Step-by-Step Guide
5 Steps
How to Get a Shop and Establishment License in India
Step by step guide on how to get a Shop and Establishment License (Gumasta License) in India. Covers state-wise registration process, documents required, fees, renewal, penalties, and compliance under the Shops and Establishments Act. Updated for 2026.
Quick Overview
Estimated Cost
₹500
Time Required
7 to 15 Days (Application to Certificate)
Total Steps
5 Steps
What You'll Need
Documents Required
- PAN Card of the business or proprietor
- Aadhaar Card of the proprietor, partner, or authorized director
- Certificate of Incorporation or business registration document (for companies, LLPs, and firms)
- Address proof of the shop or establishment (rent agreement, lease deed, or property ownership documents)
- NOC from the landlord (if premises are rented)
- List of employees with their details (name, designation, date of joining)
- Passport-size photograph of the proprietor or authorized signatory
- GST Registration Certificate (if applicable)
- Self-declaration regarding nature of business, working hours, and employee count
Tools & Prerequisites
- Access to the respective state's labour department or municipal corporation portal for online registration
- Payment method (internet banking, debit card, or credit card) for registration fees
- Digital Signature Certificate (in some states for online filing)
A Shop and Establishment License is one of the most fundamental business registrations in India. Whether you run a retail shop in a market, an IT office in a commercial building, a restaurant, a warehouse, or even a home-based operation with employees, this license legalizes your business premises and ensures compliance with employment and working condition regulations.
Known as the Gumasta License in Maharashtra, this registration is governed by each state's Shops and Establishments Act and is administered by local municipal bodies or the state labour department. This guide covers the complete process for obtaining the license, state-specific requirements, renewal procedures, and ongoing compliance obligations.
Why You Need a Shop and Establishment License
Legal Requirement
The Shops and Establishments Act makes it mandatory for every commercial establishment to register within 30 days of commencing operations. Operating without registration is a punishable offence that can result in fines and closure orders. The license serves as legal authorization to operate a commercial establishment from the registered premises.
Practical Benefits
- Business bank account: Banks require the Shop and Establishment License as part of KYC when opening a company current account
- Address proof: It serves as a valid address proof for other registrations including GST registration
- Employee legitimacy: It establishes a formal employer-employee relationship and compliance with labour laws
- Government tenders and contracts: Many government tenders require a valid Shop and Establishment License
- Loan applications: Banks and financial institutions ask for this license when processing business loan applications
- Legal protection: It provides legal backing in employment disputes and regulatory matters
Most states require that you register within 30 days of commencing business operations. Do not wait for employees to be hired or for revenue to start. Register as soon as you set up your office or shop premises. In states like Maharashtra, the online process takes less than an hour and the certificate is issued instantly.
Who Needs to Register Under the Shops and Establishments Act
Establishments Covered
| Type | Examples |
|---|---|
| Shops | Retail stores, grocery shops, clothing outlets, electronics stores, bookshops |
| Commercial Offices | IT companies, consulting firms, financial services, legal offices, startup offices |
| Food and Hospitality | Restaurants, cafes, cloud kitchens, hotels, lodging houses, bakeries |
| Entertainment | Theatres, cinemas, amusement parks, gaming zones, event venues |
| Healthcare | Clinics, nursing homes, diagnostic labs, pharmacies, dental offices |
| Education | Coaching centres, training institutes, tuition centres, computer academies |
| Warehousing | Warehouses, godowns, cold storage facilities, distribution centres |
| Others | Salons, gyms, laundries, repair shops, service centres, co-working spaces |
Exemptions
The following are typically exempt from the Act (varies by state): manufacturing establishments covered under the Factories Act, government offices, railway administration, establishments under the Mines Act, and religious and charitable institutions (in some states). However, even for exempt categories, some provisions may still apply.
Step by Step Process to Get a Shop and Establishment License
Step 1: Identify Your State's Registration Authority and Portal
Each state has a designated authority for Shop and Establishment registration:
| State | Authority | Portal |
|---|---|---|
| Maharashtra | Local Municipal Corporation | Respective Municipal Corporation portal |
| Delhi | Delhi Labour Department | labour.delhi.gov.in |
| Karnataka | Department of Labour | sevasindhu.karnataka.gov.in |
| Tamil Nadu | Inspector of Labour | laborcommissioner.tn.gov.in |
| Gujarat | Inspecting Authority / Labour Department | ikhedut.gujarat.gov.in or local authority |
| West Bengal | Department of Labour | wblwb.gov.in |
Step 2: Gather Documents
Before starting the application, ensure you have:
- PAN Card of the business or proprietor
- Aadhaar Card of the proprietor or authorized signatory
- Passport-size photograph
- Rent agreement or property ownership documents for the premises
- NOC from the landlord (if premises are rented)
- Certificate of Incorporation or business registration certificate
- List of employees with their details
- Details of working hours, rest intervals, and weekly holidays
Step 3: Complete the Online Application
The application form typically requires:
- Name and address of the establishment
- Type or category of establishment (shop, office, restaurant, etc.)
