Labour Laws : Bombay Shop & Establishment Act 1948

13 Oct

THE BOMBAY SHOPS & ESTABLISHMENTS ACT 1948
APPLICABILITY.
n 1. The Act extends to the State of Maharashtra.
n 2. Is intended to regulate the conditions of work and employment in commercial establishments, shops, eating houses, restaurants, theatres, etc.
n 3. The Act applies to all employees (including apprentices) and also covers indirect labour, that is contract labour.

OBLIGATIONS OF THE EMPLOYER

1. Obtain a license from the authorities.
2. Display it in the premises.
3. Inform the authority of any changes.
4. Renew the license to maintain validity.
5. Opening Hours not earlier than 8.30 AM.
6. Closing hours not later 8.30 PM.
7. Working Hours: Maximum 9 hours a day and 48 hours in any week
8. Rest interval: At least 1 hour – Within 5 hours from starting time.
9. Spread-over in a CE shall not exceed 11 hours
10. Overtime at double the rate of payment for work done beyond the limits of hours of work.
11. Special provisions regarding hours of work, etc. for ‘Young persons’ (those are more than 15 years of age but are less than 17 years)
12. A paid weekly-off if employee has put in employment for 6 days.

LEAVE & HOLIDAYS

1. Leave:

a. 5 days for every 60 days worked, if the person has been employed for not less than 3 months in a year.
However, where an employee has worked not less than 240 days during a year shall be allowed leave for not less than 21 days in a year.
b. Above leave is inclusive of intervening weekly-offs and paid holidays.
c. In case of termination of service unavailed leave is to be encashed.
d. Advance of 50% of leave wages to be paid before he proceeds on approved leave.

LEAVE & HOLIDAYS
2 Holidays: January 26th, May 1st, August 15th, and October 2nd. are compulsory paid holidays under the Act.

Note: If an employee is required to work on any of these holidays he will be eligible for a compensatory holiday in addition to double the payment for the holiday on which he has worked.

IMPORTANT PROVISIONS

1. The Act brings in the applicability of:
? The Payment of Wages Act,
? Maternity Benefit Act,
? Workmen’s Compensation Act, and
· The Industrial Employment Standing Orders Act where there are more than 50 workmen.

IMPORTANT PROVISIONS

2. Notice of termination of Service: Notice of termination will be governed as under:
a. Upto 3 months of Employment: NIL.
b. More than 3 months: 14 days notice in writing (or wages in lieu thereof).
c. Employment one year or more:- at least 30 days notice in writing (or wages in lieu thereof).

IMPORTANT PROVISIONS

3. Restrictions on double employment are imposed on the employee as well as the employer.
4. Various provisions exist for maintenance of registers, records and display of notices.

THE EMPLOYEES’ STATE INSURANCE ACT & SCHEME

BENEFITS

• 1. The ESI Act,1948 provides for the following benefits to employees:
• · Sickness Benefit
• · Medical Benefit
• · Maternity Benefit
• · Disablement Benefit
• · Dependent’s Benefit
• · Rehabilitation Allowance
• · Funeral Expenses.
• 2. A Unique Multi-dimensional Contributory Social Security Scheme based on Insurance.
• 3. Coverage of employed persons as per the Act COMPULSORY .

APPLICABILITY

1. The Act is applicable to:
a. All factories.
b. Section 1(5) permits, extension of the provisions of the Act, to any other class of establishments, industrial, commercial or agricultural.
2. Although “shop” is not defined it has been held by judicial interpretation to cover an activity where goods or services are sold. No premises is necessary.
3. The Act applies to all employees drawing salary, exclusive of overtime earnings, upto Rs.10,000 per month. Rs. 25,000/- for persons with disability(Rule 50).
4. “Employee” includes:
· indirect labour (contract workers)
· trainees and apprentices other than those engaged under the Apprentices Act,1961.

CONTRIBUTIONS PAYABLE

1. Contributions based on ‘wages’.
2. Definition of ‘wages’ in Section 2(22) is very wide.
3. Contribution Rates (Rule 51):
· Employer’s Contribution: 4.75% of wages.
· Employees’ Contribution: 1.75% of wages.
Note: For payment of contributions overtime earnings are to be included.

CONTRIBUTION & BENEFIT PERIODS

1. The quantum of benefits that employees are eligible to receive during a benefit period is linked to the contributions actually paid in the respective contribution period. (Regulation 4).
2. CONTRIBUTION PERIOD BENEFIT PERIOD
1st. April to 30th. September. 1st.Jan to 30th. June
1st. October to 31st. March 1st. July to Dec. 31st.

• DUTIES OF AN EMPLOYER

The Employer must ensure to:
• 1. Register the factory/establishment. (Regulation 10B).
• 2. Complete filling the Declaration Forms the same day the employees join employment. (Regulation 11).
• 3. Submit declarations forms in Form 3 within 10 days. (Regulation 14).
• 4. Issue Temporary Identification Certificates (TIC) received from ESIC to the Insured Persons.
• 5. Assist the ESIC. (Regulation 16).
• 6. Help in issuing Identity Cards. (Regulation 17).
• 7. Issue a certificate of employment to employee who falls sick before issuance of the TIC to enable him to get treatment.
• 8. Remit the ESI contributions every month before the 21st.of the month. (Regulation 31).
• 9. Send Return of Contribution Cards within 42 days of the end of the Contribution Period. (Regulation 26). In case of Closure: 21 days.
• 10. Contractor maintains register in Form 7.
• 11. Pay 15% p.a. interest for delay/default in sending contributions. (Regn.31-A)
• 12. Pay damages, where levied, for delayed payments. (regulation 31- C).
• 13. Keep challans in proper custody. In case of contractor’s employees retain xerox of all challans. (VERY IMPORTANT).
• 14. Maintain Register of employees.
• 15. Maintain Inspection Book. (Regulation 102-A).
• 16. Arrange immediate First Aid assistance.
• 17. Maintain Accident Book. (Form 13).
• 18. Prepare and send Accident Report (Regulation 68). (Form 16).

• DUTIES OF AN EMPLOYER
IN CASE OF FATAL ACCIDENTS

In case of fatal accidents, the employer must send intimation by telegram/special messenger to:
• a. Inspector of Factories.
• b. Administrative Medical Officer, ESIC.
• c. District Magistrate.
• d. Police Station.
• e. Nearest Relative.
• f. Form 24 to Factory Inspector.
• g. Form 16 to AMO, ESIC.

• In case of fatal accidents, the employer must send intimation by telegram/special messenger to:
• a. Inspector of Factories.
• b. Administrative Medical Officer, ESIC.
• c. District Magistrate.
• d. Police Station.
• e. Nearest Relative.
• f. Form 24 to Factory Inspector.
• g. Form 16 to AMO, ESIC.
• OTHER IMPORTANT PROVISIONS OF THE ACT
1. Section 53: Bars an injured employee (or his/her dependents) from claiming/receiving benefits under the Workmen’s Compensation Act or any other law, including a claim under tort.
• 2. Section 61: Bars an employee entitled to receive benefits under the ESIS from any other enactment.
• 3. Section 68: Provides that the employer will pay twice the contribution or difference in benefits received due to default in payment of contributions by him (whichever is higher).
• 4. Section 73: Prohibits the employer from dismissing, discharging or punishing an employee who is receiving sickness, disablement or maternity benefit during such period

• 5. Sections 45 to 45-I: Wide powers given to the Corporation.
• 6. Regulation 97 deals with discontinuation or reduction of benefits.
• 7. Regulation 98 states that if the service conditions of the employer permit the employer may discharge/reduce on due notice an employee:
• · Receiving TDB for 6 months or more.
• · Receiving medical treatment for 6 months or more.
• · Receiving medical treatment for infectious diseases like TB, for 18 months or more.

