A ‘Shop and Establishment Registration’ or popularly known as ‘Trade license’ in many States and ‘Gumasta License’ in Maharashtra. Shops and Commercial Establishments Act 1958 was enacted to regulate the working hours, weekly/monthly off, payment of wages, terms and condition of employment, holidays, leave etc. of persons employed in shops, commercial establishments. Trade license issuing authority varies state to state, therefore Rules and Regulations of Trade license varies state to state as per State Shops and Establishment act or some other specific Act to regulate Shops and Establishments within the state and its process and documentation also varies slightly. Every employer shall within 30 days from the date on which the establishment, commence its work shall file statement together with fees to the Chief Inspector of the area concerned. In some state period for Registering may differ state to state.
Municipal Corporation or Local Authority is the concern department in the state/Locality to issue Trade License. Every state has its own Shop and Establishment Act (“Act”). However, the general provisions of the Act are the same in all states. The Shop and Establishment Act is regulated by the Labor Department of the respective states. The Act regulates all the shops and commercial establishments operating within the state. The respective states issue the registrations under the Act, and thus it slightly differs from one state to another state.
Shops are generally defined under the Act as the premises where the selling of goods take place either by retail or wholesale or where services are rendered to customers. It includes offices, godowns, storerooms and warehouses used in connection with the trade or business. Commercial establishments are generally defined as a commercial, banking, trading or insurance establishment or administrative service in which persons are employed for office work. It includes a hotel, boarding or eating house, restaurant, cafe, theatre, or other public entertainment or amusement places. However, factories and industries are not covered by the Act and are regulated by the Factories Act, 1948 and Industries (Development and Regulation) Act 1951.
The shops and commercial establishments covered under the Act must mandatorily apply for registration under the respective state Act. All establishments and business, including the people working and maintaining a business from home, must obtain a Shop and Establishment Registration Certificate or Shop License (“Certificate”) under the Act. The proprietors who run a business from home without having any physical store or premises are also required to obtain this Certificate. The proprietors of e-commerce business or online business, or online stores and establishment must register under this Act and obtain the Certificate. Every shop and commercial establishment should register itself under the Act within 30 days of commencement of business.
The Certificate or the Shop License acts as a basic registration/license for the business. This Certificate is produced for obtaining many other business licenses and registrations. It serves as proof of the incorporation of commercial establishment or shops. It is also useful when the proprietor of the business wants to obtain a loan or create a current bank account for the business. Most banks will ask for this Certificate for opening a current bank account.
Hotels, Restaurants, Canteen, Food stall, Bakeries, the sale of vegetables and meat etc.
Small and large scale manufacturing factories, cyber café etc.
Garment shop, Salon, Beauty Parlour, Medical Store, Dry Cleaner, SPA, Gift Shop, etc
The Shop and Establishment Act is regulated by the Department of Labor and regulates premises wherein any trade, business or profession is carried out. The act not only regulates the working of commercial establishments but also societies, charitable trusts, printing establishments, educational institutions run for gain and premises in which banking, insurance, stock or share brokerage. This act regulates areas such as working hours, rest interval for employees, opening and closing hours, closed days, national and religious holidays, overtime work, rules for employment of children, annual leave, maternity leave, sickness and casual leave, etc., The Act is designed to regulate the payment of wages, hours of work, leave, holidays, terms of service and other work conditions of people employed in the shop and commercial establishments. Shop– According to the Act, Shop is a place that sells goods or services to the customer. It can also include offices, storerooms, warehouses or go-downs. Establishment– an Establishment engulfs all residential hotels, restaurants, theatres, commercial establishments, and other amusement for public entertainment. The Act, among other things, regulates the following matters-
The Shop and Establishment Act in India is promulgated by the state and may slightly differ from state to state. However, as per the Act, all shops and commercial establishments operating within each state are covered by the respective Shop & Establishments Act.
The Ministry of Home Affairs (MHA) has exempted certain shops (registered under the Shops and Establishment Act) from the lockdown restrictions. However, shops in single brand and multi-brand malls and cigarette and liquor shops have not been exempted.
The Shop and Establishment Act is applicable nationwide, and all the commercial establishments, such as the hotels, and eateries, amusement parks, theatres, and other entertainment houses, as well as any other such public amusement places, come under the purview of the Act. The definition of a ‘Commercial Establishment’, as given in the Act is:
All such above mentioned commercial establishments come under the Act and need to adhere to the norms and regulations set by the Act for the treatment of their employees. The exceptions to the Act vary in the States and each State has given a list of shops and establishments act that come into the Act, and who require the registrations under the Act to run their business in the State.
Any shop or commercial establishment that commences operation must apply to the Chief Inspector for a Shop and Establishment Act License within the prescribed time. The application for a license in the prescribed form must contain the name of the employer, address of the establishment, name of the establishment, category of the establishment, number of employees and other relevant details as requested. On submission of the application and review by the Chief Inspector, the shop or commercial establishment will be registered and a registration certificate will be issued to the occupier. The registration certificate must be prominently displayed at the shop or commercial establishment and renewed periodically, as per the act. In case the shop or establishment would like to close down the business, the occupier should notify the Chief Inspector in writing within fifteen days of the closing. The Chief Inspector after reviewing the request for closure can remove the shop or commercial establishment from the register and cancel the registration certificate.
Under the Shop and Establishment Act, every business has to seek approval from Department of Labor and keep up-to-date registers regarding details of employment, fines, deductions and advances, salary and holidays. The requirements may vary from state to state. Files related to annual holidays and number of employees need to be submitted to the office of the Municipal Corporation annually further no Regular return is needs to be filed under this Act. As it is subject to periodic inspections/visits by concerned Government officials, one must keep the below-mentioned records ready for verification during such visits.
The Shop and Establishment Act in India is promulgated by the state and may slightly differ from state to state. However, as per the Act, all shops and commercial establishments operating within each state are covered by the respective Shop & Establishments Act.
The objective is to secure uniform benefits for employees working in different establishments, from shops, commercial establishments and residential hotels to restaurants, theatres and other places of public amusement or entertainment. Whether a business is big or small, if you choose to register your shop under a Shop and Establishment act, then you need to visit the website or the State government office to complete the Registration Formality in a Method prescribed by the State Government. Every Indian state has enacted certain rules and regulations with regard to conditions of work. Every shop and establishment needs to register itself compulsorily under this Act within 30 days of commencement of work. As this is such a basic license, many other licenses require this as proof of a commercial business. For example, most banks will require you to furnish it if you want to open a current account. To get this license, you would need to provide the PAN card of the business owner or the business itself, a copy of the rental agreement or sale deed, and details of all the employees. Premises governed by the Act are shops, commercial establishments, residential hotels, clubs, restaurants, eating houses, theaters and other places of public amusement or entertainment etc. except those who falls under Factories Act 1948.
This registration is compulsory for every business place of work except those who falls under Factories Act 1948. It is a state regulation and each state has separate shop & establishment regulation.
Documents Required for Shop & Establishment RegistrationS.No | Subject Matter | Old act | New Act |
---|---|---|---|
1 | Applicability | The Old Act was applicable to all the establishments, irrespective of the number of workers employed. | The New Act applies to establishments employing 10 or more workers. However, establishments with less than 10 workers are required to intimate the facilitator (in whose jurisdiction the business is located) regarding certain details about their businesses. The provisions of the New Act will not apply to establishments already having valid registration under the Old Act, until the expiry of their registration. |
2 | Definition of "employer" | The definition included a person owning or having ultimate control over the affairs of an establishment. | The definition under the Old Act has been elaborated to specifically include a partner of a firm (where the employer is a firm) or a director of a company (where the employer is a company). |
3 | Definition of "establishment" | The definition of the term "establishment" was covered under two heads, which were "establishment" and "commercial establishment". | The New Act prescribes a comprehensive definition in respect of an "establishment", which includes the business of banking, insurance, brokerage, and the establishments of medical practitioners, architects, engineers, accountants, tax consultants or any technical or professional consultants, along with shops, hotels and restaurants. |
4 | Definition of "employee" | The definition included persons wholly or principally employed, whether directly or through any agency, and included an apprentice. | The definition of the term "employee" has been replaced by the term "worker", which includes a person employed (including through an outsourcing agency) to do any manual, unskilled, skilled, technical, operational or clerical work, but does not include an apprentice. |
5 | Cancellation of the registration certificate | There was no provision pertaining to the cancellation of the registration certificate. | The labor department has the power to cancel the registration certificate and remove an establishment from the register of establishments, if such an establishment is found to have obtained its registration through misrepresentation or suppression of material facts, or by submitting forged or false documents. |
6 | Leaves and holidays | The Old Act prescribed the following: • 4 days of paid festival holidays in a calendar year; • 1 day off in a week; • 21 days of privilege leave for employees who have worked for 240 days or more in a calendar year; • 7 days of sick leave and 7 days of casual leave | In terms of the New Act, workers are allowed the following: • 8 days of paid festival holidays in a calendar year; • 1 day off in a week, even if the shop or establishment is kept open on all days in a week; • Privilege leave at the rate of 1 day for every 20 days of work, provided the worker has worked for more than 240 days in a previous calendar year; • 7 days of sick leave and 7 days of casual leave |
7 | Welfare provisions (including crèche facilities) | The Old Act contained provisions relating to cleanliness, ventilation, lighting and first aid. | In addition to prescribing obligations for the employer with respect to the health and safety of workers, the New Act prescribes that every shop or establishment, which employs 30 or more women workers, should maintain a suitable room as a crèche for the children of such workers. A group of establishments can also provide a common crèche within a radius of 1 kilometer (approximately 0.62 miles), subject to the conditions which are prescribed by the labor department. Where there are 100 or more workers engaged in an establishment, employers are also required to maintain a canteen. |
8 | Discrimination against women employees | The Old Act had no specific provision in relation to discrimination against women employees. | The New Act states that no woman worker will be: • discriminated against in matters of recruitment, training, transfers, promotion or wages; and are required to or allowed to work in any establishment except between the hours of 6 a.m. and 9 p.m., unless the labor department is satisfied with the safety and transportation measures implemented by the organization, and issues an order allowing women to work during night shifts. |
9 | Wages for overtime | The Old Act prescribed that all employees (other than those working at residential hotels or restaurants) will be entitled to wages for overtime, at the rate of 1.5 times their ordinary wages, in case they work for more than 9 hours a day or for more than 48 hours a week. | The New Act states that every worker who is required to work beyond 9 hours a day or 48 hours a week will be entitled to wages at the rate of 2 times his or her ordinary wages for such overtime work. The total number of overtime hours cannot exceed 125 hours in 3 months. |
10 | Opening and closing hours of the establishment | Under the Old Act, there was no specific provision with respect to keep establishments open 24/7. | Any shop or establishment situated in, on, or around municipal corporation areas, hospital premises, national highways, railway platforms, petrol pumps and state roadways bus station premises may be kept open for 24 hours, as long as the establishments comply with requirements relating to working hours, weekly offs, leave and holidays, spread-over and overtime. Other shops and establishments may be kept open throughout the year, except between 11 p.m. and 6 a.m., as long as the employers comply with requirements relating to working hours, weekly offs, leave and holidays, spread-over and overtime. |
11 | Penalties | The maximum penalty prescribed under the Old Act for any contravention was ₹750 (approximately USD 10). However, in certain cases of continuous violation, penalties could extend to ₹ 10 (approximately USD 0.10) for every day of such violation. | The New Act prescribes a penalty of up to ₹50,000 (approximately USD 716), and if the contravention leads to any accident causing injury or death of a worker, the contravention shall be punishable with a fine ranging from ₹25,000 (approximately USD 358) to ₹ 50,000 (approximately USD 716) and/or with imprisonment of up |
The New Act is based on the model legislation, known as the Model Shops and Establishment (Regulation of Employment and Condition of Services) Act, 2016. This is a progressive move and should go a long way in increasing the ease of doing business but at the same time, penalties under the New Act have been increased substantially to ensure they are an effective deterrent. As importantly, the New Act has no provision relating to any notice of termination of service. Further, since the Old Act stands repealed pursuant to the introduction of the New Act, any existing employment contract harmonious with the New Act will be considered as if it were issued under the New Act, unless specifically superseded by any regulation or order under the New Act. It is laudable that there are specific provisions relating to women workers, including prohibiting discrimination against them, and the requirement of a crèche facility. That being said, it may be noted that the New Act states that every establishment where 30 or more women workers are employed is required to maintain a room as a crèche. This requirement appears to contradict the 2017 amendments to the Maternity Benefit Act, 1961, under which every establishment with 50 or more employees is required to provide a crèche facility. In addition to this, the rules under the New Act are yet to be notified.
