Shops &establishments Act

THE SHOPS AND
ESTABLISHMENTS ACT,
1953
Objectives
To provide statutory obligation and rights to employees
and employers in the unorganized sector of employment,
i.e., shops and establishments.
To regulate the conditions of work and employment in
shops, commercial establishments, residential hotels,
restaurants, eating houses, theatres and other places of
public entertainment.
Scope and
Coverage
A state legislation; each state has framed its
own rules for the Act.
Applicable to all persons employed in an
establishment with or without wages, except the
members of the employer's family.
State government can exempt, either
permanently or for a specified period, any
establishments from all or any provisions of this
Act.
Main
Provisions
Compulsory registration of shop/establishment within
thirty days of commencement of work.
Communications of closure of the establishment
within 15 days from the closing of the establishment.
 Lays down the hours of work per day and week.
Lays down guidelines for spread-over, rest interval,
opening and closing hours, closed days, national and
religious holidays, overtime work.
Rules for employment of children, young persons and
women
 Lays down the minimum wages to be paid.
Rules for annual leave, maternity leave, sickness and casual
leave, etc.
 Rules for employment and termination of service.
 Maintenance of registers and records and display of
notices.
 Obligations of employers.
 Obligations of employees.
Registration of
Establishment
 Employers must send a statement in prescribed form along
with prescribed fee to Inspector of local area, within 30 days
of the commencement of the establishment.
 The statement ‘d contain, i) name of employer or manager
if any; ii) the postal address of the establishment; iii)
category of the establishment; iv) any other particulars as
may be prescribed.
 The establishment may then be registered if the Inspector id
satisfied with the correctness of the statement and the
Certificate of Registration is issued.
 Certificate of Registration ‘d be prominently displayed at
the
premises of the establishment.
 Any change in the statement submitted to the Inspector
must be notified in prescribed form within prescribed form.
 Closing of the establishment must also be notified to the
Inspector within 10 days where upon such establishment
may be removed from the registration of establishment and
registration certificate is cancelled.
Opening and Closing
Time
Opening and closing time prescribed under the act are as
follows-
 Shops dealing wholly in milks, vegetables, fruits, fish,
bread etc
 Opening : NBF 5.00am Closing: NLT 8.30 pm
 Shops dealing in goods other than those prescribed
above
 Opening : NBF 7.00am Closing: NLT 11.00pm
 Commercial Establishments
 Opening : NBF 8.30am Closing: NLT 8.30pm
 Customer who is being served r waiting to be served
at
closing time may be served within 15 min.
Working Hours
 No employee is allowed to work MT 9hrs in a day or for 48

hrs in a week
 An employee may be allowed to work upto 3 hrs a week
over and above this limit and upto 26 hrs or NMT 6 days
in a year for purposes of making of accounts, stock taking
settlements or prescribed occasions.
 No employee is allowed to work for more than 5 hrs at a
stretch unless he is given rest for half an hour if in case
of commercial establishment engaged in manufacturing
process, and 1 hr in any other cases.
 The spread over of an employee in shop ‘d not exceed 11
hrs on any day.
Closing
Day
 Every shop or commercial establishment ‘d remain closed
on any one day of the week. The list of closing days ‘d be
notified to the Inspector and displayed in the premises of
the establishment.
 A shop or establishment may remain open on the notified
closing day provided it remains closed on any other day of
the week and this change ‘d be notified to the Inspector
atleast a week in advance.
 Pharmacists, Chemists and Druggists shops are exempted
from these provisions relating to closing day.
Employment of Children, Young person
and Women
 No Child (LT 14 yrs of age) may be allowed to work in an
establishment
 No young person (LT 17 yrs) is allowed to work in any
establishment for MT 3 hrs in any day unless he has an
interval of rest of atleast half an hour.
 No young person or women is allowed to work before
1.00am and after 7.00 pm in any establishment and to
perform any such work as may be declared by the State
Govt. to be involving danger of life, health or morale.
Health and
Safety
 Premises ‘d be 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 described
which may include, lime washing, color washing, painting,
varnishing, disinfecting and deodorizing.
 Every establishment ‘d be well lighted and ‘d also
provide
prescribed precautions against fire.
 A first aid box ‘d be maintained at every establishment
where manufacturing process is carried out.
Leav
e for NLT 3 months in a year is
 An employee who has worked
allowed for leave NLT 5 days for every 60 days on which
he has worked and for a period of NLT 21 days for every
240 days on which he works during an year. Such leave may
be accumulated for a maximum of 63 days.
 In addition every employee is entitled to:
i) casual leave for 7 days a year;
ii) medical leave for 7 days a year;
iii)leave for NMT 4 days a year on any of national or
festival holidays as specified by State Govt. These leaves
are with wages.
Wage
s
 The provisions of payment of Wages Act, 1936 and the
Workmen’s compensation Act, 1932 are applicable
regarding the payment of wages of employees.
 The wages payment period ‘d be fixed by every employer
and ‘d not exceed one month.
 All wages ‘d be paid in cash within 7 days of expiry of
the
wage day.
 Due wages of an employee terminated by an employer ‘d be
paid within a day of the termination.
 Following deductions are allowed from the wages of
the employees
 Absence from duty
 Fines
 Advance or overpayment of wages
 House accommodation and other amnesties &
services provided by the employer
 Loss or damage of goods due to negligence of
employee
 Deductions to an insurance scheme appointed by the
Govt or for payment of Cooperative society.
 Income tax deduction
 Deduction required to be made by an order of court
or any other competent agency
Enforcement and
Inspection
 Enforcement of the provisions of this Act is the responsibility
of local authorities in their respective jurisdiction and of
State Govt. in respective areas.
 Local authority or state Govt. may appoint necessary number
of inspectors for the purpose of this Act. An Inspector must
possess the prescribed qualifications.
 An Inspector may-
 Enter at all reasonable times with such assistants in any place
in
which he has reason to believe is an establishment.
 Make examination of premises and of any prescribed registers,
records and notices and take on spot or otherwise evidence he
may deem necessary
 Exercise such other powers as may be necessary for carrying out
the purpose of Act
Offences and
Penalties
Offenses Penalties
Failing to send statement to Employer and manager can be
Inspector within specified period punished with fine of Rs. 25 to
250
• Failing to apply for renewal of If contravention relating to
registration certificate registration is continued, after 15
• Failing to notify change within th day after conviction, employer
specified period shall be punishable with a
• Failing to notify closing of further fine upto Rs. For each
establishment day of contravention. An
• Contravention in enhanced penalty of Rs. 50 to
provisions 500 for second conviction and
relating to opening and Rs. 75 to 750 for third conviction
closing In exceptional cases, small fine
• Holidays in a week
• Cleanliness, ventilation,
lighting, precautions against
fire
• Daily and weekly hours of
work
Offenses Penalties
• Employment of Children,
young persons and women
• Not providing registers and
records
• Not maintaining registers and
records
• Knowingly permitting double
employment or in a holiday
during a leave
Miscellaneous
 As per order of State Govt. an employer must maintain
proper records and registers and this must be kept at the
premises of the establishment.
 Employers of any residential hotel, restaurant or eating
house etc as notified by State Govt. ‘d issue identity card
for employees.
 When an employee is required to work in excess of the limit
of hours of work, he shall be entitled to wages at the rate
of and and a half times his ordinary rate of wages.
 If an employee has been in continuous employment for NLT
one year, employer can dispense his services only by giving
minimum of 30 days notice in writing or wages in lieu of such
notice.

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THE SHOPS AND

 No employee is allowed to work MT 9hrs in a day or for 48

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