The Shops And Establishments Act In India – Corporate Finance

Background

The Shops and Establishment Act

in India

is a state
legislation act and each state

in India

has framed its
own rules for the Act. In the state of Maharashtra, it is the Maharashtra Shops
and Establishments Act, 1948. It is one of the Acts applicable to businesses
commencing their operations in India. However, companies coming into India to
setup businesses here are in most cases not aware of the existence of such an
Act or its severity in case of non-compliance. We give you a snapshot of this
Act.


Introduction

The
Shops and Establishment Act is enacted by every state in India to regulate
conditions of work and to provide for statutory obligations of the employers
and rights of the employees in unorganized sector of employment.


Regulation

This
Act regulates the following:

1)      Working hours of
shops and establishments

2)      Employment of women
and children

3)      Conditions for annual
leave

4)      Overtime work

5)      Termination of
service

6)      Mandatory holidays in
the state


Note :
Maternity leave

in India

is regulated by
the The Maternity Benefit Act, 1961.


Registration

Every
shop/establishment/office/place of business is compulsorily required to
register itself under this Act within 30 days of commencement of work.
Registration can be obtained for one calendar year at a time or in one instance
for a period of three consecutive years and is to be renewed in the month of
December.

Under
the Act, it is mandatory for the following kinds of businesses to avail of a
Shops and Establishments Registration with the Local Municipal Authority:

·         A
commercial or trading or banking or insurance establishment, or

·         An
establishment or administrative service in which persons employed or mainly
engaged in office work, or

·         A
hotel, restaurant, boarding or eating house, a cafe or any other refreshment
house, or

·         A
theater, cinema or any other place of public amusement or entertainment.

Some of the important formalities under
the Act

·        
Registration Certificate is to be displayed at a prominent place in the
premises.

·         Name
of the organization is to be mentioned in the local language as well as in
English and be displayed at the entrance of the organization.

·        
Maintenance of certain registers.

In
Mumbai, August Consulting can provide you with the required guidance and
support to apply, obtain and renew this registration in a timely manner

with your local
Municipal ward office