Compliance and Obligations for shop act

Under the Shop and Establishment Act in India, businesses must follow specific compliances and obligations after obtaining the Shop Act License. These ensure that labor laws and workplace conditions are maintained properly.

Here’s a comprehensive list of compliance and obligations under the Shop Act:

✅ Post-Registration Compliance & Obligations
1. Display of Shop Act License
The Shop Act License must be displayed prominently at the business premises at all times.

2. Maintain Registers and Records
Businesses must maintain various registers as per the rules of the state, such as:

Attendance Register

Wages Register

Leave Register

Working Hours & Overtime Register

Holiday List Register

Note: These may need to be updated monthly or annually, depending on state laws.

3. Working Hours
Maximum working hours typically should not exceed 9 hours/day and 48 hours/week.

Overtime should be paid at double the regular rate as per the Act.

4. Weekly Holidays and Leave
Employees must be given one day off per week (usually Sunday).

Annual leave with wages, sick leave, and casual leave should be provided according to the Act.

5. Child Labor Restrictions
No child below the age of 14 is allowed to work.

Teenagers aged 14–18 can work under certain conditions, with reduced hours and specific protections.

6. Health and Safety
The premises should be clean, ventilated, and safe.

Adequate lighting, drinking water, and sanitation facilities must be provided.

7. Wage Payments
Wages must be paid on time, and deductions (if any) must be legal and documented.

Adherence to Minimum Wages Act is required.

8. Employee Termination and Resignation
Issue appointment letters to employees.

Follow due process for termination, including notice period and final settlement as per the law.

9. Renewal of License
Some states require renewal annually or once every few years.

Ensure timely renewal to avoid penalties.

10. Notice of Change
Any change in the following must be reported within the prescribed period (usually 30 days):

Change in address

Change in business name

Change in ownership/management

Closure of establishment

11. Closure of Business
In case of closure, notify the local authority and surrender the license as required.

12. Inspections
The business may be subject to random inspections by labor officers.

All records and registers should be readily available.

⚠️ Penalties for Non-Compliance
Fines for non-compliance vary by state and can range from ₹1,000 to ₹10,000 or more.

Repeated violations may lead to cancellation of license or legal action.