Each shop or business required a legal entity proof like proprietorship firm or partnership firm etc. a legal entity proof which gives the right for doing the business in your area or state for the same.
Applicable if you are opening a shop or commercial establishment.
Approval from Department of Labor. Various registers giving details of employment, fines, deductions and advances, salary, holidays, etc. Files related to annual holidays, number of employees need to be submitted at the Office of the Municipal Corporation annually.
Every banks is required a legal entity proof to open a current bank account. Each shop & Establishment has to open a separate bank account for the daily transactions as per the RBI Compliance. So on the basis of the shop certificate you can easily open a current business bank account.
State government and local municipality conduct regular inspection visits for checking the proper working of shops and establishments along with license as well. If you have the Shop Act license, then you can quickly get over the inspections every time.
Each state have a DIC Department which creates the policy in the respective state for the all small business. On the basis of Shop License Registration Certificate you can easily avail the government benefits.
In few states the renewals are also done on annual basis.
Provides legal status to an establishment
Ease of opening a current bank account
Ensures peace between employer and employee
Offers better pay and holiday policy
Restricts unethical business practices
Promotes growth and expansion
Establishes brand image in the market
The procedure for obtaining the Shop and Establishment Registration Certificate differs from state to state. It can be obtained online or offline. For obtaining the registration certificate online, the proprietor or owner of the shop or business must log into the respective State Labor Department website. The proprietor or owner must fill the application form for the registration under the Shop and Establishment Act, upload the documents and pay the prescribed fees. The prescribed fees differ from state to state. Once the registration form is approved, the registration certificate will be issued online to the proprietor or owner of the business.
For obtaining the registration certificate offline, the registration application is to be filled and submitted to the Chief Inspector of the concerned area along with the prescribed fees. The Chief Inspector will issue the registration certificate to the owner or proprietor after being satisfied with the correctness of the application. The registration application form contains the details relating to the name of the employer and establishment, address and category of the establishment, number of employees and other relevant details as required. The registration application needs to be renewed before the expiry of the period of registration. The validity of the Shop and Establishment Certificate differs from state to state. Some states provide the Certificate valid for a lifetime, while other states provide the Certificate valid for one to five years. The fee might vary, the process, the amount of time to deliver the certificate, the inspector in-charge, and so on will vary depending on each state.
You would first need to log on to the state provided website of the respective states and select the registering procedure as an individual or an organization.
log in using the Id given at the time of registration. Fill your details in the application submitted.
Request a renewal of license using the Application ID. Re-upload all your documents as requested.
The registration and renewal fee of the Shop& Establishment License varies from state to state.
The moment the payment is made,application status changes to ‘Under Scrutiny’ which will change to ‘Completed’ once it is approved, until then, keep checking. It usually takes at least a week for it to happen.
Once it’s done, you will see the certificate on your screen. You may ‘Download Certificate’, from there.
In India, the labor acts would fall under concurrent list which means both central government and state government could make laws on it. There were more than hundred acts in various states which were governing the labor laws and at the same time there were more than 40 acts which were governed by the central government, due to which the labor compliances in the nation turned out very complex. To resolve all this complexity a Labor Commission was formed in Year 1999 to which they submitted their report in year 2002 and recommended that the then current labor laws are very old and outdate and need an immediate reform. Agreeing to it, the then central government agreed to come up with the four labor codes. However many Governments came in power since then, but those four labor codes were passed recently in year 2019 and 2020. The major changes in Industrial Relations Code relates to number of workers. If there are 300 or more than 300 workers in an establishment then it has to compulsorily make rules and regulations on 1) Workers Classification 2) Wage Rates 3) Holidays and 4) Paydays. These regulations are also called Standing orders. Earlier this limit was 100 workers. Next change from this code is, if in any establishment there is activity related to Closure, Retrenchment or Layoff, in which there are more than 300 workers, then it has to obtain prior permission from government.
This Code also talks about that, if any employee/worker has to go on strike then it has to give the establishment a 14 days prior notice, before strike or lock-out and this notice would be valid for maximum of 60 days. In this code there are few changes made for Trade unions as well. If in any establishment there is more than one trade union, then it would be provided with Sole Negotiating union only when at least 51% of the employees are members to it. Earlier this requirement was of 75%. Code on Social Security, 2020 Substitutes Nine labor laws viz.; The Employees Compensation Act, 1923, The Employees State Insurance Act, 1948, The Employees Provident Fund and Miscellaneous Provision Act, 1952, The Employees Exchange (Compulsory Notification of Vacancies) Act, 1959, The Maternity Benefit Act, 1961, The Payment of Gratuity Act, 1972, The Cine Workers Welfare Fund Act, 1981, The Building and Other Construction Workers Cess Act, 1996 and The Unorganized Workers Social Security Act, 2008. This code brings out a concept of universal social security for the very first time, which includes organized workers as well as unorganized workers. Various provisions are made for comprehensive social security to workers of unorganized sectors as well.
This code speaks about that Government should from time to time formulate and notify suitable welfare schemes relating to provident fund, employment injury benefit, housing, educational schemes for children and further more.
In this code the definition of employees has been expanded to include more workers like, interstate migrant workers, gig workers, platform workers, film industry workers and further more. After this code came, the gratuity period for working journalists has been now reduced from five years to three years. Code on Occupational Safety, Health and Working Conditions, 2020 Substitutes thirteen labor laws viz.; Factories Act, 1948, Dock Workers Act, 1986, Contract Labor Act, 1970, Inter-State Migrant Workers Act, 1979 and Nine other Acts. Apart from regulating employment, the main focus of this code is to regulate health, safety and working conditions. The definition of factory has been expanded, if in any establishment where there are more than 20 workers where power aid is used or where in the number of workers is more than 40 but there is no use of power aid, then it would come within the definition of a Factory. The earlier limit on manpower limit on hazardous working conditions has now been removed. This code has now become compulsory on contractors who employees more than 50 workers. Under this code the daily work limit cannot be more than eight hours.
Under this code, now a woman can work in any establishment. It would be the responsibility of the employer to provide adequate safeguard in hazardous conditions. Both Central and State government has to maintain a record of inter-state migrant workers. For this the government is planning to soon come up with a portal. Worker earning till Eighteen Thousand Indian Rupees would be called by inter-state migrant workers and can obtain various benefits.
The Shop and Establishment Act has been enacted by various State Governments to regulate the conditions of work of employees in shops, commercial undertakings, restaurants, etc., all commercial establishments must abide by The Weekly Holiday Act, 1942 enacted by the Central Government which governs the grant of holidays. However, there is no specific Central Government Act which comprehensively governs hours of work, payment of wages, health and safety in commercial establishments. To bridge this gap, state Governments have enacted a Shop and Establishment Act to help regulate the conduct of commercial establishments within their jurisdiction. The Delhi Shops and Establishments Act, applied to all shops, establishments and commercial establishments operating within the State of Delhi.
The Delhi Shops and Establishments Act defines a “shop” as:“”shop” means any premises where goods are sold either by retail or wholesale or where services are rendered to customers and includes an office, a store-room, godown, warehouse or workhouse or workplace, whether in the same premises or otherwise, used in or in connection with such trade or business but does not include a factory or a commercial establishment.”
The Delhi Shops and Establishments Act defines an “establishment” as:“”establishment” means a shop, a commercial establishment, residential hotel, restaurant, eating-house, theatre or other places of public amusement or entertainment to which this Act applies and includes such other establishment as Government may, by notification in the Official Gazette, declare to be an establishment for the purpose of this Act.”
