Shop Establishment Registration

The Shops and Establishments Act regulates conditions of work, lists rights of employees in the unorganised sector and provides a list of obligations for every employer.

The Shop & Establishment act forms the guidelines for employers to strictly adhere to the number of working hours daily and every week, the stipulated time for opening and closing the shop, adhering to national and religious leaves, setting regulations for the recruitment of children and women, maternity leaves, sick and casual leaves, regulations for recruitment and termination of service, regulating annual holidays, upkeep of records & registers and presentation of announcements for the employers and the employees.

The Shops and Establishment Act license is a mandatory requirement and therefore all shops and establishments should sign up under the act within 30 days from the date of beginning. Also, this registration is the primary license which is a requirement for other license registrations. To acquire the shops and establishment license registration, PAN card of the shop owner or the establishment itself, a photocopy of the rental agreement or sale deed and information about of the employees is mandatory.

Workers in the unorganised sector don’t have any other governing body to ensure that their rights and working conditions are as they should be. This is the reason for implementing the Shop Act License. Although the rules of the Shop/Trade License vary from one state to the other, it brings about a certain amount of consistency within a given area – in terms of leaves given, work hours, payments, etc.

The Shop and Establishment Act regulates the functioning of businesses wherein any trade is carried out. Not only does this apply to commercial establishments but also to charitable trusts, profit-run educational institutions and other premises having a brokerage, stock or insurance activities carried out. Some of the areas that fall under the regulations of the Shop and Establishments Act are the rest interval for workers, opening and closing hours, maternity leave, sick and causal leave along with rules regarding overtime work, national and religious holidays, and so on.