- The Shop and Establishment Act regulates the status of work and also enforces the rights of employees in an organized sector.
- The Act applies to societies, charitable trusts, educational institutions and any other establishment that is started for the purpose of making a profit and is not limited to business establishments only.
What is Shop Act License?
Shop Act License registration is mandatory for anyone who owns or already owns a shop or business establishment anywhere in India. The maximum time to apply for a license is within 60 days, after the application a chief inspector reviews the application and after successful verification, the applicant obtains the registration certificate.
The purpose of Shop Act Registration is to manage individual wages, long-term work, leave, vacations and installment payments for other working conditions used in shops and businesses. Shop Act Online registration process is very easy and hassle-free. Shop Act Renewal can be done through the same procedure.
In some places the Shop Act is also known as Gumasta License. It is in a way a legal obligation and also the right of the unorganized employment sector, employees and employers of stores and facilities. The Shop Act defines working conditions in shops, commercial establishments, residential hotels, restaurants, eateries and other public entertainment venues.
Leave with Pay and Payment of Wages
Every worker shall be allowed a weekly holiday with wages. Every worker shall be entitled to eight days casual leave with wages in every calendar year which shall be credited into the account of the worker on a quarterly basis, but shall laps if unveiled at the end of the year.
Every worker who has worked for a period of two hundred and forty days or more in an establishment during a calendar year shall be allowed during the subsequent calendar year, leave with wages for a number of days calculated at the rate of one day for every twenty days of work performed by him during the previous calendar year.
Subject to the provision of clause (3) every worker, who has been employed for not less than three months in any year, shall for every sixty days on which he has worked during the year be allowed leave, consecutive or otherwise, for a period of not more than five days. Every worker shall be permitted to accumulate earned leave up to a maximum of forty-five days.
Every employer shall take such measures relating to the health and safety of the workers including cleanliness, lighting, ventilation and prevention of fire as may be prescribed.
Every employer shall be responsible for providing constant adequate supervision of the workers employed in the establishment and to ensure the compliance with the rules relating to health and safety made under sub-section (1) and for taking steps necessary to prevent accidents.
Every employer shall provide at the place of work first-aid facilities as may be prescribed.
The employer shall make effective arrangements to provide and maintain at suitable points conveniently situated for all persons employed in the establishment, a sufficient supply of wholesome drinking water.