Inspection and Penalties for shop act

🏪 Inspection and Penalties under the Shop and Establishment Act (India)
The Shop and Establishment Act is a state-specific legislation that governs working conditions and rights of employees in shops, commercial establishments, restaurants, etc. While the rules vary by state, the core provisions are similar across India.

🔍 Inspection under the Shop Act
1. Authority Conducting Inspection
Labour Inspector or Chief Inspector appointed under the State's Labour Department.

Officers have the power to enter, inspect, examine records, and interrogate employees.

2. Purpose of Inspection
To ensure compliance with the Act, such as:

Registration of the establishment.

Maintenance of employee records.

Payment of wages, overtime, and holidays.

Working hours and weekly offs.

Display of required notices (e.g., name board, working hours).

Cleanliness, safety, and sanitation.

3. Documents Typically Verified
Shop Act registration certificate.

Attendance and wage registers.

Register of leave, fines, deductions.

Details of working hours and employee roster.

Salary slips and payment proofs.

Appointment letters and identity records.

⚠️ Penalties for Non-Compliance
Penalties differ by state, but common offenses and penalties include:

Offense Penalty
Failure to register establishment Fine up to ₹1,000–₹5,000 (varies by state)
Not renewing registration Similar fines as above or ₹100–₹500 per day of delay
Non-maintenance of registers Fine up to ₹1,000–₹2,000
Obstructing inspector Fine and/or prosecution
Violation of working hours, leave, etc. Fine ₹500–₹2,000 per violation
Employing underage workers (if applicable) Heavy fines and legal action
Repeat violations Increased penalties or suspension of license

Example: In Maharashtra, under the Maharashtra Shops and Establishments Act, 2017:

First offense: ₹1,000 – ₹5,000.

Repeated offense: Up to ₹25,000 or more, and even prosecution in serious cases.

✅ How to Stay Compliant
Register Online through the state portal (most states have online systems).

Renew licenses timely (some states now have permanent registrations).

Display registration and notices at a visible location.

Maintain employee records properly (digitally or in print).

Adhere to wage, leave, and working hour norms.

Cooperate with inspectors during surprise checks.