In the realm of business operations, every entrepreneur must adhere to official regulations to ensure proper functioning within a state. The Shop and Establishment Act, inaugurated in 1962, was established with a singular objective – safeguarding the rights of employees.
This Act encompasses a wide array of rules and regulations, encompassing aspects such as work hours, wages, terms of service, rest intervals, overtime work, opening and closing times, holidays, maternity leaves, and more. This article delves into the intricate process of registering a shop or establishment in Uttar Pradesh.
Eligibility
Any proprietor of a shop or commercial establishment providing services to customers must obtain this license. This extends to offices, warehouses, or any space dedicated to wholesale or retail trade. Establishments are given a grace period of three months from their initiation or from the commencement of the Act, depending on which comes later.
Exempted Establishments
- Individuals holding confidential, supervisory, or managerial positions in establishments with more than five employees.
- Individuals working intermittently as travelers or canvassers.
- Government offices.
- Offices of local authorities.
- Hospitals and asylums.
- Family members of the employer.
Online Registration Process
Follow this step-by-step guide to successfully register your shop or commercial establishment in Uttar Pradesh:
Step 1: Visit the official portal of the labor department of the Uttar Pradesh government.
Step 2: Create a profile for your business on the portal using your credentials.
Step 3: Complete the registration by providing all the necessary details and uploading the required supporting documents (listed below).
Step 4: Pay the prescribed processing fees to finalize the registration.
Step 5: After payment, enter the challan details, bank name, and date of payment in the application form.
Subsequently, the submitted forms undergo review by a labor enforcement officer. Upon verification and scrutiny, a shop and establishment license is issued.
Required Documents
The documents required for different types of establishments are as follows:
- Sole Proprietorship
- Aadhar card
- PAN card
- Proof of bank account
- Registered office proof
- Partnership Firm
- PAN card
- Original partnership deed
- Aadhar card of applicant
- ID and address proof of all partners
- Declaration affidavit
- Registered office supporting documents
- Rent agreement or NOC (if rented space)
- Private Limited Company
- PAN card
- Director’s address proof
- Registered office address proof
- Registered document for office space
- Notarized copy of lease or rent agreement
Registration Fees
| Number of Employees | Fees for Shops |
|---|---|
| No employees | ₹ 40 |
| 1 to 5 | ₹ 200 |
| 5 to 10 | ₹ 300 |
| 11 to 25 | ₹ 500 |
| More than 25 | ₹ 1000 |
Validity of Registration Certificate
The shop act license is valid for five years, requiring renewal thereafter to avoid legal complications.
Rules and Laws of Uttar Pradesh Shop and Commercial Establishment Act
Working Hours
Work hours are regulated to ensure the well-being of employees:
- No shop or establishment can open earlier or close later than the designated hours.
- Working hours for employees are as follows:
- Five hours for a child
- Six hours for a young person
- Eight hours for any other employee
- Exceptionally, employees may work up to 10 hours on specific days, such as during stock-taking or account preparation.
Close Days and Holidays
- Employers can close their shops or establishments for one day a week and on public holidays.
- Changing the close day on a public holiday necessitates approval from the appointed authority.
- Except for watchmen or caretakers, every employee is entitled to a holiday on the close day, which aligns with a public holiday and one day each week.
Annual Leaves
- Employees who have worked for the same employer for a year or more are eligible for 15 days of earned leaves each year, in addition to public holidays and close days.
- Caretakers or watchmen employed continuously by the same employer can avail 60 days of earned leaves annually.
- An employee who has worked for six months or more is entitled to 15 days of sick leave annually.
- Any unused earned leave can be carried over to the following year, provided the total does not exceed 45 days.
Wages Distribution
- Employers are obligated to set a wage period and pay remuneration to employees upon its expiry.
- The wage period should not exceed one month.
Employment of Children and Women
- Children under 14 years of age are prohibited from working in any establishment except as apprentices.
- Women and children are not allowed to work at night under any circumstances.
Maternity Leave and Benefit
- Within the first six weeks after childbirth, no woman can be employed in a shop or commercial establishment.
- Female employees are entitled to benefits under this Act during maternity leave, but not wages.
- A woman employee can submit a seven-day notice to be relieved from duties, applicable for the six weeks preceding the delivery date.
Miscellaneous Rights of Employees
- Work hours must include an hour of rest and not exceed five hours of continuous work.
- Notices indicating close days must be prominently displayed.
- Upon termination or resignation, employers must pay any due earned leave.
Record Maintenance
- Employers are required to maintain all registers and records of the establishment, alongside displaying necessary information visibly.
Termination of Employment
- Employees, except those engaged for a specific time or on leave, must provide a 30-day notice or as stipulated in their employment terms for termination.
- Failure to fulfill this provision may result in forfeiture of unpaid wages.
Violation of this Act
- Failure to comply with provisions or rules stipulated in this Act constitutes an offense.
Benefits of Registration Certificate
Official Recognition
- Acquiring a shop and establishment license confers legal and official recognition on the business, enhancing trustworthiness among customers.
Proof of Business
- The license provides tangible proof of a legitimate business operation, bolstering credibility in a competitive market.
Hassle-Free Inspection
- Regular inspections by state and local authorities are simplified with a valid license, preserving work efficiency and reducing disruptions.
Enhanced Management
- Registration enforces adherence to government guidelines, promoting systematic management in previously unorganized sectors.
Ethical Business Practices
- The Act prevents unethical practices and maintains business ethics by prohibiting practices like child labor.
For those contemplating business establishment, applying for shops and establishment registration in Uttar Pradesh is paramount. This not only elucidates the rights and benefits of business ownership but also streamlines the registration process, paving the way for seamless operations.
In conclusion, the Shop and Establishment Act serves as a crucial framework that benefits both business owners and employees, fostering an environment of legality, ethics, and well-being. Adhering to this Act ensures a thriving business ecosystem while safeguarding the rights of those who contribute to it.
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