It has come to our notice that businesses that are operating from office premises or shops in Bangalore have been encountering uninvited visits from inspectors from Labor Department. The inspectors had come down to these office premises checking for Shops and Establishment License, if not found, inspectors shut down the premises or penalize the firms with huge fines. Throwing light on this situation, let’s look into the Shops and Establishment License as a subject.
In 1962, Shops and Establishment Act was introduced to regulate conditions of work and employment in shops and commercial establishments.
To those of you wondering how the act defines “Commercial Establishment”– A commercial or trading or banking or insurance establishment where the persons employed are mainly engaged in office work, a hotel, restaurant, boarding or eating house, a café or any other refreshment house, a theatre or any other place of public amusement or entertainment.
To those of you wondering how the act defines “Shop” – Any premises where any trade or business is carried on or where services are rendered to customers, and includes offices, storerooms, godowns, or warehouses, whether in the same premises or otherwise, used in connection with such trade or business, but does not include a commercial establishment or a shop attached to a factory where the persons employed in the shop fall within the scope of the factories.
Who are exempt from this Act:
- Offices under Central or State Governments or local authorities.
- Establishments for the treatment or care of the sick, infirm, or the mentally unfit.
- Offices of legal practitioners and medical practitioners in which not more than three persons are employed.
- Offices of a banking company
- Persons occupying positions of management in any establishment
- Shops dealing in medicines or medical or surgical requisites or appliances
- Clubs, residential hotels, boarding houses, hostels attached to schools or colleges, and establishments maintained in boarding schools in connection with the boarding and lodging of pupils
- Stalls and refreshment rooms at railway stations, bus stands, ports
- Shops of barbers and hairdressers
- Shops dealing mainly in meat, fish, poultry, eggs, dairy produce, bread, confectionery, sweets, chocolates, ice, ice cream, cooked food, fruits, flowers, vegetables or green fodder.
- Shops dealing in articles required for funerals, burials or cremations
- Shops dealing in pan (betel leaf), pan with beedies or cigarettes
- Shops dealing in newspapers or periodicals, editing sections of newspaper offices
- Cinemas, theaters, and other places of public entertainment and stalls and refreshment rooms attached to such cinemas, theaters and places of public entertainment.
- Establishments for the retail sale of petrol
- Shops in cantonments
- Retail trade carried on at an exhibition or show with main purpose of the exhibition
- Oil mills and flour mills
- Brick and lime kilns
- Information Technology Establishments
- Information Technology enabling services or establishments
Registration of establishments:
Step 1: Send to the inspector of the area in a concerned form mentioning the following details with fees:
- Name of the employer and the manager
- Postal address of the establishment
- Name of the establishment
Step 2: On receipt of the statement and the fees, inspector if satisfied, registers the establishments and provide registration certificate to the employer
Step 3: The registration certificate has to be prominently displayed at the establishment.
- Establishment closing should be notified: Employer, within 15 days of the closing establishment should notify the inspector in writing
- The license has to be renewed every year
- In case you wish to make changes to the certificate, by paying additional fees the changes can be made.