What is Shops & Establishments Act ?
The Shops and Establishments Act regulates conditions of work, lists rights of employees in the unorganised sector and provides a list of obligations for every employer. It applies nationwide to shops, commercial establishments, hotels, restaurants, eating houses, theatres and other places of public amusement or entertainments. 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.
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What is the objectives 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.
What are the regulations under the Shop and Establishment Act ?
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 and display of notices and obligations of employers as well as employees.
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.
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. To get this license, you would need to provide the PAN card of the business owner or the business itself, a copy of the rental agreement or sale deed, and details of all the employees.
What You Need To Know
Needed by All
Registration is required by all business entities, including sole proprietors working out of their homes. If you're trying to raise investment, get a loan for the business or even something as simple as a current account, you need to be registered.
Operate From Home
You need not have a physical shop. However, you should have an establishment. It can be any office. Even if you are operating an office from home, you can apply for this registration.
Shops & Establishment Act Process
1 WORKING DAYS
You need to send in PAN cards, identity and address proofs of the proprietor/partners/directors. Details of your employees also need to be submitted.
2 WORKING DAYS
We will file the application with the issuing authority, the local Municipal Corporation. You will not need to meet the authorities at any point. We will handle the process for you.
7 WORKING DAYS
Within 5 to 7 working days, we will give you a basic acknowledgement. If the documents are not in order or the inspector asks for additional documents, the process will be completed as soon as you submit the additional documents. The hard copy is issued within 10 days in major cities, but would take 15 to 20 days elsewhere.