Shop Act

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Most of the businesses takes place by this important regulation in India.  Every state has different Shop and establishment Act and every state may have same or different provisions. Main objective of this Act is to regulate the provisions of the payment of wages, hours of work of employees, leave (compulsory leaves as how much leaves must be provided to a particular person), holidays, terms of service and such other work conditions of employees who works under the Shop and commercial establishments.

In India, The Department of Labour regulates provisions of Shop and Establishment Act and checks the place of work where trade, business or any profession being carried out. This Act also governs societies, charitable trusts, printing establishments, educational institutions run for gain and premises in which banking, insurance, stock or share brokerage. And also the provisions related to working hours, rest interval for employees, opening and closing hours, closed days, national and religious holidays, overtime work, rules and regulations for employment of children, annual leaves, maternity leaves, sickness and casual leaves, etc. 

According to the provisions of Shop Act, generally “Shop” means the place where goods can be sold and services can be rendered, which may include an office, store room, warehouse. Establishments covers a shop, any commercial establishment, hotel, restaurant, etc. It may also include which  are covered in the notification in Official Gazette. Factories are governed by Factories Act, 1948 but not under Shop & Establishment Act.

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  • The Shop and Establishment Act is used for various purposes
    • 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

  • Registration

    In general, a shop can be registered under different entities such as business group, Start up, MSME and Shop Act. Every registration has certain benefits.

    Advantages of registration under Act :

    Legal entity Proof : if we Register a shop in India, under Shop and Establishment Act  then we get a license under provisions of Shop Act. It gives the right to do business in that particular area.

    Bank account : every shop and establishment are required to open a separate bank account which particularly handles business only. After getting license it is easy to open a bank account.

    Inspection : some local municipality or State Government conduct regular inspections in decided span of time. If one has license under the Act, then he may get over inspections easily.

    Government benefits : every state forms some policies to help the people who runs small business. So, if a particular person has license then he may avail benefits provided by State Government.

  • Registration process of a shop includes some easy steps as

    Step 1 : either visit the official website or the State Govt. office

    Step 2 : follow the registration procedure as provided under Method A by State Government itself.

    Step 3 : obtain certificate from inspector.

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