REGULATORY HANDBOOK

THE SHOPS AND ESTABLISHMENT ACT

(Covering 35 States & Union Territories)

SCOPE . OBJECTIVES . REGISTRATION PROCESS . KEY DEFINITIONS . SELF CERTIFICATION SCHEME

INTRODUCTION

The Shop and Establishment (S&E) Act is applicable on all the commercial establishments; viz, business centres, offices, warehouses, stores, hotels, eateries, amusement parks, theatres, etc, nationwide. It is one of the most important regulations required to be complied with for any business.

OBJECTIVE

  • S&E Act is designated to protect the rights of employees by defining uniform benefits to the employees; irrespective of the industry and type of establishment he / she is employed with.
  • Designed to regulate the payment of wages, terms of service, holidays, leaves, work conditions, hours of work, overtime work, maternity leave and benefits, rules for employment of children.

SCOPE

  • S&E Act is governed by the Labour Department and regulates premises wherein any trade, business or profession is carried out.
  • Most businesses in India are regulated by the S&E Act.
  • Every State & UT has its separate Act and regulations.
  • It regulates the working of Shops, Commercial establishments, and even residential premises running for business gain.
  • S&E act regulates the following areas:
    • Working hours, overtime, leave policy
    • Rest interval for employees
    • Opening and closing hours
    • Closed days, national and religious holidays
    • Annual, maternity, sickness, and casual leave
    • Time and conditions of payment of wages
    • Deductions from wages
    • Dismissal of employment
    • Cleanliness, Lighting and ventilation
    • Precautions against fire
    • Accidents reporting and Record keeping
    • Maintain various Registers
    • Display of notices/certificate
    • Rules for the employment of children

KEY DEFINITIONS

  • “Shop”: Shop means any premises where goods are sold, either by retail, wholesale, or services are rendered to customers. It includes an office, a store-room, godown, warehouse, or workplace, whether on the same premises or otherwise, used in connection with such trade/ business. A shop however does not include a factory or a commercial establishment.
  • “Commercial Establishment”: Commercial establishment means a premise where any trade, business, profession or any work is undertaken, which may include society, charitable or another trust, journalistic and printing establishments, contractors and auditors establishments, educational institutes, premises where the business of banking, insurance stocks, and shares, the brokerage is undertaken, restaurants and eating houses, residential hotels, clubs, theatres and other places of public amusement or entertainment.

REGISTRATION OF SHOP AND ESTABLISHMENT

  • As each state in India has its own Shop Act and follows separate regulations. The process, fee structure, documentation may be different depending on the State regulations.
  • On starting a Shop or Establishment, one needs to apply for Shop Act Registration within the stipulated period set by State regulations.
  • Application is to be submitted to the Chief Inspector in the prescribed Form according to the state regulations, containing following details:
    • Name of the employer
    • Name, address, and category of the establishment
    • The Number of employees
    • Other relevant detail as required
    • The fee is calculated as per the number of employees.
  • The Labour Department of each state has the authority for the registration process. The Many States have a 100% online process, while some states are still following the manual procedure for filing.
  • The Registration certificate is required to be renewed periodically as mentioned in the state regulations.

DOCUMENTS FOR REGISTRATION

While every state has its specific requirement, following set of documents are usually across every state for seeking registration under S&E Act:

  • Photo of Premises displaying name on board of shop / establishment
  • Incorporation Certificate of Company / LLP
  • List of Directors or Partners with ID & Address proof
  • Partnership Deed in case of Partnership Firm
  • Copy of PAN Card or Aadhar Card
  • Address proof like an Electricity Bill of premises
  • Government prescribed fees

AMENDMENT OF REGISTRATION CERTIFICATE

In case of change in following scenarios, an application for amended of the registration has to be submitted to the concerned officer within timeline prescribed as per state act:

  • Name and address of the establishment
  • Nature of business
  • Director, Employer, Partner
  • Number of employees

The fresh certificate is issued post cancellation of the existing certificate.

CLOSURE OF SHOP OR ESTABLISHMENT

Due to any reason, if shop or establishment gets closed, the occupier must intimate the concerned Chief Inspector in writing within 15 days of the closure; who shall cancel the registration and remove it from the register.

