THE BOMBAY SHOPS

& ESTABLISHMENTS
ACT, 1948

- Ms. SONI CHARDE

ROLL NO. 866
INTRODUCTION
• Legislation to regulate conditions of work in shops
& commercial establishments has been in force in
the State of Maharashtra for nearly 71 years.
• The first Shop Act of the State was enacted in
1939.
• By repealing the old "Bombay Shops &
Establishments Act, 1939", a new enactment
known as "The Bombay Shops & Establishments
Act, 1948" was brought into force from 11th
January 1949 on the basis of Mr. Shantilal Shah’s
Committee’s Report.
• The present Shop Act of 1948, is an improved
version of the 1939 Act.
Definition Of a Shop
• Shop is, an establishment where goods are
sold or an establishment where services are
rendered to the Customers.
• A place where services are sold on Retail basis
is also called a Shop. Therefore, an
establishment engaged in arranging for musical
performance on occasions such as marriages
etc., is a Shop.
• An association, which is neither carrying on
any trade or business nor rendering any
services to outsiders, will NOT come within the
definition of the term ‘Shop’ or ‘ Commercial
establishment’. Like Association of Flat
Owners, Church
 Applicability/ Field of Operation of the
Act
• The operation of the Act is confined to the municipal
areas specified in Schedule I of the Act.
• But the State Government is required to extend the
operation of the Act to other areas having population of
25,000 & more.
• The Act applies to all employees (including apprentices)
and also covers indirect labour, that is contract labour
• If any shop or commercial establishment situated within
the precincts of a factory is not connected with the
manufacturing process of the factory, it will be governed
by the Shops & Establishment Act. But State
Government can apply all or any of the provisions of the
Factories Act to such shop or commercial
establishment. (S.70)
Types of Premises governed by
the Act
Registration of the
Establishments
The procedure for getting an establishment registered
under the Act is:
• Any establishment situated in Mumbai has to identify in
which area/ward the Shop or commercial establishment
is situated and accordingly make an application for
registration to the respective ward along with
prescribed fees. The establishment has to make an
application for registration in Form "A" along with
following documents.
1.Memorandum & Article of Association
2. List of Directors with their Residential Address
3. Proof of place viz. Copy of Leave & License Agreement.
4.. Proof of payment made to any local authority viz. Copy
of Electricity bill,  Telephone bill etc.
5. A/c Payee Cheque towards the Registration Fee
depend on the number of employees in favour of
‘Municipal Corporation of Greater Mumbai'
• In case where the establishment is situated outside
the Mumbai Municipal Corporation Jurisdiction but
within the State of Maharashtra, they have to
approach to the office of the Commissioner of Labour
for registration in Form "A" together with challan after
remitting fees into the Government treasury / State
Bank of India as prescribed in the Rules.
• On receipt of the application & the fees, the Inspector,
on being satisfied about the correctness of the
particulars contained in the application, will register
the establishment & will issue a ‘Registration
Certificate’.
Time limit of Registration
• The Employer of an establishment has to
apply to the Inspector of the local area
concern in Form "A" along with
prescribed fees and necessary documents
for getting the establishment registered
under the Act within 30 days on which the
establishment commences its work.
• On an application from the employer, the
Registration Certificate can be granted for
a period of 3 years at a time on payment of
fees for that period.
Notice Of Change
• 1.In case of any changes in the information furnished at
the time of registration or renewal in Form "A" & "B"
respectively, the employer has to notify such changes
to the Inspector in prescribed form along with such
fees. The changes has to be notified in Form "E" which
shall be submitted to the Inspector of the area within 15
days in case of change in employment strength and
within 30 days in case of any other changes.
• 2. The notice of change in Form "E" shall be
accompanied by the Original Registration Certificate
with the necessary documentary evidence. On physical
verification of the changes by the Inspector, he shall
endorse the changes on the Registration Certificate and
return back duly authenticated, within two weeks time.
 Renewal of the Registration
Certificate
• The Registration Certificate is generally valid up to
the end of the calendar year for which it is granted
under Sec. 7(2A) it is required to get every
Registration Certificate renewed for next calendar
year
• The employer has to get the registration certificate
renewed every year by applying to the Shop
Inspectors in the prescribed form (Form B)
accompanied by prescribed fees.
 Renewal is made under sec 7(2A) of the Bombay
Shops and Establishment Act,1948
• The application for renewal should be made not
less than fifteen days before the date of expiry of
the registration certificate.
• As per Sec. 7(2B)The registration certificate
may be renewed at the option of the employer,
for a period of three years
• In such cases the Registration Certificate shall
be valid up to the end of 3rd calendar year
including and from the year to which it is
granted or renewed as the case may be.
• If the renewal application is not made within
the period prescribed but it is made within
thirty days after the date of expiry of
Registration Certificate or the renewed
Registration Certificate as the case may be,
then in such cases an additional fee as late
fee equal to half of the fee payable for normal
renewal of Registration Certificate is charged .
Issue of Duplicate Certificate
• In case the Original Registration Certificate
is lost, destroyed or defaced the employer
shall report the matter to the Sr. Inspector
of the area/ward and shall make an
application for issue of duplicate certificate
along with the fee of Rs. 20/-.
Closing of Establishment
• The employer shall inform the Inspector of
the area within 10 days of the closure of
the establishment, vide an application on
the company letterhead stating the reason
of closure and the Original Certificate shall
be surrendered along with the application.
• The Government of Maharashtra, by a
notification dated 15.12.2003, has revised
the fees for :
(1) registration & renewal of registration, &
(2) notice of change.
The revised fees are as under:-
Shops & Registration Fees for Trade refuse
Establishme Fees renewal of charges per
nts having registration year
certificate
per year
Nil Rs. 100/- Rs. 100/- Rs. 300/-
Employees
1 to 5 employ Rs. 300/- Rs. 300/- Rs.900/-
ees
6  to10   Rs.600/- Rs.600/- Rs.1,800/-
employees
11  to  20  Rs.1000/- Rs.1000/- Rs.3000/-
employees
21  to  50  Rs.2000/- Rs.2000/- Rs.6000/-
employees
51  to 100 Rs.3500/- Rs.3500/- Rs.10500/-
employees
101 and Rs.4500/- Rs.4500/- Rs.13500/-
above
employees
Fees for Notice of change, to
be submitted alongwith Form E

