Registration Under Shops & Establishment Act - inspector of factories
CiteLegal
 
HOME RISE NEW ABOUT LOGIN
Home > Legal Discussion Forums > Labour / Employee Related Laws

Registration Under Shops & Establishment Act

nikhilkumar363 Started The Discussion:

Dear All

Kindly guide me :

1.) If any establishment is working from Industrial is that company should be registrerd under Shops & Estyablishment Act or it should be under Factories License of delhi
2.) Our company is not engaged in any kind of Mfg activity but they are building designer
3.) What other acts applicable on us

Regrads

Nikhil Kumar

malikjs - Member Since: Oct 2008
dear you should register under delhi shop and est act.all acts related to labour /social benefits will be applicable to u like ESI,PF,BONUS,GRATUITY ETC TKS J S MALIK

Selvaraghavan - Member Since: Oct 2008
Dear Nikhil

what malik reply is correct

1) If any establishment is working from Industrial is that company should be registrerd under Shops & Estyablishment Act or it should be under Factories License of delhi

Except tamil nadu shop and establishments all other state has to register and get the licence , it should be renewable2.) Our company is not engaged in any kind of Mfg activity but they are building designer

No issue , if any manufacturing, comes under facotries act

3.) What other acts applicable on us

1 payment of wages act
2 the industrial employment (standing order) act 1946
3 minimum wages act
4 employment exchange compulsary vacancy notification
5 Induastrial establishment (national festival holidays) Act
6 maternity benefit act
7 equalremuneration act
8 Labour welfare fund act
9 then as per malik esi,pf,gratuity,bonus

thanks
selva

siddhesh1995 - Member Since: Oct 2008
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

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






LEAVE & HOLIDAYS
n
1. Leave:
n
n 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.
n b. Above leave is inclusive of intervening weekly-offs and paid holidays.
n c. In case of termination of service unavailed leave is to be encashed.
n d. Advance of 50% of leave wages to be paid before he proceeds on approved leave.




n 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.



n IMPORTANT PROVISIONS


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


n IMPORTANT PROVISIONS

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




n IMPORTANT PROVISIONS

3. Restrictions on double employment are imposed on the employee as well as the employer.
n 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 MAHARASHTRA 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.

Found This Useful? +Vote Up This Page Via Google.  

Why Vote? User validation is extremely important for good content to prosper.
Disclaimer: This network and the legal advice provided in good faith by our members only facilitates as a direction towards the actions necessary. The advice should be validated by proper consultation with a certified lawyer or with the lawyer providing the advice by meeting them in person. The network or the members providing advice cannot be held liable for any consequences, under any circumstances.






Explore Topical Knowledge Areas

Interesting Relevant Discussions


DISCUSSSION STATISTICS


7938
VIEWS

3
REPLIES

PLEASE KEEP YOUR CONDUCT PROFESSIONAL AND POLITE


3M Users, 100K+ Documents & 450K+ Discussions

Share »

Community Support & Professional Insights. Login or Register.
Email/Username     Password  

About Us - Advertise - Contact Us - RSS   On Google+  
All trademarks and copyrights held by respective owners. Member comments are owned by the poster.
Privacy Policy | Disclaimer | Terms Of Service
Facebook Page | Follow Us On Twitter | Linkedin Network