BENEFITS UNDER THE ESIC

1. Rule 54 gives Table of Average Daily Wages and Standard Benefit.
• 2. SICKNESS BENEFIT:
• Except first 2 days, cash benefit approx. equal to 50% wages upto 91 days – Rule 55.
• 3. EXTENDED SICKNESS BENEFIT:
• For TB, leprosy, & Mental Diseases: upto 309 days, provided he is in employment for 2 years. (By Notification).
• 4. MATERNITY BENEFIT:
• Qualifying Period of Contribution: Min. 70 days.
• 12 weeks benefit @ twice the Standard Benefit. (Rule 56)
• 5. MISCARRIAGE: Upto 6 weeks benefit. (Rule 56-A).
• 6. Medical Bonus: Rs.250.
• 7. DISABLEMENT BENEFIT:
• Excluding first 3 days, TBD @ Standard Benefit + 40% till incapacity remains. (Rule 57).
• 8. DEPENDENT’S BENEFIT: @ Standard Benefit + 40% – Rule 58.
• 9. MEDICAL BENEFIT: Medicines from panel doctor — Section 56.
• 10. FUNERAL BENEFIT: Rs.2500 – Rule 59.
• 11. MEDICAL BENEFIT (POST RETIREMENT): For self and spouse medical benefit on payment of Rs.10 per month. Or lump-sum payment. Conditions: Minimum 5 years as an Insured Person and must superannuate. (Rule 61).

BENEFITS UNDER THE ESIC
• 12. REHABILITATION ALLOWANCE: For attending to artificial limbs centre. (By Notification).
• DEBARRING OF BENEFITS: Regulation 99A debars an IP from receiving SB or TDB on any day of strike except:
• · Where he is receiving medical treatment as an indoor patient.
• · Where he is receiving extended sickness benefit.
• · Where he is receiving SB or TDB immediately before commencement of strike.
• · Where the IP has undergone vasectomy/tubectomy operation.

THE WORKMEN’S MINIMUM HOUSE-RENT ALLOWANCE ACT, 1983.
Applicability
• 1. A State enactment to provide for minimum house rent allowance to workmen employed in Maharashtra.
• 2. Applies to factories and establishments employing fifty or more workmen in the area in which it is in force by notification. Does not cover contract workmen or indirect workmen.
• 3. ‘Workman’ in this Act means workman as defined in the I.D.Act.
• 4. ‘Wages’ means basic and dearness allowance.

QUANTUM & CONDITIONS FOR PAYMENT OF HRA

1. 1. Section 4 mandates payment of HRA not less than 5% of the workman’s Basic + DA, or Rs.20, which ever is higher,
a) provided where the service is less than a month he shall be paid proportionate HRA.
b) ‘Service during the month’ includes lay-of, any kind of paid leave, including weekly offs, lockout where wages are paid, days of disablement for employment injury, maternity leave of 12 weeks for which HRA is to be paid.
2. Where more favourable terms through agreement, settlement or award are available the workmen will be eligible for such terms.

QUANTUM & CONDITIONS FOR PAYMENT OF HRA

3. Where workmen are provided residential accommodation by the employer and a deduction is made then,
a) If the amount deducted is higher than HRA, then the deduction stands reduced to the extent of the HRA under the Act and no HRA is payable. (Section 4[4] a)
b) If the amount deducted is lesser than the HRA payable under the Act, the HRA payable will stand reduced to the extent of the deduction and the balance shall be paid to the workman. (Section 4[4] b)
c) When free accommodation is provided, and no deduction is made, then no HRA is payable. (Section 5).

4. In case of non-payment of HRA application can be made to the Controlling Authority (CA). The CA after giving opportunity to the applicant and the employer can determine the HRA payable and issue directions as required.
5. In case of a dispute regarding HRA such dispute shall be deemed to be in industrial dispute under the ID Act and the provisions of such Act shall apply.
6. Section 8 read with Rule 4 provides for registers and records to be maintained and permits records already maintained by the employer to be adequate compliance.

Regards,

Pinal Mehta

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120 Responses to “Labour Laws : Bombay Shop & Establishment Act 1948”

  1. rajesh April 17, 2013 at 10:31 am #

    in chakan rural ariya applkabal shop act
    rajesh nahar

  2. Pinal Mehta March 18, 2013 at 1:41 pm #

    Charitable Trust is non Profit Organisation and hence Shop Act does not applies.

  3. Naziya March 14, 2013 at 4:26 pm #

    Hi,

    Is the Bombay Shop and Establishment Act applicable to educational institutions? To be more precise will it be applicable to a registered charitable trust imparting education?

  4. Pinal Mehta February 25, 2013 at 4:00 pm #

    Gumasta is Shop and Establishment Licence. It is necessary for all firms who wants to engage in any commercial activity or any activity which leads to commercial Transactions.

    Commercial Establishment [Section 2 (e)]: It means:
    i) A commercial or trading or banking or insurance
    establishment, or
    ii) An establishment or administrative service in which
    persons employed or mainly engaged in office work, or
    iii) A hotel, restaurant, boarding or eating house, a cafe or
    any other refreshment house, or
    iv) A theatre or any other place of public amusement or
    entertainment.
    and includes such establishments as the State Government
    may by notification declare to be a commercial
    establishment for the purposes of this Act

  5. Pinal Mehta February 25, 2013 at 3:58 pm #

    You need to take permission which is a labour notification of 365 Days working.

    “365 Days Working” Notification is given by the Directorate of Labour Affairs which comes directly under Labour Ministry.

    Also you might have to get a consensus of your employees working at the booking that they are ready to work on Sunday provided they are given a week off on any alternate day of the week

    Thanks

    Pinal Mehta

  6. Anil Khatau February 13, 2013 at 12:53 pm #

    Hello,

    We have a boutique opening in Colaba, Mumbai, which we intend to keep open 365 days a year. what permissions would we need, and from which authorities? I’d really appreciate any information.

    Thanks,

    Anil Khatau

  7. R. E. Rakshit February 5, 2013 at 1:44 pm #

    Is Gomasta is necessary for Partnership firm?

  8. Pinal Mehta January 9, 2013 at 9:59 pm #

    “commercial establishment” means any premises wherein any trade, business or profession or any work in connection with, or incidental or ancillary thereto is carried on and includes a society registered under the Societies Registration Act, 1860 (21 of 1860), and charitable or other trust, whether registered or not, which carries on any business, trade or profession or work in connection with.

    So its covered under S&E

  9. Pinal Mehta January 9, 2013 at 9:57 pm #

    Yes it does apply to your office

  10. Pinal Mehta January 9, 2013 at 9:56 pm #

    Its okay …it happens

  11. Pinal Mehta January 9, 2013 at 9:56 pm #

    If the company is opening is any location, all employees falls under one payroll and if the headcount is more than 9 then it will fall under Shop and Establishment Act for that location. Since S&E is given on the based of the strenght of the employees in working in the company not based on location so even if there are just 1-2 employees working at the location you still need to take the S&E certificate for the same.

    Thanks

    Pinal Mehta

  12. Pinal Mehta January 9, 2013 at 9:54 pm #

    You have to give a weekly off on any one day of the week.

    S&E states that usually its sunday or any day. Put up a Weekly Roster or Work Hour and holiday list schedule as per the S&E Regulation.

    They can prevent you to keep it closed on Sunday.

    Ask them to give a written notice in the said case if they want you to close it on monday with ammended gazetted order stating that

    Thanks

    Pinal Mehta

  13. Pinal Mehta January 9, 2013 at 9:52 pm #

    Thanks for the support

    Pinal

  14. Pinal Mehta January 9, 2013 at 9:52 pm #

    Thanks for the Support

  15. Pinal Mehta January 9, 2013 at 9:51 pm #

    Minimum Wages is applicable to all commercial organization within the scope of the law of the land.

