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Shop & Establishment Act

In today’s time, the most exploited are small shopkeepers and employees working in hotels or restaurants. If seen in a way, neither the working hours nor the day is fixed. These people open the shop before the owner gets up and close the shop after the owner leaves for home.

Main Objective of the Act:

This act was made keeping in mind the employer or employee working in the unorganized sector. The main objective of this act is to give statutory obligations and rights to the employees and employers working in the unorganized sector. Its main purpose is to regulate work and job conditions in shops, hotels, restaurants, residential hotels, entertainment, business establishments, and any small places. The Shops and Establishment Act has been framed to enforce the wages, working hours, and service commission of employees working in shops or other commercial establishments.

Who controls the act?

  • The Shop and Establishment Act is regulated by the Labour Department of the State Government
  • Apart from this, all types of business institutions are covered under this Act.

The Act is applicable throughout the country and covers small shops, restaurants, hotels, entertainment shops, commercial establishments as well as other public establishments.

Certain commercial institutions will come under this act:

  • Any commercial sector such as banking, trading or insurance
  • establishment or any establishment where persons are employed or engaged for performing office work or t rendering of service.
  • Such as hotels, restaurants and boarding houses or small cafes.
  • Be it entertainment and entertainment venues such as theaters or entertainment facilities, all these are covered under the Act and the rights of the employees working in it will also be discussed now.

When registration is required under Shop and Establishment Act?

If you are setting up a commercial establishment or shop, then you must register your business under this Act within 30 days of that establishment. From opening a current account in the bank, you will get many other facilities in it when you register under this act. This license is made as the main license and it also proves to be a great proof for you to use it in other registration for carrying on business in India.

Main Provisions under the act:

  • There is a provision to register any shop or establishment within 30 days of starting it.
  • There is a provision to give information within 15 days of the closure of the shop or business.
  • Under this, there is a provision to keep details of daily and weekly working hours.
  • There is a provision to give information about opening hours, closing hours, holiday times, national and religious holidays, shop closing days, increase in overtime, etc. among the employees.
  • There is a provision for payment of minimum wages to the employees.
  • There is provision for annual leave, maternity leave and sick or casual leave.
  • There is a provision for termination of employment and service under this act.
  • There is a provision for the display of notices and maintenance of records.
  • In this Act, all these things have been provided for the liability of the employer and the liability of the employees.

Important aspects controlled under this act:

This act regulates several aspects of shop and establishment which are as follows:

  • Fixation of working hours
  • Scheduling of rest and eating times
  • Setting a time to start or stop daily tasks
  • Determination of the date and time of payment of wages for weekly holidays or leaves
  • Rules to stop child labor
  • Determination of the policy of deducting leave from wages
  • Rules for cleanliness in the work area, fire prevention in accidents, etc.
  • Dismissal from job

All these aspects are controlled by Shop and Establishment Act, 1958.

Registration under the act

  • Although there are different rules in all the states under this act but rules for taking registration are almost the same.
  • You have to take the registration from the labor department under the state government
  • The registration certificate is issued only by the Chief Inspector of that area
  • You can get that certificate by applying it to them
  • Every government appoints a Chief Inspector in its state and all his responsibility lies with him.
  • The application for this has to be submitted in a prescribed format to the Chief Inspector.

There is a provision for online registration in many states so you can apply online. Apart from this, some other documents are required for the registration are:

  • Establishment name
  • Name and details of employer and employees (at the time of incorporation of business)
  • Address of the establishment and a copy of the sale deed or rental agreement of the shop
  • PAN card of owner or business.

All relevant details are to be submitted to the Chief Inspector along with the prescribed fee. As soon as you apply for registration, the Chief Inspector inspects, visits, checks and then gives you the registration certificate.

Our experts at Legal Vidur help you with services related to shop registration, renewal tax returns, and many more. Visit our site and get your certificate within 5-10 days.

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