What Is the Shops and Establishments Act?
In Tamil Nadu, a license for a shop or establishment is mandatory: The Tamil Nadu Shop and Establishment Act governs the proper functioning and conduct of businesses in the state. State Labour Departments must issue Shops and Establishments Registrations. In the unorganized sector, the Shops and Establishments Act registration serves as a proof of existence for Small Scale Industries (SSI) and Micro, Small, Medium Enterprises (MSME).
According to The Tamilnadu Shops and Establishments Act, businesses and companies must operate properly and conduct themselves appropriately. Businesses such as shops, residential hotels, restaurants, theaters, places of public amusement, and other places where trade is conducted must register under the act.
How Does the Shops and Establishments Act Work?
This act protects employees’ rights in a major way. As well as Wage Payment and Overtime Work Rules, Maternity Leave and Benefits, Closed Days, Holidays, rules for employment of children, and maintaining records, the act contains all the rules regarding payment of wages and overtime work.
Is It Compulsory for Shops to Register Under the Act?
According to the Tamil Nadu Shops and Establishments (Amendment) Act, 2018, any employer with ten or more employees must register a shop or establishment with the State Government.
Key Definitions of Terms Under the Act
Any place where a business or trade is conducted is considered a shop. An establishment where customers can receive certain services. Offices, storerooms, godowns, and warehouses are included, whether on the same premises or elsewhere, but not restaurants, eating houses, or commercial establishments.
Commercial Establishments includes
- In addition to shops, commercial establishments carry on advertising, commissions, forwarding, or commercial agencies.
- Factory or industrial undertakings’ clerical departments are also included in this category
- Banks, brokers, insurance companies, or joint-stock companies
- This act applies to any establishment declared as an establishment by the State Government.
Exemptions From Registration
The Act requires that organizations register. The Shop and Establishment Act exempts certain establishments from registration. They are granted for the following reasons:
- Managers or employees of any establishment in any position of management
- A caretaker or canvasser is a person who works for a non-profit organization
- Employees who travel as part of their jobs
- Whether it is a central government or state government establishment, a local government establishment, a railway establishment or the Reserve Bank of India
- Oil and gas fields and mines
- Bazaars are used temporarily to hold fairs and festivals for not more than fifteen days at a time
- A separate law for the time being in force in the State governs matters related to establishments that are not factories as defined in the Factories Act, 1948.
Major Elements of the Shop and Establishment Act
The establishment must not hire a child to work. The law defines a child as anyone under the age of 14 years old. Anyone under the age of 17 is considered a youngster.
The maximum number of hours an employee may work in a day or week is eight. Every employee would also have a mandatory weekday off.
Safety and Health: Protecting and ensuring the well-being of employees is compulsory.
Settlement Of Wages: The managers of the establishment must pay the wages of the employees promptly.
As mentioned above, the Shop and Establishment License is mandatory in india.
- Shop and Establishment Act Compliance
- Bombay Shop and Establishment Act 1948
- What You Need To Know About The Shops And Establishments Act