    S&E is not applicable though in this case

  16. Pinal Mehta January 9, 2013 at 9:50 pm #

    Send a copy of letter with the acceptance of resignation to the employer with a registered AD.

    If you have already recieved the acceptance then just write as a show cause notice regarding the Dues not settled through registered AD once they dont revert in 30 days you can approach the Labour Tribunal with the Register AD slip along with the acceptance of resignation letter and the labour department will send a show cause legal notice to the establishment

    Thanks
    Pinal

  17. Pinal Mehta January 9, 2013 at 9:46 pm #

    Yes its compulsory to register all Commercial establishments

  18. Bhushan December 31, 2012 at 1:16 pm #

    Hi Pinal,

    just i wanted to know how many list of holiday are allow as per bombay shop and establishment act ?

  19. Akshay Rathi December 11, 2012 at 8:37 am #

    Is a residence cum clinic —Dental clinic with house in a residential building covered within the ambit of the shops and establishment Act ?

  20. vivek singhal November 24, 2012 at 1:39 pm #

    dear…to whom registration form-A would be submitted for Andheri (E),Mumbai and is option to apply online available. & if u have pls provide concern office phone no. also.

  21. Ramesh Joshi October 24, 2012 at 5:16 pm #

    Dear Pinal,
    Is it mandatory to register for Shop act for a IT Company, which is in SEZ and comes under Grampanchayat?

    Are there any documents to prove this?

    Please help me in this.

    Regards,

    Ramesh Joshi

  22. bhupendra jadhav October 11, 2012 at 1:49 pm #

    we want open a micro finance co , please guide how to registered this co.?

  23. R. A. August 8, 2012 at 12:50 am #

    We are a furniture shop…. We want to keep our shop open seven days a week. We will give all our employees a weekly off by rotation through the week. Do we need permission under the S & E Act… If yes what is the procedure to obtain the same…?

    Thank you.

    Shop Owner.

  24. amit July 7, 2012 at 5:01 pm #

    Dear Sir,
    I am given resignation in company with 1 month notice period. but at the time of reliving (Last day of company) employer can’t give me reliving letter & my full & final. They hold my settlement without any prior notice. Please help me for getting my full & final.

  25. dr.shriprasad May 17, 2012 at 8:37 pm #

    Dear sir , i am the owner of 13 beded hospital which is regestered under bombay nursing act and situated in pune dist. rural area.plz. tell me is the shop act and minimum wages law is apllicable for private hospitals ? thanks dr. shriprasad

  26. structura engineers mumbai January 22, 2012 at 10:24 am #

    Helpful information. Lucky me I discovered your site by chance, and I’m surprised why this twist of fate didn’t happened in advance! I bookmarked it.

  27. suchit dhurandhar December 10, 2011 at 3:05 pm #

    It was quite informative cover most of the area.

  28. Dharmesh December 6, 2011 at 1:57 pm #

    Hi, i have a Salon in mumbai, and the weekly off is Sunday, but the bmc ppl come in and say that i have to keep my salon closed on Monday and not any other day.
    i have tried to find out but no help, can u please help me with this.

  29. praveen November 22, 2011 at 7:11 pm #

    Hi Pinal,

    We are an e-commerce firm and have our registered and corporate office in Delhi. We are planning open a small office with 3 or 4 employees in Mumbai. Does Shops & Establishments act apply to this too? Are there any other acts or rules or licenses required apart from this? And if we need to register under Shops & Establishments act, are there any firms which help in getting this work done and how much would it cost?

    Regards,
    Praveen

  30. KS Pitre October 13, 2011 at 12:12 pm #

    Please ignore my previous query. I got the two acts mixed up! :(

  31. KS Pitre October 13, 2011 at 12:04 pm #

    Dear Pinal
    As per the Shop & Establishment Act it is applicable to employees earning less than Rs10000/-.In our office we are 4 executives earning over 10000/-. So do we maintain a Muster Roll? And does the Act apply to our Office?
    Regards
    KS Pire

  32. BD August 28, 2011 at 2:02 am #

    Was working with industries since long. Recently joined education society in Pune which is registered under Bombay Charitable Trust Act and is also aicte approved. I have the following question in mind:

    -The society will be covered under Shop and Establishment Act?
    -And what laws will be applicable on us? like maternity/bonus/minimum wage/esi/workman compensation act etc.

    any other law which is applicable on aforesaid educational societies.

    I am in trouble, unable to understand, what should i do?

    Pl. advise. It is urgent pl.

    Thanks n Regards,

  33. Pinal Mehta August 2, 2011 at 5:37 pm #

    Dear Sanjay,

    Sorry for the inconvenience caused in the delayed reply.

    Attendance register is a must for every organization to be maintained under Shop and Establishment act.

    But in case you can also seek permission from the labour department to keep electronic data (i.e in form of excel sheets)

    That will ease situations for you. Dont worry this might be just one time warning. I request you to keep it updated for future and see to it that all compliance are due taken care off.

  34. Sarika July 28, 2011 at 12:24 pm #

    Its very help full for the person who planning to gt in HR.
    Thanks..

  35. Sanjay Jain July 13, 2011 at 4:42 pm #

    Hi Pinal,
    Our office was recently inspected by Shop & Establishment Inspector. We count not produce Attendance Register (Mustard Register).
    He made one report & took sign on same.
    We are total 3directors.
    Let me know what will be penalties for not maintaining same

  36. ATUL SRIVASTAVA June 19, 2011 at 6:55 pm #

    good 1

  37. SANJAY K PAUL February 19, 2011 at 4:21 pm #

    THE WEBSITE IS INDEED VERY INFORMATIVE AND THANKS A LOT FOR ALL SUCH INFORMATION S.
    HOWEVER, I WANT TO KNOW WHETHER A CENTRAL GOVT. ESTABLISHMENT LIKE, FOOD CORPORATION OF INDIA, ALSO COMES WITHIN THE PURVIEW OF THE BOMBAY SHOP & ESTABLISHMENT ACT 1948.

    WITH REGARDS,
    SANJAY K PAUL
    FOOD CORPORATION OF INDIA

  38. R.B.POPAT February 11, 2011 at 9:12 pm #

    IN THE HIGH COURT OF JUDICATURE AT BOMBAY
    CRIMINAL APPELLATE JURISDICTION
    CRIMINAL WRIT PETITION NO. 1232 OF 1995.

    1. M/s. A. F. Ferguson & Company,
    Chartered Accountants,
    A Partnership Firm registered under
    the Indian Partnership Act, 1932,
    Having its Head Office at
    Allahabad Bank Building, Bombay Samachar
    Marg, Bombay – 400 001.

    2. Mr. Rangaswamy Subramaniam,
    Senior Partner,
    M/s. A. F. Ferguson A Company
    Having his Office at
    Allahabad Building, Bombay Samachar
    Marg, Bombay – 400 001.

    3. Mr. Y. M. Kale, Partner,
    M/s. A. F. Ferguson & Company,
    having his office at Maker Towers,
    “E”, Cuffe Parade, Bombay 400 005.

    4. Mr. V. Swaminathan, Partner,
    M/s. A. F. Ferguson A Company
    Having his Office at
    Allahabad Building, Bombay Samachar
    Marg, Bombay – 400 001.

    5. Mr. B. P. Shroff, Partner,
    M/s. A. F. Ferguson & Company,
    having his office at Maker Towers,
    “E”, Cuffe Parade, Bombay 400 005.

    6. Mr. K. M. Powvala, Partner,
    M/s. A. F. Ferguson A Company
    Having his Office at
    Allahabad Building, Bombay Samachar
    Marg, Bombay – 400 001.

    7. Mr. F. M. Chinoy, Partner,
    M/s. A. F. Ferguson A Company
    Having his Office at
    Allahabad Building, Bombay Samachar Marg, Bombay – 400 001.

    versus.

