Vishalmgrhr
Human Resource Professional
Satish Kumar Bhargava
Social Security, Training, Vigilance &

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Dear Senior,
If we start new establishment(Hotel) under shops & establishment act & PF and ESIC code not available then initially can we start work with one year Hotel operation trainee on monthly stipend as per state MWA(Basic+VDA) before legal formalities(PF,ESIC & Registration under shops & est. act) & it is mandatory to register the establish Under shops & establishment act.
Please suggest what systematic producer to start work with employee & Hotel trainee in Hotel premises & what is mandatory legal formalities will be follow by HR end.
Please Suggest & advice ..
Regards,
Vishal

Dear Mr. Vishal

You cannot start a new establishment without registering it or by no legal formalities. Firstly, any establishment should follow the Shops Act. Then have to take approvals from the Labour Department to obtain licenses from the authroities. Within the period specified in the sub-section (5) the owner/occupier of the establishment shall send a form filled with details to the Labour Inspector along with the fees payable.

Details include: The name of the establishment; postal address of the establishment; The category of the establishment - weather a shop, theatre, amusement park, commercial, hotel, restaurant etc.; and the number of employees working. Post submission of these details a certificate will be sent by the Labour In-charge after the details have been specified according to the govt. bodies as they decide on the establishment provisioned to the act.

Subsequent to receiving the registration certificate within 3 months the date of commencement of the etablishment would come into force. For more specified info refer to the below.

Office Of The Labour Commissioner

Dear Vishal
All laws rules & regulations are implemented from day one. Day one means the when your establishment is ready to start functioning(even on a trial basis). Liabilities on a/c of ESI/PF are huge. Beware of them and do not avoid. ESI/PF is a symptom of prosperity and stability of the Company also.

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