2013_bombay shops & establishments act

8/21/2019 2013_Bombay Shops & Establishments Act

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The Maharashtra (Bombay) Shops

and Establishments Act, 1948

by

Prof. Rajkumar Bagadia


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Object and Applicability

Object: To regulate the conditions of work and employment

in shops, commercial establishments, residential hotels,

restaurants, eating houses, theatres, other places of public

amusement or entertainment and other establishments.

The Act extends to the whole of the State of Maharashtra

and came into effect from 11thJanuary, 1948. The Act has,however been amended several times to suit the changing

environment.

In the first instance the operation of the Act is confined to

the Municipal areas specified in Schedule I to the Act. However, the State Govt. is required to extend the

applicability to other areas/towns having a population of

25000 or more.

The State Government has wide powers under the Act.


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The provisions of the Act are applicable to:

a) A shop including an office, a godwon or work place;b) A commercial establishment where any business, trade or

profession or any work connected with such trade orprofession is carried on;

c) A residential hotel including a residential club;

d) A restaurant or an eating house;

e) A theatre;

f) Any other place of public amusement or entertainment;

g) A society, whether registered or not, which carries on any

business, trade or profession, whether for gain or not;h) A charitable or other trust, whether registered or not, whichcarries on whether for gain or not any business, trade or workin connection with or incidental or ancillary thereto; and

i) Any other establishment as the State Govt. may specifically

declare.


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Employeemeans a person employed directly or through

an agency, whether for wages or other considerations, in or inconnection with any establishment and includes an apprenticebut does not include a member of the employers family.

Shopis an establishment where goods are sold or where

services are rendered to customers. A place were services are sold on retail basis is also called a

shop. Therefore, an establishment engaged in arrangingmusical performance on occasions like marriage etc., is a shop.

An Association which neither carries on any trade or businessnor renders any service to outsiders, will not be treated as ashop or commercial establishment, e.g. Flat Owners

Association.

It includes establishment of any medical practitioner,

architect, engineer, accountant, tax consultant.


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Registration of Establishments

Every establishment is required to be registeredunder the

Act with the local authorities. The administration of the Actis left to the local authority.

The employer of an establishment has to apply to theInspector of the local area concernedform fees, for

registration under the Act. The application for registration shall be made within 30 days

from the date the establishment commences its work.

The Inspector, if satisfied, shall register the establishment

and shall issue, a registration certificate to the employer. The registration certificate shall be prominently displayed at

the establishment.

The registration certificate so granted shall be valid up to the

end of the year for which it is granted.


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Registration of Establishments

An application for the renewalshall be submitted not less

than fifteen days before the date of expiry and shall beaccompanied by such fees.

In case of delay in making application for renewal, there are

provisions for penalty/ additional charges for renewal.

The registration certificate may, at the option of theemployer, be granted or renewed for three years at a time,

on payment of the fees for that period.

If there is any change in the particulars, the employer has to

notify the same and get the registration certificate suitablyamended.

In case of closing down of his establishment, the employer is

required to notify to the Inspector within 10 days for

cancellation of the registration.


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Name Board of the Establishment

As per Rule 20-A made under the Act, the name board of

every shop / establishment shall be in Marathi inDevanagari Script (w.e.f. 30/06/1981).

It is permissible for the employer to have the name board in

any other language or script, in addition to Marathi. But the

lettering in Marathi of the name board shall not be less boldthan any other language or script.

Further, Marathi being the official language of the state, the

lettering of the name board in Marathi shall be essentially

written in the beginning. As per rule 20-B: every employer shall display a notice on the

notice board in his establishment that No Child Labourers

are Engaged.


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Working Hours for Shops & Establishments

The general rule about the opening hours of shops is that

they are not allowed to be opened earlier than 7.00 a.m. Butshops selling milk, vegetables, fruits, fish, meat, bread etc.are allowed to be opened at 5.00 a.m. onwards.

The general rule about the closing hours of shops is thatthey must be closed at the latest by 8.30 p.m. But shops

selling pan, bidi, cigarettes etc. are allowed to be kept openup to 11.00 p.m.

