Learn about the key records required under the Shops and Establishments Act to ensure legal compliance for businesses. Proper record-keeping is crucial for adhering to regulations and avoiding legal issues. Explore the types of records necessary to maintain, promoting a smooth and legally sound operation of shops and establishments.
This legislation aims to create a standardized and equitable work environment for employees in diverse establishments. It covers a broad spectrum, including commercial enterprises, accommodation services, restaurants, entertainment venues, and more. By establishing rules and regulations for working hours, employee rights, and employer responsibilities, the Shops and Establishments Act contributes to maintaining a balance between the interests of employers and the well-being of the workforce. Whether it’s ensuring proper record-keeping or outlining guidelines for employee welfare, this Act plays a crucial role in fostering a fair and conducive work environment across various sectors in India.
What Are the Records to Be Maintained Under the Shops and Establishments Act:?
When a Small Scale Industry (SSI) or Micro, Small, and Medium Enterprises (MSME) operating in the informal sector enroll under the Shops and Establishments Act, it serves as an official acknowledgment of the business’s existence. Enterprises meeting the Act’s criteria must promptly seek a license within 30 days of commencing operations. This labour law addresses the unique challenges of India’s vast unorganized labour sector, tackling issues like unemployment, corruption, and exploitation without proper legal oversight. As state legislation, each state imposes its regulations. Applicable to all engaged in a business, regardless of remuneration, this Act plays a vital role in fostering a regulated and equitable work environment.
Records to Be Maintained Under Shops & Establishments Registration
What Are the Records to Be Maintained Under the Shops and Establishments Act: Every business is required under the Shop and Establishment License Act to get approval from the Department of Labour and to keep up-to-date records of employees, penalties, deductions and advances, wages, and vacations. These are the records to be maintained under Shops & Establishments Registration:
- Employee Attendance Records
- Leave Records
- Working Hours and Overtime Records
- Wage and Salary Records
- Details of Employee Benefits
- Records of Rest Intervals
- Holidays and Weekly Off Records
- Employee Contact Information
- Details of Employers and Managers
- Documents Related to Licensing and Registration
- Records of Employment Termination
- Grievance and Complaint Records
- Any Other Records Mandated by Local Authorities or the Act
Process to Acquire Shops and Establishment License
Acquiring Shop and Establishment Registration involves a state-specific process, available online or offline. To register online, the proprietor logs into the State Labour Department website, completes the application, uploads documents, and pays fees. Offline registration requires submitting the application and fees to the Chief Inspector. Upon approval, the online method issues the certificate digitally, while the Chief Inspector handles the offline process. The application captures essential details like employer and establishment names, addresses, categories, employee counts, and other pertinent information. The process and fees vary across states.
The Application Form Should Contain the Following Details
- Name of the employer
- Name of the establishment
- Address of the establishment
- The category which it belongs to
- Number of employees working
- The date on which the establishment started working
Details About Registration Procedure
- The Shops and Establishments Act procedure is created by each state’s labour department, and registration takes place
- Under this statute, the inspector in charge is usually assigned to the local district labor officials. They are, however, the ones who will provide the certificate of registration for the business and establishment
- The cost of the entire procedure is determined by the number of employees employed by that organization/business
- Once the occupier submits an application, the inspector in charge will evaluate it. If the application has all of the required information and the information satisfies the inspector in charge, the store and establishment will be registered, and the occupier will get a registration certificate
- However, the employer has to notify the inspector in charge if there is a plan to close down the business
- In case if the employer is sure to close, then the employer has to submit writing within 15 days of closing. The inspector will then cancel the registration provided under the Shops and Establishments Act. Therefore, they will remove its name from the register
- However, make sure to intimate any changes of information to the inspector within 15 days from the date on which such changes take place if you have missed telling at the time of registration. After all verification, the inspector in charge will make necessary changes and will issue a fresh registration certificate if required.
Documents Required
Here is a list of common documents:
- Identity proof
- Commercial address proof
- Other licenses required to start a business
- PAN card
- Fee payment challan
Conclusion
In conclusion, the Shops and Establishments Act is enforced by the state legislature and registration is mandatory for every establishment. The records to be maintained under this act provide a proof of compliance with its provisions and are essentially important to avoid penalties and maintain a sound business reputation. Vakilsearch provides you with the complete details on how to register for the Act and successfully get the certificate from the inspector. Our legal experts guide you through the registration process, assisting in the meticulous preparation of the application and gathering necessary information. The processed shop registration is then submitted to the labor department. Upon approval, the shop license certificate is promptly dispatched, either via courier or in-person delivery, ensuring a smooth and efficient registration experience.