- Date of commencement of business
- Name and contact details of the employer (proprietor, partners, or directors)
- Total number of employees (male and female separately)
- Proposed daily working hours and weekly holiday
- Nature of business activity
Upload all supporting documents and pay the prescribed registration fee.
Step 4: Receive the Registration Certificate
After verification (which may include physical inspection in some states), the registration certificate is issued. In states with simplified online systems:
- Maharashtra: Certificate issued instantly or within 48 hours
- Delhi: Certificate issued within 1 to 3 days
- Karnataka: Certificate issued within 7 to 15 days
- Other states: 7 to 30 days depending on the process
Step 5: Display the Certificate and Maintain Compliance
Once received, display the registration certificate prominently at the entrance of the establishment. Also display the notice of working hours and weekly holiday. Maintain all prescribed registers (attendance, wages, leave) and comply with the working conditions stipulated in the Act.
Once registered, ensure ongoing compliance with the Act's provisions. Set reminders for renewal if your state requires periodic renewal. Keep employee records updated and maintain prescribed registers. Any changes to the establishment (address, ownership, business nature) must be reported to the licensing authority promptly.
Key Compliance Requirements Under the Shops and Establishments Act
Working Hours and Overtime
- Maximum daily working hours: 8 to 9 hours (varies by state)
- Maximum weekly working hours: 48 hours
- Overtime rate: Double the ordinary rate of wages
- Maximum overtime allowed: Varies; some states cap overtime at a certain number of hours per quarter
- Rest interval: Minimum 30 minutes after 5 hours of continuous work
- Spread over: Including rest, total spread should not exceed 10.5 to 12 hours
Leave and Holidays
- Weekly holiday: At least one full day per week (paid)
- Festival and national holidays: 10 to 15 paid holidays per year (list specified by each state)
- Earned leave / privilege leave: Typically 15 to 21 days per year after completing 12 months of service
- Sick leave: 7 to 12 days per year (varies by state)
- Casual leave: 7 to 12 days per year (varies by state)
- Maternity leave: As per the Maternity Benefit Act, 1961 (26 weeks for first/second child)
Employment Conditions
- Minimum age: No child below 14 years can be employed
- Termination notice: 30 days' notice or pay in lieu for employees who have served more than 3 months
- Payment of wages: Wages must be paid before the 7th or 10th of the following month
- Cleanliness and hygiene: Establishment must maintain adequate lighting, ventilation, cleanliness, and drinking water
How the Shop and Establishment License Fits with Other Business Registrations
A Shop and Establishment License is one of several essential registrations for a business. Here is the typical sequence:
- Business entity registration: Company registration, LLP registration, or proprietorship setup
- PAN and TAN application: For the business entity
- Bank account: Open a current account (the shop license is often needed for this)
- Shop and Establishment License: From the local labour/municipal authority (this guide)
- GST registration: GST registration if applicable
- Professional tax: PT registration in PT-levying states
- PF and ESI: PF registration and ESI registration when employee thresholds are met
- Trademark: Trademark registration for brand protection
- Industry-specific licenses: FSSAI for food, ISO certification for quality, etc.
Conclusion
The Shop and Establishment License is a fundamental compliance that every commercial establishment in India must obtain. The process is simple, the cost is minimal (often free or under 1,000 rupees), and with online portals available in most states, the certificate can be obtained within days. Beyond legal compliance, this license serves as a critical business identity document for bank account opening, other registrations, and establishing credibility.
Register within 30 days of starting operations, maintain prescribed records, comply with working hour and leave provisions, and renew on time. Non-compliance attracts penalties far exceeding the modest cost of registration.
Need help obtaining your Shop and Establishment License or managing compliance? Our team at IncorpX handles the complete registration process across all states.
Frequently Asked Questions
What is a Shop and Establishment License?
A Shop and Establishment License (also called Gumasta License in Maharashtra and some other states) is a mandatory registration required under the respective state's Shops and Establishments Act. It is a legal document that authorizes a business to operate a commercial establishment such as a shop, office, restaurant, warehouse, hotel, or any other place of business. The license regulates working conditions including working hours, wages, leave policies, holidays, employment of women and children, and health and safety standards. It is issued by the local municipal authority or the state labour department.
Who needs a Shop and Establishment License?
