|S.No||Subject Matter||Old act||New Act|
|1||Applicability||The Old Act was applicable to all the establishments, irrespective of the number of workers employed.||The New Act applies to establishments employing 10 or more workers. However, establishments with less than 10 workers are required to intimate the facilitator (in whose jurisdiction the business is located) regarding certain details about their businesses. The provisions of the New Act will not apply to establishments already having valid registration under the Old Act, until the expiry of their registration.|
|2||Definition of "employer"||The definition included a person owning or having ultimate control over the affairs of an establishment.||The definition under the Old Act has been elaborated to specifically include a partner of a firm (where the employer is a firm) or a director of a company (where the employer is a company).|
|3||Definition of "establishment"||The definition of the term "establishment" was covered under two heads, which were "establishment" and "commercial establishment".||The New Act prescribes a comprehensive definition in respect of an "establishment", which includes the business of banking, insurance, brokerage, and the establishments of medical practitioners, architects, engineers, accountants, tax consultants or any technical or professional consultants, along with shops, hotels and restaurants.|
|4||Definition of "employee"||The definition included persons wholly or principally employed, whether directly or through any agency, and included an apprentice.||The definition of the term "employee" has been replaced by the term "worker", which includes a person employed (including through an outsourcing agency) to do any manual, unskilled, skilled, technical, operational or clerical work, but does not include an apprentice.|
|5||Cancellation of the registration certificate||There was no provision pertaining to the cancellation of the registration certificate.||The labor department has the power to cancel the registration certificate and remove an establishment from the register of establishments, if such an establishment is found to have obtained its registration through misrepresentation or suppression of material facts, or by submitting forged or false documents.|
|6||Leaves and holidays||The Old Act prescribed the following: • 4 days of paid festival holidays in a calendar year; • 1 day off in a week; • 21 days of privilege leave for employees who have worked for 240 days or more in a calendar year; • 7 days of sick leave and 7 days of casual leave||In terms of the New Act, workers are allowed the following: • 8 days of paid festival holidays in a calendar year; • 1 day off in a week, even if the shop or establishment is kept open on all days in a week; • Privilege leave at the rate of 1 day for every 20 days of work, provided the worker has worked for more than 240 days in a previous calendar year; • 7 days of sick leave and 7 days of casual leave|
|7||Welfare provisions (including crèche facilities)||The Old Act contained provisions relating to cleanliness, ventilation, lighting and first aid.||In addition to prescribing obligations for the employer with respect to the health and safety of workers, the New Act prescribes that every shop or establishment, which employs 30 or more women workers, should maintain a suitable room as a crèche for the children of such workers. A group of establishments can also provide a common crèche within a radius of 1 kilometer (approximately 0.62 miles), subject to the conditions which are prescribed by the labor department. Where there are 100 or more workers engaged in an establishment, employers are also required to maintain a canteen.|
|8||Discrimination against women employees||The Old Act had no specific provision in relation to discrimination against women employees.||The New Act states that no woman worker will be: • discriminated against in matters of recruitment, training, transfers, promotion or wages; and are required to or allowed to work in any establishment except between the hours of 6 a.m. and 9 p.m., unless the labor department is satisfied with the safety and transportation measures implemented by the organization, and issues an order allowing women to work during night shifts.|
|9||Wages for overtime||The Old Act prescribed that all employees (other than those working at residential hotels or restaurants) will be entitled to wages for overtime, at the rate of 1.5 times their ordinary wages, in case they work for more than 9 hours a day or for more than 48 hours a week.||The New Act states that every worker who is required to work beyond 9 hours a day or 48 hours a week will be entitled to wages at the rate of 2 times his or her ordinary wages for such overtime work. The total number of overtime hours cannot exceed 125 hours in 3 months.|
|10||Opening and closing hours of the establishment||Under the Old Act, there was no specific provision with respect to keep establishments open 24/7.||Any shop or establishment situated in, on, or around municipal corporation areas, hospital premises, national highways, railway platforms, petrol pumps and state roadways bus station premises may be kept open for 24 hours, as long as the establishments comply with requirements relating to working hours, weekly offs, leave and holidays, spread-over and overtime. Other shops and establishments may be kept open throughout the year, except between 11 p.m. and 6 a.m., as long as the employers comply with requirements relating to working hours, weekly offs, leave and holidays, spread-over and overtime.|
|11||Penalties||The maximum penalty prescribed under the Old Act for any contravention was ₹750 (approximately USD 10). However, in certain cases of continuous violation, penalties could extend to ₹ 10 (approximately USD 0.10) for every day of such violation.||The New Act prescribes a penalty of up to ₹50,000 (approximately USD 716), and if the contravention leads to any accident causing injury or death of a worker, the contravention shall be punishable with a fine ranging from ₹25,000 (approximately USD 358) to ₹ 50,000 (approximately USD 716) and/or with imprisonment of up|
Provides legal status to an establishment
Ease of opening a current bank account
Ensures peace between employer and employee
Offers better pay and holiday policy
Restricts unethical business practices
Promotes growth and expansion
Establishes brand image in the market
1.Submit an application in the prescribed form to the Inspector of the area within 30 days of starting any work in your shop/establishment. The application is to be submitted along with the prescribed fees and should contain the following information:
2. Upon receiving the application for registration and the fees, the Inspector shall verify the accuracy and correctness of the application. Once suitably satisfied, he shall enter the details in the Register of Establishments and issue a registration certificate of your establishment to you. This certificate will be valid for 5 years and has to be renewed thereafter.
3. Remember, the registration certificate has to be prominently displayed at your establishment.
The Shops and Establishments Act regulates conditions of work, lists rights of employees in the unorganized sector and provides a list of obligations for every employer. It applies nationwide to shops, commercial establishments, hotels, restaurants, eating houses, theatres and other places of public amusement or entertainments. Every shop and establishment is required to register itself under the Act within 30 days of commencement of work, whether or not it has employees
Every business has to be maintaining the following records under Shops and Establishments act:
Under Shops & Establishments Act Registration applicable, if you are opening a shop or commercial establishment, one comes under the purview of Shops & Establishments Act.
A Commercial Establishment including:
While setting up a commercial entity there are many compliances to be followed, one such important compliance is the Shop Establishment license. The licenses are important for shop and establishment registration. Sometimes, employers are unaware/ignore this important labor compliance while setting up an entity.Shops & Establishments Act Registration
As a business owner are compulsorily required to get the registered under the Shops and Establishment Act, process of registration mention as below: Step 1: Submit an application in the prescribed form to the Inspector of the area within 30 days of starting any work in your shop/establishment. The application is to be submitted along with the prescribed fees and should contain the following information:
Step 2: the Inspector shall verify the accuracy and correctness of the application.
Step 3: Once suitably satisfied, he shall enter the details in the Register of Establishments and issue a registration certificate of your establishment. Once this registration certificate is issued, it will be valid for one to 5 years and has to be renewed thereafter.
All you are required to do is fill a form prescribed under the Act which requires the applicant to fill in details such as the total number of employees, name and address of the employer and manager, etc. An application form and fees detailing:
As per Section 4 of the Act certain establishments are exempted which are as follows;
The shop and registration fee in Uttar Pradesh varies from ₹100 to 500 depending on the conditions under which it is applied for. For example, if one worker is employed it is ₹100 if 3 workers are employed it is ₹150. if more than three and less than 10 workers are employed it is ₹200.
A license can be denied/cancelled under following conditions: -