Commercial Establishment Rs.100/-

Shops having Employee Rs.100/-
Shop having no employee Rs.100/-
Residential Hotel Rs.100/-
Restaurants & Eating Houses Rs.100/-
Theatres & Other places of Rs.100/-
Public Amusement or
Entertainment
 General point to be noted
1.The Registration Certificate to be displayed at the
prominent place in the office premises.
2. It is advisable to display the attested photocopy of
the Registration Certificate and the Original may be
kept in safe custody of the responsible person of
the establishment.
3. The name of the establishment is to be displayed in
the local language as well as in English.
For the other States the procedure of Registration,
Renewal & Notice of Change remains the same,
only the Form number and fee defers. The
respective location head should collect the
information from the office of Commissioner of
Labour situated in the area.
Name Board of the Establishment
• Rules made under the Act provide that the
name board of every establishment shall
be in Marathi in Devanagari Script.
• It is permissible for the employer to have
the name board in any other language or
script. But the lettering of the name board
shall not be less bold than any other
language or script.
Trade License
• In the State of Goa and West Bengal
before obtaining Shops & Establishment
Registration Certificate, employer has to
obtain Trade License from the office of
Municipal Corporation, on receipt of which
the office of the Labour Commissioner
shall issue the Shops & Establishment
Registration Certificate.
 Working Hours of Shops
• The main restrictive provisions of the Act about
the working hours off employees in shops &
commercial establishments are as follows:-
(a)The general rule about the opening hrs of shops
is that they are not allowed to be opened earlier
than 7a.m. but shops selling goods like milk,
vegetable, fish, etc., are allowed to be opened
from 5a.m. onwards.(S.10)
(b)The general rule about the closing hours of
shops is that they must be closed at the latest by
8:30p.m. But shops selling goods like pan, bidi
etc., are allowed to be kept open up to 11p.m.
(S.11)
(c) Commercial establishments are not
allowed to be opened earlier than 8:30a.m.
& closed later than 9:30p.m. in a day(S.13)
(d) An employee in a shop or commercial
establishment cannot be required or
allowed to work for more than 9 hrs in a
day & 48 hrs in a week. (S.14)
(e) He must be allowed an interval of rest of
at least 1 hr after 5 hrs of continuous work.
(S.15)
(f) His spread-over cannot exceed 11hrs in a
day (Ss.16&17).
(g) Every shop & commercial establishment
should remain closed on one day of the
week. No deduction can be made from the
wages of any employee in a shop or
commercial establishment on account of
any day on which it has so remained
closed. (S.18)
Note: the above restrictions can be relaxed in
certain circumstances.
Working Hours of Restaurants
• The main restrictive provisions of the Act
about the working hrs of employees in
residential hotels, restaurants & eating
houses are as follows:
(a)A restaurant or eating house cannot be
opened earlier than 5a.m. & closed later
than 12 midnight for service. (S.19)
(b)An employee in a reestaurant or eating
house may be required to commence work
from 4:30a.m. onward. He cannot be
required to work after 00:30a.m. (S.19)
(c) An employee in a residential hotel,
restaurant or eating house cannot be
required or allowed to work for more than
9 hrs in a day & 48 hrs in a week. (S.21)
(d) He must be allowed an interval of rest of
at least 1 hr after 5 hrs of continuous work.
(S.22)
(e) His spread-over cannot exceed 12hrs in a
day (S.23)
(f) He must be given at least one day as a
holiday. No deduction can be made from
the wages of any employee on account of
such holiday. (S. 24)
Working Hours of Theatres
• The main restrictive provisions of the Act
about the working hrs of employees in
theatres & other places of public
amusement or entertainment are as
follows:
(a)A theatre or other place of public
amusement or entertainment must be
closed at least by 00:30 a.m. (S.26)
(b)An employee in a theatre or other place of
public amusement or entertainment cannot
be required or allowed to work for more
than 9 hrs in a day or 48 hrs in a week.
(S.28)
(c) He must be allowed an interval of rest of
at least 1 hr after 5 hrs of continuous work.
(S.29)
(d) His spread-over cannot exceed 11hrs in a
day (S.30)
(e) He must be given at least one day as a
holiday. No deduction can be made from
the wages of any employee on account of
such holiday. (S. 31)
 Employment Of Children &
Women
• The employment of children is totally prohibited.
Anybody who is below the age of 15 yrs is
considered to be a child. No child can be required
or allowed to work whether as an employee or
otherwise in any establishment. (S.32)
• Anybody between the age of 15yrs & 17yrs is
considered to be young person. No young person
can be required or allowed to work, whether as
an employee or otherwise, in any establishment-
