Shops & Establishments Act

With the Shops and Establishments Act, you can regulate the work contributions, lists employees' rights in the unorganized sector and give a list of obligations for every employer. It is applicable for shops, all commercial establishments, hotels, restaurants, theatres, and places of public entertainment. Every shop and business must be registered under the Act within a month of work commencement.

Important Facts About Shops & Establishments Act Objectives

Every state in India has certain rules and regulations with respect to work conditions. The purpose is equal employee benefits in various establishments, like shops, commercial places, restaurants, theatres and other places of public entertainment.

This Act decides working hours every day and week, guidelines, rest time, start and close hours, holidays, overtime, rules for women and young people, leave rules, maternity leave, sick and casual leave, rules of job and service termination, maintain registers and records and show notices and obligations of employers and employees.

What records must be maintained under the Act?

Under this Act, any business requires permission from the Department of Labor and keep registers updated with details like employment, deductions, advances, salary and holidays. The requirement varies from state to state.

When is a Shops and Establishments Act license needed?

Any shop and business establishment must register under this Act within a month of the start of work. This is just a fundamental license, there are many other licenses which needs proof of commercial business. For instance, most banks will need it if you want to open a current account. To have the license, you must provide the PAN card of the business owner or the business, rental agreement's copy or sale deed's copy, and details about all employees.

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