Shops and establishment act

Law under which shops and commercial establishments in India are governed are slightly different for every state, as most of the states have their respective laws.

According to this act Shops refer to premises that are used to sell goods either on a retail or wholesale basis, or where services are also provided. Shops also includes any kind of storerooms, godowns, offices and warehouses that are involved in some trade or business.

Similarly Commercial establishments cover under its ambit banking, insurance, commercial, trading establishments, where people are employed for office work. Also, hotels, restaurants theatre, eating houses, cafes or other such places for public amusement or entertainment.

It is compulsory for the shops and establishments that are governed by this act to apply under their respective state laws for registration.  As this act regulates various aspects related to working of an establishment. The registration certificates will be required to be renewed on a periodical basis.

If a new work has been commenced then the same needs to registered as per shops and establishment act. The time limit for applying for registration varies from state to state. This act in itself provides a time limit of six months from the date of commencement of the shop or establishment, which employs ten or more workers, for registration.

After registration the concerned authority will issue a labour identification number in prescribed form to the shop or establishment.

If a shop or establishment has already been registered under other statutes like Employees Provident Fund Act, 1952 or Employees State Insurance Act, 1948 or any other regulations or schemes, then they will be considered to be registered under this act also.

Such already registered establishments also had to apply before the authority for within six months after this act came into existence for getting a labour identification number.

For Example – Delhi, Uttar Pradesh shop and establishment law provides for mandatory registration within a time period of 90 days, Haryana law requires mandatory registration within 30 days from the commencement of business, Uttarakhand law requires for registration for establishment employing 10 or more employees within 180 days of commencement of business etc.