BENEFITS OF REGISTRATION

  • Proof of legal entity: Registration is a proof of legal entity and allows to conduct business within limits of the particular state.
  • Business Bank Account: The proof as a legal entity helps in opening a business bank account.
  • Smooth Inspections: it helps to smoothen the Inspection process whenever the Inspector visits the premises.
  • Benefit under various schemes of Central & State Governments

SELF CERTIFICATION SCHEME (EASE OF DOING BUSINESS)

  • Many State Governments have implemented a Voluntary Compliance / Self - Certification scheme to save employers from difficulties due to a plethora of labour laws, registers, and returns.
  • The entrepreneur / employers are free to join the scheme anytime.
  • They are motivated to comply with labour laws with self-inspiration without compromising with labourers' health, safety and social security.
  • If registered under the scheme, sets of labour laws will be automatically covered and benefits can be availed under such laws including:
    • Minimum Wages Act, 1948 & respective State Rules
    • Payment of Wages Act, 1936 & respective State Rules
    • Contract Labour (Regulation & Abolition) Act, 1970 & State Rules
    • Payment of Bonus Act, 1956 & respective State Rules
    • Payment of Gratuity Act, 1972 & respective State Rules
    • Maternity Benefit Act, 1961 & respective State Rules
    • Equal Remuneration Act, 1976 & respective State Rules
    • Child Labour (Prohibition & Regulation) Act, 1986 & State Rules
    • Few more; varied for states
  • Those joining the scheme are exempted from surprise inspections under various labour laws and in place of multiple registers, one consolidated register is required to be maintained and few annual returns will be filed instead of the number of returns in various labour laws.
  • PENALTIES

    The penalties under the S&E act varied for states and are usually Monetary or Operational and in few case Imprisonment as well.
    While the monetary values are high, but the risk of closure notice always hang under various non compliance.

    KEY HIGHLIGHTS - ALL STATES

    For easy understanding, we have compiled state wise table covering key aspects of the act applicable in said State / Union Territory. The user may also click on links provided in the table to download copy of the act.

