The Shop and Establishment Act was created across India to standardise the working conditions for people in offices around the country. Every Shop and Establishment has to mandatorily register themselves within thirty days of beginning operations, irrespective of whether they have employees or not. Other than looking after the working conditions of people, they list the rights of employees within the unorganised sector and provide a list of obligations for every employer. Additionally, these rules were created as guidelines for the people running companies and businesses to make sure the employees, customers, and clients were protected.
The rules are quite standardised across the country, but there are a few changes that are made state-wise. Overall, they apply nationwide to shops, commercial establishments, hotels, restaurants, eating houses, theatres and other places of public amusement.
Every state across the country has put together rules concerning working conditions with the main aim of getting the same benefits for employees working in different establishments, from shops, commercial establishments and residential hotels, to restaurants, theatres and other places of public amusement.
This Act sets rules for the number of hours people spend working in an office. They also have rules, in case they spend additional time working, rest intervals, timings of opening and closing the establishment, national and religious holidays, rules for annual leave, maternity leave, sickness and casual leave. They even have regulations to be followed when hiring and firing an individual.
Furthermore, companies have to maintain certain information daily. They should have registers and records, and display notices and obligations of employers and employees. According to the Shop and Establishment Act, all businesses have to seek permission from the Department of Labour and maintain regular registers of the details of employment, fines, deductions and advances, salary and holidays. Files related to annual holidays and number of employees need to be submitted to the office of the Municipal Corporation annually.
Other than being a mandatory requirement, shops and establishments have to display the certificate, once they receive it, in their establishment. There are a couple of documents needed when starting a business like the Memorandum of Understanding, the Articles of Incorporation, the Incorporation Certificate among others, business owners also need their Shops Registration Licence, which is also mandatory. It is a requirement when handling the rest of the processes that come with running a company like opening up a company bank account. Additionally, it is a giant help when applying for a company PAN card as well.
When applying for the shop licence, business owners often need to provide their details like their PAN cards, the rental agreement or sale deed, and details of all the employees. Some websites assist with the entire process, while there are agents in Bihar who are happy to assist with the process.