Shop Act

Shop Act

The Shop Act is an Act that lays down that every shop owner or owner of a commercial establishment should ensure that he or she has a Shop and Establishment License within 30 days from opening that establishment. This license is obtained from the Chief Inspector of that area. If you have not yet got your Shop Act License, now is the time to do so.

It isn’t difficult to get a Shop and Establishment Act License. All you have to do is fill up an application form, mentioning the name of the employer, establishment, address and category of the establishment along with the number of employees and other desired information.

What is the purpose of the Shop and Establishment License?

Workers in the unorganised sector don’t have any other governing body to ensure that their rights and working conditions are as they should be. This is the reason for implementing the Shop Act License. Although the rules of the Shop/Trade License vary from one state to the other, it brings about a certain amount of consistency within a given area – in terms of leaves given, work hours, payments, etc.

The Shop and Establishment Act regulates the functioning of businesses wherein any trade is carried out. Not only does this apply to commercial establishments but also to charitable trusts, profit-run educational institutions and other premises having a brokerage, stock or insurance activities carried out. Some of the areas that fall under the regulations of the Shop and Establishments Act are the rest interval for workers, opening and closing hours, maternity leave, sick and causal leave along with rules regarding overtime work, national and religious holidays, and so on.