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Shops and Establishments are required to obtain a shop and establishment license to conduct business. However, this license would fluctuate according to state requirements. For instance, the licensing procedure for shops and establishments in Rajasthan would differ from that of shops and establishments in Uttar Pradesh. The Rajasthan Shop Commercial & Establishments Act, 1958 is a vital piece of legislation that governs the working conditions and employment regulations for shops, commercial establishments, and other establishments in the state of Rajasthan, India. This article provides detailed insights about the Shops and Establishment Act for Rajasthan State.
An Overview on Rajasthan Shop & Establishment Act, 1958
The Rajasthan Shop and Establishment Act, 1958 regulates active shops and businesses in the state. State Shop and Establishment Acts vary. The Act defines a store as a place that sells goods or provides services. It includes offices, godowns, storerooms, and warehouses for business.
Business, financial, trading, insurance, and office services are commercial establishments. Hotels, boarding houses, restaurants, cafes, theatres, and other public entertainment facilities are included.
Rajasthan’s Shop and Establishment Act applies to all commercial establishments. It regulates working hours, overtime, leave policies, rest periods, opening and closing hours, closed days, national and religious holidays, wage payments, deductions, register maintenance, and other issues.
Before applying, it is crucial for the applicant to comprehend both the federal and state regulations pertaining to shops and establishments. Moreover, these regulations apply to employees in both the organized and unorganized sectors. The applicant must meet various requirements for working conditions. In addition, the terms and conditions of employment are also governed by this license. Therefore, it is essential to comply with state regulations.
Principal goals of the Shop & Establishment License
Following are the principal goals of this License:
- Giving states the authority to establish laws based on regional culture.
- To transform the unorganized sector into organized one.
- To boost small business registration
- To control the unorganized sector’s wages, work hours etc.
- To prevent child labour
- Give female employees preferential treatment.
Information that needs to be furnished for Shops and Establishments License Registration
Following information need to be furnished for Shop & Establishment License in Rajasthan:
- Firm name and address.
- Name of Manger
- of days of holidays.
- Nature of Establishments.
- of employees in an establishment
Documents required for Shops and Commercial Establishments Registration in Rajasthan
Following are the documents required in Rajasthan for registration:
- PAN, Aadhar card, driver’s license, and voter ID with owner photo.
- Front view photograph of the shop with the owner.
- Electricity bill
- Certificate of incorporation
- AOA/MOA of the firm/LLP agreement of the company
- A copy of the board resolution or, in the case of a partnership firm.
- A list of the partners/directors, their addresses, and any IDs.
- Information about the current workers.
Registration of The Shop & Establishment under the Rajasthan Shops & Establishments Act
To avoid fines under the act, each qualifying enterprise must apply for a license within 30 days after the start of business in Rajasthan
- Log in to labour department website of Rajasthan to get registered.
- Fill the application form with required details.
- Details of owner and business need to be filled.
- Upload the required documents.
- Signatures need to be uploaded.
- Fees need to be paid.
- Inspection of the application by the labour department, and an inspector may be appointed to carry out a premises inspection if necessary.
- Approval of the application by the authorities and issuance of a certificate.
The registration application must be completed and given to the Chief Inspector of the relevant area, along with the required fees, to obtain the registration certificate offline. Following satisfaction with the accuracy of the application, the Chief Inspector will provide the registration certificate to the owner or proprietor.
The shop registration certificate in Rajasthan is only valid for 5 years. After this period expires, every business needs to renew their licence.
Procedure for renewal of Application in Rajasthan
Following is the procedure for renewal of Application in Rajasthan:
- Log on to the Rajasthan labour department website and choose the registering procedure as an individual or an entity.
- Use the login ID you were given upon registration to log in.
- Enter the information, complete the form with your information, and submit it.
- Make a license renewal request using the application ID.
- You will be prompted by the form to re-upload each of your papers.
- Your application status will change to “Under Scrutiny” as soon as you make a payment.
- Your work is not finished here until this status switches to ‘Completed’. This shift typically takes up to a week to manifest.
- When it’s finished, you may choose to “Download Certificate” from the option that will appear on the right side of your screen.
What are the rights governed by the Shops and Establishments Act of Rajasthan?