Virtually every commercial establishment operating in India needs this license, including: 1. Retail shops and stores, 2. Offices (business, professional, or administrative), 3. Restaurants, cafes, and eateries, 4. Hotels and lodging houses, 5. Warehouses and godowns, 6. Theatres and entertainment venues, 7. IT companies and startups, 8. E-commerce companies with physical offices, 9. Clinics and nursing homes, 10. Educational institutions (coaching centres, training institutes). Even home-based businesses and freelancers with employees may need to register in some states.
What is the Shops and Establishments Act?
The Shops and Establishments Act is a state-level legislation that governs the conditions of work, employment, and rights of workers in shops and commercial establishments. Each state has its own version of this Act. Key provisions covered include: working hours (8 to 9 hours per day, 48 hours per week), rest intervals, weekly and annual holidays, wage payment rules, employment of women (including restrictions on night shifts in some states), employment of children (prohibited below a certain age), health and safety standards, termination and notice period requirements, and maintenance of registers.
What is a Gumasta License?
The term Gumasta License is the common name for the Shop and Establishment License in Maharashtra. It derives from the Marathi word for a shop clerk or agent. In Maharashtra, the Gumasta License is issued by the local Municipal Corporation (BMC in Mumbai, PMC in Pune, etc.) and is governed by the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017. The term is sometimes used colloquially across India to refer to any shop license, but technically it is a Maharashtra-specific term. The application process is fully online through the respective Municipal Corporation's portal.
How much does a Shop and Establishment License cost?
The registration fee varies by state and is generally quite nominal: Maharashtra: 200 to 1,000 rupees depending on the municipal corporation and establishment type. Delhi: Free of cost for online registration through the Delhi government portal (no fee). Karnataka: 100 to 500 rupees. Tamil Nadu: 250 to 1,000 rupees. Gujarat: 100 to 500 rupees. West Bengal: 200 to 500 rupees. Professional fees for engaging a consultant to handle the registration are additional and typically range from 1,000 to 3,000 rupees.
What is the validity of a Shop and Establishment License?
The validity varies significantly by state: Maharashtra: Lifetime validity (no renewal required as long as no changes in establishment details). Delhi: Valid for 1 year initially, renewable annually or for up to 5 years. Karnataka: Valid for 5 years, renewable before expiry. Tamil Nadu: Valid for 5 years. Gujarat: Valid for 1 to 5 years depending on the local authority. West Bengal: Valid for 1 year, renewable annually. Andhra Pradesh and Telangana: Valid for 5 years. Always check your specific state's rules as they are periodically amended.
What are the documents required for Shop and Establishment License?
Standard documents required across most states include: 1. PAN Card of the business or proprietor, 2. Aadhaar Card of the proprietor or authorized signatory, 3. Passport-size photograph, 4. Address proof of the establishment (rent agreement, lease deed, or property tax receipt), 5. NOC from the landlord (for rented premises), 6. Certificate of Incorporation (for companies and LLPs), 7. Details of employees (name, designation, date of joining, salary), 8. Declaration about the nature of business and working hours. Some states may require additional documents like GST certificate or fire safety certificate.
How do I apply for a Shop and Establishment License in Maharashtra?
In Maharashtra, the process is fully online: 1. Visit the respective Municipal Corporation's portal (e.g., portal.mcgm.gov.in for Mumbai), 2. Register and create an account, 3. Select 'New Shop and Establishment Registration', 4. Fill in establishment details (name, address, type of business, commencement date), 5. Enter employer and employee details, 6. Upload required documents (PAN, Aadhaar, address proof, photograph, rent agreement), 7. Pay the registration fee online, 8. Submit the application. The registration certificate is issued instantly or within 24 to 48 hours after online submission. No physical inspection required.
How do I apply for a Shop and Establishment License in Delhi?
In Delhi, the process is: 1. Visit the Delhi Labour Department portal (labour.delhi.gov.in) or the District Industries Centre portal, 2. Click on 'Online Registration of Shops/Establishments', 3. Register with your mobile number and email, 4. Fill the application form with establishment details, 5. Upload Aadhaar, PAN, address proof, and employee details, 6. Submit the application. No fee is charged for online registration in Delhi. The certificate is issued within 1 to 3 working days. Delhi has one of the most simplified processes, often issuing the license the same day.
How do I apply for a Shop and Establishment License in Karnataka?
In Karnataka: 1. Visit the Karnataka Seva Sindhu portal (sevasindhu.karnataka.gov.in) or the Department of Labour portal, 2. Select 'Shops and Commercial Establishment Registration', 3. Fill in the application with establishment details (name, address, nature of business, employee count), 4. Upload required documents including ID proof, address proof, photograph, and rent agreement, 5. Pay the registration fee online, 6. Submit the application. The Inspector of Labour verifies the application and issues the certificate within 7 to 15 days. The registration is valid for 5 years and must be renewed before expiry.