    1. The State of Maharashtra.

    2. Mr. R. K. Prabhu, Senior
    Inspector, Shops & Establishments,
    Municipal Corporation of Greater
    Bombay, having his office at “A” ward Municipal Corporation of Greater Bombay.

    Shri. J. P. Cama, Senior Counsel with Shri. Ganesh
    S. Shetty i/b M/s. Crwford Bayloy & Company for the
    petitioners.

    Shri. A. A. Kumbhakoni, Associate Advocate General.
    Shri. D. S. Mhaispurkar, APP for the respondent no.1.
    Shri. R. T. Walawalkar i/b Ms. T. H. Puranik for the
    respondent no.2.

    CORAM: S.B.MHASE, &
    S.R.SATHE, JJ.
    DATE : May 5, 2006.

    Oral Judgment (Per S.B.Mhase,J.):

    1. The petitioners have invoked the jurisdiction of this Court under Article 226 of the
    Constitution of India challenging the provisions of Section 2(4) of the Bombay Shops and Establishments Act, 1948 and the Bombay Shops and Establishments Amendment Act, 1977 in so far as they seek to include the establishments of “Accountants” within
    the definition of “commercial establishment” and thereby prayed for declaration that the provision is unconstitutional. The petitioner has also prayed for a writ of certiorari, or writ in the nature of certiorari or order or direction calling for the records and proceedings of the Criminal Case No. 53/SEM/1995 registered before the Metropolitan
    Magistrate, Esplanade Court and after going into the legality, validity and propriety of the same to quash the criminal Case No. 53/SEM/95 registered against the petitioner Nos. 2 to 7.

    2. Initially the petition was filed as against the respondent nos. 1 & 2. However, by
    order dated 18th October, 1996 passed in Criminal Application No. 1556 of 1996, the Audit Employees Union, (a Trade Union registered under the provisions of the Trade Unions Act, 1926) was added as a respondent No.3. But by order dated 11.12.2004, in view of the by consent minutes of order between the petitioner and respondent no.3,
    the name of respondent no.3 was deleted. The said minutes of order were accepted by this Court by order dated 11.12.2004. Thus, it is clear that the respondent no.3 Audit Employees’ Union is not a party to this proceeding, though at one stage it wasjoined as a party – respondent.

    3. Petitioner no.1 is a partnership firm of the Chartered Accountants registered under the
    Indian Partnership Act, 1932 having its head office at Allahabad Bank Building, Bombay Samachar Marg, Mumbai and other offices in Mumbai situated at Express Towers, Nariman Point and Makers Towers, Cuffe Parade, Colaba. The petitioner nos. 2 to 7 are the partners of the petitioner No.1 firm and each of them is a Chartered Accountant recognised by the Institute of Chartered Accountants of India.

    4. The Criminal proceeding was instituted against the petitioners by 2nd respondent in the
    Court of the Metropolitan Magistrate, Esplanade bearing No. 53/SEM/95 for alleged contravension of the Bombay Shops and Establishments Act, 1948 to the following effect:

    (i) Failing to register under the Act as a ‘commercial establishment’,
    (ii) not maintaining a register of employment in the prescribed form, and
    (iii) Not maintaining the visit book for inspector to record his remarks.

    This criminal case is filed as against the petitioners in the following circumstances:
    .
    In the result, petition is allowed in the following terms.Provisions of the Amending Act, viz., Maharashtra Act 64 of 1977, in so far as that include establishment of Chartered Accountant / Accountants within the definition of “commercial establishment” in Section 2(4) of the Bombay Shops & Establishments Act, 1948 (Bombay Act No. LXXIX of 1948) are unconstitutional and they are struck down. The proceedings of Criminal Case No. 53/SCM/1995 registered before the Special Metropolitan Magistrate, Esplanade Court against the petitioners are hereby
    quashed.

    Rule made absolute.

    There shall be no order as to costs.

    (S.R.SATHE,J.) (S.B.MHASE,J

  39. Ramesh January 22, 2011 at 12:39 am #

    I am working in a MNC (uk based) and our new leave policy has revised wherein we are getting 21 PL 10 EL AND 9 holidays. Our leave policy has revised in a such a way that we can choose any of the 9 holidays which includes our indian holidays (public and national) and 9 uk holiday. Now out of these holiday choices they have chosen all 9 uk holidays and if i will work on 26th jan then i will get 1 days extra salary and they will reduce 1 holiday from the chosen list and if i will take leave then too it will reduce 1 day holiday from chosen list but i need to work on uk holiday so i will have 8 balance holiday in my kitty and 1 comp off which i earned by working on 26th they i will have to utilised this COH against 1 uk holiday. Is this the correct procedure of handling leave policy. Please confirm. Your help in this case is highly appriciated.

  40. viralsarvaiya January 11, 2011 at 2:59 pm #

    Hi Pinal,

    i am from Gujarat working in a software industry as a software engineer,

    May i know how to calculate working days of the year?

    means total 365 days of year,
    we have 21 PL, 7 CL, 7 SL and 2nd and 4th Saturday off.

    So how many working days for my company?
    365 Total Working Days
    – 021 Total PL
    – 007 Total CL
    – 007 Total SL
    – 052 Sundays
    – 026 2nd and 4th saturday.
    – 010 Holydays of the year
    —————
    242 working days of the year.

    is this right way to count working days?

    Waiting for your positive reply….

    Thanks in advance

  41. Vani Bhatt December 20, 2010 at 4:07 pm #

    VERY VERY useful… Thank you SOOOOOO much !!!

  42. Rakesh December 8, 2010 at 7:11 pm #

    respected sir,
    your site and advice is very useful and i am very thankful to you for the same .I need your advice on benifit a employer can get after getting register with maharashtra shop and estabilshment act 1948.

    thanking you ,
    regards,
    Rakesh

  43. Milind November 27, 2010 at 12:08 pm #

    When I see the receipt of Shops & Establishment for Renewal Period 2007-2010, there is the following break-up.
    Trade Refusal Charges SNE: Rs. 7200/-
    Difference in TRC: Rs. 2700/-
    Renewal Fees SNE: Rs. 2400/-
    Difference in Reg Fees: Rs. 900/-
    Late Fee for Shop & Establishment: Rs. 300/-
    Total Amount: Rs. 13,500/-
    Total number of employees: 6

    Can you advise what are these different charges? Are these correct?
    This year (2010) to renew the registration BMC has told us that total charges would be Rs. 8500/-. Are these charges correct?

  44. Pinal Mehta November 15, 2010 at 7:53 pm #

    Dear Shashikant,

    You need submit Form ‘B’ of the Bombay Shop Act. Form ‘B’ 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. The Fees Charge you will get it from your Area Ward Office in which your Shop is located.

    The documents which you will need are the same documents that will you have submitted for getting the license in the first place

    Regards,

    Pinal Mehta

  45. shashikant November 15, 2010 at 7:12 pm #

    Please tell me how to renew/ get new licence of Shop Act in Pune (Maharashtra)?? What is the fees for that? is there any additional fees? what are the forms? from where to get it ? where is the office in pune?? Please help………..

    Shashikant..

  46. Pinal Mehta November 12, 2010 at 9:50 pm #

    There is a legal Contract of Business of Franchisee owning of a specific brand between the two parties. The Shop needs to be applied by the person on whose is gonna have proprietorship rights of the shop. In this case, the person would be that who is taking the franchisee.

    The Documents that you will needs is
    1) Lease agreement or Ownership Deed of the Shop
    2) Latest Paid Property Tax Challan
    3) Also you will need MOU and AOA of the Company

    This needs to be applied in the ward the Shop is being located. you can find this detail from the local civic body.

    Any other query do revert

    Regards,

    Pinal Mehta

  47. Pinal Mehta November 12, 2010 at 9:45 pm #

    As per the Bombay Shops Act for Maharashtra and Gujarat, its 10.

