Shops and Establishment Act
The Shops and Establishment Act is an Indian legislation that regulates commercial establishments such as godowns, warehouses, stores, theatres, hotels, etc. The legislation was introduced by the government to promote fair trade practices and workers’ welfare. This article spans different aspects of the act that have remained unknown to the general masses.
Understanding the Scope and Objective Shop and Establishment Act
S&E Act objectively promotes the workers’ rights and mitigates their manipulation at workplaces regardless of the industry they are serving. It preserves rights pertaining to workers’ wages, holidays, workplace hygiene and safety, child labor, and maternity leave.
Briefly, the Shop and Establishment Act regulates the different aspects, including
- Opening and closing hours
- Working hours, overtime, leave policy
- Rest interval for employees
- Closed days, national and religious holidays
- Annual, maternity, sickness, and casual leave
- Time and conditions of payment of wages
- Deductions from wages
- Dismissal of employment
- Cleanliness, lighting, and ventilation
- Precautions against fire
- Accidents reporting and record keeping
- Maintain various registers
- Display of notices/certificates
- Rules for the employment of children
The legislation empowers the labor department to serve as an apex regulator and implement rules cited therein throughout the commercial settings. The said authority can formulate, devise, deploy, and amend the norms, in association with the competent institutions if required, to ensure all-encompassing control.
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Documentation requirement as per the Shop and Establishment Act
Although the document required varies state-wise, there are some dossiers that remain the standard no matter where your business resides. These include:
- Incorporation Certificate of Company / LLP
- List of Directors or Partners with ID & Address proof
- Partnership Deed in case of Partnership Firm
- Copy of PAN Card or Aadhar Card
- Address proof like an Electricity Bill of premises
- Photo of Premises displaying name on board of shop/establishment
- Government prescribed fees
Norms for changing certificate’s details under the Shops and Establishment Act
The Shops and Establishment Act approves the changes about the following provided the application for the same is being timely submitted alongside supporting paperwork. Such changes also require the cancellation of the erstwhile certificate and issuance of the new one.
- Name and address of the establishment
- Nature of business
- Director, Employer, Partner
- Number of employees
Norms concerning the removal of an entity’s name from the official register
Such a scenario comes into play when a business owner requires a complete wind-up of their entity. The official closure of an entity under this act requires timely intimation (within 15 days of the closure) to the authority. Upon receiving the intimation, the chief inspector shall revoke the certification and discard the entity’s name from the register.
Benefits for entities registered under the Shop and Establishment Act
Despite being a mandate, a Shop Act license lends several benefits to the entities, including
- Zero legal hassle while operating within the limits of the particular state
- Hassle-free opening of the business account in a designated bank
- Definite roadmap to foster a labor-friendly environment, reinforcing better company-employee relationships and improved production.
- Access to various government-based schemes and tenders
How to get registered under the Shops and Establishment Act?
Getting registered under the Shop and Establishment Act is mandatory for commercial establishments. It requires filing a prescribed application, either offline or online, with the respective labor department. The form filing also requires uploading of supporting paperwork in the standard format.
The application fee, which varies state-wise, must be submitted after the successful uploading of dossiers. Once the authority approves the application, they grant a certificate to the owner on the registered contact detail.
Coming to the offline process- it requires a manual submission of the application to the Chief Inspector of the concerned area alongside supporting dossiers and a standard fee.
The inspector shall thoroughly vet the application for accuracy and legitimacy. If the application comes out clean, the inspector shall grant the certification.
Notable Norms under the Shop and Establishment Act
- Registration is mandatory in Delhi, Uttar Pradesh, Haryana, Punjab, Himachal Pradesh, J&K / Ladakh, and Uttarakhand.
- Uttar Pradesh requires registration within 30 days of business commencement.
- Business hours in Delhi are governed by government regulations.
- Himachal Pradesh and J&K / Ladakh have a weekly close day of any one day.
- Employees in Punjab work 48 hours per week, with 9 hours in a day.
- Employees in Haryana are entitled to 15 days of yearly earned leave.
- Goa, Daman & Diu, and Dadra & Nagar Haveli have mandatory cleaning and maintenance requirements.
- Maharashtra, Gujarat, and Madhya Pradesh require registration within 60 days of business commencement.
- Tamil Nadu has specified business hours as fixed by the government.
- Karnataka and Telangana have a mandatory weekly close day.
- Employees in Goa, Daman & Diu, and Dadra & Nagar Haveli are entitled to 15 days of yearly earned leave.
- Rajasthan requires registration within 30 days of business commencement.
- Kerala mandates 48 hours of work per week for employees, with 8 hours in a day.
- Employees in West Bengal are entitled to 14 days of yearly earned leave.
- Bihar, Jharkhand, and Assam require registration within 30 days of business commencement.
Conclusion
Shop and Establishment Act encompasses a variety of businesses serving commercial settings. These establishments are required to abide by underlying legalities concerning worker welfare, workplace safety, gender inequality, hygiene, child labor, and ethical conduct. The Act seeks to harmonize the working conditions and advocate for employees’ betterment, ensuring a robust company-labor relationship.
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