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THE SHOP AND ESTABLISHMENT ACT, 1948

THE SHOP AND ESTABLISHMENT ACT, 1948. 1

Is the Act applicable to a Shop or commercial establishment situated within the precincts of a factory?. 1

Is an establishment carrying on the business of playing music on occasions such as marriages and other social functions a shop?. 1

Is an association of flat owners, which is formed to look after the welfare and common interests of the flat owners/residents, a shop or a commercial establishment?. 1

If an employer, whose establishment is already registered, starts a new business in addition to the original business on the same premises, is he required to obtain a fresh registration for the new business?. 1

Are the employees of shops and establishments entitled to any additional holidays over and above leave with pay?. 2

What is the effect of the termination of services of an employee without giving such person notice or wages in lieu of notice as per Section 66 of the Act?. 2

Is it necessary to give such notice even when an employee is discharged or dismissed for misconduct?. 2

What type of registers or record is required to be maintained under the Act by an employer?. 2

 

Is the Act applicable to a Shop or commercial establishment situated within the precincts of a factory?

 

If such a shop or commercial establishment is not connected with the manufacturing process of the factory the provisions of the Act will apply to it. Otherwise the provisions of the Factories Act will apply to it. {Section 70}

 

Is an establishment carrying on the business of playing music on occasions such as marriages and other social functions a shop?

 

A place where services are sold on retail basis is also a shop. Therefore, an establishment engaged in arranging for musical performance on occasions such as marriages etc., is a shop.

 

Is an association of flat owners, which is formed to look after the welfare and common interests of the flat owners/residents, a shop or a commercial establishment?

 

Such an association, which is only for the benefit of its members and which is neither carrying on any trade or business nor rendering any services to outsiders, will not come within the definition of the term "shop" or "commercial establishment".

 

If an employer, whose establishment is already registered, starts a new business in addition to the original business on the same premises, is he required to obtain a fresh registration for the new business?

 

As the establishment of the employer is already registered, he has only to notify to the Inspector under section 8 of the Act the change that he has started a new business in addition to the original business on the same premises.

 

Are the employees of shops and establishments entitled to any additional holidays over and above leave with pay?

 

In addition to annual leave with pay an employee of a shop or re-establishment is entitled to a paid holiday on 26th January, 1st May, 15th August and 2nd October every year. {Section 35(4)}

 

What is the effect of the termination of services of an employee without giving such person notice or wages in lieu of notice as per Section 66 of the Act?

 

If the services on an employee are terminated without giving such person any notice or wages in lieu of notice, as per Section 66 of the Act, his termination is bad in law and he is entitled to reinstatement with continuity of service and full back wages

 

Is it necessary to give such notice even when an employee is discharged or dismissed for misconduct?

 

When an employer terminates the services of any employee (by way of discharge or dismissal) for misconduct, the employer need not give any notice to the employee. {Section 66 Proviso}

 

What type of registers or record is required to be maintained under the Act by an employer?

 

Every employer or manager of a shop or commercial establishment has to maintain various registers like register of employment, a register of leave, a visit book, etc, as detailed in Rules made under the Act. He has also to maintain certain records and display certain notices as per the Rules. {Section 62 & Rule 20}