  48. Mahiyar November 11, 2010 at 2:32 pm #

    Hi,

    Want to know in a private limited company, how many minimum public holidays need to be sanctioned (10, 15, 21 … any other?) Please advise

  49. Pinal Mehta November 11, 2010 at 1:33 pm #

    Dear Priti
    Dear Rajesh,

    As per the Shop and Establishment Act. The Act clearly states the following for Commercial Establishments and Shop which comes under the purview of the Shop Act.

    Establishment” means a shop, commercial establishment, residential hotel, restaurant, eating house, theatre, or other place 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;

    “Commercial establishment” means 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 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 trust, whether registered or not, which carries on [whether for purposes of gain or not] any business, trade or profession or work in connection with or incidental or ancillary thereto but does not include a factory, shop, residential hotel, restaurant, eating house, theatre or other place of public amusement or entertainment;

    So in your case. The HUF / Partnership where there is a single or multiple proprietor comes under the purview of the Shop & Establishment act. I hope this resolves your query for the same.

    Regards,

    Pinal Mehta

  50. Pinal Mehta November 11, 2010 at 1:23 pm #

    Dear Ajita,

    For cancellation of the Shop and Establishment Licence. You need to do the following Things.

    Before approaching the authorities you will need to have the following documents with you.

    1) Updated Property Tax Paid for the said year.
    2) Dissolution / Expiry of the Lease Agreement in case of the place is rented.
    3) Last Half Yearly LWF Return if its application in your state.
    4) Latest Challan payable of PRC (Professional Tax Payable – Employee) and PEC (Professional Tax – Employers) Reciept Challans

    You need to write an application regarding the “Closure of the Business” with suitable explanation of the wrapping up the business.

    You will need to submit the original Licence of the Shop Act. Along with the Original PEC And PRC [Professional Tax Registeration Certificates]

    I hope this might have solve your query. If urgent, please mail me at Pinaljmehta@msn.com

    Thanks and Regards,

    Pinal Mehta

  51. Pinal Mehta November 11, 2010 at 1:15 pm #

    Dear Priti

    As per the Shop and Establishment Act. The Act clearly states the following for Commercial Establishments and Shop which comes under the purview of the Shop Act.

    Establishment” means a shop, commercial establishment, residential hotel, restaurant, eating house, theatre, or other place 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;

    Commercial establishment” means 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 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 trust, whether registered or not, which carries on [whether for purposes of gain or not] any business, trade or profession or work in connection with or incidental or ancillary thereto but does not include a factory, shop, residential hotel, restaurant, eating house, theatre or other place of public amusement or entertainment;

    So in your case. The Construction Business company comes under the purview of the Shop & Establishment act. I hope this resolves your query for the same.

    Regards,

    Pinal Mehta

  52. Priti Kambli October 22, 2010 at 11:28 am #

    Dear Pinal,

    Hi Pinal,Wanted to know if if a firm involved in construction business is required to comply with shop & establishmant Act?

  53. ajita October 20, 2010 at 5:54 pm #

    i need form for the concellation of license of shop and establishment
    pl guide me in this content

    thnks

  54. RAJESH RATHI August 28, 2010 at 8:47 pm #

    Whether Bombay Shop & Establishments Act, 1948 is applicable to firm in which HUF is proprietor.

  55. Amit July 31, 2010 at 10:51 am #

    Whether Educational Institutes are covered under the Shops and Eastablishments Act of Gujarat?

  56. Prashant July 27, 2010 at 5:39 pm #

    I want to konw about the shop & estabishment act, & his registration procedure for educational Sector, ICFAI is a Education institute. Head offices is located in Hydrabad, It is UGC recognised university.but our office in Mumbai Malad,

    This is Education Sector, and Specially it is Univeristy, so it is requier for registration for Shop and Establishment registration as per Shop and Registration act 1948.

    Please guid me about this.

    Prashant

  57. prabhat kiran patro July 22, 2010 at 12:07 pm #

    we are a small garment manufacturer and opening francise business in different location in the name local interested applicant.so help me how to apply for shop & establishment act in mumbai. though lease agreement license in the name of francisee.

  58. Dexter Creado April 17, 2010 at 5:41 pm #

    I need to start a car rental business.

    Kindly let me know what licence is required for starting the same & any other formalities to be compeleted.

  59. Pinal Mehta March 1, 2010 at 3:40 pm #

    Dear P. Mitra,

    Basically the for Shop and establishment rules comes in under the local municipal authority under which the said place of your establishment falls. Shop and Establishment rules governs the kind of the nature of the business that you are doing and it basically is kinda record of your establishment of business. To get the Shop and Establishment licence you will need to have Memorandum of understanding, ( which will list the owners and the management of the company), power of attorney for the local guy who will be heading the business in the Raigarh Area. in your case the Executive Director which will allow him to carry out all signatory on behalf of the company.

    Tell me the Specific details of what kinda of licenses do you wish to take

    Regards,

    Pinal Mehta

  60. Meet Modi February 26, 2010 at 11:32 am #

    Hi Pinal,Wanted to know if if a firm involved in construction business is required to comply with shop & establishmant Act?

  61. Bhanumathi February 15, 2010 at 12:46 pm #

    Pinal,

    Which is the concerned authority for Navi Mumbai for obtaining the lisence under Shop and Establishment Act?

    Bhanumathi

  62. sahil chatterjee February 13, 2010 at 3:35 pm #

    The site is helpful. I request to reply by mail to the following query:

    Is there any statutory leave rules applicable for PVT LTD COs located at Gujarat State?
    If yes, please specify or mention the site to refer.

    If no, is there any minimum nos of days of CL/PL/SL applicable to me as I have already completed 2.5 yrs working with the same pvt ltd co located at Gujarat State?

  63. Gazal February 4, 2010 at 11:33 am #

    What is the fine for late payment of shop and establishment licence fee ?

  64. P. Mitra February 3, 2010 at 4:45 pm #

    Dear Pinal,

    I found your website very useful to people like us who have no knowledge on shop and establishment act. Now, I would earnestly request you to award priority to my queries and correctly advise us and guide us as to what exactly we need to do to set up a branch office in Kharghar in Navi Mumbai (raigarh district). The company is in recriotment business and currently doing local business in haldia, west bengal. The company applied to Ministry of Overseas Indian affairs, New delhi for issuance of license for overseas recruitment. The license may be in hand within a month or so. But in the meantime they want to open a branch office and so selected kharghar in District Raigarh in Navi Mumbai in Maharashtra. Now to carry out business what statutory registration is required and with which authority (Please inform the office address and contact nos). This branch office initially will have only 3 to 4 employees including one Executive Director appointed already. Please urgently advise us what all we should do to carry out the business in Kharghar? If you can recommend someone who will assist us in completing all the formalities against a reasonable fee so that we can start business activities, then please let me know his name, address and contact nos.

    Please response as early as possible.

    Best regards,

    P. mitra

  65. mahesh January 30, 2010 at 12:30 pm #

    Hi,

    I am an HR Exec at a company having its HO in mumbai and warehouse in Pawne(New Mumbai). whats the procedure to register the warehouse in pawne under shops and establishment as per the Navi mumbai muncipal corporation and what are the charges.

  66. Green Globe Consultancy January 22, 2010 at 11:42 pm #

    Dear Pinal,

    You are helping many and so we expect that you will help us also by advising us properly considering the law of the country and Maharashtra State. We have HO in West bengal and we want to open a Branch office in Kharghar in Navi Mumbai (raigarh districy). Please advise us what all we have to do to open an office in Kharghar and what registrations we must do to carry out the recruitment business and who to approach and where to go for complying the formalities? Can you recommend someone in Kharghar who can do all the formalities and submit returns etc on the behalf of the company? This is very urgent and important. Please help

  67. Ankush January 21, 2010 at 1:19 pm #

    Dear sir,
    I am taking classes on Computer courses from last 2-3 years in one of residencial housing sty, I have purchased required softwares & computer equipmets from a registered dealer. Now I want to get register with Shops & Establishment act, 1948.
    Shall I get registration on back dated? if possible…
    What are all documents are required to submit for said registration?

