All those who are planning to enter the business world need to understand the provisions of the Shop and Establishment Act in India. 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.
The Shop and Establishment Act is regulated by the Department of Labor and regulates premises wherein any trade, business, or profession is carried out. Registration under the Shop and Establishment Act is mandatory for most businesses. Since this is the first step towards the promising business world, we have tried to cover the basics of the same.
Shop and Establishment Act is under state legislation, and each state has framed its own rules and regulations for the same. 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. Since the state government frames rules, obviously, rules will differ from state to state. Hence rules for the state in which registration is to be obtained need to be followed.
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.
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