Operating authority of Shops & Establishment is the Municipal Corporation. So, where a Municipal Corporation exists, it means there should be Shops & Establishment applicable, except in Delhi, where its operating authority is the Labour Department. However, some geographical areas are exempted from this act, so there is no need to register under the same.
As per Section 1, (4), the [State] Government shall, by notification published in the Official Gazette, direct that all or any of the provisions of this Act shall come into force in such other local areas having a population of twenty-five thousand and more as may be specified in the notification. (5) The [State] Government may also, by a similar notification, direct that all or any of the provisions of this Act shall come into force in such local areas having a population of less than twenty-five thousand as may be specified in the notification.
I will tell you one case: one retail organization had three offices in one premise, but the company registered only one office/company. Therefore, when the inspector visited the place, he remarked that registration was not found. Consequently, the company had to register the remaining two companies/offices under the same.
Objectives of the Shops and Establishments Act, 1953
- To provide statutory obligations and rights to employees and employers in the unorganized sector of employment, i.e., shops and establishments.
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.
- The 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.
- Communication 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.
- 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.
When to Consult and Refer
- At the time of starting an enterprise.
- When framing personnel policies and rules.
Regards.