(a)After 7:00p.m.;
(b)For more than 6 hrs in a day &;
(c)If the work involves danger to life, health or
morals. (Ss.33, 34 & 34-A)
• Restrictions are placed on the opening &
closing hrs for women as well as on giving
them dangerous work. Thus, no woman
can be required or allowed to work,
whether as an employee or otherwise, in
any establishment after 9:30p.m. In other
words, women cannot be required or
allowed to addend work late in the
evening.
• Similarly, no woman working in any
establishment, whether as an employee or
otherwise, can be required or allowed to
perform work involving danger to her life,
health or morals. (Ss.33 & 34-A)
 Wages For Overtime Work
• When any employee is required to work
overtime, i.e. in excess of the limit of hours
of work, he must be paid for such a work
at double the rate of his ordinary wages.
• The limit of hours of work for the purpose
of calculating overtime is 9 hrs in any day
& 48 hrs in any week.
• Limit for working overtime shall not exceed
3 hrs & the employer may engage
additional number of employees for the
purpose of the work beyond the said
overtime hours. (S.63)
Leave With Wages
• The main provisions of the Act about the grant
of annual leave with wages are as follows:
(a)An employee is entitled to annual leave with
pay of 21 days for 240 days of work.
(b)An employee who has not worked for one
year is entitled to leave with pay for 5 days for
every 60 days of work.
(c)An employee is entitled to be paid before his
leave begins, half the amount of his leave pay.
(d)Leave with pay can be accumulated up to 42
days
• A discharged employee is entitled to leave
pay for the balance of leave to his credit.
(Ss. 35 to 37)
• In addition to annual leave with pay, an
employee of a shop or establishment is
entitled to a paid holiday on 26th January,
1st May, 15th August & 2nd October every
year. (S.35(4))
• An employee who is given a holiday or is
on leave in accordance with the provisions
of the Act is prohibited from working in any
establishment on such holiday or during
such leave. (S.65)
Applicability of other Acts
Payment of Wages act, 1936
• Section 38 of the Bombay shops &
Establishment Act gives power to the State
Government to extend the application of
the Payment of Wages Act to any class of
establishments or any class of employees
to which the Bombay Shops &
Establishment Act applies. Accordingly, the
State Government has extended the
application of the Payment of Wages Act to
establishments situated in Greater
Bombay, Thane, Poona, Sholapur,
Kolhapur & Nagpur.
Workmen’s Compensation Act, 1923
• According to Section38-A of the Bombay
Shops & Establishments Act,1948, the
provisions of the Workmen’s Compensation
Act are applicable to the employees or the
establishments to which the Bombay shops &
Establishments Act, 1948 applies.
• An employee working in a clerical capacity in
an establishment to which the Bombay shops
& Establishments Act, 1948 applies is entitled
to claim compensation under the Workmen’s
Compensation Act,1923. by virtue of section
38-A of the Bombay Shops & Establishments
Act,1948 he is deemed to be a workman within
the meaning of the Workmen’s Compensation
Act & therefore, it is not necessary for him to
prove that he is a workman under the said Act.
Industrial Employment (Standing Orders)
Act, 1946
• According to Section 38-B of the Bombay
Shops & Establishments Act,1948 the
provisions of the Industrial Employment
(Standing Orders) Act, 1946 in its
application to the State of Maharashtra,
are applicable to all establishments
wherein 50 or more employees are
employed & to which the Bombay Shops &
Establishments Act,1948 applies.
Maternity Benefit Act, 1961
• Section 38-C of the Bombay Shops &
Establishments Act,1948 as well as the proviso
to sub-section (I) of Section 2 of the Maternity
Benefit Act gives power to the State
Government to extend the application of the
Maternity Benefit Act to women employees in
any establishments or class of establishments.
• Accordingly, the State Government has
extended the application of the Maternity Benefit
Act to all shops, commercial establishments,
residential hotels, restaurants 7 eating houses to
which the Bombay Shops & Establishments
Act,1948 applies but the Employees’ State
Insurance Act does not apply.
NOTE:
If the rights or privileges conferred on an
employee under any other law, contract,
custom, usage, award, settlement or
agreement are more favourable than those
conferred under the Shops &
Establishments Act, then the former will
prevail over the latter. (S.69)
Health & Safety Measures
Every establishment must take appropriate
measures as per the provisions of the Act
& the rules-
(a)To keep the premises clean;
(b)To keep the premises ventilated;
(c)To keep the premises sufficiently lighted
during the working hours;
(d)To protect the premises against fire; &
(e)To provide & maintain a first aid box if a
manufacturing process is carried on in the
premises (Ss.39 to 42-A)
Powers Of the Inspectors

