Shops & Establishment Act

Objective: Under the factories act most of the manufacturing establishments are covered, but a large section of trade and commerce is not covered under the factories act and needs to be regulated. Hence each state was empowered to make regulations for shops and other establishments like Banks, Hospitals, offices of Engineers, Charted accountants, lawyers etc. Hence each state comes out with their acts to govern these establishments.

Since these are state regulations most central government establishments like PF office, ESIC office, Railway stations etc. are not governed by these acts.

Definition: There is a specific meaning for each term used in this act hence need to understand clearly the context of this act

Apprentice: Person who is employed/whether on payment of wages or not, for the purpose of being trained in any trade, craft or employment in any establishment;

Child: A person who has not completed his 15th year of age.

Young person: A person who is not a child and has not completed his seventeenth year

Closed:  Means not open for the service of any customer, or for any business, of the establishment, or for work, by or with the help of any employee, of or connected with the establishment

Commercial establishment: An establishment which carries on, any business, trade or profession or any work in connection with, or incidental or ancillary to, any business, trade or profession and includes the establishment of any legal practitioner, medical practitioner, architect, engineer, accountant, tax consultant or any other technical or professional consultant and also includes] a society registered under the Societies Registration Act, 1866 (XXI of 1860), and a charitable or other trusts, whether registered or not. For the purpose of gain or not.

Employee: A person wholly or principally employed, whether directly or through any agency, and whether for wages or other consideration in or in connection with any establishment; and includes an apprentice, but does not include a member of the employer’s family

Employer: A person owning or having ultimate control over the affairs of an establishment;

Establishment: A shop, commercial establishment, residential hotel, restaurant, eating house, theatre, or other places of public amusement or entertainment to which this Act applies and includes such other establishment as the “[State] Government may, by notification in the Official Gazette, declare to be an establishment for the purposes of this Act

Factory: Any premises which is a factory within the meaning of clause (m) of section 2 of the Factories Act, 1948,(LX1II of 1948)

Goods: Includes all materials, commodities and articles.

Inspector: An Inspector appointed under section 48.

Local area: Any area or combination of areas to which this Act applies.

Local authority: A body specified in Schedule I-A and includes any other body which the State Government may, by notification in the Official Gazette, declare to be a local authority for the purposes of this Act;

Manager: A person declared to be a manager under section 7.

Member of the family of an employer: The husband, wife, son, daughter, father, mother, brother or sister of an employer who lives with and is dependent on a such employer.

Opened: Opened for the service of any customer, or for any business of the establishment, or for work, by or with the help of any employee of! or connected with the establishment

Period of work: The time during which an employee is at the disposal of the employer

Prescribed authority: The authority prescribed under the rules mat under this Act

Register of establishment: A register maintained for the registration of establishments under this Act;

Registration certificate: A certificate showing the registration of an establishment.