copy furnished to the Inspector within three days.
Termination of Services of Employee for Misconduct by Employer in Andhra Pradesh (Section 47, Rule 20)
No employer shall terminate services for misconduct unless an enquiry is held.
Service Compensation to Employee by Employer in Andhra Pradesh (Section 47(3))
Every employee with 1 year or more continuous service is eligible for service compensation of 15 days’ average wages for each year of service in cases of:
Payment of Subsistence Allowance by Employer in Andhra Pradesh (Section 47(6))
Where an employee is suspended pending enquiry into grave misconduct:
Notice Regarding any Change in Particulars in the Certificate of Registration (Form VII) (Section 3(4), Rule 6)
Any changes in the certificate of registration shall be submitted to the Inspector within fifteen days from the date the change took place.
Notice of Closure of Business in Andhra Pradesh (Section 3(5), Rule 6(3))
Within fifteen days of closure of the establishment, the employer shall intimate the Inspector in writing, who shall then remove the name of the establishment from the register and cancel the registration certificate.
Form XXVII: Periodical Return to Inspector (Rule 33)
Every employer with 10 or more employees shall send a return in Form XXVII for months ending March, June, September, and December, to reach the Inspector by the 10th day of the following month.
Form XXII: Maintenance of Register of Employment in Andhra Pradesh (Rule 29(1))
Every employer shall maintain a Register of Employment in Form XXII.
Form XXIII: Register of Wages in Andhra Pradesh (Rule 29(2))
Every employer shall maintain a Register of Wages in Form XXIII.
Notice Containing Abstracts of the Act and Rules in Establishment in Andhra Pradesh (Rule 29(4))
Every employer shall exhibit in his establishment a notice containing such abstracts of the Act and Rules as the Government may direct.
Form XXV: Register of Leaves by Employer in Andhra Pradesh (Rule 29(6))
Every employer shall maintain a Register in Form XXV for the leave granted to employees.
Visit Book to be Maintained by Employer in Andhra Pradesh (Rule 29(10))
A bound Visit Book (18 cm × 15 cm, at least 100 pages) shall be maintained containing particulars such as name, address, registration number, employer’s details.
Display of Name Board of the Establishment in Andhra Pradesh (Rule 29(13))
The name board of every shop or establishment shall be in Telugu. Where other languages are used, they shall appear below the Telugu version.
Form XXVI: Letter of Appointment to be Given to All Employees in Andhra Pradesh (Rule 30)
Every employer shall issue Letters of Appointment in Form XXVI with employee’s photograph affixed and acknowledgement obtained. The letter shall be prepared in triplicate—original to the employee, duplicate retained by employer, and triplicate to the Inspector.
Penalties & Punishments
Conclusion
The Andhra Pradesh Shops & Establishments Act, 1988 serves as a key labour welfare legislation for the unorganised and semi-organised workforce in the state. By ensuring regulation of working hours, leave, wages, health, safety, and welfare, the Act safeguards employee rights while maintaining discipline and compliance among employers. Its effective implementation promotes fair labour practices, workplace safety, and harmonious employer–employee relations across commercial establishments in Andhra Pradesh.