Opening and closing hours of commercial establishments:No commercial establishment shall on any day be opened

earlier than 8.30 a.m. and closed later than 9.30 p.m. However, the State Govt. may fix later opening or earlier

closing hours for different classes of shops and/orcommercial establishments or for different areas or fordifferent periods of the year.


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Daily and weekly hours of work

No employee shall be required or allowed to work in any shop orcommercial establishment for more than nine hours in any day and

forty-eight hours in any week.

Any employee may be required or allowed to work in a shop orcommercial establishment for a period in excess of the limit fixed asabove, if such period does not exceed six hours in any week.

On not more than six days in a year which the State Govt. may fix byrules, for purposes of making of accounts, stock taking etc., anyemployee may be required or allowed to work, in excess of the periodfixed as above, if such excess period does not exceed 24 hours.

Interval for restPeriod for continuous work shall not exceed fivehours, i.e. no employee shall be required or allowed to work for morethan 5 hours before he has had an interval for rest of at least one hour.

The spread-over of an employee shall not exceed eleven hours in anyday.

Every Shop and commercial establishment shall remain closed on one

day of the week.


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Opening and Closing Hours of Restaurants

No restaurant or eating house shall be opened earlier than

5.00 a.m. and closed later than twelve midnight for service. Provided that an employee in such restaurant or eating

house may be required to commence work not earlier than

4.30 a.m. and shall not be required to work later than

00.30 a.m. The State Govt. may fix later opening or earlier closing hours

for different restaurants or eating houses or for different

areas or for different periods of the year.

The State Govt. by notification, may fix such opening andclosing hours for different restaurants or eating houses or

for different areas, as it thinks proper which shall not be not

more than ten days in a year on festive or special occasions.


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An employee shall not be required or allowed to work in any

residential hotel, restaurant or eating house for more thannine hours in any day, and forty eight hours in any week.

The State Govt. may, by notification, allow any employee to

work in a residential hotel, restaurant or eating house up to

a period of twelve hours in any day. Interval for rest - Period of work of an employee each day

shall be so fixed that no period for continuous work shall

exceed five hours and that no employee shall be required or

allowed to work for more than five hours before he has hadan interval for rest of at least one hour.

Spread-over -The spread-over of an employee in a

residential hotel, restaurant or eating house shall not exceed

twelve hours.


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Holidays in a week - Every employee in a residential hotel,

restaurant or eating house shall be given at least one day ina week as a holiday.

No deduction shall be made from the wages of any

employee in a residential hotel, restaurant or eating house

on account of the weekly holiday given to him. If an employee is employed on a daily wage, he shall

nonetheless be paid his daily wage for the day of holiday.

Employer to furnish identity card to employee -The

employer shall furnish every employee in a residential hotel,restaurant or eating house an identity card, containing the

necessary particulars, which shall be produced by the

employee on demand by an Inspector.


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Theatres or Other Places of Public Amusement

A theatre or other place of public amusement or

entertainment shall be closed at the latest by 00.30 a.m.

An employee shall not be required or allowed to work in any

theatre or place of public entertainment for more than nine

hours in any day, and forty eight hours in any week.

He must be allowed an interval of rest of at least one hour

after five hours of continuous work.

His spread-over shall not exceed eleven hours in any day.

Every employee shall be given one day in a week as a

holiday.

No deduction can be made from his wages on account of

the weekly holiday.

Above restrictions can be relaxed in certain circumstances.


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Employment of Children, Young Persons and Women

Any person below the age of 15 years is a child. No child can be

required or allowed to work in an establishment. A child cannot work in an establishment even though such child is

a member of the employers family.

A person between the age of 15 and 17 years is considered to be ayoung person. No young person can be required or allowed towork, whether as an employee or otherwise, in any establishment

a) before 6.00 a.m. and after 7.00 p.m.

b) for more than 6 hours in any day,

c) for more than 3 hours continuously unless interval for rest of half

an hour is given. No womancan be required or allowed to work, whether as an

employee or otherwise, in any establishment before 6.00 a.m. andafter 8.30 p.m.

