Shops & Establishments Act
Serving as a labor license adopted by governments, the Shops and Establishments Act governs working conditions and outlines employee rights in the unorganized sector. It requires all shops and establishments to register within 30 days of opening, irrespective of whether they employ staff.
Objectives
With relation to working conditions, several laws and norms have been passed by each Indian state. The goal is to ensure equal benefits for employees working in a variety of enterprises, including retail stores, commercial buildings, residential hotels, restaurants, theatres, and other public entertainment venues.
This Act sets rules for:
Working hours (daily and weekly) and rules for work distribution and rest periods.
Business timings, specifying opening and closing hours, days of closure, and compliance with national and religious holidays.
Special provisions for the employment of children, young people, and women.
Regulations concerning yearly, maternity, sick, and other types of leave.
Rules for employment procedures and service termination.
Requirements for record-keeping and maintaining registers.
Mandatory display of notices.
This statute is applicable to commercial establishments such as:
Commercial, trading, banking, and insurance entities.
Administrative or service establishments where the primary activity is office work.
Hospitality venues such as hotels, restaurants, boarding houses, dining houses, and cafés.
Public entertainment venues, including theaters, cinemas, and similar facilities.
Documents Needed To Obtain A Telangana Labor License
The name of the store or establishment.
The business’s complete address.
The type of establishment (e.g., store, restaurant, theatre) and the nature of the business (e.g., bakery, boutique).
The employer’s or occupier’s name.
An identification document for the employer or occupier, such as a passport, Voter ID, or Aadhaar card.
The employer’s or occupier’s PAN card.
Proof of the business’s address, like a lease agreement, deed, or utility bills (e.g., electricity or telephone).
Payment of the applicable Shop Act Registration Fee.
This statute is applicable to commercial establishments such as:
- Once your application is approved, the inspector will verify it, register your establishment, and issue a registration certificate. This certificate must be conspicuously displayed at your business and reissued upon expiration.
- Establishments are responsible for maintaining up-to-date records on employees, including details on penalties, advances, deductions, fines, compensation, and vacation days. Specific requirements may vary by state. Annually, documents related to employee count and holidays must be submitted to the Municipal Corporation office.
- Should there be any changes to the partners’ or directors’ addresses or status, the department must be notified via an online form within 30 days of the change. Additionally, annual returns must be filed electronically in Form U on or before January 31st of the following year.
