Shops & Establishment Act

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What is Shops and Establishments Act?

The Shops and Establishments Act helps in regulating work conditions and lists down the rights of employees in unorganised sector. It also lists down the obligations of each employer.

It is appliedcountrywide to shops, commercial establishments, hotels, restaurants, eating houses, theatres and other places of public amusement. Every shop and establishment whether it have employees or notneed to register itself under this Act within 30 days of inauguration of work.

4 Essential Facts on Shops and Establishments Act

• What are the objectives of the Shops and Establishments Act?
  The objective of this act is to help in regulating work conditions and lists down the rights of employees in unorganised sector. It also lists down the obligations of each employer. It is applied countrywide to shops, commercial establishments, hotels, restaurants, eating houses, theatres and other places of public amusement.

• What are the regulations under the Shop and Establishment Act?
  This act regulatesthe working hours per day and week, break interval, opening and closing hours, closed days, national and religious holidays, overtime work, rules for employment of children, young personsand women, rules for annual leaves, 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 needs to have approval from Department of Labour and keep updated registers having details of employment, fines, deductions, advances, salary and holidays. What records need to be maintained will vary from state to state. Records related to annual holidays and number of employees have to be submitted to the office of the Municipal Corporation annually.

• When do we require license under Shops and Establishments Act?
  Every shop and establishment whether it have employees or not need to register itself under this Act within 30 days of inauguration of work. It is most basic license so many other licenses will require this as proof of a commercial business. For example, while opening a current account, most banks will ask you to provide it.To obtain this license, you have 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.

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Advantages of Shops and Establishment Act

Required by All

It is required by all shops, commercial establishments, hotels, restaurants, eating houses, theatres and other places of public amusement. If you’re trying to raise investment, get a loan for the business or even opening a current account, you are required to be registered.

Operating your business from home

In case you are operating your establishment from home,you can get this registration done.

Shops and Establishment Act Process

• PAN cards, identity and address proofs of the proprietor/partners/directors and details of your employee need to be submitted.
• On receiving all the details, our associate will file the application for you to the issuing authority, the local Municipal Corporation. It will take almost 2 working days if your documents are in order.
• A basic acknowledgement will be provided to you in 5 to 7 working days. The hard copy will be issued to you within 10 days in major cities whereas 15 to 20 days somewhere else.