“”commercial establishment” means any premises wherein any trade, business or profession or any work in connection with, or incidental or ancillary thereto is carried on and includes a society registered under the Societies Registration Act, 1860 (21 of 1860), and charitable or other trust, whether registered or not, which carries on any business, trade or profession or work in connection with, or incidental or ancillary thereto, journalistic and printing establishments, contractors and auditors establishments, quarries and mines not governed by the Mines Act, 1952 (35 of 1952), educational or other institutions run for private gain, and premises in which business of banking, insurance, stocks and shares, brokerage or produce exchange is carried on but does not include a shop or a factory registered under the Factories Act, 1948 (43 of 1948), or theatres, cinemas, restaurants, eating houses, residential hotels, clubs or other places of public amusements or entertainment.”
All shops, establishments and commercial establishments commencing operations in the State of Delhi must apply for Delhi Shops and Establishments Act Registration within 90 days of commencing operations. The application form must contain information in the prescribed format and include:
As per the Delhi Shops and Establishments Act, it states that no adult requires working for more than nine hours on any day or 48 hours in any week. For any work in excess of nine hours on any day or more than 48 hours in any week, must pay them overtime wages. Further, the period of work of an adult employee must be so fixed that no period of continuous work shall exceed five hours and that no employee shall be required or allowed to work for more than five hours before he had an interval for rest and meals of at least half an hour.
Employment of Child, Young Person or WomanIn the State of Delhi, no child shall be required or allowed to work whether as an employee or otherwise, in any establishment notwithstanding that such child is a member of the family of the employer. Also, it does not permit young person to work about the business or an establishment for more than six hours a day.
Holiday for Shops and Establishments in DelhiEvery employee working for a shop or establishment in Delhi should be allowed at least twenty-four consecutive hours of rest (weekly holiday or close day) every week. In addition to the close day, every shop and commercial establishment shall remain closed on three of the National holidays each year as the Government notification in the Official Gazette.
To register a shop or an establishment online forms are (Form A) available on website of Department of Labour, Government of Delhi. Also, while filing the form reference should be made to The Delhi Shops and Establishments Rules, 1954.
The owner of the shop shall send a statement to the Chief Inspector in Delhi in Form “A” together with prescribed fee paid in cash, within 90 days.
On receipt of the statement and the prescribed fees, the Chief Inspector will carry out verification and on being satisfied about the correctness of the statement, register the establishment and will issue the Registration Certificate to the owner of shop or commercial establishment In Delhi.
The Ministry of Corporate Affairs, under Easy of Doing Business has "developed a single window facility for incorporation of a new company and other different services including issuance of PAN, TAN, ESIC No, Bank Account, Professional Tax registration, GSTIN etc. on "SPICE+" portal.
Now, Government of Delhi vide notification no.PA/Addl.LC/Lab/2021/1859 has directed that Ministry Of Corporate Affairs "SPICE+" portal is now integrated with the registration portal of "Delhi Shops & Establishments" and any new company seeking registration under the Delhi Shops And Establishments Act, 1954 should be done on the "SPICE +" portal. However, any such subsequent registration for different branch offices of an establishment under the Act can be done on Delhi Shops & Establishment registration portal i.e. https://labourcis.nic.in. Hence, employer of a new company intending to register its establishments in Delhi under The Delhi Shops and Establishments Act, 1954, may register directly on the "SPICE+" portal with effect from 28th May, 2021.
Procedure to cancel Shops and Establishment License:In case of cancelling the license registration
An Act to amend and consolidate the law relating to the regulation of hours of work, payment of wages, leave, holidays, terms of service and other conditions of work of persons employed in shops, commercial establishments, establishments for public entertainment or amusement and other establishments and to provide for certain matters connected therewith
2. Definitions. – – In this Act, unless the context otherwise requires: -
Nothing in this Act shall affect any rights or privileges which an employee in any establishment is entitled to at the date this Act comes into force, under any other law, contract, custom or usage applicable to such establishment or an award, settlement or agreement binding on the employer and the employee in such establishment, if such rights or privileges are more favorable to him than those to which he would be entitled under this Act.
4. Exemptions. -Notwithstanding anything contained in this Act, the provisions of this Act mentioned in the third column of the Schedule shall not apply to the establishment, employees and other persons mentioned against them in the second column of the said Schedule: Provided that the Government may, by notification published in the Official Gazette, add to, omit or alter any of the entries of the said Schedule, and on the publication of such notifications the entries in either column of the said Schedule shall be deemed to be amended accordingly.
*5. Registration of establishments -1- Within the period specified in sub-section (5), the occupier of every establishment shall send to the Chief Inspector a statement in a prescribed form, together with such fees as may be prescribed, containing--
a) The name of the employer and the manager, if any;
b) The postal address of the establishment;
c) The name, if any, of the establishment,
d) The category of the establishment, i.e., whether it is a shop, commercial establishment, residential hotel, restaurant, eating house, theatre or other place of Public amusement or entertainment;
e)The number of employees working about the business of the establishment; and
f) Such other particulars as may the fees, the Chief Inspector shall, on being satisfied
(2) On receipt of the statement and the fees, the Chief Inspector shall, on being satisfied about the correctness of the statement, register the establishment in the Register of Establishment in such manner as may be prescribed and shall issue, in a prescribed form, a registration certificate to the occupier.
The registration certificate shall be shall be prominently displayed at the establishment and shall be renewed at such intervals as may be prescribed in this respect.
(4) In the event of any doubt or difference of opinion between an occupier and the Chief Inspector as to the category to which an establishment should belong, the chief Inspector shall refer the matter to the Government which shall after such enquiry, as it may think proper, decide the category of each establishment and the decision thereto, shall be final for the purpose of this Act.
(5) Within ninety days from the date mentioned in column 2 below in respect of the establishment mentioned in column 1, the statement together with fees shall be sent to the Chief Inspector under sub-section(1).
Establishments | Date from which the period of 90 days is to commence |
---|---|
1. Establishment existing in municipal areas, notified areas & cantonment limits of Delhi, New Delhi, Shahdara, Civil Lines, Mehrauli, Red Fort and Delhi Cantonment to which the Act is applicable on the date on which the Act comes into force. | i. The date on which this Act comes into force |
2. Establishment existing in local areas in which this Act is brought into force by notification under sub-section (4) of section1 on the date on which the Act has been made applicable by notification. | ii. The date on which this Act comes into force in the local areas concerned |
3. New establishment in areas mentioned in clauses (i) and (ii) of this sub-section. | iii. The date on which the establishment commences its work |
* Delhi Administration had decided to do away with the registration of shops/commercial establishments in the Union Territory of Delhi and is approaching the Government of India to amend Section (5), (6) and (7) of the Delhi Shops and Establishments Act, 1954. Till the Act is amended the requirement of registration/renewal/amendment has been kept in abeyance.
a. Manner of registering establishments and form of registration certificate:-On receipt of the statement and the fees prescribed in Rule 3, the Chief Inspector shall, on being satisfied about the correctness of the statement, register the establishment in appropriate part of the Register of Establishments in Form "B" and shall issue a registration certificate in Form 'C' to the occupier of the establishment.
b. Renewal of Registration Certificate.In the event of loss or mutilation of a registration certificate issued under Rule 4 or renewed under Rule 5 above, a duplicate Registration Certificate shall be issued in Form 'C' marked 'Duplicate' on an application made by the occupier of the establishment and on payment of a fee of 4[₹ 3]].
d. Forms of notifying a change and fees.The occupier shall notify to the Chief Inspector in Form 'D' any change in respect of any information contained in part I of his statement prescribed under Rule 3 within fifteen days after the change has taken place. The notice in Form 'D' shall be sent to the Chief Inspector with ,such fee as are prescribed in Schedule II.]
.(6) Change to be communicated to the Chief Inspector. –It shall be the duty of the occupier to notify to the Chief Inspector, on a prescribed form, any change in respect of any information contained in his statement under sub-section (1) of section 5 within 1 month [thirty days after the change has taken place]. The Chief Inspector shall on the receipt of such notice and the prescribed foe and on being satisfied about its correctness make the change in the register of establishments in accordance with, such notice and shall amend the registration certificate, or issue a fresh registration certificate, if necessary.
(7) Closing of establishment to be communicated to the Chief Inspector. –The occupier shall within fifteen days of his closing the establishment, notify to the Chief Inspector in writing accordingly. The Chief Inspector shall, on receiving the information and being satisfied about the nature of closure, remove such establishment from the register of establishments and cancel the registration certificate. Provided that the Chief Inspector may not, if satisfied that the establishment is likely to re-start within a period of six months, remove it from the register of establishments and cancel the registration certificate.
No adult shall be employed or allowed to work about the business of an establishment for more than nine hours on any day or 48 hours in any week and the occupier shall fix the daily periods of work accordingly. Provided that during any period of stock taking or making of accounts or any other purpose as may be prescribed, any adult employee may be allowed or required to work for more than the hours fixed in this section, but not exceeding 54 hours in any week subject to the conditions that the aggregate hours so worked shall not exceed 150 hours in a year. Explanation - For the purpose of calculating the normal hourly wage the day shall be reckoned as consisting of eight hours. Provided that advance intimation of at least three days in this respect has been given in the prescribed manner to the Chief Inspector and that any person employed on overtime shall be entitled to remuneration for such overtime work at twice the rate of his normal remuneration calculated by the hour.
(9) Restriction on double employment. –No person shall work about the business of an establishment or two or more establishments or an establishment and a factory in excess of the period during which he may be lawfully employed under this Act.
10. Interval for rest and meals. -The periods of work on any day of an adult person shall be so arranged that inclusive of his interval for rest or meals as required under Section 10, they shall not spread over for more than ten and a half hours in any commercial establishment or for more than twelve hours in any shop.
12. Prohibition of employment of children. –No child shall be required or allowed to work whether as an employee or otherwise in any establishment notwithstanding that such child is a member of the family of the employer.
13.Employment of young persons and hours of work.-(1) No young person shall be required or allowed to work about the business of an establishment for more than six hours a day.
(2) No young person shall be employed continuously for more than three and a half hours without an interval of at least half an hour for rest or meals and the spread over shall not exceed eight hours on any day.