An Inspector appointed under Bombay Shops &

Establishments Act, 1948 has power-
(a)To enter any place which is an establishment;
(b)To make examination of the premises,
registers, records & notices;
(c)To take evidence of any person;
(d)If he suspects that an employer has committed
an offence under Section 52 or 55, to seize the
necessary registers, records or other
documents & retain them for a reasonable
period for examination thereof or for
prosecution of the employer. (S.49)
Termination Of Service
Requirements:
(a)If an employer wants to terminate the services of
any employee who has been in his continuous
employment for one year or more, the employer
can terminate his services by giving him 30
days’ notice in writing or wages in lieu of such a
notice.
(b)If an employer wants to terminate the services of
any employee who has been in his continuous
service employment for less than one year but
more than 3 months, the employer can terminate
his services by giving him 14 days’ notice in
writing or wages in lieu of such notice. Not
required in case of less than 3 months. (S.66)
(c) If the services of an employee are
terminated without giving such person any
notice or wages in lieu of notice, as per
section 66 of the Act, his termination is
bad in law & he is entitled to reinstatement
with continuity of service & full back
wages.
(d) When an employer terminates the
services of any employee (by way of
Discharge or Dismissal) for misconduct,
the employer need not give any notice to
the employee. (S.66 Proviso)
Maintenance of Registers
• Form-A {Rule 5}
Register showing dates of Lime Washing
etc
• Form-H, Form-J {Rule 20(1)} (if opening &
closing hours are ordinarily uniform)
Register of Employment in a Shop or
Commercial Establishment
• Form-I {Rule 20(3)}, Form-K (if opening &
closing hours are ordinarily uniform)
Register of Employment in a Residential
Hotel, Restaurant, Eating-House, Theatre,
or other places of public amusement or
entertainment
• Form-M {Rule 20(4)}
Register of Leave – This and all the above
Registers have to be maintained by the Employer
• Visit Book
This shall be a bound book of size 7” x 6”
containing at least 100 pages with every second
page consecutively numbered, to be produced to
the visiting Inspector on demand. The columns
shall be:
• Name of the establishment or Employer
• Locality
• Registration Number
• Date and
• Time
 Exemptions

Temporary Permanent
exemption exemption
from the from the
“Operation” of “Application” of
the provisions the provisions
of the Act of the Act
 Government’s power to exempt establishments
from the provisions of the Act are as follows:
(a)The Government, by issuing a general
notification, can temporarily 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, can permanently 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)
Government can suspend the operation of
the provisions of the Act on account of the
following holidays or occasions:-
(a)Diwali
(b)Ganesh Chaturthi
(c)Dasshera
(d)Pateti
(e)Christmas
(f) Ramzan & Ramzan Id
(g)Any occasion on which a public
emergency is declared in this behalf by the
Government
 Conclusion
• Though the present Bombay Shops &
Establishments Act, 1948 has undergone
several improvements during past several
years, it has failed to fulfill the legitimate
expectations of its beneficiaries due to its
inadequate provisions & unsatisfactory
implementation.
• Thus, it has to be reviewed again & should
be implemented properly.