  68. dharmesh jain January 7, 2010 at 12:15 pm #

    i just want to know about what is the intrest and penalty for 12 years delays renewal of bombay shops and establishment act 1948?( gumasta licence)

  69. Shailesh J Kushwaha December 16, 2009 at 6:48 pm #

    We have 24 coverable employee (Below Rs.10,000/-) as details give below:

    Mumbai – 9 Employee.
    Delhi – 8 Employee
    Chennai – 3 Employee &
    Bangalore – 4 Employee

    Also we registered under shops & Establishment Act.

    Please confrim whether we are covered under ESIC Act Section (1(5) of ESI Act.

    Please send notification of above section & queary.

    Shailesh J. Kushwaha

  70. MANOJ MUNDHRA November 25, 2009 at 7:19 pm #

    Dear Sir,
    Our Shop is registered under Shop & Est., with 5 staff.
    One year ago Our one staff with Salary 3500.00pm left our office without any notice, after 4-5 months he come with a so called GUMASTA UNION and demands money.
    The worker work only 13 months in salary basis. before that hw work in contract basis and earned more than 5000.

    We say that union That we have not say taht staff to go, he joined other service, why we give money. After many discussion they say they go to court, we also say go.
    Sir,
    Is any libility of us, if they go to court. ?

  71. Vandana Nambiar November 10, 2009 at 4:31 pm #

    Dear Pinal,

    The Shops and establishment Act had an amendment whereby Section 35(4) was introduced. I need the Government Gazette copy of the same which says about the National Holidays of India

  72. Radhika November 5, 2009 at 6:10 pm #

    SIr,
    can you please guide me about penal proviisons on non registration of establishment under Bombay SHop and establishment Act

  73. bhavika mehta October 27, 2009 at 11:16 am #

    wanted to know about the penalty in case of delay in filing application for obtaining registration certificate under shops & establishment act, 1948?

  74. Pinal Mehta September 23, 2009 at 4:53 pm #

    Dear Mausam,

    PL accumulation depends from company to company. The carry forward value is depending on company to company.

    Can you please explain in little brief that you want to know about the acculumation period or the encashment of the PL in the company

    Regards,
    Pinal Mehta

    Pinal

  75. mausam joshi September 17, 2009 at 11:03 am #

    Hi Pinal,

    Wanted to check.. What is the PL accumulation limit as per Gujarat shops and establishment act..I am a HR manager in one of the multinational company..

    Need your advise..
    regards,

  76. Aatish Sharma August 14, 2009 at 1:41 pm #

    how to pay the bonus to the employees as per shops and establishments act? and what is the minnimum and maximum bonus?let me know the ful and final details about bonus

  77. Kaushik Sutone August 7, 2009 at 5:29 pm #

    Dear Ms Pinal,

    I am an employee of a 1000 crore pvt ltd company in Bombay.
    Last year when I joined this company it didn’t disclose me the fact that any leave would be without pay and gave a Leave pay allowance as a part of negotiatied CTC which wasn’t disclosed earlier before joining. Now this year they have included 16 days paid leave and still continuing with some Leave pay allowance which is half basic per day. With my limited knowledge of rules I gather that it still is illegal not to give 21 days leave per annum. Besides there are no Cl/SL too. Pls guide me what could I do about this?
    Thanks,
    Kaushik

  78. Unmesh August 3, 2009 at 5:32 am #

    I work in a BPO in pune.
    So as I understand, if we are working 10 hours shift with 1 hour break(15 mins +15 mins +30 mins), our working hours are 9.5 hours as rest periods below 20 mins needs to be compensated by the employer.
    And 30 mins is our rest period which are not considered in our working hours. So instead of 30 mins if we take 32 mins of break unintentionally, can we be given a written warning letter since those are not our working hours and we can compensate by working 2 mins more by the end of the day.

    Also can a company terminate an employee for not taking company provided transport (travel from home to office, which again does not come under our working hours). As I understand employees are free to do whatever they wish outside the working hours defined by the company. So we may or may not take company provided transport without any previous intimation. And company/employer cannot/should not take any action against such employee for this reason.
    If an employee is terminated, where can he appeal against the same.

  79. anil June 23, 2009 at 4:49 pm #

    What is the definition of a “worker” under the Bombay Shops & Establishment Act? Is or, are, there any exempted category? Is registration required if an office employs only Executives or does an establishment falls under the BS&E Act if all employed are Executives.

  80. archana June 19, 2009 at 12:55 pm #

    Sir,
    I am going to start my own tax consultancy with my own name and do’nt want to give firm name or else …please suggest me how to establish it or what legal procedures have to be complete for that . and also wanted a complete guide for “Gumasta”/ Shop Act and Establishment licence…where th office is on Rental . My Qualification is M.Com and having 5 yrs accounting exp . as well as taxation .

  81. Manish Mehta June 3, 2009 at 10:31 am #

    Hi Pinal,
    Do chemist shops in Mumbai have to remain closed on any specific day as per the Bombay Shops and Establishments Act?

    Or can the chemist shop decide its weekly off day (example – remain closed on Sundays) ?

    Thanks

  82. Tushar Gadhia May 23, 2009 at 4:21 pm #

    I am confused with your leave rules stated above.

    I have employee who has worked for 4 months 6 days and resigned, he is asking for leave enchasment , is he eligible ? we have deducted any leave that he has taken during his service period.

    Please note he has not worked for 240 days.

    Also please clarify what are leave rules under Bombay Shops & Establishment Act 1948

    we are registered under bombay shops and establishments act 1948 having office at goregaon east

  83. Uday Shah May 22, 2009 at 4:06 pm #

    How may proprietroship firms can be registered at a same shop if incase i already have a pvt ltd company running at the similar shop. can i register 4 more proprietorship firms at the same address?

    Pls Advice.

  84. Dr Nirav Panchmatia May 11, 2009 at 10:57 am #

    I have a diagnostic centre in Mumbai. Plz let me know is S&E is applicable. in case rqd and since I have not registered what is the procedure. Plz keep in mind that when I converted my premises from residential to commercial change of user BMC did not insist on S&E Certificate.
    Thanks,
    Dr.Panchmatia

  85. dr daljit April 24, 2009 at 1:03 pm #

    are private hospital employees come under esi act 1948

  86. Amruta Betala April 11, 2009 at 5:25 pm #

    Hi Pinal

    I am in the process of establishing an educational institute to train people in Cyber Laws. Do i need to register it?if yes under what law. please guide

  87. Shobhit April 1, 2009 at 7:22 pm #

    Addendum:They ahve only 3 employees in the said firm

  88. Shobhit April 1, 2009 at 7:20 pm #

    Hi Pinal,

    My Friend works for an Interior Designer Firm in Thane. He does not get any leaves on days like Gudi Padwa etc. Also they work six days a week for 9 hours each day. Moreover he is not easily allowedfor taking any leave on account of sickness etc and salary is deducted for any leaves taken. Is it justified on the part of the firm to do so. What are the rights of the employee in this case.? Can they claim any Bonus also?? Please answer

    Warm Regards

  89. M K Jain March 19, 2009 at 12:41 pm #

    I want to know the law which will be applicale on service rendering firm having more than 20 employee in Mumbai.
    How may days leave to be granted statutorily and whether there are provisions for sick / casual leave in addiition to PL’s?

    Kindly provide details

    Regards

    M K Jain

  90. NARESH KULKARNI March 12, 2009 at 3:45 pm #

    I FOUND THAT IT IS VERY USEFUL & BENEFICIAL SITE.I WANT TO KNOW THE DETAILS OF VARIOUS TYPES OF ESTABLISHMENT”S LABOUR LAWS WITH THE STATUTORY COMPLIANES.