14. Young persons and women to work during day time. –No young person or woman shall be allowed, or required to work, whether as an employee or otherwise in any establishment between 9 P.M. and 7 A.M. during the summer season and between 8 P.M. and 8 A.M. during the winter season.
15. Opening and closing hours of shops and commercial establishment. -2.Before making an order under sub-section (l), the Government shall hold an inquiry in such manner as may be prescribed.
3.The Government may, for the purposes of this section, fix different opening hours and different closing hours for different classes of shops or commercial establishments or for different areas or for different times of the year.1. Subs. by Central Act 21 of 1961.
16. Close day. -(a) Every occupier of a shop or commercial establishment shall, along with Form 'A' furnish intimation regarding the choice of close day in Form 'E' to the Chief Inspector.
[provided that in respect of any shop or commercial establishment which comes into existence on or after the first day of December, 1959, its occupier shall furnish such information in form "E" to the Chief Inspector within thirty days of the date on which shop or commercial establishment comes into existence.]
17. Period of rest (weekly holiday). –Every employee shall be allowed at least twenty-four consecutive hours of rest (weekly holiday) in every week, which shall, in the case of shops and commercial establishments required by this Act to observe a close day, be on the close day.
18. Wages for the holiday. –No deduction shall be made from the wages of any employee on account of the close day under section 16 or a holiday granted under section 17 of this Act. If an employee is employed on a daily wage, he shall nonetheless be paid his daily wage for the holiday and where an employee is paid on piece rates, he shall receive the average of the wages received during the week.
a. Overtime working.-i) Other purposes for which overtime may be worked-An employer may require an adult employee to work overtime subject to the conditions laid down in section 8, for any of the following additional purposes :-
ii) Advance intimation in respect of requiring adult employees to work overtime in an establishment under the 1st proviso to section 8 shall contain the following information:
(3) Any employer desiring to impose a fine on an employed person or to make a deduction for damage or loss caused by him shall explain to him personally and also in writing the act or omission or the damage or loss, in respect of which the fine or deduction is proposed to be imposed or made, and give him an opportunity to offer any explanation in the presence of another person. The amount of the said fine or deduction shall also be intimated to him.
(4) The amount of fine or deduction mentioned in sub-section (3) shall be such as may be specified by the Government. All such deductions and realizations thereof shall be recorded in a register maintained in a form as may be prescribed.
(5) The amount of fine imposed under sub-section (3) shall be utilized in accordance with the directions of the Government.
(6) Nothing in this section shall be deemed to affect the provisions of the Payment of Wages Act, 1936 (IV of 1936).
21.Claims relating to wages. -(1) Every person employed in an establishment shall be entitled:
a.After every twelve months', continuous employment, to privilege leave for a total period of not less than fifteen days;
b. In every year, to sickness or casual leave for a total period of not less than twelve days; provided that:
(i) Privilege leave to which an employee is entitled under clause (a) of sub-section (1) or under any such law, contract, custom or usage, award, settlement or agreement as is referred to in section 3, or any part of such leave, if not availed of by such employee, shall be added to the privilege leave in respect of any succeeding period to which he is so entitled, so however, the total period of such privilege leave which may be accumulated by such employee shall not at any one time exceed three times the period of privilege leave to which he is entitled after every twelve months' employment under that clause or under such law, contract, custom or usage, award, settlement or agreement.
(ii) Leave admissible under clause (b) of sub-section (1) shall not be accumulated.(2) If an employee entitled to leave under clause (a) of sub-section (1) of this section is discharged by his employer before he has been allowed the leave, or if, having applied for and having been refused the leave, he quits his employment before he has been allowed the leave, the employer shall pay him full wages for the period of leave due to him.
23. Wages during leave. –Every employee shall he paid for the period of his leave at a rate equivalent to the daily average of his wages for the days on which he actually worked during the preceding three months, exclusive of any earnings in respect of overtime but inclusive of dearness allowance.
24. Contracting Out. –Any contract or agreement, whether made before or after the commencement of Delhi Shops and Establishments (Amendment) Act, 1970, whereby an employee relinquishes any right conferred by this Act, shall be null and void in so far as it purports to deprive him of such right.
25. Cleanliness. –The premises of every establishment shall be kept clean and free from effluvia arising from any drain or privy or other nuisance and shall be cleaned at such times and by such methods as may be prescribed. These methods may include lime washing, color washing, painting and disinfecting.
26. Lighting and ventilation. -If it appears to an Inspector that the premises of any establishment within his jurisdiction are not sufficiently lighted, cleaned or ventilated, he may serve on the employer an order in writing specifying the measures which in his opinion should be adopted and requiring them to be carried out before a date specified in the order. The Government may prescribe standards in respect of any of these matters.
28. Precautions against fire. –In every establishment, except such establishments or class of establishments as may be prescribed, such precautions against fire shall be taken as may be prescribed. No persons shall smoke or use a naked lighter or cause or permit any such light to be used in the immediate vicinity of any inflammable material in any establishment.
29. Accidents. –The provisions of Workmen's Compensation Act, 1923 (VIII of 1923) and of rules made thereunder, shall apply mutatis mutandis to every employee of an establishment.
30. Notice of dismissal. -(1) No employer shall dispense with the services of an employee who has been in his continuous employment for not less than three months, without giving such person at least one months' notice in writing or wages in lieu of such notice: Provided that such notice shall not be necessary where services of such employee are dispensed with for misconduct, after giving him an opportunity to explain the charge or charges against him in writing.
(2) No employee who has put in 3 months continuous service shall terminate his employment unless he has given to his employer a notice, of at least one month, in writing. In case he fails to give one month’s notice, he will be released from his employment on payment of an amount equal to one month's pay.
(3) In any case instituted for a contravention of the provisions of sub-section (1), if a Magistrate is satisfied that an employee had been dismissed without any reasonable cause or discharged without proper notice or pay in lieu of notice, the Magistrate may, for reason to be recorded in writing, award, in addition to one month's salary, compensation to the employee as follows:
(4) The amount payable as compensation under this section shall be in addition to any fine payable under section 40.
(5) No person who has been awarded compensation under this section shall be at liberty to bring a civil suit in respect of the same claim.
Where any retail trade or business, which is exempted from all or any of the provisions of the Act, is carried on along with other retail trade or business, the exemption shall not apply to that part of trade or business, which is not exempted from the provisions of the Act.
No person shall carry on any retail trade or business of any class near any shop or commercial establishment at any time before the opening and after the closing hours and on the close day, and if any person carries on any such trade or business in contravention of this section, this Act shall apply as if he were the occupier of the shop or commercial establishment which was being kept open in contravention of this Act.
33. Records. –Over and above the registers and forms prescribed elsewhere in these rules, every employer shall maintain a register of employment and wages in Form 'G'. Provided that where the opening and closing hours are ordinarily uniform, the employer may maintain such register in Form 'H' along with a separate register of wages and record of leave in Form 'I'. 1[provided further that entries relating to a particular date, on which an employee is called upon earlier or detained later than the usual working hours, shall be made immediately in the remarks column of Form "H" before such early or late working commences]. The registers, records and notices relating to any calendar year shall be preserved till the end of the following year. Every occupier shall exhibit in his establishment a notice showing the close day, the daily working hours and the usual period of rest interval fixed for employees in form 'K'.
The employer shall furnish every employee with a letter of appointment. Such letters of appointment shall contain the following and such other particulars as may be prescribed, namely:
It shall be the duty of every occupier of a shop or establishment to produce for inspection of an Inspector, all accounts or records required to be kept for the purpose of this Act, and to give any other information in connection therewith as may be required.
Declaration by Inspectors.The Government shall appoint a Chief Inspector and such inspectors as may be necessary for the purpose of carrying out the provisions of this Act. The Chief Inspector and the Inspectors so appointed shall carry identity cards.
37. Powers and duties of the Inspector. –Subject to any rules made by the Government in this behalf the Chief Inspector or an Inspector may:
(1)The Chief Inspector/Inspector shall make such examination of the premises and of the register, record and notices as may appear to him to be necessary for satisfying himself that the provisions of the Act and of the Rules and of any order or notification issued by the Government under the Act or the Rules made there under are being properly observed, and in particular he shall satisfy himself:
(i) that the establishment is duly registered under the Act;
(ii) that the registers, records and notices required to be maintained or displayed under the Act or these Rules are properly maintained or displayed;
(iii) that the intervals of rest and holidays required to be granted or observed under the Act are granted and observed and that the limits of hours of work and spread-over laid down under the Act are not exceeded;
(iv) that the provisions of the Act relating to the opening and closing hours are duly observed;
(v) that the provisions of the Act and these Rules regarding leave are properly observed;
(vi) that the provisions of the Act and these Rules relating to cleanliness and precautions against fire are properly observed;
(vii) that the provisions of the Act relating to the payment for overtime are duly observed;
(viii) that the wages and other dues are being paid to the employees in time as required under the Act;
(ix) that in dispensing with the services of an employee the provisions of the Act and Rules have been complied with and no dues payable under the Act or Rules have been withheld; and
(x) that no child is allowed to work in any establishment.
(2)In carrying out such examinations, the Chief Inspector or any Inspector concerned may interrogate such persons on the premises of the establishment as he may consider necessary: Provided that no such person shall be required under this rule to give answer to any question, the answer to which might tend to incriminate him.
(3)The Chief Inspector or Inspector concerned may require any employer to produce an authentic extract from the records of any school, panchayat, or municipality or in the absence of such extract to produce at his own expense a certificate of age from a registered Medical Practitioner 2[or a declaration from either of the parents or if the parents are not alive from the nearest living relations] or any other evidence of age to the satisfaction of the Chief Inspector, or the Inspector as the case may be, in respect of any young person employed whose age he may have reason to doubt.
All fees payable under these rules shall be paid either in cash, not exceeding one hundred rupees, or by a crossed postal order in the name of the Chief Inspector of Shops and Establishments, Delhi, and wherever an application is required to be accompanied by any such fee, it shall be accompanied by:
The Chief Inspector and every Inspector appointed under section 36 shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (Act XLV of 1860).
No suit, prosecution or other legal proceeding shall lie against any public servant or any other person in the service of this Union Territory, acting under the direction of any such public servant for anything in good faith done or intended to be done in pursuance of the provisions of this Act or any rule or order made thereunder.
40. Penalties. -If any person with intent to deceive makes or causes or allows to be made in any record, register, or notice prescribed under section 33 an entry which is to his knowledge false in any material particular, or willfully omits or causes or allows to be omitted from any such record, register or notice an entry required to be made therein, he shall be liable on conviction to an imprisonment for a term not exceeding three months or to a fine which shall not be less than fifty rupees and which may extend to two hundred and fifty rupees or to both.
Whoever willfully obstructs an Inspector in the exercise of any power under Section 37 or conceals any employee in an establishment from appearing before or being examined by an Inspector shall, on conviction, be punished with fine which shall not be less than fifty rupees and which may extend to two hundred and fifty rupees.
43. Determination of employer for the purpose of this Act. -Where the occupier of a shop or commercial establishment is charged with an offence against this Act or the rules or orders made thereunder, he shall be entitled, upon complaint duly made by him, to have his agent or servant whom he charges as the actual offender brought before the court at the time appointed for hearing the charge; and if, after the commission of the offence has been proved, the occupier proves to the satisfaction of the court:-
Nothing in this Act shall apply to--
(1) The Government may after; previous publication makes, by notification in the official Gazette, rules to carry out the purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing power; such rules may provide for all or any of the following matters, namely: -
(3) Every rule made under this Act shall be laid as soon as may be after it is made before each house of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in two successive sessions, and if before the expiry of session in which it is so laid or the session immediately following, both houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be, so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under the rule].
48. Repeal of Punjab Trade Employees Act, 1940, as extended to the Union Territory of Delhi. –On and from the date of the commencement of this Act, the Punjab Trade Employees Act, 1940 (Punjab Act No. X of 1940) as extended to Union Territory of Delhi shall be repealed; Provided that-
The provisions of the General Clauses Act, 1897 (X of 1897), shall apply for the interpretation of this Act as they apply for the interpretation of a Central Act].
Subject to the conditions that overtime wages will be paid to the employees in accordance with the provisions of the Act and weekly of day will be allowed to the employees in rotation, the following are the exemptions u/s 4, 5 and 6
31. (i) Private educational institutions other than those teaching short-hand and typewriting.
(ii) Private institutions teaching short-hand and type-writing.
(i) Amar Medica, Rajouri garden, New Delhi.
(ii) M/s. Rangila Chemists, Gandhi Nagar, Delhi.
(iii) M/s. Kemp and Company, Connaught Place, New Delhi.
(iv) M/s. Smarak Sons, Lajpat Nagar, New Delhi.
(v) M/s. Sewak Medical Store I. N. A. Super bazaar, New Delhi.
(vi) M/s. Super Stores, Greater Kailash, New Delhi.
(vii) M/s. Satish Chemists, Defence Colony, New Delhi.
(viii) M/s. Gainda Mull Hem Raj 11, Regal Bldg., Parliament Street, New Delhi.
(i) Akbar Hotel, Chankaya Puri, New Delhi.
(ii) Hotel Ashoka, Chankaya Puri, New Delhi.(i) M/s. Ivory Mart, Northern Gate, Jama Masjid, Delhi
(ii) M/s. Indian Handicraft Emporium, 5, Mehrauli Road, New Delhi.
(iii) M/s. Jagat Narain & Sons, 64, Janpath, New Delhi & at Ashoka Hotel, New Delhi.
(iv) M/s. Cottage Emporium, 8-A, Connaught Place, new Delhi.
(i) Akbar Hotel, Chankaya Puri, New Delhi.
(ii) Hotel Ashoka, Chankaya Puri, New Delhi.This section provides online services to users who are covered under Shops and Commercial Establishments Act 1958 and related services. This section is to be used for registration, licensing, renewal, amendment and submission of annual returns for following Acts:
This is an act to provide for the regulation of conditions of work and employment in shops and commercial establishments in the state of Haryana. The State of Haryana is following the Punjab Shops & Commercial Establishments Act of 1958.
CompliancesThis act covers shops and commercial establishments (offices, storerooms, godowns, or warehouses). The act is applicable even if you have one employee or none. Haryana introduces Single Form for Trade License & Shops and Commercial Establishments Registration The Labor Department of Haryana mandates the registration of shops and commercial establishments and / or Trade License through a single form on the online portal of Haryana Enterprises Promotion Centre (HEPC). Under the State Business Reforms Action Plans (SBRAP) 2020 of the Department of Promotion of Industries & Internal Trade (DPIIT), the Ministry of Commerce & Industry has been mandated to register the trade license, shops and commercial establishments through a single form for the ease of doing business.
Haryana Government frames the Self Certification SchemeThe Haryana Government has framed the ‘Self Certification Scheme’ for factories, shops and commercial establishments to liberalize the enforcement of labor laws. The objective of this scheme is to reduce the visits of government officials for inspection to those units who opt for this scheme. This certificate would hold testimony to the fact that these units do not compromise on safety, health, social security and welfare of the workers.
Following are the highlights on the Self Certificate Scheme:
On the web-portal www.hrylabour.gov.in,the user has to create his / her login Id using operational email-id. The Login Id and password details will be sent on user's registered email-id and Mobile number. Please make sure you are providing valid, operational email id and mobile number. (Please remember your user name and password)
During registration the user has to create a profile which is their Basic Information Performa (BIP). This performa contains all the basic information of the shop like address, workers, details of occupier / manager, nature of business etc. This information will be used as a base for availing other services covered under Shops and Commercial Establishments Act 1958 such that he / she will not have to provide same information again and again.
Make sure the documents are submitted in the prescribed format and size.
User has the option to pay fees online or offline as per convenience.
User can track application status online and relevant updates will be sent on registered mobile number and email id as well.
After successful application processing, online certificate / license containing a 16 digit number will be generated. User can download the document and start using.
User can get their certificate / license verified from 3rd party through 16 digit number provided on the document generated online.
The Factories Act is a social legislation that has been enacted for occupational safety, health, and welfare of workers at work place. The State of Haryana has not formulated its rules and is following The Punjab Factories Rules. Compliances
The Act is applicable to all factories, including State and Central Government, in the premises wherein:
The Haryana Labor Welfare Fund Rules is an act to provide for the constitution of a Fund for the financing of activities to promote welfare of labor in the State of Punjab and for conducting such activities and for certain other purposes. The state of Haryana is following the Punjab Labor Welfare Fund Rules. Compliances
Contribution Frequency | Contribution month | Employee contribution | Employer contribution | Total contribution |
---|---|---|---|---|
Monthly | Jan & December | 10 | 20 | 30 |
The Haryana Labor Welfare Fund Rules extends to the entire state of Haryana
The Haryana Minimum Wages Rules, 1950The state of Haryana is following the Punjab Minimum Wages Rules, 1950. The Minimum Wages Act, 1948 provides for fixing minimum rates of wages in certain employments, which are included in the schedule. Punjab Government has enacted the Punjab Minimum Wages Rules, 1950 for the effective administration and monitoring of Minimum Wages Act, 1948.
The Act provides for paid holidays three national holidays, 26th January for Republic Day, 15th August for Independence Day, and 2nd October for Gandhi Jayanti besides five festival holidays every year. Any employer who contravenes any of the provisions of Section 3, 4, 5 & 6 relating to National Festival Holidays and leave to be kept shall be punishable for the first time offence with fine which may extend to ₹ 1000 but not less than ₹200 and for a second or subsequent offence with fine which may extend to ₹4000 but not less than ₹200.
Whoever willfully obstructs an inspector shall be punishable with imprisonment for a term which may extend to three months or with fine which may extend to ₹5000 but not less than ₹2000 or with both
It is a State enactment and provides for the regulation of conditions of work and employment in shops and commercial establishments which includes IT and ITE / BPO establishments. A registration has to obtain by every establishment covered under the Act by the owner / authorized person. The safety health and welfare provisions provided in the Act have to be implemented by the employer is such establishments.
Regulatory ProvisionsThe Act provides for the regulation of the opening and closing time as well as the weekly off day for the establishments covered under the Act. The Act provides for safety health and welfare for the employees in such establishments. The employment of children is prohibited under the Act; the employment of female employees during the night is also prohibited under the Act. The exemption from the provision of working times and weekly off is provided by the Govt. for the IT/ITE /BPO establishments.
Administrative MachineryAll the Inspecting Officers of the Labor Department are notified as inspectors for the purpose of this Act. On receipt complaints inspections are conducted by the inspectors. For any violation prosecution is filled in the Court of respective area Metropolitan Magistrate by the Inspectors.
PenaltiesEvery license granted or renewed shall remain valid till 31st December of the year in which it is granted or renewed. The employer who desires to have license amended shall make an application to the above authority stating therein the nature of amendment required and reasons thereof along with the original license and treasury challan in support of deposit of differential amount of fees amount if the no. of contract laborers proposed to be engaged is more than the no. for which he has taken the license for necessary amendment. After submission of the complete online application along with attachment and payment of statutory fees, the application gets automatically reflected in the account of the department officers/officials (Deputy Labor Commissioner) for scrutiny of the application and attachments. The officers/officials (Deputy Labor Commissioner) during scrutiny process record his/her observations, if any, on the application and make known to the applicants via automatic generated e-mail and SMS. The observations are also visible to the applicant when he/she login to view the status of application.
Internal processing: The application can be applied at the end user login; same application can be viewable at the Deputy Labor Commissioner login. The Deputy Labor Commissioner will check the application under (new/in process/marked/unpublished/observation/Reply) for application, & process the application via verifying the applicant document list under the scrutiny. The process flow for Department officer is explained below:
- The Deputy Labor Commissioner check’s the online application inside his login and comment online at the Departmental portal. If agreed on this then Deputy Labor Commissioner approves and publishes the application. In case of the objection in the application Deputy Labor Commissioner generates the observation & publishes it.
The applicant can reply or make the compliance to these observations in the login panel of this e- service itself.
The officers/officials (Deputy Labor Commissioner) grant the registration certificate or renew it as the case may be if application is complete in all respect and applicant can download the certificate from his login. However, in the case of objection communicated online the applicants have to be given five clear working days to rectify / clarify. On receipt of clarification / reply online, the branch is given five days to re-examine and to resubmit to the officer. The officer concerned is given five days to consider and recommend the approval and forward to the Licensing Authority i.e. Deputy Labor Commissioner. The Deputy Labor Commissioner is given to five days for allowing or objects to the application. Practically, the system is self stabilized and license is being issued well within the stipulated time in about 20 days)
As a business owner of a shop or establishment, you are compulsorily required to get the same registered under the Shops and Establishment Act. Here are the specific rules:
1.Submit an application in the prescribed form to the Inspector of the area within 30 days of starting any work in your shop/establishment. The application is to be submitted along with the prescribed fees and should contain the following information:
2. Upon receiving the application for registration and the fees, the Inspector shall verify the accuracy and correctness of the application. Once suitably satisfied, he shall enter the details in the Register of Establishments and issue a registration certificate of your establishment to you. This certificate will be valid for 5 years and has to be renewed thereafter.
3. Remember, the registration certificate has to be prominently displayed at your establishment.
The Shops and Establishments Act regulates conditions of work, lists rights of employees in the unorganized sector and provides a list of obligations for every employer. It applies nationwide to shops, commercial establishments, hotels, restaurants, eating houses, theatres and other places of public amusement or entertainments. Every shop and establishment is required to register itself under the Act within 30 days of commencement of work, whether or not it has employees
Registration process is fully online in many states and in some state semi online. Every state has Labor Department Website and online Registration form available thereon with instructions.
Carefully fill up the online Application form with particulars of your business. Details vary as per state to state and Business nature.
Upload required Documents online after fill up the form. or In some state Documents along with Printout of the application form need to submit physically.
Fee varies as per business type and License type. Payment option available online in many states otherwise can be payable offline by DD/cash.
Labor Department examines your application and if he thinks Inspection of your business premises is required to verify the particulars you fill up and documents attached, an Inspector is appointed to carry out inspection.
In most of the cases does not require any inspection.After Examination of your application and/or Inspection of business premises. Authority Approve your application and grant a License with validity ( normally valid for 1 year with renewal every year
In any state, all shops, and commercial establishments which are functioning under the state fall under this Act. Under Shops and Establishment, Act. Shops are defined as a place where goods are sold at retail or wholesale. Apart from this, where no service is given to the customer, whether it is office, storeroom, warehouse, godown or any other working place are all regulated under this Act. Commercial installations, residential hotels, restaurants and other places of entertainment are also under this Act. Further, if the Indian Government wishes, it can also make other establishments under this Act, whose information is given in the official Gazette. Although each state has its own rules prepared for the Shops and Establishment Act, and if the State Government wants it, in this state, this Act can give the shopkeepers, business people the relaxation for a certain period or permanently also in this Act, can be exempt from the stated rules.
S.No. | Types of establishment | Registration for 3 years. | Fee | Renewal for each block of 3 years. |
---|---|---|---|---|
1. | Starred hotels, nursing homes, cinema house, privately managed educational institutions, private colleges including medical colleges, petrol pumps, banks, insurance companies and financial institutions. | ₹10,000 | ₹10,000 | |
2. | Workshops, automobiles service station not covered under factories Act, computer training centers, shorthand and type institution health and fitness clubs, clinics and medical laboratories and restaurants, un-stared hotels, all shops (excluding dhabas and halwais) employing 10 employees or more. | ₹ 5000 | ₹ 5000 | |
3. | Shops and Commercial establishment (excluding dhabas and halwais) not covered under the above two categories and employing less than 10 employees. Shops and Commercial owned and managed by the shopkeepers himself and not employing any employee. | Nil | Nil |
This is an act whose structure has been done to regulate the wages, holidays, rules of service, leisure and other working conditions. This Act is regulated by the Labor Department of the Government. And within the scope of this Act, they come to all the business places where any business or business of any kind is being done. The Shops and Establishment not only do not come under the commercial jurisdiction but such a society, charitable trust, printing establishment, educational institutions, which are being run for the purpose of making a profit. Businesses, where activities that are related to banking, insurance, stock brokerage etc. are being carried out, can also be regulated under this Act.
In the Indian State of Haryana, you can get Shop Act License in Haryana under the Punjab Shops and Commercial Establishments Act, 1958, that extends to the whole of the State of Haryana.
2. Definitions. - (1) In this Act, unless the context otherwise requires, -
(2) For the purposes of this Act, any employment in the service of the employer of an establishment upon any work, whether within the establishment or outside it, which relates to or is connected with or is ancillary to the business carried on at the establishment shall be deemed to be employment about the business of the establishment.
3. Act not applicable to certain establishments and persons. - Nothing in this Act shall apply to -
4. Provisions of sections 9 and 10 not applicable to certain establishments. -- [(1)] Nothing in [section 9 and sub-section (1) of section 10], shall apply to-
[(2) Nothing in sub-section (1) of section 10 apply to -
Government shall by notification fix the opening and closing hours of all classes of establishments, and different opening and closing hours may be fixed for different classes of establishments and for different areas: Provided that Government may allow an establishment attached to a factory to observe such opening and closing hours as the Government may direct.
10. Close day. –No employee shall be allowed or required to work -
Provided that a watchman may be allowed or required to work on an off day under this section if he is allowed another off day in the week.
12. Holidays. -Every employee in an establishment shall be allowed -
Provided that an employee required to work on any such holiday shall be paid remuneration at double the rate of his normal wages calculated by the hour.
(1) Within the period specified in sub-section (3), the employer of every establishment shall send to the prescribed authority concerned a statement in the prescribed form [accompanied by such fee as may be prescribed] containing -
(2) (i) On receipt of the statement, [and prescribed fee], the authority shall, on being satisfied about the correctness of the statement, register the establishment in the register of establishments in such a manner as may be prescribed and shall issue in a prescribed form a registration certificate to the employer. The registration certificate shall, on demand by the Inspector, be shown to him by the employer.
[(ii) The registration certificate shall be renewable by the 31st March every three years. Thirty days' grace time shall, however, be allowed for the renewal of the certificate after payment of prescribed fee.
(3) Within thirty days from the date mentioned in column 2 below in respect of the establishment in column 1, the statement [together with prescribed fee] shall be sent to the prescribed authority under sub-section (1).
Establishment | Date from which the period of 30 days is to commence. |
---|---|
(1) | (2) |
(i) Establishments existing in areas to which this Act applies or where this Act is extended. | The date on which the Act comes into force or the date on which the Act is extended, as the case may be. |
(ii) New establishments in such areas. | The date on which the establishment commences its work. |
(4) It shall be the duty of the employer to notify to the prescribed authority in the prescribed form any change in respect of any information contained in his statement under this section within seven days after the change has taken place. The authority shall on receiving such notice and on being satisfied about its correctness, make the change in the register of establishments in accordance with such notice and shall amend the registration certificate, if necessary.
(5) The employer shall, within ten days of his closing the establishment, notify to the prescribed authority in writing accordingly. The authority shall, on receiving the information and being satisfied about the correctness, remove the name of such establishment from the register of establishments and cancel the registration certificate.
(6) In case of any contravention of, or failure to comply with the provisions of this section, the employer shall be liable, on conviction, to a fine, which shall not be less than one thousand rupees but which may extend to three thousand rupees alongwith the prescribed registration or renewal fee, as the case may be: [Provided that the amount of registration or renewal fee so recovered from the employer shall be paid in the Government treasury or in any other mode as may be prescribed so as to enable the prescribed authority to issue or renew the registration certificate, as the case may be.]
14. Leave. –(1)(a) Every employee who has been in employment for not less than twenty days in a year shall be entitled to one day's earned leave for every such twenty days : Provided that a young person shall be entitled to one day's earned leave for every fifteen days of employment during the year.
(b) If an employee is discharged or dismissed from or leaves service during the course of the year he shall be entitled to leave with wages or wage in lieu of unavailed leave at the rates laid down in clause (a)
(c) In calculating leave under this section, fraction of half a day or more shall be treated as one day's leave and fraction of less than half a day shall be ignored.
(d) If an employee does not in any one year take the whole of the leave allowed to him under clause (a), any leave not taken by him shall be added to the leave to be allowed to him in the succeeding year:
Provided that -
(2) Leave provided in clause (a) of sub-section (1), shall, when applied for, be granted except for a valid reason to be communicated in writing by the employer to the employee within fifteen days of the application: Provided that the leave so refused shall, if applied for again, be allowed during the year.
(3) (a) For the purpose of computing the period during which an employee has been in employment within the meaning of sub-section (1)(a), the period during which he was on leave [under this section and the off days in a week referred to in section 11], shall be included.
(b) The unavailed leave of an employee shall not be taken into consideration in computing the period of any notice required to be given before discharge, removal or dismissal.
(4) Notwithstanding anything contained in the foregoing sub-sections, every employee in an establishment shall be allowed with wages seven days’ casual leave and seven days sick leave in a year.
The wages of an employee shall be paid to him without deductions of any kind except those authorized by or under the Payment of Wages Act, 1936 in so far as such deductions are applicable to the employee and in such manner, to such extent and subject to such conditions as are specified in that Act.
18. Realization of compensation. –In case of contravention of the provisions of section 16, if a [Judicial Magistrate] is satisfied that the employee has not been paid his due wages, he shall direct the employer to pay the wages along with compensation not exceeding eight times the amount of wages withheld. The amount of wages withheld and compensation payable under this section shall for the purposes of its recovery be deemed to be a fine imposed under this Act in addition to the penalty imposed under section 26 and shall be realized as such
(a) enter at all reasonable times and with such assistants, if any, being persons in the service of Government or of any local authority as he thinks fit, any place which is or which he has reason to believe to be an establishment;
(b) make such examination of the premises and of any prescribed registers, records and notices and take on the spot or otherwise evidence of any person as he may deem necessary for carrying out purposes of this Act;
(c) Exercise such other powers as may be necessary for carrying out the purposes of this Act: Provided that no one shall be required under this section to answer any question or give any evidence tending to incriminate him.
(5) In the case of any contravention of the foregoing provisions of this section, the employer of an establishment shall be liable, on conviction, to a fine not exceeding five rupees for every day on which the contravention occurs or continues.
(6) If any person with intent to deceive makes or causes or allows to be made, in any such record, register or notice as aforesaid an entry which is to his knowledge false in any material particular, or willfully omits or causes or allows to be omitted from any such record, register, or notice an entry required to be made therein, he shall be liable, on conviction, to imprisonment for a term not exceeding three months or to a fine which shall not be less than twenty-five rupees and may extend to two hundred rupees or both.
Save as otherwise provided by any law for the time being in force, it shall not be lawful in any locality to carry on in any place not being an establishment, retail trade or business of any class at any time if it is unlawful in that locality to keep an establishment open for the purpose of such retail trade or business, and, if any person carries on any trade or business in contravention of this section, this Act shall apply as if he were the employer of the establishment which was being kept open in contravention of this Act.
26. Penalties. -Subject to the other provisions of this Act, whoever contravenes any of the provisions of this Act, or the rules made thereunder and no penalty has been provided for such contravention in this Act, shall be liable on conviction, to a fine not exceeding one hundred rupees for the first offence, and three hundred rupees for every subsequent offence : Provided that the fine in respect of every subsequent offence within the same year shall not be less than one hundred rupees in any case.
(3) No penalty shall be imposed unless the person concerned is given a notice in writing informing him of the grounds on which it is proposed to impose a penalty.
(4) The compounding authority and the appellate authority shall have all the powers of a civil court under the Code of Civil Procedure, 1908 (Act 5 of 1908), while exercising any powers under this section, in respect of the following matters, namely :-
No suit, prosecution or other legal proceeding shall lie against any public servant or any other person in the service of the Central or State Government, acting under direction of any such public servant, for anything in good faith done or intended to be done in pursuance of the provisions of this Act or of any rule made thereunder.
28. Power to grant exemptions. –Government or any officer empowered by the Government in this behalf may], by notification in the official Gazette, exempt from the operation of all or any of the provisions of this Act for any period it considers desirable any establishment or any class thereof or any employer or employee or class of employers or employees to whom this Act applies on such condition as it may think fit.
29. Prohibition of employment of children. –No child who has not completed the age of fourteen years shall be employed in any establishment.
30. Conditions of employment of women. –Notwithstanding anything contained in the law relating to legal practitioners for the time being in force, no legal practitioner shall be permitted to appear, plead or act for the employer or the employee in any proceedings, before a court between an employer and an employee, arising out of the contravention of any of the provisions of this Act.
Nothing in this Act shall affect any rights or privileges to which an employee in any establishment is entitled on the date this Act comes into force, under any other law, contract, custom or usage applicable to such establishment or any award, settlement or agreement binding on the employer and the employee in such establishment, if such rights or privileges are more favorable to him than those to which he would be entitled under this Act.
33A. Cognizance of offences. –No Court shall take cognizance of any offence punishable under this Act or any rule made thereunder or of the abatement of, or attempt to commit, such offence, save on a complaint made by the employee concerned or by such officer as may be authorized in writing in this behalf by the Government.
34. Power to make rules. –35. Repeal. - The Punjab Trade Employees Act, 1940, is hereby repealed:
Provided that -
As per Section 12 of the Contract Labor (R&A) Act, a contractor executing any contract work by engaging 20 or more contract laborers has to obtain a license under the Act within 26 days in Form No. 4. The term contractor includes a sub contractor.
The Local District Labor Commissioners have been declared as Licensing Officers who will grant licenses to the contractors.
The Principal Employer will activate Form No -5 for the contractors, after which the contractor can apply for the license.
Every license granted or renewed shall remain valid till 31st December of the year in which it is granted or renewed.
The employer who desires to have license amended shall make an application to the above authority stating therein the nature of amendment required and reasons thereof along with the original license and treasury challan in support of deposit of differential amount of fees amount if the number of contract laborers proposed to be engaged is more than the number for which he has taken the license for necessary amendment.
After submission of the complete online application along with attachment and payment of statutory fees, the application gets automatically reflected in the account of the department officers/officials (Deputy Labor Commissioner) for scrutiny of the application and attachments.
The officers/officials (Deputy Labor Commissioner) during scrutiny process record his/her observations, if any, on the application and make known to the applicants via automatic generated e-mail and SMS. The observations are also visible to the applicant when he/she login to view the status of application. Internal processing: The application can be applied at the end user login; same application can be viewable at the Deputy Labor Commissioner login. The Deputy Labor Commissioner will check the application under (new/in process/marked/unpublished/observation/Reply) for application, & process the application via verifying the applicant document list under the scrutiny. The process flow for Department officer is explained below:
- The Deputy Labor Commissioner check’s the online application inside his login and comment online at the Departmental portal. If agreed on this then Deputy Labor Commissioner approves and publishes the application. In case of the objection in the application Deputy Labor Commissioner generates the observation & publishes it.
The applicant can reply or make the compliance to these observations in the login panel of this e- service itself.
The officers/officials (Deputy Labor Commissioner) grant the registration certificate or renew it as the case may be if application is complete in all respect and applicant can download the certificate from his login.
The application for renewal shall be made within 26 days in Form No. 4.-
The application for renewal shall be made within 26 days in Form No. 4.-
As per provisions of Section 7 of the Contract Labor (Regulation and Abolition) Act, 1970, every Principal Employer engaging 20 or more contract laborers in his establishment has to apply for registration of his establishment within 30 days. The Labor Commissioner is the Registering Officer who will grant registration under the Act. Principal Employer means in relation to any office or department of the government or local authority, the head of that office or department or such other officer as the government or the local authority, as the case may be, may specify in this behalf In a factory, the owner or the occupier of the factory and where a person has been named as a manager of the factory under the Factories Act, 1948, the person so named in a mine, the owner or the agent of the mine and where a person has been named as the manager of the mine, the person so named. In any other establishment, any person responsible for the supervision and control of the establishment. An employer providing services for up keep of a building in any manner will be termed as contractor and will not be entitled for registration. The user must have a valid registration certificate under Shop Act (if covered under Shop & Commercial Establishment Act) or a valid Factory license if covered under Factory Act. In case of a Government organization, user just has to fill basic information Performa (BIP) After using his/her login ID, the user has to fill Form no. 1 (system generated form). This Performa contains all the basic information of the establishment / factory, details of occupier etc The user (principal employer) has to provide details of contractor. If the contractor is from State of Haryana, then their BIP ID will have to be provided by user (principal employer). In case the contractor is from outside Haryana, then their LIN number will be provided by the user (principal employer) along with the number of workers and nature of work to be taken from them. Next step is to make fee payment. The fees are to be paid on the basis of number of workers. User can make the payment via Online e-GRAS using Debit/Credit Cards
However, user may also deposit this amount of the balance/pending fee in the old fashion of Treasury Challan but do not forget to upload its scanned copy immediately as a proof of fee payment. The system shall be keeping the logs of all the previously information in chronological order. Once application is submitted, user can track the application by logging into the system using previously created login id. Any compliance related query / document can be submitted online during the process Once application is approved, user can download the registration certificate online by logging into the system After submission of the complete online application along with attachment and payment of statutory fees, the application gets automatically reflected in the account of the department related assistant for scrutiny of the application and attachments. The related assistant during scrutiny process records his/her observations, if any, on the application and make known to the applicants via automatic generated e-mail and SMS. The observations are also visible to the applicant when he/she login to view the status of application.
Internal processing: The application can be applied at the end user login; same application can be viewable at the Department officer login. The Department officer will check the application under (new/in process /marked /unpublished/ observation/Reply) for application, & process the application via verifying the applicant document list under the scrutiny. The process flow for Department officer is explained below:
First level-The Assistant of the Labor Wing check’s the online application inside his login and comment online at the Departmental portal. The same application will be marked to the second level officer (Deputy Superintendent).
Second level-The Deputy Superintendent will review the comments of the assistant on the Principal Employer online application. If agreed on the comments of the Assistant, the officer Deputy Superintendent process the application & mark it to the Additional Labor Commissioner. In case of the objection in the application the Additional Labor Commissioner can generate the observation & publish it. The same observation can be viewable at the End user login & it can be replied via End user too.
Third Level- The Additional Labor Commissioner can review the same application and mark the application to the Labor Commissioner for final approval.
The applicant can reply or make the compliance to these observations in the login panel of this e- service itself.
The related assistant grant the registration certificate or amend it as the case may be if application is complete in all respect and applicant can download the certificate from his login.
For Amendment Registration Certificate (Required in cases like adding new contractor, removing existing contractor or making changes in number of workers or change in nature of work for existing contractor) The employer who desires to have registration certificate amended shall make an online application in Form No.1 to the above authority stating therein the nature of amendment required and reasons thereof.
26 days(Breakup mandated timeline for registration of Principal Employer under the Contract Labor (Regulation & Abolition) Act, 1970 – Timeline 26 days.
Scrutiny Process: The following are the list of the documents which can be scrutinizes at the process of the application by Department officers (Assistant, Deputy Superintendent, ALC, and Labor Commissioner -cum- Chief Inspector of Haryana)
BIP ID | No. of employees |
---|---|
Full Name of Establishment | Contractor Full Address |
Contractor Milestone | Contractor Pin code |
Contractor Phone | Contractor Mobile |
Contractor Fax | Contractor Email |
Contractor Nature of work | RE Establishment Name |
Once application is submitted, user can track the application by logging into the system using previously created login id. Any compliance related query / document can be submitted online during the process |
Labor Department examines your application and if he thinks Inspection of your business premises is required to verify the particulars you fill up and documents attached, an Inspector is appointed to carried out inspection.
On 8th May 2020, the Uttar Pradesh Government suspended all labor laws in the state. An enabling ordinance has been brought for temporary exemptions, namely Uttar Pradesh (Temporary Exemptions from Certain Labor Laws) Ordinance 2020. Barring three, all laws, rules and regulations covering factories, shops and offices, stand suspended for three years. Once you start a business, you must register your business under the Shop & Establishment Act through the State Government’s Labor Department. Those registrations are online now. To do so, you need to go to a state-related website and fill out a general Shop Registration form and attach the relevant information and documents
Specific regulations under this Act refer to a shop or business establishment situated within the boundaries of the Uttar Pradesh state municipal district. Additionally, the Labor Department of the established state is regulated by the Shop and Establishment Act, and often the applications for registration are sent to “local district labor officers.” ‘Shop’ means any premises where any company or operation is carried on or where facilities are offered to customers, including offices, stores, godowns or warehouses, whether at the same premises or otherwise, used in connection with such company or trade.
“Commercial establishment” means a shop, commercial establishment, residential hotel, restaurant, café, eating house, theatre, or other public leisure or entertainment facilities to which this Act refers. Each employer must submit a registration application for his/her shop or for any commercial establishment within 30 days of the start of their new business. Moreover, this act is one of the mandatory provisions of all the out there businesses that operate from any establishment or shop. All the shops, the hotel, any food house, local restaurants, city theatres, any place for public entertainment and any other commercial establishment, etc., are regulated by this act and thus include a Shop and Establishment registration in accordance with the law.
Documents required for Shop and Establishment registrationTo start any registration process, it is very important to keep certain documents handy, so that process is easy and hassle-free.
First of all type “www.uplabour.gov.in” on the address bar and press the enter button. Now the website of the Uttar Pradesh Labor Department has opened in front of you.
Now click on the “Online Registration and Renewal” link. Now the “Labor Act Management System” website has opened in front of you.
Read the instructions given on the website. To access the portal, subscribe the portal. Now if you are a new user then click on the “Register Now” button then click on New Registration.
Fill out your details in the form provided and create User-Id and Password. Sign up for a user by entering your User-Id and password.
Now under the regulations of this portal, you can use for registration, renewal, annual returns, inspection report, etc. Firstly select the Uttar Pradesh Shops and Commercial Establishment Act, 1962 in the “Select Act” and click on Registration.
Fill Form L and Now read the instructions given and tick on “I have read all instructions carefully” and click on the I AGREE button. Now fill the given form and calculate ‘Calculate Fee’ and save the form.
You can see your saved form by going to the View application. Now you can select and edit your protected form, apply attachments, pay, etc.
By visiting the Attachments button you can upload the necessary attachment such as the photo of the entity, identity certificate, PAN card. Select the attachment by going to CHOOSE FILE and select it (Note: the attachment should be in GIF, PNG or JPEG format) Now you can go to the Payment button and enter the application number.
There are 2 types of payment mode 1. Invoices 2. Online You can download the invoice form by clicking on the invoice. Or select online mode and can proceed to pay. Selecting online now you are on the website of the Treasury, where you select Pay without Registration and select the department SRV-Labor and Employment Department, UP and then enter the name of the concerned Regional Office in the column of the section followed by the Select Treasury column Select Treasury of the respective district, then enter the name of the firm in the depositor name, then carefully select the head of the related act and mention the fee. After payment, submit the challan number, date, bank name in the application form and submit the final.
Now your application has been forwarded to the respective labor enforcement officer. The Labor Enforcement Officer can inspect/reject the application after inspection. Re-submit the application while removing the deficiencies in the case of Reject.
After signing the Signed Certificate for registration, go to the view application after being approved and select the application and then click on the downloaded certificate from the options below.
Now you can go to the safe application and look at the inspection report, Reaction report etc.
You need to pay the registration fees according to the number of employees engaged in the organization and they are:
Category of shop | Fee per financial year of part of the year (in ₹) | Category of a commercial establishment | Fee per financial year of part of the year (in ₹) |
---|---|---|---|
With no employee | 40 | With no employee | 80 |
Employing 1 to 5 employees | 200 | Employing 1 to 5 employees | 300 |
Employing 6 to 10 employees | 300 | Employing 6 to 10 employees | 400 |
Employing 11 to 25 employees | 500 | Employing 11 to 25 employees | 1000 |
Employing more than 25 employees | 1000 | Employing more than 25 employees | 2000 |
Every owner of a shop or business establishment shall have his shop or business establishment registered for five financial years. Additionally, where it is a case of renewal, renewed for five financial years, which may be up to ten financial years at the time of the next renewal. Moreover, this comes under this Act on payment of the prescribed fee. Additionally, shops and business establishments operating on an annual contract basis only pay the agreed fee for the financial year for which the contract was awarded. When no application is issued for the renewal of a shop or commercial establishment within the stated time, the liability for the late fees shall be considered. In addition to the approved amount, the charging of a late fee is at the rate of 12-1/2 percent of the registration or renewal charge, per month or part thereof. The late fee goes with the application.
Renewal Procedure of Registration Certificate Like all the licenses, shop and establishment license also liable to expire. Therefore it is important to know about the renewal process of this license and that it should be done before the commencement of its expiry. As the registration procedure renewal procedure may be a little different in every state.
click the “Online Registration and Renewal” link. Now you have reached the “Labor Act Management System” website
Additionally, click on the Registered user option and enter your registration number and search and create user id and password by proceeding.
Moreover, Log in by entering your user-id and password. Further, First select the Uttar Pradesh Shops and Commercial Establishment Act, 1962 in “Select Act” and Renewal.
Further, now fill the given form carefully and ‘Calculate Fee’ and submit the form, now click on the Proceed for payment and pay the fee online through internet banking.
Further, now fill the given form carefully and ‘Calculate Fee’ and submit the form, now click on the Proceed for payment and pay the fee online through internet banking.
Therefore, click on the print certificate and get the registration certificate.
(i) Every application for renewal of a registration certificate may be made on plain paper stating therein the name of owner, name and address of shop/commercial establishment and number of employees, to the Inspector concerned and shall be accompanied by the prescribed fee. The renewal of the registration certificate shall be in Form 'M'.
(ii) The fee chargeable for renewal of a registration certificate shall be the same as for the grant thereof.
Where a registration certificate issued under Section 4-B or renewed under Section 4-C, is lost, destroyed, torn, defaced, mutilated or otherwise becomes illegible, an application to the Inspector concerned for the issue of a duplicate copy thereof shall be made in Form 'O' accompanied by a Treasury Challan / Bank Draft (Crossed) for ₹2 or ₹5 as the case may be, on account of fee as specified below:
For shops or commercial establishments | ₹ |
---|---|
without employee | 2.00 |
with employees | 5.00 |
Upon the receipt of such application together with the fee, the Inspector concerned shall issue a duplicate copy of the registration certificate duly marked 'DUPLICATE' in red ink.
The Labor Department administers and enforces 33 labor laws (24 are Central legislations and 09 State legislations) to ensure, mainly, provisions relating to social justice and economic inter-dependency, improvement in working conditions, social security, and protection against harassment and exploitation of working children, women and men employed in organized sector.
The department ensures quick disposal of industrial disputes through its conciliation machinery with a view to establish harmonious industrial relations amongst the employers and employees, so that along with growth in industrial production, the interests of workmen are also protected. The department periodically fixes the minimum wages and ensures their due and timely payment to the workmen.
The Labor Commissioner Organization was established in 1936. Along with executive functions through its administrative set up, following wings are also established in the Organization to enforce various labor laws and timely intervention in industrial disputes:
Presently 22 different sections are functioning at the headquarter under control of the Labor Commissioner, who is assisted by Additional Labor Commissioner, Deputy Labor Commissioner, Assistant Labor Commissioner etc. The detailed organizational structure is available at the departmental website here. Regional and Sub-Regional offices, widely spread over the districts of the state, have been active in the department to effectively ensure enforcement of labor laws and to maintain industrial peace.
Details of Approvals/NOCs/Clearances issued (under Nivesh Mitra)The department issues new registration/renewal to those who establish a shop/commercial establishment. The approval is valid for 5 years generally. However, as an exception, the approval is valid for one year only in case of employers giving employment on contractual basis.
Entrepreneurs who shall apply for Approvals/NOCs/Clearances (under Nivesh Mitra)Entrepreneurs who want to establish a shop/commercial establishment needs to apply for new registration/renewal to the department for its approval.
Method of applying for Approvals/NOCs/Clearances issuedEntrepreneurs can apply online with the Labor Department here. All the relevant forms can be submitted online at the website. Nivesh Mitra has been integrated with this website to ease entrepreneurs in filing the application forms.
U.P. Dookan Aur Vanijya Adhisthan Registration:-The owner of every shop on commercial establishment shall, within the period specified in sub-section (1) of Section 4-B of the said Act, make an application in Form 'L' to the Inspector concerned for registration of his shop or commercial establishment. The application shall be signed by the owner and accompanied by a Treasury Challan /Bank Draft (Crossed) in favor of the Inspector concerned in proof of payment of registration fee as specified below. The maximum number of employees employed in the shop or commercial establishment on any day during the financial year in respect of which registration is sought will be taken into consideration for deciding the amount of fee leviable.
Every business has to be maintaining the following records under Shops and Establishments act:
Under Shops & Establishments Act Registration applicable, if you are opening a shop or commercial establishment, one comes under the purview of Shops & Establishments Act.
A Commercial Establishment including:
While setting up a commercial entity there are many compliances to be followed, one such important compliance is the Shop Establishment license. The licenses are important for shop and establishment registration. Sometimes, employers are unaware/ignore this important labor compliance while setting up an entity.
Shops & Establishments Act RegistrationAs a business owner are compulsorily required to get the registered under the Shops and Establishment Act, process of registration mention as below: Step 1: Submit an application in the prescribed form to the Inspector of the area within 30 days of starting any work in your shop/establishment. The application is to be submitted along with the prescribed fees and should contain the following information:
Step 2: the Inspector shall verify the accuracy and correctness of the application.
Step 3: Once suitably satisfied, he shall enter the details in the Register of Establishments and issue a registration certificate of your establishment. Once this registration certificate is issued, it will be valid for one to 5 years and has to be renewed thereafter.
All you are required to do is fill a form prescribed under the Act which requires the applicant to fill in details such as the total number of employees, name and address of the employer and manager, etc. An application form and fees detailing:
As per Section 4 of the Act certain establishments are exempted which are as follows;
The shop and registration fee in Uttar Pradesh varies from ₹100 to 500 depending on the conditions under which it is applied for. For example, if one worker is employed it is ₹100 if 3 workers are employed it is ₹150. if more than three and less than 10 workers are employed it is ₹200.
A license can be denied/cancelled under following conditions: -