The Shops and Establishment Act is a state legislation act and each state has framed its own rules for the Act. The object of this Act is to provide statutory obligation and rights to employees and employers in the unauthorized sector of employment, i.e., shops and establishments. This Act is applicable to all persons employed in an establishment with or without wages, except the members of the employers’ family.
This Act lays down the following rules:
Working hours per day and week.
Guidelines for spread-over, rest interval, opening and closing hours, closed days, national and religious holidays, overtime work.
Employment of children, young persons and women.
Rules for annual leave, maternity leave, sickness and casual leave, etc.
Rules for employment and termination of service.
Under this Act, registration of shop / establishment is necessary within thirty days of commencement of work.
Fifteen days of notice is required to be served before the closing of the establishment State government can exempt, either permanently or for specified period, any establishments from all or any provisions of this Act.
Documents to prove the existence of the firm: e.g.
Certificate of incorporation / partnership deed