Shop And Establishment Act Registration

The Shop and Establishment Act is designed to regulate the payment of wages, hours of work, leave, holidays, terms of service and other work conditions of people employed in the shop and commercial establishments.

The Shop and Establishment Act is regulated by the Department of Labor and regulates business premises wherein any trade, business or profession is carried out. The act along with the regulation of the working of commercial establishments also regulate societies, charitable trusts, printing establishments, educational institutions run for gain and premises in which banking, insurance, stock or share brokerage. This act also regulates areas such as working hours, rest interval for employees, opening and closing hours, closed days, national and religious holidays, overtime work, rules for employment of children, maternity leave, sickness and casual leave, etc.,

Every state has its own Shop and Establishment Act. But, the general provisions of the Act are the same in all states. The Shop and Establishment Act is regulated by the Labour Department of the respective states. The Act regulates all the shops and commercial establishments operating within the state. The respective states issue the registrations under the Act, and thus it slightly differs from one state to another state.

Shops are normally defined under the Act as the premises where the goods are sold either by retail or wholesale or where services are rendered to customers. It includes offices, godowns, storerooms and warehouses used in connection with the trade or business.

Commercial establishments are generally defined as a commercial, banking, trading or insurance establishment or administrative service in which persons are employed for office work. It includes hotel, boarding or eating house, restaurant, cafe, theatre, and other public entertainment or amusement places. However, factories and industries are not covered by the Act and are regulated by the Factories Act, 1948 and Industries (Development and Regulation) Act 1951.

ASPECTS REGULATED UNDER THE SHOP AND ESTABLISHMENT ACT

The Shop and Establishment Act regulates aspects relating to the operation of a shop or commercial establishment. Some of the major areas regulated by the shop and establishment act include:

Hours of work
Interval for rest and meals
Prohibition of employment of children
Prohibition of employment of young person or women
Opening and closing hours
Close days
Weekly holidays
Wages for holidays
Time and conditions of payment of wages
Deductions from wages
Leave policy
Dismissal provisions
Cleanliness
Lighting and ventilation
Precautions against fire
Accidents
Record keeping

DOCUMENTS REQUIRED FOR SHOP AND ESTABLISHMENT REGISTRATION

The following are the documents required for registering under the shop and establishment Act:

Registered address proof of Shop or Business Establishment
ID proof of the proprietor
PAN Card of the proprietor
Details of all the employees
Payment challan
Additional business licenses necessary for starting the business

PROCESS FOR OBTAINING SHOP AND ESTABLISHMENT REGISTRATION

The procedure for obtaining the Shop and Establishment Registration Certificate may differs from state to state. It can be registered either online or offline.

For getting the registration certificate online, the proprietor or owner of the shop or business should visit the respective State Labour Department website. The proprietor or owner should fill the application form for the registration under the Shop and Establishment Act, upload the all required documents and pay the prescribed fees. The prescribed fees can differ from state to state. Once the registration form is approved, the regulated authorities will issue registration certificate online to the proprietor or owner of the business.

For obtaining the registration certificate offline, the registration application is to be filled and submitted to the Chief Inspector of the concerned area along with the prescribed fees. The Chief Inspector will issue the registration certificate to the owner or proprietor after being satisfied with the authenticity of the application.

The registration application form contains the details relating to the name of the employer and establishment, address and category of the establishment, number of total employees and other relevant details as required. The registration application needs to be renewed before the expiry of the period of registration. The validity of the Shop and Establishment Certificate may differ from state to state. Some states provide the Certificate valid for a lifetime, while other states may provide the Certificate valid for one to five years.