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The intention of the Shops and Establishment Act is to regulate the work conditions of the employees. Each State Government has enacted Shops and Establishment Act specific to its state.
The Act primarily lists rules for opening and closing hours of work, working hours per day and week, rest interval, overtime work, national and state holidays, sick leave, casual leave, maternity leave, maintenance of registers, minimum age of employment, employment and termination from service, display of notices and other obligations of employers and rights of employees.
The Shops and Establishment Act is applicable to shops, commercial establishments, restaurants, hotels, theatres, public amusement parks etc.
It is mandatory that every such business that comes under the coverage of the Act must within 30 days of commencement of business apply and get the Shops and Establishment License.
The Department of Labour requires the employers to maintain registers pertaining to employment benefits, salary, deductions, holidays given to employees etc. The compliance requirements may vary from state to state.
FAQs On Shops & Establishments License Registration
1. What is the objective of the Shops & Establishments Act?
Every Indian state has enacted certain rules and regulations with regard to conditions of work. The objective is to secure uniform benefits for employees working in different establishments, from shops, commercial establishments and residential hotels to restaurants, theatres and other places of public amusement or entertainment.
2. When is a Shops and Establishments Act license required?
Every shop and establishment needs to register itself compulsorily under this Act within 30 days of commencement of work. As this is such a basic license, many other licenses require this as proof of a commercial business. For example, most banks will require you to furnish it if you want to open a current account.
3. What are the records to be maintained under the Shops and Establishment Act?
Under the Shop and Establishment Act, every business has to seek approval from department of Labour and keep up-to-date registers regarding details of employment, fines, deductions and advances, salary and holidays. The requirements may vary from state to state. Files related to annual holidays and number of employees need to be submitted to the office of the Municipal Corporation annually.
4. Our’s will be a registered private limited company having registered office in Karnataka. Do we also need to get Shop Licence?
The shop & establishment act is applicable to every office and shop where commercial activities are carried on even on employing one employee. Your Office /Corporate office will be covered under the Shop & Establishment Act. and the provision of leave and other rules shall be applicable, even when your company is registered under companies Act.
5. Which are the specific cities where the service will be delivered?
The service is state specific in case you need a shop license and will be rendered only in specific cities being Mumbai, Gurgaon, Hyderabad, Kolkata, Jaipur, Surat, Bangalore, Chandigarh, Pune and Delhi.
6. What are the remedies available in the Act to get relief in certain cases like nonpayment of wages, deduction of wages, and nonpayment of service compensation?
An authority is notified U/s 50 of the APSE, Act. He is the authority to hear & decide the above claims i.e., Asst. commissioner of Labour concerned.
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