Establishments situated inside airport are covered by S&E Act

As per Shops and Establishments Acts of different states, ‘commercial establishment’ means an establishment which carries on any trade, business, profession and includes societies, charitable trusts, printing establishments, educational institutions run for gain, banking establishments, insurance, stock or share brokerage etc. But a question always arises whether Shops and Establishments Acts are applicable to commercial establishments located inside the airports because Airports are itself a legal entity managed by Airport Authority of India (AAI) and establishments inside the airport are required to follow the rules formulated by AAI.

The applicability of Shops and Establishments Acts to the shops within the airport premises depends upon the law of the state. If it is not mentioned specifically, shops within airport premises need to comply with the Shops and Establishments Act of the concerned state. For example, the international shipping, courier, and packaging service DHL in Delhi Airport bear registration no. under the Delhi Shops & Establishment Act, 1954.

Basically, no Shops and Establishments Act has made any rule that this piece of legislation is not applicable to the shops inside the Airport. However, the State Government may grant some exemptions to the shops and commercial establishments operating inside the airport of the state. For example- Delhi Shops and Establishments Act exempts the stalls and refreshment room inside airport from Section 15 and 16 vide notification N.O. 20(29)/61-Labour dated 12th Nov 1965. Section 15 deals with opening and closing hours for Shops and Establishments and Section 16 deals with the weekly close day.

However, some states have specifically exempted the offices of airlines from the purview of the Shops and Establishments Act of the states. For example: In Maharashtra, as per Section 3 of the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 (new Maharashtra S& E Act), the provisions of this Act shall not apply to the offices of the air services companies.

 

To install a shop or establishment inside the airport, one has to obtain a licence from the Airport Authority of India (AAI). AAI, in its guidelines has stated that the licensee, his agents and servants shall comply with all rules and regulations of the Shop and Establishment Act of the state, Factories Act, Industrial Disputes Act, Minimum Wages Act and other provisions of any statutory law including any rules and regulations made by the Authority, Civil Aviation Department or any other Department of Government or local body or administration.

So, until and unless specifically not exempted, the Shops and Establishments Acts are applicable to all shops and commercial establishments irrespective of its place of business. If the legislature/administration/judiciary has not mentioned its non-applicability to shops inside the airport, it is rightful to consider that the said Act is applicable to all shops and establishments whether it is located in village or city, or inside a shopping mall, or inside the airport.

The exemption granted to establishments located at the airport under different state laws are as follows:

SL No. State Establishments at airport enjoying all over exemption from S&E Act A specific exemption from S&E Act
1. Andaman and Nicobar Island NA NA
2. Andhra Pradesh Stall and refreshment stalls inside airport {Section 73(d)}

 

 

Exemption granted to shops and establishments in India from the provisions of sections 15,16,17,21,22,23,30,31,38,47

and 68 of the Andhra Pradesh Shops and Establishments Act, 1988. {vide G.O.Ms.No: 83, dated 15-09-2009}

Sec 15: Opening and Closing hours.

Sec 16: Daily and weekly hours of work.

Sec 17: Interval for rest

Sec 21: Special provision for a young person

Sec 22: Daily and weekly hours of work for young persons

Sec 23: Special provision for women

Sec 30: Leave

Sec 31: Other Holidays

Sec 38: Time of payment of wages

Sec 47: Conditions for terminating the services of an employee, payment of service compensation for termination, retirement, resignation, disablement, etc., and payment of subsistence allowance for the period of suspension

Sec 68: Maintenance of registers and records and display of notices.

3. Assam Stall and refreshment stalls at airport {Section 2(f)}
4. Bihar NA Establishments of the Indian Airlines Corporation situated in the State of Bihar.  All provisions except Sections 6, 26, 28 and Chapters II I.VI, VII and VIII of Act. {Schedule 1, Rule 4(2)}

Sec 6: Registration and renewal of establishments.

Sec 26: Notice of the dismissal or discharge.

Sec: 28: Claims arising out of deductions from wages or delay in payment of wages and penalty for malicious or vexatious claims.

5. Chandigarh Establishments of air service {Section 3(b)} NA
6. Chhattisgarh NA NA
7. Delhi Any office of any Airlines Corporation (Section 46) Stalls and refreshment room inside the airport are exempted from Section 15 and 16 {vide notification N.O. 20(29)/61-Labour dated 12th Nov 1965.}

Sec 15: Opening and closing hours

Sec 16:  Close Day (Weekly holiday)

8. Daman and Diu Stalls and refreshment room at airport {Section 61(d)} NA
9. Goa Stalls and refreshment room at airport {Section 61(d)} NA
10. Gujarat Offices of Air services {Section 6(c )} Stalls, refreshment rooms and canteens at the airport are exempted from Sections 9, 20, 23 {Schedule II, 13}

Sec 9: Closing of the establishment to be communicated to Inspector

Sec 20: Restaurants and eating houses not to sell goods of the kind sold in before the opening and after the closing hours of shops

Sec 23: Spread over

11. Haryana Establishments of air service {Section 3(b)} NA
12. Jammu and Kashmir NA NA
13. Jharkhand NA Establishments of the Indian Airlines Corporation situated in the State of Bihar.  All provisions except Sections 6, 26, 28 and Chapters II I.VI, VII and VIII of Act. {Schedule 1, Rule 4(2)}

Sec 6: Registration and renewal of establishments.

Sec 26: Notice of the dismissal or discharge.

Sec: 28: Claims arising out of deductions from wages or delay in payment of wages and penalty for malicious or vexatious claims.

14. Karnataka stalls and refreshment rooms at aerodromes {Section 3(c )} NA
15. Kerala NA NA
16. Madhya Pradesh NA NA
17. Maharashtra Offices of air services {Section 3(7)} NA
18. Nagaland Stall and refreshment stalls at airport {Section 3(f)} NA
19. Odisha NA NA
20. Punjab Establishments of air service {Section 3(b)} NA
21. Rajasthan NA NA
22. Sikkim NA NA
23. Tamil Nadu NA NA
24. Telangana Stall and refreshment stalls at airport {Section 73(d)}

 

 

Exemption granted to shops and establishments in India from the provisions of sections 15,16,17,21,22,23,30,31,38,47

and 68 of the Andhra Pradesh Shops and Establishments Act, 1988. {vide G.O.Ms.No: 83, dated 15-09-2009}

Sec 15: Opening and Closing hours.

Sec 16: Daily and weekly hours of work.

Sec 17: Interval for rest

Sec 21: Special provision for a young person

Sec 22: Daily and weekly hours of work for young persons

Sec 23: Special provision for women

Sec 30: Leave

Sec 31: Other Holidays

Sec 38: Time of payment of wages

Sec 47: Conditions for terminating the services of an employee, payment of service compensation for termination, retirement, resignation, disablement, etc., and payment of subsistence allowance for the period of suspension

Sec 68: Maintenance of registers and records and display of notices.

25. Uttar Pradesh NA NA
26. Uttarakhand NA NA
27. West Bengal Airways service {Section (c )}

Stalls and refreshment room in airport {Section 4(e)}

 

NA

Where a specific exemption is granted, it is essential that the employees should be provided with the following:

  1. Weekly working hours for an employee shall be 48 hours. For the Work done beyond 48 hours, the employee is entitled to overtime wages.
  2. Every employee shall be given a weekly off.
  3. The management is permitted to engage women employees during night shift subject to security provision during the course of employment and transportation.
  4. Every employee shall be given compensatory holiday in lieu of attending duty by him/her on a notified national /festival holiday.
  5. Establishments which remains open round the clock, more employees to be employed for extended timings.

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