    WITH REGARDS
    NARESH KULKARNI

  91. Pinal Mehta March 12, 2009 at 2:14 pm #

    Dear Swati,

    First you need to tell me which state you belong too and about ur organization?

    You need to check Two things
    1) If your organisation has more than 20 staff you fall under the ESI Applicability. So you need to obtain ESI Master code for your organisation / Subcode for any other regional office in other states / cities other than the Main Corporate office.

    2) If your any staff Gross wage falls at Rs.10000 or under then they are covered under ESI and the returns for the same needs to be submitted to the ESI office.

    The abstract of the ESI Applicability is as under

    COVERAGE UNDER THE ESI ACT, 1948

    The Act was originally applicable to non-seasonal factories using power and employing 20 or more persons; but it is now applicable to non-seasonal power using factories employing 10 or more persons and non-power using factories employing 20 or more persons.

    Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatre, road motor transport undertakings and newspaper establishment employing 20 or more persons.

    The existing wage-limit for coverage under the Act, is Rs.10,000/- per month (with effect from 1.10.2006).

    AREAS COVERED

    The ESI Scheme is being implemented area-wise by stages. The Scheme has already been implemented in different areas in the following States/Union Territories

    STATES
    All the States except Nagaland, Manipur, Tripura, Sikkim, Arunachal Pradesh and Mizoram and UNION TERRITORIES like Chandigarh and Pondicherry

    I hope this helps u

  92. swati March 12, 2009 at 12:07 pm #

    our staff no of employess 24 are we applicalble for ESIC

  93. Vivek Jain February 23, 2009 at 1:59 pm #

    Hi Pinal Mehta,

    Thanks for the solving queries.

    My Question is I am coming up with a playschool in Pune, is this necessary for us to take shop and establishment act for the same. Total number of staff is 10 and each one have salary below 10000. Please guide me and let us know the same to avoid further problems.

    Many thanks
    Vivek Jain

  94. vinay February 21, 2009 at 12:31 am #

    Hi,
    I would like to know,in a IT company based in Mumbai would it be fine if employee working in Shifts works for 12Hrs for 4 days in a week and makes it no more than 48Hrs in a week.
    Would this be inline with the Bombay Shops and Establishments Act ?

  95. KAUSAR February 19, 2009 at 7:35 pm #

    We are a poona based company engaged in construction business having employees in between 5-10. Is the hop and establishment applicable to us.
    besides thar are we required to take anymore regn.
    We have already Service tax regn no.

  96. RAMANA February 18, 2009 at 4:40 pm #

    PLEASE SUGGEST ME WHETHER THE TRANSPORTATION SECTOR COMES UNDER THIS ACT OR NOT ??

  97. Atul Sharma February 14, 2009 at 4:25 pm #

    What other benefits other than Basic + DA should be paid to People working as Data Entry Operators in Mumbai? Are Bonus & any other allowance applicable?

  98. Pallavi Pawar February 11, 2009 at 2:16 pm #

    Hi Pinal,
    I want to know that is the trust required shop act licence. if yes then is there any written notification for that pls provise it to me.

    Regards,
    Pallavi

  99. Amit February 10, 2009 at 1:03 pm #

    To add to the above..are the rules same for NMMC(Navi Mumbai) as well?

  100. Amit February 10, 2009 at 1:02 pm #

    How long does it take to get a licence? What are the charges involved for the same? If i have a name written in English and a smaller font in marathi is fine?

  101. CHANDRAKANT THAKKAR January 29, 2009 at 5:13 pm #

    pl let me know the provision of encashment of leave in the law.

  102. CHANDRAKANT THAKKAR January 29, 2009 at 5:12 pm #

    I would like to know the provision of encashment of leave in the law.

  103. SHAILESH PATANI January 27, 2009 at 11:49 am #

    I have not registered with BOMBAY SHOP AND ESTABLISHMENT.
    I am running software firm (PROPRIETORY – LESS THAN 5 EMPLOYEE). Since we are dealing in profession that involves intelligent skills CONTROLLIED BY INTELLECTUAL SKILLS. (LIKE CA FIRM WHO ARE NOT SHOP UNDER BOMBAY SHOP AND ESTABLISHMENT, AS PER COURT’S ORDER BY MS A F FERGUSON AND COMPANY on same ground). AM I LIABLE TO REGISTER.
    If I am liable to register, what are the penalty i will have to pay.

  104. PRATYUSH SHAH January 21, 2009 at 1:40 pm #

    Dear Pinal Mehta,

    I want to know that if a person doing accounting work in his own office, not by any firm name.

    He get shopact license

    Please guide as soon as possible.

    Thanks,

    Pratyush

  105. Sanjiv January 9, 2009 at 10:48 am #

    Dear Mr. Pinal Mehta,

    As per the Bombau Shop and Establishment act, what are the form (details)to be maintained in the office.
    Is these details can be maintained in electronic form, for that permission is required from the authorities.
    Regards,
    Sanjiv

  106. Nitendra Parab January 7, 2009 at 10:59 am #

    Hi

    I would like to know as how the leaves are bifurgated into i.e. CL, El or Pl & SL.

    what are minimum and maximum days allotted to these said leaves as per Bombay Shops and Establishment Act 1948.

    As I am drafting the leave Policy for my company.

    Awaiting for reply at earliest.

    With Warm Regards,
    Nitendra Parab.

  107. Hitesh Bhaskar January 5, 2009 at 12:32 pm #

    Hi,
    Would like to know the implications of Bombay Shops and Establishment Act ,1948 on hospitals or healthcare organisations.
    regards,
    Dr Hitesh Bhaskar

  108. Pinal Mehta December 20, 2008 at 9:29 pm #

    Dear Rajesh,

    As per the Shop and Establishment act,

    The name of the board should be in the Any national language with a regional language of the region

    If you have already kept the board in it, he cant take any legal action for the same since you had already comply with the Shop Act law.

    As an advice, just try to settle this mutually

    Thanks and Regards

    Pinal Mehta

  109. Rajesh Derek December 18, 2008 at 12:30 pm #

    Hi,

    One place of business is inside a building and we have a nameboard outside our door in English. The BMC Officer came and asked us to put up a signage in Marathi which we did the next day.

    Now he is asking for a bribe of Rs. 8000, saying that we can be fined upto 60000 (we have 3 partners in that firm)

    Please can you tell us what exactly are the implications of this ? Where do we stand in law and what is the penalty for this ?

    Thanking you in advance.

  110. kiran shinggre December 17, 2008 at 12:41 pm #

    i just want to know about what is the interest or penalty charge for delay registration under bombay establishment act?

  111. rajesh m. apte December 11, 2008 at 2:31 pm #

    What is the defination of employer as per act. If our chairman/CEO is getting change in the month of Dec & we have apply for renovation of Bombay shop & Establishment license which name we should mentioned?

  112. CHARUDATTA December 8, 2008 at 12:04 pm #

    Hi!

    Would like to know – is software/ IT co. having its ofice in STPI area, is liable to have standing orders. is there any provision as per THE BOMBAY SHOPS & ESTABLISHMENTS ACT 1948 or any applicable law?

  113. KK November 29, 2008 at 1:58 pm #

    Hi,
    Would like to know It companies comes under which Act. with respect to provide equal working opportunities for employees.

    Regards,
    KK

  114. sameer November 28, 2008 at 2:11 pm #

    Dear,

    I want to know it is necessary to register in Municipal corporation for shop and eshtablishment. my organisation is consultancy services. reply me please.

    Sameer

  115. Pinal Mehta November 19, 2008 at 6:49 pm #

    Dear Jaipal

    Here is the applicability of the Bonus as per the Payment of Bonus Act, 1965

    Applicability of the Act
    Objectives:
    The object of the Payment of Bonus Actis to provide for the payment of bonus (linked with profit or productivity) to persons employed in certain establishments and matters connected therewith.

