Q. What is the Shops and Commercial Establishments Act?

Ans. The Shops and Commercial Establishments Act is a law in India that regulates the working conditions of employees in shops and commercial establishments. The act applies to all shops and commercial establishments, including retail stores, restaurants, and offices.

Q. What are the main provisions of the Shops and Commercial Establishments Act?

Ans. The main provisions of the Shops and Commercial Establishments Act include regulation of working hours, holidays, leave, and other working conditions for employees in shops and commercial establishments. The act also requires employers to maintain accurate records of employee working hours, wages, and leave.

Q. What is the definition of a shop or commercial establishment under the Act?

Ans. Under the act, a shop is defined as any premises where goods are sold, either by retail or wholesale, or where services are rendered to customers. A commercial establishment is defined as any office, or other place where any trade, business, or profession is carried on.

Q. What are the working hours and holidays for employees under the act?

Ans. Under the act, the maximum number of working hours for employees in shops and commercial establishments is 9 hours per day and 48 hours per week. Employees are entitled to at least one day of holiday per week.

Q. What are the leave entitlements for employees under the act?

Ans. Under the act, employees are entitled to 12 days for 5 days working office and 15 days for 6 days working per week. of leave per year, which can be availed in addition to national holidays and weekly offs.

Q. Is it mandatory for shops and commercial establishments to register under the act?

Ans. Yes, it is mandatory for all shops and commercial establishments to register under the act and obtain a certificate of registration.

Q. What are the consequences of non-compliance with the act?

Ans. Non-compliance with the provisions of the Shops and Commercial Establishments Act can result in fines, legal proceedings, and damage to the reputation of the business.

Q. What steps can a shop or commercial establishment take to ensure compliance with the act?

Ans. To ensure compliance with the Shops and Commercial Establishments Act, shops and commercial establishments can conduct regular internal audits, maintain accurate records of employee working hours, wages, and leave, and seek assistance from a consultant specialized in compliance with labour laws.

Q. What is the due date for registering under the act and penalty for non-compliance?

Ans. All establishments covered under the act must register within 30 days of the commencement of business. The penalty for non-registration is Rs. 5000/- or imprisonment for a term of up to 3 months, or both.

Q. What are the working hours prescribed and penalty for non-compliance under the act?

Ans. The working hours prescribed under the act are 9 hours per day and 48 hours per week. The penalty for non-compliance with the working hour regulations is Rs. 10,000/- or imprisonment for a term of up to 3 months, or both.

Q. What is the Form and due date for filing annual returns under the act?

Ans. Form U is the combined annual return form specified under the rules of the act. The combined annual return form houses payment of wages, minimum wages, maternity benefit and CLRA forms in one single return. The due date for filing annual returns is January 31st of every year.

Q. What is the penalty for non-filing of annual returns?

Ans. The penalty for non-filing of annual returns is Rs. 100/- per day of delay, subject to a maximum of Rs. 5000/-.

Q. Is it mandatory to display a notice regarding the provisions of the act and penalty if any?

Ans. Yes, it is mandatory to display a notice regarding the provisions of the act (Abstract of the Act) in a prominent place in the establishment. The penalty for non-display of the notice is Rs. 500/-.

Q. Can employer lapse earned leave of employee?

Ans. Unless 45 days of leave have been accumulated, there is no provision of lapsing of earned leave of employees. Hence, the employer is required for carry forward unavailed leave to subsequent year subject to the limit of 45 days.

Q. Can employer terminate the employment of employees?

Ans. Yes. Subject to issuance of a prior notice of not less thirty (30) days or pay in lieu of the notice period, an employer is entitled to terminate the employment of employee. Further, the employer is required to encash the un-availed earned leave at the credit of the employees up to 45 days.

Q. How many days of leave is to be granted for sickness?

Ans. There is no minimum number of sickness leave provided but a maximum of twelve (12) days is provided. However, the employer is at liberty to give any number of leaves for sickness.