Shop and Establishment Act

All those, who are planning to enter the world of business, need to understand the provisions of the Shops and Establishment Act in India. Registration under the Shops and Establishments Act is mandatory for most businesses and since this is the first step towards a promising business world, we have tried to cover the basics of the same. The Shop and Establishment Act comes under state legislation and each state has its own rules and laws made for it. As the rules are formulated by the state government, obviously, the rules will vary from state to state and hence the rules should be followed for registration in state regulations..

Applicability of Shop and Establishment Act

  • Broadly, all shops, hotels, dinning houses, restaurants, theaters, public entertainment or establishments and other commercial establishments etc. are covered under the Shops and Establishments Act and it is necessary to obtain registration under the same.
  • The main objective of the Act is to protect the rights of both the employer and the employee. The Shop and Establishment Act generally provides for the payment of wages, working hours, conditions of service, wages for holidays, holiday policy, work conditions, overtime work, intervals for meals and rest, prohibition for employment of children, youth Regulates the regulation of individuals or women, maternity leave and its benefits, opening and closing hours, closed days, weekly leave, dismissal, fire Safety and precautions, accidents, cleaning, lighting and ventilation,record keeping etc.

Shop and Establishment Act Registration

The application process will vary from one state to another, however, the basic details provided at the time of applying for registration are as follows:

  • Name and address of the establishment
  • Employer’s name
  • Installation pan
  • Address proof
  • Sale deed or rent agreement
  • Establishment category
  • Number of Employees
  • Employee Details

  • Penalty under Shop and Establishment Act

    • It is mandatory for all establishments covered under the Act to obtain registration and to follow all the rules and regulations prescribed under the same. In case of any failure to obtain registration and / or follow the rules and regulation of the Act, the establishment shall be liable to pay penalty. The amount of the fine will vary from state to state.

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