    Applicability:
    The Payment of Bonus Act extends to the whole of India and is applicable to every factory and to every establishment wherein 20 or more workers are employed on any day during an accounting year.
    The Central/State Governmenment can however, extend its provisions to any establishment employing less than 20 but more than 10 employeess.
    For the purpose of calculating the number of employees for applicability of the Act, part-time employees are also included.
    Every employee not drawing more than Rs.3500 per month who has worked for not less than 30 days in an accounting year, shall be eligible for bonus.

    Section 32: Act not to apply to certain classes of employees
    Nothing in this Act shall apply to-
    (i) employees employed by any insurer carrying on general insurance business and the employees employed by the Life Insurance Corporation of India ;
    (ii) seamen as defined in clause (42) of Section 3 of the Merchant Shipping Act, 1958 (44 of 1958) ;
    (iii) employees registered or listed under any scheme made under the Dock Workers (Regulation of Employment) Act, 1948 (9 of 1948), and employed by registered or listed employers ;
    (iv) employees employed by an establishment engaged in any industry carried on by or under the authority of any department of the Central Government or a State Government or a local authority ;
    (v) employees employed by-
    (a) the Indian Red Cross Society or any other institution of a like nature (including its branches) ;
    (b) universities and other educational institutions;
    (c) institutions (including hospitals, chambers of commerce and social welfare institutions) established not for purposes of profit ;
    (vi) employees employed through contractors on building operations ;
    (vii) [* * *]
    (viii) employees employed by the Reserve Bank of India ;
    (ix) employees employed by-
    (a) the Industrial Finance Corporation of India ;
    (b) any Financial Corporation established under Section 3, or any Joint Financial Corporation established under Section 3-A, of the State Financial Corporation Act, 1951 (63 of 1951) ;
    (c) the Deposit Insurance Corporation ;
    (d) The National Bank for Agricultural and Rural Development ;
    (e) the Unit Trust of India ;
    (f) the Industrial Development Bank of India ;
    (fa) the Small Industries Development Bank of India established under Section 3 of the Small Industries Development Bank of India Act, 1989.
    (ff) the National Housing Bank ;
    (g) any other financial institution (other than a banking company) being an establishment in public sector, which the Central Government may, by notification in the Official Gazette, specify, having regard to-
    (i) its capital structure ;
    (ii) its objectives and the nature of its activities ;
    (iii) the nature and extent of financial assistance or any concession given to it by the Government ; and
    (iv) any other relevant factor ;
    (x) [* * *]
    (xi) employees employed by inland water transport establishments operating on routes passing through any other country.

    Section 16: Special provisions with respect to certain establishments
    (1) Where an establishment is newly set up, whether before or after the commencement of this Act, the employees of such establishment shall be entitled to be paid bonus under this Act in accordance with the provisions of sub-sections (1-A), (1-B) and (1-C).

    (1-A) In the first five accounting years following the accounting year in which the employer sells the goods produced or manufactured by him or renders services, as the case may be, from such establishment, bonus shall be payable only in respect of the accounting year in which the employer derives profit from such establishment and such bonus shall be calculated in accordance with the provisions of this Act in relation to that year, but without applying the provisions of Section 15.

    (1-B) For the sixth and seventh accounting years following the accounting year in which the employer sells the goods produced or manufactured by him or renders services, as the case may be, from such establishment, the provisions of Section 15 shall apply subject to the following modifications, namely-
    (i) for the sixth accounting year-
    set on or set off, as the case may be, shall be made in the manner illustrated in the Fourth Schedule taking into account the excess or deficiency, if any, as the case may be, of the allocable surplus set on or set off in respect of the fifth and sixth accounting years;
    (ii) for the seventh accounting year-
    set on or set off, as the case may be, shall be made in the manner illustrated in the Fourth Schedule taking into account the excess or deficiency, if any, as the case may be, of the allocable surplus set on or set off in respect of the fifth, sixth and seventh accounting years.

    (1-C) From the eighth accounting year following the accounting year in which the employer sells the goods produced or manufactured by him or renders services, as the case may be, from such establishment, the provisions of Section 15 shall apply in relation to such establishment as they apply in relation to any other establishment.

    Explanation l.- For the purpose of sub-section (1), an establishment shall not be deemed to be newly set up merely by reason of a change in its location, management, name or ownership.
    Explanation ll.- For the purpose of sub-section (1-A), an employer shall not be deemed to have derived profit in any accounting year unless-
    (a) he has made provision for that year’s depreciation to which he is entitled under the Income-tax Act or, as the case may be, under the agricultural Income-tax law ; and
    (b) the arrears of such depreciation and losses incurred by him in respect of the establishment for the previous accounting years have been fully set off against his profits.
    Explanation III.- For the purposes of sub-sections (1-A), (1-B) and (1-C), sale of the goods produced or manufactured during the course of the trial running of any factory or of the prospecting stage of any mine or an oil-field shall not be taken into consideration and where any question arises with regard to such production or manufacture, the decision of the appropriate Government, made after giving the parties a reasonable opportunity of representing the case, shall be final and shall not be called in question by any court or other authority.

    (2) The provisions of sub-sections (1), (1-A), (I-B) and (I-C) shall, so far as may be, apply to new departments or undertakings or branches set up by existing establishments :

    Provided that if an employer in relation to an existing establishment consisting of different departments or undertakings or branches (whether or not in the same industry) set up at different periods has, before the 29th May, 1965, been paying bonus to the employees of all such departments or undertakings or branches irrespective of the date on which such departments or undertakings or branches were set up, on the basis of the consolidated profits computed in respect of all such departments or undertakings or branches, then, such employer shall be liable to pay bonus in accordance with the provisions of this Act to the employees of all such departments or undertakings or branches (whether set up before or after that date) on the basis of the consolidated profits computed as aforesaid.

    I hope this solves your query

    If you have still doubts, please mention the type of industry of the your company with people strenght and history of the company

    Regards

    Pinal Mehta

  116. Pinal Mehta November 19, 2008 at 6:32 pm #

    Dear Perpetual,

    As per the Bombay Shops and Establishment Act,

    All the establishment including Banks of Private Sector has to take Shop Act Licence for the same. The banks who are government undertaking and which are state banks are not required to take Shop Act licence.

    I hope this solves your query

    Regards,

    Pinal Mehta

  117. jaipal Reddy November 19, 2008 at 12:47 pm #

    how to pay the bonus to the employees as per shops and establishments act? and what is the minnimum and maximum bonus?let me know the ful and final details about bonus

  118. Pinal Mehta November 15, 2008 at 1:42 pm #

    Anita,

    As per the Bombay Shops and Establishment act. All the employees which falls under the organizations governed under the Shop act has been entitled by 26 days of work and 4 Week off for the process of the Salary for a 30 days month.

    In case, an employee has to work on a weekoff, It could be compensate adequately by providing a compensatory off to the person on rotation basis or Pay an extra day salary.

    If you are giving him a compensatory off and added one day more salary then you might not be doing judgement to your company.

    It is stated very clear in Shop Act that every seven days one weekoff is to be provided to the employee including the alternate holidays for festivals or regional regulated by the Local Government and Central government policies.

    So I would suggest you either give one of the both, Either a compensatory off or a extra day of pay.

    I hope this helped you

    Regards,

    Pinal Mehta

  119. anita lolayekar November 8, 2008 at 10:48 am #

    In our organisation we have employee whoSE wEEKLY oFF is Sunday . So when they are asked to work on Sunday , we pay 1 day salary for working on Sunday and Also give one Compensatory OFF. iS IT CORRECT ?

  120. perpetualquandary November 6, 2008 at 7:17 am #

    Hi Pinal,

    Wanted to know if Banks are covered under the Bombay Shops & Establishment Act?

    Please let me know.

    Thanks

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