Shops & Establishments

The Shops & Establishments Act, 1953


Shop and Establishment Act, 1953 is a regulation managed by the department of labor. The act covers any shop or establishment which is engaged in trading whether it’s (retail or wholesale) or any kind of business. Apart from commercial units, the act includes the establishment that offers professional services such as printing, banking, educational institution, charitable trusts, stock trading, etc. Additionally, restaurants, residential hotels, and places of amusements are also included in the purview of this act.

Meanwhile, the organizations that are exempted under this act are bank offices, Food Corporation of India, health care centers concerning handicap and mentally unfit, Railways dining cars, Offices regulated under the central or state government, local authorities, railway services, public conservation system, sanitation, industries serving water, power, light to the public, water transport service, postal, telegraph or telephone services.

The organizations that have employed 10 or more employees ever in their tenure of establishment or shop qualify for the act, irrespective of the reduction in the number of an employee from 10. It’s a statutory requirement that must get fulfilled by the employer under the guidelines of the act, where the purpose of the shop and establishment act is to have the basic defined rules and regulations for functioning of the establishment in a coherent manner. However, the act aims towards providing regulation in shops, commercial units, etc., and keeps a check system on employment of the young person, women, leave, payment of wages, and health standards, etc.

Several Consideration Of The Shop and Establishment Act

  • A shop must get registered under the guidelines of the act within 30 days of commencement.
  • The shop act registration should get renewed every year.
  • This act is regulated by the state government, so the rules of the act vary from state to state.
  • There are certain formalities that are required to be followed at the closure of establishment where a notice for removal of registration and certification of cancellation must get issued to the inspector prior to 15 days from the closure.
  • The registration certificate is valid for 1 financial year only and it must get renewed 15 days prior to the expiry date of registration.
  • And after the closure, the shop or establishment should surrender the certificate of registration to the concerned authority.
  • The changes in the address, or change in ownership, or a number of employees must be intimidated within 15 days of the change.
  • The certificate of registration must be displayed at the workplace.
  • And once in 5 years the registration must get renewed with the information of an increase in the number of employees and the fees must be paid depending upon the revised charges.
  • It’s compulsory to obtain the license of the shop or establishment. And once the chief inspector approves the application, the certificate of registration is issued by the Inspector.

Scope and Aspects Of Shop and Establishment Act

  • The act is inclusive of several rules and regulations which must get followed by every shops and establishments covered under the act.
  • Shops or establishment needs to inform about the opening and closing hours of business
  • The shops or establishments must state the hours or operation
  • An establishment should be inclusive of basic facilities such as lighting, ventilation, cleanliness, precaution from fire, interval for meals, etc.
  • A commercial unit must entail systematic provision for payment of wages, where the detailed information about the leave policy, deduction from wages, dismissal, condition of payment, wages for holidays, weekly holiday, should be formulated.
  • The factory should have the provision of maternity leave, overtime, etc.
  • The stipulated number of working hours under the act should be from 8 am to 8 pm whereas the working period for the employees must not exceed 48 hours in a week
  • The rules for employment and termination must be provided
  • A child under the age 14 is restricted to work under the shops and establishments whereas women are not allowed to work at night.
  • Stating the information on minimum payment of wages is compulsory
  • And the act is applicable to the all employees whether working with wages or without wages.
  • And it must have the information of religious holidays, terms for overtime, etc.
  • If the employee has worked for extra hour in a day or week, then he/she has done overtime, and they are entitled to receive the wages twice the times of normal wage rate.
  • There are establishments that are exempt from weekly holidays and they are medicine selling shop, cinema halls, petrol and diesel for sale, shops at railway station, etc.
  • The act doesn’t justify to the family member of employer.

Basic Employee Rights Under The Act Are:

An employee under the act refers to an individual who is employed through the agency or directly employed, whilst incurs wages.

  • He/she is liable for 1-day compulsory holiday in a week
  • The employee is entitled to preserve 40 days earned leaves
  • And the employee holds the right to encash the earned leaves
  • Right to seek the justification for removal or dismissal
  • If the employee is removed or dismissed without the proof of misconduct and hence proved that he/ she is innocent. Then He/ she are entitled to receive compensation where the one month salary/wage is given for the number of years the service has been provided by the employee.

Record Keeping Under The Shop and Establishment Act

Maintaining the registers, and necessary details with display of important notice is mandatory under the Shop and Establishment act. Thus we assist in recording keeping and the concerned registers are:

  • Register of salary,
  • Register of holiday having the description on number of holidays,
  • Register on the details of employees,
  • Register of expenses having the brief on deduction, fine and advances,

A Glance At The Registration Process

A professional assistance in this Shop and Establishment Act can be helpful for you in several ways, because we take up the responsibility of registration and renewal under the guidance of Shop and Establishment act. Thereby for the registration process, we require the list of details from your end. And they consist of:

  • Details of number of employee working in shop or establishment,
  • Particulars of the management employees with rate of wages,
  • Basic information pertaining to address proof, affidavit, and employee’s weekly holiday,
  • And with this set of information we need photograph and identity proof to conclude the registration process.

Here’s, How Consulting Us Can Prove Beneficial For You?

Assisting in maintenance and recording of register to leveraging the hand of support in filling annual return, supporting in the inspection formalities, and giving a formal reply to the show cause to concerned authority on the behalf of shop and establishment, etc. we intend to make things easier for you.

Moreover, with supervision on the day to day affairs to aiding in providing complete information of the act, we help you in fetching documents required for having the approval from Department of labor. If it’s about intimating about the changes in law or regeneration of registration certificate in case of loss of theft, our comprehensive approach in dealing with the Shop and Establishment, leaves you bothered free.

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