Shops and Establishment Act

Shops and Establishment Act

Shops & Commercial Establishments Act, 1962 is an act that provides for the regulation of conditions of work and employment in shops and commercial establishments

This act is applicable to any shops, commercial establishments, residential hotels, restaurants, eating houses, theatres and other places of public amusement or entertainments are mainly protected by the provisions of this act.

Exemptions:

This act is not applicable to the following institutions:

  • Offices under the central or state government
  • Any public utility services
  • Establishment for the treatment or care of the sick or mentally unfit
  • Establishments of Food Corporation of India
  • Offices of the legal practitioners employing more than 3 employees

Registration of the Establishments: Within 30 days from the receipt of the statement with details of the establishment and fees

Form A: Employer has to send the details within 30 days of commencement.

Form B: To be renewed before 90 days of Expiry through FORM AA to the Labour department

Form E: Any changes in existing manpower status should be intimated to the assistant Labour inspector within 15 days.

Provisions under the shops and establishment act

Language of the Board: The name board of every establishment shall be in Kanadda(in case of Karnataka) and if any other language is used, it should be below the Kanadda version.

Age restriction: The employment of children below 14 years is prohibited under Section 24 of the Act.  Young persons and woman shall not be employed during night, between 8 pm to 6 am.Child labour: below 15 yrs prohibited (age proof required)

Issue of appointment orders: Every employer shall issue an appointment order in writing indicating the name, designation, wage scale of such person and terms and conditions of his employment and serve the same on such person within thirty days from the date of appointment in his establishment.

Daily and weekly hours: No employee in any establishment shall be allowed to work for more than 9 hours on any day and forty-eight hours in any week:

The total number of hours of work including overtime shall not exceed 10 hours in any day except on days of stock-taking and preparation of accounts:

No young person shall be allowed to work in any establishment for more than 5 hours in a day (Young person means a person who is not a child and has not completed his seventeenth year.)

Maintenance of reports: Any startups or companies registered under the Shops and Commercial Establishment Act, the following reports are required to be maintained.

  • Register of Leave with Wages: A mandatory register to be maintained by the employer which will cover Earned Leave in Part I and Sick Leave in Part II
  • Leave with Wages Book: All Employers shall provide each employee who has become entitled to leave during a leave year, with a book in the given format.
  • Combined Muster Roll cum Register of Wages: Combined Muster Roll cum Register of Wages A combined register which contains attendance particulars including over time particulars. Wage details, component wise shall also be recorded. This has to be recorded and stored month wise, year wise for all employees.
  • Appointment Orders of all employees: Every employer, employing any person in or in connection with his establishment, shall issue an appointment order in writing indicating the name, designation, wage scale of such person and terms and conditions of his employment
  • Permission to allow women to work after 8 PM: Any employer having women staff working after 8PM has to submit the form information of the details to concerned Deputy Labour Commissioner for consideration and approval. Employer has to notify any change in respect of any information furnished in Form R within 15 days.
  • Combined Annual Return: his is a mandatory filing requirement for any establishment and includes establishment details, employment particulars such as employees working and employees separated, leave with wage particulars, welfare measures, maternity benefits provided, and contract labour information.

Extra wages for overtime work: Where an employee works in any establishment for more than 9 hours in any day or for more than forty-eight hours in any week he shall in respect of such overtime work be entitled to wages at twice the rate of normal wages.

Interval for rest: No employee shall work for more than five hours before he has had an interval of rest of at least one hour.

Opening and closing hours: No establishment shall on anyday, be opened earlier than and closed later than such hours as may be fixed by a notification issued by the State Government

Weekly Holiday: Every establishment shall remain closed for one day of the week. The employer shall fix such date at the beginning of the year.

Annual leave with wages: Every employee shall be entitled to leave with wages and shall be allowed to avail such leave of one day for every twenty days work performed by him, in case of an adult and one day for every fifteen days of work performed by him, in case of a young person.

Casual Leave and Sick Leave of 12 Days cannot be en-cashed.

Privilege Leave: Every 20 days an employee works 1 leave is earned.( MAX 15 PL)

Holidays: 26th Jan, 1st May, 15th Aug, 2nd Oct are National holidays (apart from these the state govt or central govt may declare additional holidays too)

Prohibition of employment of women and young person’s during night: No woman or a young person is allowed to work in any establishment during night i.e after 8 PM

Display of notices: An employer shall display all statutory notices at the premises of his establishment such as maternity benefit act, minimum wages act, payment of wages act, gratuity act, list of national festivals, certificate of establishment, working hours and rest timings etc.

First Aid box with minimum medicines are required to be established in any company

In addition to all these provisions the following acts are supposed to be followed:

  • The Minimum Wages Act, 1948.
  • The Payment of Wages Act. 1936.
  • The Workmen’s Compensation Act, 1923.
  • The Maternity Benefit Act, 1961.
  • The Gratuity Act
  • The Industrial Employment (Standing Orders) Act, 1946.
  • The Child Labour (Prohibition and Regulation) Act, 1986
  • The Equal remuneration Act

Registers To Be Maintained (13)

(As per the Kar. Shops & Establishment Act)

  1. Form F/ M : Leave with wages
  2. Form N : Leave Book
  3. Form O: Number of Working Hours.

(As per the Payment of wages Act & Minimum wages Act)

  1. Form 1 : Register of Fines
  2. Form II : Register of Deductions
  3. Form III : Register of Advances
  4. Form 1V/H : Registers of Overtime
  5. Form V : Register of Wages
  6. Form VI: Register of Muster roll.
  7. Form T : Salary Register

(As per the ESI Act)

  1. Form 6 : ESI (register of employees)

(As per the PF Act)

  1. PF Contribution Register.

(As per the Equal Remuneration Act)

  1. Form D : Register of Employees
  2. Form F: Cleanliness Register

(As per the Contract Labours Act)

  1. Form XII : Register of Contractors
  2. Inspectors Book

FORMS To Be Displayed :

(As per the Kar. Shops & Establishment Act)

  1. Form C : Certificate of Establishment
  2. Form N : Working Hours & Rest timings
  3. Form P : List of Holidays
  4. Certificate from Dept of Labour: 365 days working/ Weekly Offs/ Women Not working more than 8 PM.

(As per the Payment of wages Act & Minimum wages Act)

  1. Form V : Payment of wages Act
  2. Notice of the date of Payment
  3. Form X : Minimum wages Act

 (As per the Maternity Benefit Act)

  1. Form K : Maternity Benefit Act

(As per the Gratuity Act)

  1. Form U

(As per the NFH Act)

  1. List of National Festival Act

(As per the Contract Labour Act)

  1. Form II: List of the Contract Employees/ address / Nature of the Work
  2. Form VI : Contract Labour Certificate
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