The Act states that the working conditions and rights of workers engaged in the unorganized sector. This includes Wage Payments, Leaves and Holidays, Working Hours, Bonus, etc. Shop/Trade licenses are State subject and the rules differ accordingly.
This license is mandatory for all business entities, even if you are working from home. One of the main reason to have shop and Establishment Act to have come to force is to have systematic perks for all employees employed under various establishment.
There are some guidelines which employers have to adhere to like working hours of the employees daily and every week. The stipulated time for opening and closing of the shop, adhering to national or religious relief, regulation for recruitment of children and women, maternity leaves, sick leaves etc is to be followed by the employer.