Shop and Establishment Act
All those, who are planning to enter the business world, need to understand the provisions of Shop and Establishment Act in India. Registration under the Shop and Establishment Act is mandatory for most businesses and since this is the first step towards the promising business world, we have tried to cover the basics of the same.
Shop and Establishment Act is covered under state legislation and each state has framed its own rules and regulations for the same. Since rules are framed by the state government, obviously, rules will differ from state to state and hence rules for the state in which registration is to be obtained needs to be followed.
Applicability of Shop and Establishment Act
Broadly, all shops, hotel, eating house, restaurant, theatres, place of public amusement or establishment and other commercial establishment etc. are covered under the Shop and Establishment Act and are required to obtain registration under the same.
The main objective of the Act is to protect the rights of both employer and employee. The Shop and Establishment Act generally regulates payment of wages, hours of work, terms of service, wages for holidays, leave policy, work conditions, overtime work, interval for meals and rest, prohibition for employment of children, employment of young persons or women, maternity leave and benefits thereof, opening and closing hours, closed days, weekly holiday, dismissal, cleanliness, lighting and ventilation, fire safety and precautions, accidents, record keeping, etc.
Shop and Establishment Act Registration
Establishment covered under the Act must apply for registration, within 30 days from the date of commencement of establishment, in prescribed form along with prescribed fees. Shop and Establishment Act is governed by labour department of the state and generally registration application is to be submitted to local district labour officer. If the concerned officer is satisfied with the application he/she will issue Shop and Establishment Act registration certificate. As mentioned earlier, application procedure would differ from state to state, however, basic details to be provided at the time of applying for registration are as under: