The Shops and Establishments Act is in essence a labour license enacted by states that regulates working conditions and lists rights of employees in the unorganised sector by provides a list of obligations for every employer. Every shop and establishment is required to register itself under the Act within 30 days of commencement of work, whether or not it has employees.

HOW WE CAN HELP YOU

• We will complete the process of documentation and submission of the same so that your establishment so that you obtain the necessary certification for your establishment. We will also help you in the process of periodical renewal of your certificate
• Going forward we will help the process of maintenance of registers and other necessary documentation including submission of annual returns

KEY FACTS

OBJECTIVES

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.

This Act sets rules for

• working hours per day and week
• guidelines for spread-over & rest interval
• opening and closing hours
• closed days
• national and religious holidays
• overtime work
• rules for employment of children, young persons, and women,
• rules for annual leave, maternity leave, sickness and casual leave,
• rules for employment and termination of service,
• maintenance of registers and records
• display of notices

TIMELINES

• 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.
• A registration certificate is valid for 5 years and shall be renewed thereafter. Application for registration to be filed online and the fee payable depends upon the number of employees hired by the establishment. Even if there is no employee, the entity has to get registered under this act.
• In case of closure of business, the same has to be communicated to the concerned authorities within 15 days from the closure of the establishment.

APPLICABILITY

This act applies to a Commercial Establishment including:

• A commercial or trading or banking or insurance establishment, or
• An establishment or administrative service in which persons employed or mainly engaged in office work, or
• A hotel, restaurant, boarding or eating house, a cafe or any other refreshment house or
• A theatre, cinema or any other place of public amusement or entertainment.

A factory or a shop/establishment attached to a factory are covered under Factories Act and hence no registration under shops act is required to be done

DOCUMENTATION & DETAILS REQUIRED FOR REGISTRATION

The details and documents vary from state to state – however what is typically needed

• Name of the shop or business.
• Full address of the business.
• Category of establishment, such as shop, restaurant, theatre etc. & nature of the business for example, bakery, boutique etc.
• Name of the occupier or employer.
• ID proof of the occupier/employer such as voter ID, Aadhaar, or passport.
• PAN card of the employer or occupier.
• Proof of address of business such as utility bills like electricity or telephone, or rent deed/agreement etc.
• Declaration under non-appointment of child labour
• Fee for Shop Act Registration

The fee for registration depends on the number of employees hired by the entity. As and when there is an increase in the headcount, pay additional fee through filing an online application

DOCUMENTATION & DETAILS REQUIRED FOR COMPLIANCE

• On verifying the application thus received, inspector shall register the establishment in the register of establishments and issue registration certificate on satisfying himself upon the genuineness and completeness of the application. This certificate has to be prominently displayed at the establishment and needs to be renewed upon expiry of the same
• Establishments have to 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.
• In case of change in the address, status, partners/directors intimate to the department within 30 days of such change, through filing an online application.
• Annual return to be filed online in Form U on or before 31st January of the subsequent year.