Shops & Establishment 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 employer’ family.

This Act lays down the following rules

1) Working hours per day and week.

2) Guidelines for spread-over, rest interval, opening and closing hours, closed days, national and religious holidays, overtime work.

3) Employment of children, young persons and women.

4) Rules for annual leave, maternity leave, sickness and casual leave, etc.

5) Rules for employment and termination of service.

It is necessary to have a good understanding of the law, particularly when one is employed in shops or establishments.

Registration Process

Registration of Establishments within 30 days from the date of commencement of work in an establishment, the employer of every establishment shall send to the Inspector of the area concerned, a statement in the prescribed form together with such fees as may be prescribed, containing:

1.  The name of the employer and the manager, if any
2.  The postal address of the establishment
3.  The name, if any , of the establishment and
4. Such other particulars as may be prescribed

On receipt of the statement and the fees, the Inspector shall, on being satisfied about the correctness of the statement, register the establishment in the register of establishments and shall issue, a registration certificate to the employer. The registration certificate shall be prominently displayed at the establishment. A registration certificate shall be valid for 5 years and shall be renewed before the expiry of the period of registration certificate.

Registers to be maintained

• Appointment order in Form – Q
• Leave register with wages Form-F
• Visit book
• Weekly holidays in Form A ( to be displayed in the establishment )
• Registration certification to be exhibited ( From – C )

Documents & Information required for registration

• Incorporation certificate of company
• Memorandum of Association & Articles of Association ( in case of company )
• Rental agreement / Lease Agreement of company
• PAN card of the company
• Address proof of Proprietor / Director (All directors)
• ID proof of proprietor / Director – PAN card/ Election card / Passport / Driving License
• Postal address
• Weekly holiday, Number of working days
• Telephone Number, E-mail id
• Details list of all the Directors / Proprietor along with their address, Phone number , E-mail id
• Authorized signatory details
• Nature of the business
• Date of business operations
• Number of employees in the company (separated by both Male & Female)