STATE Applicability for Registration Registration after Commencement of Business Opening & Closing Hours of business Weekly Close Day Hours of Work for Employees Leave with Wages Double Employment Maintain Registers and Record Cleaning & Maintenance Return Filing
DELHI
Acts & Rules Form Link
Mandatory Within 90 Days As fixed by Government from time to time Any one day 48 hours / week & 9 hours in a day EL: 15 days yearly CL: 12 days yearly SL: 12 days yearly Restricted Register of fines, deductions, display of notices Mandatory NA
UTTAR PRADESH
Acts/Rules Form Link
Mandatory Within 90 Days S: 8 am to 8 pm E: 9 am to 7 pm Any one day 8 hours in a day EL: 15 days yearly CL: 10 days yearly SL: 15 days yearly NA Register of fines, wages, display of notices NA NA
HARYANA
Acts/Rules Form Link
Mandatory Within 30 Days As fixed by Government from time to time Every Sunday 48 hours / week & 9 hours in a day EL: 1 day on every 20 working days
CL : 7 days yearly
SL: 7 days yearly
NA Register of Working hours, rest hours, attendance of employees Mandatory NA
PUNJAB
Acts/Rules Form Link
Mandatory Within 30 Days As fixed by Government from time to time Every Sunday 48 hours / week & 9 hours in a day EL: 1 day on every 20 working days
CL : 7 days yearly
SL: 7 days yearly
NA Register of Working hours, rest hours, attendance of employees Mandatory NA
HIMACHAL PRADESH
Acts/Rules Form Link
Mandatory Within 30 Days As fixed by Government from time to time Any 1 day 48 hours / week & 9 hours in a day EL: 1 day for every 12 days of working
CL: 7 days yearly
SL: 7 days yearly
NA Register of attendance of employees, wages, deductions, leave NA NA
J&K / LADAKH
Acts/Rules Form Link
Mandatory Within 30 Days Time frame set as per the type of Establishment 1 day between Sunday & Friday 48 hours / week & 9 hours in a day EL: 30 days yearly
CL: 14 days yearly
SL: Not specified
Restricted Register of leave with wages, refusal of leave, lime washing Mandatory NA
UTTARAKHAND
Acts/Rules Link
Required only on 10 or more employees Within 180 Days As fixed by Government from time to time Not Specified 48 hours / week & 9 hours in a day EL: 1 day for every 20 days of working
CL: 8 days yearly
SL: No Provision
NA Not Specified Mandatory Annual Return
MAHARASHTRA
Acts/Rules Form Link
Required only on 10 or more employees Within 60 Days S: 7 am to 10 pm
E: 8:30am - 9:30pm
Any one day 48 hours / week & 9 hours in a day Calculated as per no. of working days & months of employment Restricted Muster Roll cum Wage Register Mandatory Annual Return
GUJARAT
Acts/Rules Form Link
Required only on 10 or more employees Within 60 Days Time frame is location wise based on public safety Any one day 48 hours / week & 9 hours in a day EL: 1 day on every 20 working days
CL : 7 days yearly
SL: 7 days yearly
NA Types of registers not specified Mandatory Annual Return
MADHYA PRADESH
Acts/Rules Form Link
Mandatory Within 30 Days As fixed by Government from time to time Any one day S: 9 hours in a day
E: 10 hours in a day
CL: 15 days Yearly and Calculative privilege leave NA Register of cleanliness, leave, refusal of leave Mandatory NA
RAJASTHAN
Acts/Rules Form Link
Mandatory Within 30 Days As fixed by Government from time to time Any 1 day 48 hours / week & 9 hours in a day EL: 1 day for every 12 days of working No provision for SL and CL NA Register of employment, working hours, intervals, opening and closing hours NA NA
GOA
Acts/Rules Form Link
Mandatory Within 90 Days As fixed by Government from time to time Any 1 day 48 hours / week & 8 hours in a day EL: 15 days yearly
CL: 6 days yearly
SL: 9 days yearly
Restricted Register of employment, wages, advance leave Mandatory Periodical Returns on having 10 or more employees
DAMAN & DIU / DADRA & NAGAR
Acts/Rules Form
Mandatory Within 90 Days As fixed by Government from time to time Any 1 day 48 hours / week & 8 hours in a day EL: 15 days yearly
CL: 6 days yearly
SL: 9 days yearly
Restricted Register of employment, wages, advance leave Mandatory Periodical Returns on having 10 or more employees
KARNATAKA
Acts/Rules Form Link
Mandatory Within 30 Days Blr: 6 am to 9 pm
Others: 8am - 8 pm
Any one day 48 hours / week & 9 hours in a day EL: 1 day on every 20 working days
SL: 12 days yearly
NA Muster Roll cum Wage Register, record of leaves NA Annual Return
TAMIL NADU
Acts/Rules Form
NA NA As fixed by Government from time to time Any 1 day 48 hours / week & 8 hours in a day EL: 12 days Yearly
CL: 12 days yearly
SL: 12 days yearly
NA Register of employment, Deductions for damage or loss Mandatory NA
TELANGANA
Acts/Rules Form Link
Mandatory Within 30 Days As fixed by Government from time to time Every Sunday 48 hours / week & 8 hours in a day EL: 15 days yearly
CL: 12 days yearly
SL: 12 days yearly
