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Shops and Establishments – What the Law Says

Shops and Establishments – What the Law Says

While planning to step into the world of business, you need to draw up not only your business plan, product/service model, financing options, but also make a comprehensive list of all the compulsory regulations that your business entity will have to comply with such as the taxation legislations, licensing requirements, etc.

One such important legislation is the Shops and Establishments Act, 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 un-organized sector of employment and other establishments in their jurisdiction.

In this article, we will discuss the applicability and requirements of the Shop and Establishments Act in greater detail.

Which businesses come under the purview of Shops & Establishments Act?

A Commercial Establishment including:

• 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.

Regulations Under The Act:

This act lays down the following rules:

• Working hours per day and week.
• Guidelines for spread-over, rest interval, opening and closing hours, closed days, national and religious holidays, overtime work.
• Rules for employment of children, young persons and women.
• Rules for annual leave, maternity leave, sickness and casual leave, etc.
• Rules for employment and termination of service.
• Maintenance of registers and records and display of notices.
• Obligations of employers as well as employees.

Shops and Establishments – What the Law Says



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