Shops and Establishments Act Records to be Maintained

Under the Shops and Establishments Act, what records must be maintained?

Businesses in the unorganized sector who register under the Shops and Establishments Act are confirming their existence. Due to the provisions of this Act, qualifying enterprises must apply for licenses within 30 days of operating.

Essentially, this is a labour law intended to protect the huge unorganized sector of the Indian economy that suffers from unemployment, corruption, and exploitation. Every state has its own laws and restrictions when it comes to this legislation. No matter whether an individual is paid or not, the legislation applies to everyone who works at a business.

Records to Be Maintained Under Shops & Establishments Registration:

A business is required to obtain approval from the Department of Labour under the Shops and Establishments Act and to maintain accurate records of employees, penalties, deductions, advances, wages, and vacations as required under the Act. Nevertheless, each state has its own criteria. The Municipal Corporation’s office requires annual reports on holidays and worker numbers, but there is no requirement to file regular returns.

According to the Shops Act, the following records must be maintained:

An employer or manager should maintain records for all types of shops, commercial establishments, and other organizations
Employment record
Leave record
Keeping a record of lime washing, etc.
Visit book – 7” x 6” 100 pages
In case of residential hotels, restaurants, eating houses, and theatres, and in case of shops and commercial establishments with special exemptions for weekly off days and closing hours, a weekly closed day notice will be issued in the form of a letter.
A copy of each employee’s identity card in residential hotels, restaurants, eating houses, or theatres
A register of wage payments is maintained under the Payment of Wages Act, 1936
Book of inspections
A card for attendance

Registration Process:

A shop/commercial establishment’s employer must submit an application along with the prescribed fees within 30 days of starting business to the inspector in-charge.

The application form should contain the following details:

Employer’s name
An establishment’s name
Adresses of establishments
According to its category
Employed personnel
Inauguration date of the establishment

Details About Registration Procedure:

Every state’s labour department creates the Shops and Establishments Act procedure, which is then registered.
Local district labour officials are typically responsible for assigning the inspector in-charge under this statute. Business and establishment registration certificates will be issued by them, however.
An organization’s or business’s number of employees determines the cost of the entire procedure
An application will be evaluated by the inspector when it is submitted by the occupier. In the event that the application contains all of the required information and the inspector in charge is satisfied with it, the store and establishment will be registered, and the occupier will receive a certificate of registration
If a business is planning to close, the employer must notify the inspector in-charge
An employer must submit a written notice within 15 days of closing if they are certain to close. As a result, the Shops and Establishments Act registration will be revoked by the inspector. The name of the company will therefore be removed from the register
Should you have missed informing the inspector about changes to your information at the time of registration, make sure to do so within 15 days of the date of the change. In the event that a fresh registration certificate is required after all verification has been completed, the inspector in-charge will make the appropriate changes and will issue it.

Documents Required:

The following are some common documents:

Proof of identity
Address proof for commercial properties
Licensing requirements for starting a business
Card with PAN number
Challan for fee payment

What Are the Records to Be Maintained Under the Shops and Establishments Act: Conclusion

Every establishment must register under the Shops & Establishments Act, which is enforced by the state legislature. A sound business reputation and avoid penalties can be maintained by maintaining records required under this act.

Legal Advisor