Shop & Establishment Act License
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Information Guide.
Establishment by definition means a shop or commercial establishment, hotel to stay, restaurants, cafes, theatre, or any other place for public amusement or entertainment as per the rules established by the State Government by notification in the Official Gazette. Along with Central, the State Governments also has its own set of rules in regard to the working condition of its labors. This Act helps the government to regulate the working conditions of the employees of different establishments mean for public amusement and entertainment.
There is no common law for regulating this all over the country, Different laws are available for different regions in the country, governed by the State government.
Every shop and establishment has to register itself within 30 days of commencement of the Act. The registration application must be submitted along with the copies of these documents:
- Photo of the applicant
- Photo of the shop, with the owner/owners in the same frame.
- List of employees, wages, and bonuses.
- Address proof of the shop or establishment
- Affidavit.
A certain amount of fee also has to be paid along with the application which is specified by the law based on the number of workers. The authority on being satisfied with the information furnished a license shall be issued, which must be displayed at a publicly visible place inside the shop or establishment.
The aspects which are regulated by the Shop and Establishment Act are as follows:
- Working hours
- Intervals for rest and meals
- No employment of children below 14 years (for nonhazardous works only)
- Opening and closing hours
- Week offs
- Holidays
- No wages deduction for holidays and week offs
- Time and conditions of payment of wages.
- Deduction rate from the wages
- Leave policy
- Dismissal
- Healthy environment- access of enough light and ventilation
- Fire extinguisher
- Accidents
- Record Keeping.
It may differ from state to state, and the state government has the power to make such adjustment and difference.
Yes, it has to register under the Shop and Establishment Act, even it is registered under the Companies Act 2013.
If there is any change is address or the shop or establishment closes down, then the owner has to inform the authority within 15 days of such action or incident.
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