No woman or a young person can be required or allowed to work

If the work involves danger to life, health or moral.


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Leave with Wages/Pay

Every employee is entitled to annual leave with payfor 21 days

for 240 days of work performed by him.

An employee who has been in employment for not less than

three months in a year is to be given 5 days leave with pay for

every 60 days of work done by him.

The leave can be accumulatedup to 42 days. Half of the total leave pay due to an employee for the period of

such leave, is to be paid before the commencement of the leave.

A discharged employeeis entitled to leave pay for the period of

leave to his credit. The provisions of the Payment of wages Act, Employees

Compensation Act, Minimum Wages Act and Maternity Benefit

Act are applicable to all shops and other establishments under

the Act.


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Leave Wages/PayTermination

Every employee shall be entitled to additional holidayon the

26thJanuary, 1stMay, 15th August and 2ndOctober every year.For holiday on these days, he shall be paid wages.

Where an employee in any establishment to which this Actapplies, is required to work in excess of the limit of hours of

work, he shall be entitled to overtime wages, which shall be atthe rate of twice of his ordinary rate of wages.

The maximum limit for working overtime shall not exceed threehours in any day.

Services of an employee cannot be terminatedunless such an

employee is given at least 30 days notice in writing, or wages inlieu of such notice.

However, an employee who has been in employment for lessthan one year but more than 3 months need to be given 14 days

notice.


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Health and Safety

Cleanliness - Sec. 39: -The premises of every establishment

shall be kept clean and free from effluvia and shall be cleaned atsuch times and by such methods as may be prescribed. Thesemethods may include lime washing, colour washing, painting,varnishing, disinfection and deodorising.

VentilationSec. 40: The premises of every establishment shallbe ventilated in accordance with such standards and by suchmethods as may be prescribed.

LightingSec. 41: The premises of every establishment shall besufficiently lighted during all working hours.

Precautions against fireSec. 42: In every establishmentprecautions to protect the premises against fire shall be taken.

First-AidIn every establishment wherein a manufacturingprocess is carried on, there shall be provided and maintained a

first-aid box containing such articles as may be prescribed.


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Offences and Penalties

Every local authority shall appoint Inspectorsfor the area, as

it may deem fit for the purpose of carrying out the provisionsof this Act. Inspectors have wide powers under the Act.

Every employer and the manager shall on demand produce

for inspection of an Inspector all registers, records and

notices required to be kept under and for the purpose of thisAct.

Whoever willfully obstructs an inspector be punished with

fine which shall not be less than Rs. 1,000/-and which may

extend to Rs. 5,000/-. For any offence contravening any provisions under the Act,

the employer and the manager, each shall be punished for

each offence, fine which shall not be less than Rs. 50/- and

which may extend up to Rs. 500/-.


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Governments Power to Grant Exemption

When the employer and manager is guilty of the same offence

committed within a period of two years, amount of fine shallnot be less than Rs. 100/- and may extend up to Rs. 1000/-.

Governments power to exempt establishments from

the provisions of the Act are as follows:

(a)The Government, by issuing a general notification, cantemporarily exempt all establishments from all or some of the

provisions of the Act by suspending the operation of such

provisions on account of any holidays or festive occasions.

(b)The Government, by issuing a special notification, canpermanently exempt any establishment from all or some of the

provisions of the Act by making such provisions

inapplicable to that establishment on account of the special

requirements of that establishment.(Ss.4 &6).


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Governments Power to Grant Exemption

The Govt. can suspend the operation of the provisions of the

Act on account of the following days and/or occasions:

a) Diwali, Ganesh Chaturthi, Dussera, Jamshedji Navroz,

Pateti, Christmas, Month of Ramzan and ramzan Eid,

b) Any occasion on which a public emergency is declared

in this behalf by the Govt.

c) Public fairs or exhibitions or religious festivals

recognized in this behalf by the Govt.

d) Any Occasion deemed fit by Government in this behalf.

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2013_bombay shops & establishments act

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