Shops & Establishment Registration
The Shops & Establishment Registration Act is a state legislation act and each state has framed its own rules for the Act. The object of this Act is to provide statutory obligation and rights to employees and employers in the unauthorized sector of employment, i.e., shops and establishments. This Act is applicable to all persons employed in an establishment with or without wages, except the members of the employers’ family.
It applies nationwide to shops, commercial establishments, hotels, restaurants, eating houses, theaters 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.
FAQ on Shops and Establishment Registration:
Which businesses come under the purview of Shops & Establishments Act?
- 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 theater, cinema or any other place of public amusement or entertainment.
What are the regulations under this Act?
- This act lays down the following rules:
- 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, etc.
- Rules for employment and termination of service.
- Maintenance of registers and records and display of notices.
- Obligations of employers as well as employees.
What are the records to be maintained for registering under S&E Act:
- Every business has to maintain the following records under Shops and Establishments act:
- Approval from Department of Labor.
- Various registers giving details of employment, fines, deductions and advances, salary, holidays, etc. The names of the register may vary from state to state, and hence, it is a prudent practice to request the exact nature of documents that your state might need from your municipal corporation. Files related to annual holidays, number of employees need to be submitted at the Office of the Municipal Corporation annually.
What are the procedures under this Act?
- Every shop/establishment is compulsorily required to register itself under this Act within 30 days of commencement of work.
- Registration Certificate: The business owner should send to the Inspector (Chief Inspector of Shops or other Inspectors under the Act) of the area concerned, an application form and fees detailing 1) Name of the establishment, the employer and the manager, if any; 2) Postal address of the establishment; 3) Such other particulars as may be prescribed. The Inspector, on verifying the statement, shall register the establishment in the register of establishments and issue a registration certificate. This certificate has to be prominently displayed at the establishment and needs to be renewed before it expires. If there is any change in the initial statement, the same has to be communicated within 15 days to the Inspector and he will make changes in the register of establishments and issue a fresh registration certificate.
- Closure of Business: And in case of closure, the same has to be communicated to the authorities within 15 days from the closing of the establishment.
What are the documents to be submitted in the application form for registration of a shop/establishment?
- Certificate of Incorporation/Partnership Deed
- PAN Card