The Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2016 in India is regulated by the Department of Labour. The Act has been put into force to regulate any premise where any form of trade, business or profession is carried out. The Act applies to shops and establishments that employ 10 or more people.
The Act governs various aspects of running a commercial enterprise, which include wages, hours of work, terms of services, holidays and more. The Act looks to regulate conditions for the benefit of the people employed by the registered businesses.
Every state in India enacts its own Shop and Establishment Act. This means that shops and establishments under this Act are governed by their respective State Governments. Hence, salient features of the Act may differ from state to state. Commercial enterprises have to get in touch with their own state’s labour department to get a Shop and Establishment License.
Definition of shop and establishment under the Act
Here are how shops and establishments are defined under the Shop and Establishment Act:
- Shops: Premises where goods are sold either through wholesale or retail, or where services are delivered to customers. Shops include offices, showrooms, warehouses, godowns and other such workplaces
- Establishments: Commercial places like hotels, restaurants, eateries, theatres or other places of public amusement and entertainment
It is important to note that factories are not included under the Shop and Establishment Act.
Apart from commercial establishments, the Act also regulates societies, trusts, printers, educational institutions and premises of banks, insurers, brokerages and stock exchanges.
Registration under Shops and Establishments Act
The Act mandates that any shop or establishment that employs 10 or more people is required to apply for registration within a period of six months from its date of existence.
Once the shop or establishment applies for registration to its State’s Labour Department, the authority will register the shop or establishment and issue it a Labour Identification Number.
The process of acquiring a Shops and Establishments License is fairly simple.
- Visit your state’s labour department website (links provided below)
- Some states have an entirely online process, whereas others have a semi-online process
- Look for the Online Registration Form
- Accurately fill up the Online Registration Form by following the given instructions
- Upload the necessary documents if your state has a fully online process
- Print out the form and submit it along with physical documents if required by your state
- Pay the required fee
Once this process is completed, the Labour Department will examine your application and carry out an inspection of your premises, if required. Following this, the authorities will approve your application and issue a license. In most cases, this license will have a validity of one year.
Links for state-wise registration under Shops and Establishments Act
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