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     Shops and Establishements

 

Bombay Shops & Establishment Act, 1948

Introduction

 By repealing the old "Bombay Shops & Establishments Act, 1939", a new enactment known as "The Bombay Shops & Establishments Act, 1948" was brought into force from 11th January 1949 on the basis of Mr. Shantilal Shah’s Committee’s Report.

This act is a social piece of legislation of the State Government enacted to prevent sweat labourers of Un-organized sector and to regulate the condition of work and employment and therefore to secure maximum benefits to the employees working in different categories of establishment viz. Shops, Commercial Establishments, residential hotels, restaurants, eating houses, theatres and other places of public amusement or entertainments are mainly protected by the provisions of this act. For the jurisdiction of Greater Mumbai by virtue of the statutory provisions of Section 43 of the said Act subject to the overall supervisions of the State Government through the Commissioner of Labour, Mumbai.The shops & Establishments Department is headed by the Chief Inspector, Shops & Estts. the Chief Inspector, Shops & Establishments is assisted by Four Deputy Chief Inspectors.

  • The Bombay Shops & Establishments Act, 1948.
  • The Minimum Wages Act, 1948.
  • The Payment of Wages Act. 1936.
  • The Workmen’s Compensation Act, 1923.
  • The Industrial Employment (Standing Orders) Act, 1946.
  • The Maternity Benefit Act, 1961.
  • The Child Labour (Prohibition and Regulation) Act, 1986.

Forms and Formalities

  • Form 'A': This form is prescribed for registration of the Estts. under Bombay Shops & Estts. Act, 1948. Registration is made under Sec 7(1)(4) of the said act.
  • Form 'B': This is prescribed for the periodical renewal of registration certificate say for one year or three at a time. Renewal is made under sec 7(2A) of the Bombay Shops and Estts. Act
  • Form 'E': This form is prescribed for making any subsequent change in the information already submitted in form 'A'.
  • The Registration Certificate is generally valid upto the end of the calendar year for which it is granted under Sec. 7(2A) it is required to get every Registration Certificate renewed for next calendar year fifteen days before the date of expiry of Registration Certificate in hand by submitting prescribed form 'B' alongwith prescribed renewal fees to the concerned Shop Inspector.
  • As per Sec. 7(2B), the renewal of Registration Certificate can be made for 3 calendar years at a time at the option of the employer by paying requisite for that period. In such cases the Registration Certificate shall be valid upto the end of 3rd calendar year including and from the year to which it is granted or renewed as the case may be.
  • If the renewal application is not made within the period prescribed but it is made within thirty days after the date of expiry of Registration Certificate or the renewed Registration Certificate as the case may be, then in such cases an additional fee as late fee equal to half of the fee payable for normal renewal of Registration Certificate is charged .

Compliance

  • During the course of enforcement the inspectors have to visit various establishments and to detect breaches of the provisions of the Act and rules framed there under and to launch prosecutions on defaulters accordingly.
  • The major breaches of the provisions of the Act consist of non-registration, non-renewal, opening of establishment before prescribed hours, closing of establishments later than prescribed hours, exceeding total hours, continuous work without rest interval, spread over, not granting privilege leave, keeping establishment open on weekly closed day, calling employees for work on their weekly offs, employing female employees after prescribed hours, employing child labour, not providing Identity Cards to certain class of employees, not paying wages as per rates prescribed under Minimum Wages Act. etc.
  • The major of breaches of the provisions of rule are of the nature of procedural lapses. Viz. Not maintaining prescribed register of employment, leave register, visit book, lime washing register, not providing leave book to the employees or not making suitable entries therein, not producing requisite record register, notices for inspection on demand, not displaying name board in Marathi in Devnagari Script etc.

Maintenance of Registers

  • Generally the following Registers/ records/ notices etc. are to be kept by the different categories Register of Employment :
  • Employers of Shop or Commercial Establishment ---- In prescribed form ‘H’ or ‘J’ as the case may be. Register of leave in form ‘M’ Leave Book in form ‘N’ Notice in form ‘L’ specifying the days of holidays.
  • To maintain a Muster-Roll – Cum-Wage Register as laid down under Rule 27(1) of Maharashtra Minimum Wages Rules 1963.
  • Notify to the Sr. Inspector (Shops & Establishments) at the beginning of the every calender year regarding list of closed day of the respective year.
  • The employer has to provide Identity Cards to the certain class of employees.
  • The Employer has to apply for seeking permission to maintain computerized records
  • The employer also has to obtain permission for ladies working beyond 8.30 p.m. under Sec 33 of the Act. (However as per the notification dated June 2002, Government has waived such conditions with respect to certain class of industries including CALL CENTRES.

F A Q s ( Frequently Asked Questions )

Q. Is it necessary to display the Registration Certificate at the Establishment ?
Ans: Yes. The Registration Certificate must be prominently displayed in a conspicuous place at the establishment.

Q. Is it necessary to intimate to the Sr. Inspector (Shops & Estts) regarding closing of the establishment for business ?
Ans: Yes. As per provisions of Sec. 9, it is incumbent on the employer to intimate to the Shop Inspector of his area in writing within 10 days on closing of the establishment.

Q. Is the fee under Bombay Shops & Establishments Act is prescribed by the Municipal Corporation of Greater Mumbai ?
Ans: No. the powers to the prescribe or to revise or to make any changes in the Bombay Shops & Establishments Act fee are fully vested in the State Government.

Q. Where to approach for redress of any complaint by the employees or their Union?
Ans: They have to approach the Sr. Inspectors (Shops & Establishment) of the respective Municipal Corporation of Greater Mumbai Ward in case any complaint about exploitation of employees etc.

Q. Whether the Registration Certificates or prescribed forms are issued at the Head Quarter of the department?
Ans: No. Registration Certificates or prescribed formats issued from the Head Quarter of the departments. These are issued from the offices of Sr. Inspector (Shops & Establishments) of respective Municipal Corporation of Greater Mumbai Ward only.

Required Documents for registration

  • Memorandum of Articles of Association/Trust deed.
  • Premises purchase Agreement.
  • List of Directors/Managers.
  • 1st Bank Account opening proof/Bank Account No. details.
  • First Income Tax Assessment order/PAN
  • BMC declaration
  • Date of commencement of business

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