Management Consultancy
Nagarkar Vinayak L
Hr And Employee Relations Consultant
+1 Other

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Dear Colleagues,
I have a query with regards to the Applicability and Coverage under Maharashtra Shop and Establishment Act 2017, same is as follows:
1. While applying for Shop and Establishment License, are field staff/sales and Marketing staff to be considered for the license purpose.
2. We have been registered under Shop and Establishment act and have obtained license for our head office, our 45 employees are working in some XYZ factory as maintenance staff in other city. So are we suppose to consider these 45 employees in our Head Office License?
3. These 45 employees shall be paid wages/salary as per the minimum wages rate of Factory / Shop and Establishment??
Thanking you in anticipation

As per Bombay Shop & Establishment Act 1948, (Maharashtra Shop & Establishm ent Act is not there), there is nothing in the definition of section 2(4) of "commercial establishment"which indicates that before an establishment can become a commercial establishment it must have a certain fixed place or abode, premises or location from where it operates. The idea of premises is not implicit in the definition of,
"Commercial establishment". The test of an organisation to be a commercial establishment must not only be an organised activity for carrying on any business, trade or profession but the activity must be carried in a commercial manner. If these two conditions are satisfied it is wholly irrelevant that such an activity of which there is an employer and in which there are employees will be a commercial establishment only
because it has no particular premises from which it operates.
A sales organisation with a regional officer" at the head of a region and having salesmen in different parts of the State, the organisation having no specific office or its own, would nonetheless be a commercial establishment if the organisation carries on any business, trade or profession, etc. (1973) I LLJ 447 Guj.

Dear colleague,
You should have mentioned what business you are in and whether you have sales offices outside Mumbai.
You have stated that you are already covered under the Shops Act . What strength did you mention in your application for licence?
If your sales and marketing offices have seperate licence in respective states, then that strength can be excluded.
In my view, the strength of maintenance staff though working outside of Maharashtra, has to be counted for the licence in Maharashtra.
Minimum wages as applicable to Shops Act in Maharashtra will have to be followed.
Vinayak Nagarkar

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