The Shop and Establishment Act basically includes amendments and laws relating to:
- Working Hours Regulation: No employee may work more than nine hours per day or forty-eight hours per week. provided that the total number of hours of work including overtime shall not exceed ten hours in any day except on days of stock taking and preparation of accounts. Further, an employee’s quarterly over-time hours cannot exceed fifty in a quarter. Twelve- to fifteen-year-olds should not work more than three hours per day.
- Inspector should be told about the closing of the business: When an employer closes a business, he or she must let the Inspector know in writing within ten days. When the Inspector gets the information and is sure it is correct, he or she will take the business off the list of establishments and cancel the registration certificate.
- Over Time: When an employee works more than nine hours in a day or more than 48 hours in a week, he or she is entitled to 1.5 times the normal rate of pay.
- Leave Policy: Any worker who has worked for 240 days or more in a calendar year will get paid leave for several days equal to 1 day for every 20 days of work done in the previous calendar year, plus 8 days for casual leave.
This will happen in the following calendar year. During the year, employees can earn up to 45 days of paid time off. After hiring an employee, the employer must give them a letter of appointment.
- Opening and Closing Hours: No business can open earlier than the time set by a general or special order of the State Government or stay open later than that time. After doing an investigation in the way that is required, the State Government can decide by general or special order when a business or group of businesses can open or close in a certain area.
- Annual Report Submission: For the year that ends on December 31, every employer must send the Annual Return in Form “R” to the website within two months.
- Intervals: An employee’s workday can’t be longer than five hours, and he or she can’t work for more than five hours without taking at least a half-hour break.
- Maternity Benefits: A woman must get a leave for at least 12 weeks and for as long as her doctor says she needs to be. Must have a good way for employees to get enough water to drink.
Every boss must make sure that there are first-aid supplies at the place of work. Every employer must follow and implement all the safety measures that are recommended in the government’s Fire and Safety Policy, which may be further updated periodically.
- Management of Records: The following records need to be managed:
- Permission of Women Worker to work in Night Shift as per Form L.
- Keep record as instructed on Form M.
- Weekly vacation, shift notice according to Form N.
- Muster Roll- Wage Register as per Form Q
- The records and files need to be kept for three years.
- Information about people doing sensitive work: The names of the people who give confidential information to the business are listed in Form “U.” This needs to be sent in once a year and any time something changes during the year.
Modifications in the Establishment as specified in The Rajasthan Shops and Establishments Act
Any changes to the business should be reported to the inspector, as required by the Rajasthan Shops and Establishments Act. Any changes to the information in Section 4 must be reported to the inspector on the form that is given.
Within 7 days of the changes, the statement should be sent in, after receiving and verifying such a notice, the inspector will make the required changes to the Business Register, correct the registration certificate, or, if necessary, issue a new registration certificate.
Establishments exempted under the Act
In the following situations, the Rajasthan Shops and Establishments Act does not apply:
- Reserve Bank of India Office
- Establishment governed by the Factories Act, 1948.
- Offices of, or under, the federal, state, or local governments, except for commercial undertakings.
- Any industry or service that provides the public with water, power, or light, as well as any railway, water transport, postal, telegraph, or telephone service.
- Place where sick or mentally ill people can get medical care
- People whose jobs change often, like tourists and caretakers
- A trade show or market where you can sell your work for a good cause or something other than your own gain.
- A library where you can’t rent books or magazines
- Facilities that are used for things other than making money, such as charity, church, or education.
- Chemist and druggist establishments.
Penalty
To make sure that employers take the rules of Shop and Establishment Act seriously, a fine of Rs.1 Lac has been set for breaking them, and a fine of up to Rs.20,000/- per day for continuing violations. The maximum fine has gone up to Rs. 500000.
Takeaway
The Rajasthan Shop Commercial & Establishments Act, 1958 plays a crucial role in safeguarding the rights and interests of employees working in various establishments across the state. By regulating working conditions, employment terms, and other essential aspects, the Act aims to foster a harmonious work environment while promoting the growth of trade and commerce. It is vital for both employers and employees to familiarize themselves with the provisions of this Act to ensure compliance and contribute to a fair and equitable working environment in Rajasthan.
