THINGS TO KNOW BEFORE YOU REGISTER-SHOP & ESTABLISHMENT ACT-REGISTRATION
The Shops and Establishment Act is a state-specific statute that varies per state. The goal is to regulate and improve workers’ working conditions and rights, such as wage payments, leave, holidays, and work hours.
Shop and Establishment Act has been established to provide statutory obligation and rights to employees and employers in the unorganized sector of employment.
Being a state legislation, each state has framed its own rules for the Act. State government can exempt, either permanently or for a specified period, any establishments from all or any provisions of this Act.
Meaning of Establishment:
An Establishment includes
• A commercial, trading, banking or insurance establishment
•An establishment or administrative service in which persons employed or mainly engaged in office work
•A hotel, restaurant, boarding or eating house, a cafe or any other refreshment house
• A theater, cinema or any other place of public amusement or entertainment
Meaning of Shop:
Shop means any premises:
• where goods are sold, either by retailer or wholesaler
• where services are rendered to customers
• It includes an office, a store-room, godown, warehouse or work place, whether in the same premises or otherwise, used in connection with such trade/ business
A shop does not include a factory, a commercial establishment, residential hotel, restaurant, eating house, theater or other place of public amusement or entertainment.
There is no need of any documents at the time of Online Registration. Just the form is to be filled online.
It is compulsory to get registered under the Shops and Establishment Act, if one owns any shop or establishment. The online registration can be adopted by anyone who wishes to register his/her establishment under the Delhi Shops and Establishments Act-1954. Establishment for this purpose will include a shop, commercial establishment (e.g. an office), residential hotel, restaurant, eating-house, theatre or other places of public amusement or entertainment. In addition, the government can notify other types of establishments which will be governed by the act.
Failure to get the establishments registered under the Delhi Shops and Establishment Act is a punishable offence.
The penalty provided for contravention of any provision of the Act and rules is fine which shall not be less than Rs.25/- and which may extend to Rs.250/-.
However, if a person is convicted for willfully making false entries in any record, register or notice, he shall be liable for imprisonment for a term not exceeding three months.
Most frequent questions and answers
The object of Delhi Shops and Establishments Act-1954, is to give some minimum benefits and relief to the vast unorganized sector of employees, employed in Shops and Establishments.
This Act is applicable to all Shops and Establishments in the whole of the National Capital Territory of Delhi.
Yes, registration is mandatory under the Act
The occupier of every Shop or Establishment shall maintain records and registers and display such other notices as may be prescribed.