Restricted Register of employment, wages, fines, deductions, leave Mandatory Periodical Returns on having 10 or more employees
KERALA
Acts/Rules Form Link
Mandatory Within 60 Days As fixed by Government from time to time Every Sunday 48 hours / week & 8 hours in a day EL: 15 days yearly
CL: 12 days yearly
SL: 12 days yearly
NA Register of employment, working hours, opening and closing hours Mandatory Periodical Returns on having 10 or more employees and Annual welfare Return
ANDHRA PRADESH
Acts/Rules Form Link
Mandatory Within 30 Days As fixed by Government from time to time Every Sunday 48 hours / week & 8 hours in a day EL: 15 days yearly
CL: 12 days yearly
SL: 12 days yearly
Restricted Register of fines, advances, and Integrated register Mandatory Periodical Returns on having 10 or more employees: Combined Return through Integrated Registrationd
PUDDUCHERY
Acts/Rules Link
Mandatory Within 30 Days S: 6 am to 10 pm
E: 8 am - 8 pm
Any 1 day 48 hours / week & 8 hours in a day EL: 12 days yearly
CL: 12 days yearly
SL: 12 days yearly
Restricted Register of fines, damage, loss Mandatory NA
WEST BENGAL
Acts/Rules Form Link
Mandatory Within 30 Days S: 8 am to 10 pm
E: 8 am to 11 pm
Any 1 day following with half day 48 hours / week & 8 hours in a day EL: 14 days yearly
CL: 10 days yearly
SL: 14 days yearly
NA Register of working hours, intervals, overtime NA NA
BIHAR
Acts/Rules Form Link
Mandatory Within 30 Days 8.00 am - 10.00 pm Any 1 day 48 hours / week & 9 hours in a day EL: 1 day for every 20 days of working
CL: 12 days yearly
SL: 12 days yearly
NA Register of leave with wages, fines, wages NA Annual Return
JHARKHAND
Acts/Rules Form Link
Mandatory Within 30 Days 9.00 am - 9.00 pm Any 1 day 48 hours / week & 9 hours in a day EL: 1 day for every 20 days of working
CL: 12 days yearly
SL: 12 days yearly
NA Register of leave with wages, fines, wages Mandatory Periodical Returns on having 10 or more employees
ASSAM
Acts/Rules Form Link
Mandatory Within 30 Days As fixed by Government from time to time Any 1 day 48 hours / week & 8 hours in a day EL: 16 days yearly
CL: 12 days yearly SL: 12 days yearly
Restricted Register of working hors, rest hours, overtime, employment, leave Mandatory NA
ODISHA
Acts/Rules Form
Mandatory Within 30 Days As fixed by Government from time to time Any 1 day 48 hours / week & 9 hours in a day EL: 1 day for every 20 days of working
CL: Not specified
SL: 15 days yearly
NA Combined Register of overtime, working and payment, muster roll Mandatory Annual Return
CHHATISGARH
Acts/Rules Form Link
Mandatory Within 30 Days As fixed by Government from time to time Any one day S: 9 hours in a day
E: 10 hours in a day
CL: 15 days Yearly and Calculative privilege leave NA Register of cleanliness, leave, refusal of leave Mandatory NA
ANDAMAN & NICOBAR
Acts/Rules Form Link
Mandatory Within 30 Days As fixed by Government from time to time Any 1 day 48 hours / week & 9 hours in a day EL: 15 days yearly
CL: 12 days yearly
SL: 12 days yearly
NA Register of Compensatory Holiday, wages, overtime, leave, muster-roll NA NA
MANIPUR
Acts/Rules Form
Mandatory Within 30 Days Time frame set month wise Every Sunday 48 hours / week & 9 hours in a day EL and SL 30-30 days after 12 months of service
CL: 12 days yearly
NA Register of, wages, fines, leave, overtime, hours of work Mandatory Annual Return
MEGHALAYA
Acts/Rules Form
Mandatory Within 30 Days As fixed by Government from time to time Any 1 day 8 hours in a day EL:16 days after 12 months of service
CL: 12 days yearly
SL:12 days yearly
Restricted Register of working hours, intervals, overtime, payment of overtime Mandatory NA
MIZORAM
Acts/Rules Form
Mandatory Within 30 Days Not Specified Any 1 day Not Specified Number of Leaves not specified Restricted Register of employment, leave, overtime, working hours, intervals Mandatory NA
NAGALAND
Acts/Rules Form
Mandatory Within 30 Days As fixed by Government from time to time Any 1 day 48 hours / week & 8 hours in a day EL:16 days after 12 months of service
CL: 12 days yearly
SL:12 days yearly
NA Register of working hours, pay, leave, intervals, overtime, payment of overtime Mandatory NA
SIKKIM
Acts/Rules Form
Mandatory Within 30 Days Time frame set as per the category of shop or establishment Any 1 day 48 hours / week & 9 hours in a day EL:20 days after 12 months of service
CL: 12 days yearly
SL:12 days yearly
NA Register of fines, damage or loss, employment, dates of lime washing Mandatory NA
TRIPURA
Acts/Rules Form Link
Mandatory Within 30 Days S: 8 am to 9 pm
E: 8 am to 11 pm
Any 1 day 48 hours / week & 8 hours in a day EL: 15 days after 12 months of service
CL: 12 days yearly
SL:12 days yearly
NA Register of pay, overtime, employees, working hours, intervals NA NA
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