How much time does it take for the registration under the shop and establishment act of India?

The registration process along with the physical verification may take around 15 to 20 working days in major cities. However, the time duration may vary from and may take longer time, depending upon the state in which you have the establishment of the business.

What all things to keep in mind and to do after obtaining the Shop and Establishment Registration?

• Be prepared for the inspector visit at the establishment, if required.
• It is mandatory that the registration certificate so obtained under the shop and establishment act needs to be displayed in an easily accessible and visible place in the shop.
• It must be renewed in the case where any changes have been made with regard to the number of employees’ addition or upon the expiry.
• Also in cases where there is any change in the details or the closure of such an establishment, it must be informed to the inspector within 15 days of the said change or closure.
• Every State has set different rules and regulations for registration under the shop and establishment Act; however, the basic procedure shall remain the same.
• It is also mandatory under the Shop and establishment act that every business gets approval from the Department of Labour of that respective state.

What is the Inspection Procedure under the Shop and Establishment Act?

• Locating and identifying  the Establishments
• Joint Team Inspection
• Inspection report
• Non-Compliance Notice to be sent if any
• Final Action to be taken

The Inspection Procedure followed by the inspector under the Shop and Establishment Act is as follows:

Step1: The inspector on receipt of the application shall locate the place of Establishments. The random computerized risk assessment method is used for locating the establishment.

Step2: Once the establishment place is located, it is inspected by the Joint Team. The inspecting team usually consists of minimum 2 inspectors and one of the following officers, Assistant Labor Commissioner, Labor Enforcement Officer, Assistant Director Factory as per their availability. However, it also depends on the state law to constitute the Inspection team.

Step3: An Inspection report is required to be submitted within 48 hours; also the inspection report is required to be uploaded/submitted by the inspecting team on the portal of the departmental along with a unique number.

Note that the unique number will be used by the users such as units/ establishments/factories to view and download the inspection report from their web portal account.

Step4: Non-Compliance Notice may be issued by the department to units/ establishments/factories to rectify defects/deviations / non-compliance observed as part of the inspection.

Note that the establishment must do the necessary compliance within 15 days and also inform the Labour Department about the same after uploading the compliance report.

Step5: Final Action for either acceptance of compliance report and issue of go-ahead note or otherwise initiation of proceedings is done by the inspection team.

Preparation required for visiting inspector’s Visit under the Shop and Establishment Act Registration:

BE PREPARED AND READY WITH FOLLOWING DETAILS AND DOCUMENTS:

• The inspector may ask for establishment registration certificate under the Shop and Establishment Act.
• He will check the registers and records required to be maintained.
• He will also confirm whether the employees are getting weekly and public holidays or not.
• Shall also check if all employees have been paid wages within the time specified under the act.
• Whether or not the maternity benefits have been given to all eligible women employees
• He will also look into the fact that no illegal deduction has been made.
• Any wrong termination of an employee violating the prescribed procedure under the Act.
• Whether children/women are employed against the provisions of the Act.