Bombay Shops and Establishments Act, 1948

Salient features of the act

What is the Object of the act:- To regulate conditions of work and employment in shops, commercial establishments, residential hotels, restaurants, eating houses, theatres, other places of public entertainment and other establishments.Provisions include Regulation of Establishments, Employment of Children, Young Persons and Women, Leave and Payment of Wages, Health and Safety etc.Applicability as per the Shop and Establishment Act

 : It extends to the whole of the State of Maharashtra]The Act has clearly defined the shop , Establishment, Commercial Establishments which comes under the purview of the same.“Shop” means any premises where goods are sold, either by retail or wholesale or where services are rendered to customers, and includes an office, a store-room, godown, warehouse or work place, whether in the same premises or otherwise, (mainly used) in connection with such trade or business but does not include a factory, a commercial establishment, residential hotel, restaurant, eating house, theatre or other place of public amusement or entertainment“Establishment” means a shop, commercial establishment, residential hotel, restaurant, eating house, theatre, or other place of public amusement or entertainment to which this Act applies and includes such other establishment as the [State] Government may, by notification in the Official Gazette, declare to be an establishment for the purposes of this Act;“Commercial establishment” means an establishment which carries on, any business, trade or profession or any work in connection with, or incidental or ancillary to, any business, trade or profession [and includes establishment of any legal practitioner, medical practitioner, architect, engineer, accountant, tax consultant or any other technical or professional consultant and also includes] a society registered under the Societies Registration Act, 1866 (XXI of 1860), and a charitable or other trust, whether registered or not, which carries on [whether for purposes of gain or not] any business, trade or profession or work in connection with or incidental or ancillary thereto but does not include a factory, shop, residential hotel, restaurant, eating house, theatre or other place of public amusement or entertainment;

Registration of Business

Under the Act is compulsory for Establishments, Shops, Commercial establishments which are covered under the definitions given above.

The registration certificate is given by the concerned inspector of the local authority i.e Municipal corporation .It is valid for one yearThe registration certificate shall be prominently displayed at the establishment.e.g The HUF / Partnership where there is a single or multiple proprietor comes under the purview of the Shop & Establishment act.e.g There is a legal Contract of Business of Franchisee owning of a specific brand between the two parties. The Shop needs to be applied by the person on whose has the proprietorship rights of the shop. In this case, the person would be that who is taking the franchisee.The Construction Business company comes under the purview of the Shop & Establishment act.The Documents required are for registration under the act:-

Prescribed application forms should be properly filled along with the necessary fees alongwith the fooloowing documents.1) Lease agreement or Ownership Deed of the Shop2) Latest Paid Property Tax Challan3) Also you will need Memorandum of understanding (MOU) and Articles of Assocition (AOA ) in case of the CompanyWhere to apply-This needs to be applied in the Municipal ward ,where the Shop is being locatedLanguage of the name board of the shop /establishment.As per the Shop and Establishment act, The name of the board should be in the national language (Hindi) with a regional language (Marathi ).

Closure of the BusinessAny one registered under the act ,if he intends to closure the shop/ establishment can close the business after applying to the concerned inspectorHe has to make application regarding the “Closure of the Business” with suitable explanation of the wrapping up the business.For cancellation of the Shop and Establishment Licence following documents are required.1) Updated Property Tax Paid for the said year.2) Dissolution / Expiry of the Lease Agreement in case of the place is rented.3) Last Half Yearly LWF Return if its application in your state.4) Latest Challan payable of PRC (Professional Tax Payable – Employee) and PEC (Professional Tax – Employers) Reciept Challans5) Original PEC And PRC [Professional Tax Registration Certificates]6) The Original Licence of the Shop ActHolidays in a week in shops and commercial establishments

 Obligations and liability of employer

Every shop and commercial establishment shall remain closed on one day of the week.{Except where the day is fixed by the Local authority / State Govt. the employer shall prepare] a calendar or list of such closed days at the beginning of the year, notify such calendar or list to the Inspector and specify it in a notice prominently displayed in a conspicuous place in the shop or commercial establishment:Provisions relating to Opening and closing hours of shops, restaurants and eating houses etc:

Opening hours:-For shops –dealing with milk ,vegetables, etc-5.00a.m others 7.00a.mFor commercial establishments –Not earlier than 8.30 a.mFor residential hotels, restaurants and eating houses- not earlier than 5.0a.m and work not related to be started before 4.30 a.mFor young persons and women –not before 6.00a.mClosing hours:-For shops:- Not later than 8.30p.m.those dealing with pan bidi ,cigarette etc 11.00p.mFor commercial establishment:- Not later than 9.30 p.mFor residential hotels, restaurants and eating houses –not later than midnight , work not to be carried after 00.30a.m .Customers served at the time of closing to be served within 15 minutes.For theatres and public entertainment -00.30 hours.For young persons and women – 7.00 p.m and 9.30 p.mHours of workNine hours a day and 48 hours a week normally

 Offences and Penalties :-

a) Display the “Shop and Establishment” certificate have to be displayed prominently in the shop.b) Keep a Visitor’s book and it should be made available for officers/ staff from the Municipal corporations, who come to inspect the shop owner’s premises.c) Display the signboard of the shop in Marathi script and National Language .d) It is compulsory for a shop owner in Maharashtra to keep the shop closed for one day in a week.Notice of the holiday has to be prominently displayed in the shop/ establishment.e) The employer cannot deduct wages of permanent employees for the weekly off day.f) The shop-owner/Establishment /employer can choose the day of the week, for which he wants to keep the shop closed . But that day will be either Sunday (Public holiday under the Negotiable Instrument Act, 1881) OR Monday (Zonal weekly off as fixed by BMC,(for Mumbai jurisdiction) for others concerned Municipal authorities) but implemented by S&E Senior Inspector).If the shop owner wants to change the day of the weekly off (from Sunday to Monday or vice versa), does he have to give it in writing to the BMC, during the annual renewal.

1 Contravention of Section 12: Hawking prohibited before opening and after closing hours of shops(1) No person shall carry on in or adjacent to a street or a public place the sale of any goods before the opening and after the closing hours fixed under sections 10 and 11 for the shops dealing in the same class of goods in the locality in which such street or public place is situate:[Provided that nothing in this sub-section shall apply to the sale of newspapers]- Fine Rs1000-50002 Contravention of section 18(-2) It shall not be lawful for an employer to call an employee at, or for an employee to go to, his shop or commercial establishment or any other place for any work

in connection with the business of his shop or commercial establishment on a day on which such shop or commercial establishment remains closed. Fine Rs.500-50003 Contravention of section 24,31, 65 by employer-other provisions regarding weekly holiday regarding Fine Rs.500-50004 False entries by employer/ manager in registers etc- Fine Rs.1000-50005 Wilful obstruction of Inspector-Fine Rs.1000-5000

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One Response to “Bombay Shops and Establishments Act, 1948”

1. buy web graphics says on August 6th, 2012 at :

Great post, thanks for taking the time to write it.

 

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