Shop and Establishment act, 1953

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Shop and establishment act, 1953

Shop and establishment act, aka shop act is regulated by the department of labour. It covers all such premises where any sort of trade, business or profession is done. Along with commercial establishments, it also subsumes charitable trusts, societies, educational institutes, printing establishments, and any other premise where banking, stock trading, brokerage is carried out.

The following points about Shop act should be kept in mind:

  • A business should apply for registration in the shop act within 30 days of commencement.
  • Shop act registration needs to be renewed after every years.

Aspects Regulated by Shop and Establishment Act

The Shop and Establishment Act regulates a number of aspects relating to the operation of a shop or commercial establishment. Some of the key areas regulated by the shop and establishment act include:
  • Hours of work
  • Interval for rest and meals
  • Prohibition of employment of children
  • 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
  • Cleanliness
  • Lighting and ventilation
  • Precautions against fire
  • Accidents
  • Record keeping

Applicability & Records under Shop and establishment act, 1953

Is your business covered under the shop and establishment act, 1953?

Since the shop act is governed by the state government, the rules vary slightly from state to state, the following businesses are generally covered in the shop act.

  • Shops   are defined as the premises where trade is carried out whether retail or wholesale.
  • Establishments   are defined as the walk-in premises where professional services are rendered.
  • Residential Hotel
  • Restaurants
  • Places of amusement and entertainment.
Records to be kept for Shop and establishment act
  • Approval from Department of Labor.
  • Register of details of employees
  • Register of fines, deductions and advances
  • Register of salary
  • Register of holidays etc

Registration for Shop and Establishment Act process

The business is to send an application form and fees to the Inspector (Chief Inspector of Shops or other Inspectors under the Act) of their area.

The form should include:

  • All the organization that have 10 or more employees, or once had 10 or more employees in their lifetimes are mandated by law to be registered under the ESI scheme (Employee state insurance act, 1948).
  • The registration needs to be done online at the ESIC portal and a 17 digit ESI number will be allotted to the organization upon the successful ESI registration.
  • To register the eligible employees, their 11-digit UAN (universal account number) will be taken for further process.
Name of the business, the employer and the manager, etc
  • Postal address of the business
  • Such other particulars as and when required.
  • The Inspector will then verify the application, and enter the business into the registrar of establishments and issue a registration certificate. This certificate needs to be displayed in the establishment and to be renewed every 5 years.
    If there is any change in the application form, the business needs to inform the inspector within 15 days of the application and the inspector will then rectify and issue a fresh certificate.

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Documents Required for shop act registration

  • Passport Size Photograph of Employer
  • Photo of shop along with owner
  • List of Management Employees (.xls format)
  • Rates of Wages (.xls format)
  • Details of Employees working in Establishment (.xls format)
  • Employee Weekly Holidays(.xls format)
  • Address proof of Establishment [Copy of shop's rent agreement (if on rent) or Shop's ownership document proof (if owner of shop)]
  • Affidavit (Declaration Form)
  • Photo ID (PAN Card/Driving License/Aadhar Card/Passport)

FAQs regarding Shop and establishment act, 1953

  • Registration/renewal under Shop and Establishment Act
  • Maintenance of Registers and records as per Act
  • Preparation & Submission of Annual Returns
  • Assistance in all assessment & inspection from Labour department
  • Reply of Notices from the concerned authorities

P.I. Jain specializes in the complex process of factories act registration and all it’s annual compliances at the best prize in the market. If you have commenced a business in THE_CITY that is liable to get registered in the factories act, then give us a chance to get your business registered in quickest time possible.

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