What happens if I operate without a Shop and Establishment License?
Operating without a valid license is a punishable offence under the respective state's Shops and Establishments Act. Consequences include: 1. Fine ranging from 1,000 to 25,000 rupees depending on the state and severity, 2. Repeated offences may attract higher fines and imprisonment in some states, 3. The establishment can be ordered to close until registration is obtained, 4. Employees can file complaints with the labour department, 5. It affects your ability to open a business bank account, obtain GST registration, and enter into commercial contracts, and 6. Banks and financial institutions commonly ask for this license as part of KYC.
What are the working hours prescribed under the Shops and Establishments Act?
Working hours vary by state but generally are: Daily working hours: 8 to 9 hours per day (excluding rest intervals). Weekly working hours: 48 hours per week maximum in most states. Overtime: Beyond the prescribed daily/weekly hours constitutes overtime and must be compensated at double the ordinary rate. Rest interval: A rest period of 30 minutes to 1 hour after 5 consecutive hours of work. Spread over: Total hours including rest should not exceed 10.5 to 12 hours in a day. Night shifts: Some states restrict or regulate night work, especially for women employees, though many states have removed these restrictions following amendments.
What registers must be maintained under the Shops and Establishments Act?
Establishments must maintain the following registers/records: 1. Employment register (Form A) with employee details, 2. Attendance register or muster roll, 3. Wage register or salary register, 4. Leave register showing leave balance and availed leave, 5. Register of holidays and festival holidays, 6. Register of overtime work and overtime wages paid, 7. Register of fines and deductions (if any). Many states now allow digital maintenance of these registers instead of physical registers. The registers must be available for inspection by the Labour Inspector at all times.
What holidays are mandated under the Shops and Establishments Act?
Holiday provisions include: Weekly holiday: At least one day per week (typically Sunday, but the employer can designate another day). In some states, shops can remain open on Sundays with a compensatory holiday on another day. Festival and national holidays: Usually 10 to 15 paid holidays per year depending on the state (including Republic Day, Independence Day, Gandhi Jayanti, and state-specific festivals). Earned leave: After completing a year of service, employees are entitled to earned leave (typically 15 to 21 days per year). Casual and sick leave: Provisions vary by state, typically 7 to 12 days combined.
Can I get a Shop and Establishment License for a home-based business?
Yes, in most states you can obtain a Shop and Establishment License for a home-based business, especially if you have employees working from your home premises. The address proof will be your residential address documents. Some states may require a NOC from the housing society or landlord confirming that commercial activity is permitted in the residential premises. IT companies, e-commerce sellers, consultants, and freelancers with employees working from home commonly obtain this license. It serves as a valid business address proof for other registrations.
Is a Shop and Establishment License the same as a Trade License?
They are related but different. A Shop and Establishment License is obtained under the state's Shops and Establishments Act and relates to employment conditions (working hours, holidays, wages, employee welfare). A Trade License is obtained from the local municipal corporation and is a permission to carry on a specific trade or business at a particular location. Some municipalities combine both into a single license, while others require separate applications. In many cities, the Shop and Establishment Registration serves as a de facto trade license. Check with your local municipal authority.
How do I renew my Shop and Establishment License?
The renewal process varies by state: Maharashtra: No renewal needed (lifetime validity). Delhi: Apply for renewal 30 days before expiry through the online portal; submit updated employee details and pay the renewal fee (if any). Karnataka: Apply for renewal before the 5-year expiry through the Seva Sindhu portal with updated documents. General process: 1. Log into the state portal, 2. Select 'Renewal' option, 3. Update any changed details (employee count, address changes), 4. Upload current documents, 5. Pay renewal fee, 6. Submit. Late renewal may attract penalties depending on the state.
What is the process for closing an establishment or surrendering the license?
If you are closing your business or shutting down an establishment, you must: 1. Notify the licensing authority (inspector or online portal) about the closure, 2. Settle all employee dues including pending wages, leave encashment, gratuity, and notice period pay, 3. File a closure application with the authority, 4. Submit the original registration certificate for cancellation, 5. Get a closure acknowledgement. Failure to formally close the registration can result in continued compliance obligations and penalties. The closure process typically takes 15 to 30 days.
Can I transfer my Shop and Establishment License to a new location?
You cannot transfer a Shop and Establishment License to a different address. The license is specific to the registered premises. If you relocate your business to a new address (even within the same city), you must: 1. Surrender or close the existing registration at the old address, 2. Apply for a fresh registration at the new address, 3. Update all other registrations (GST, PAN, bank accounts) with the new address. Some states allow an 'amendment' process for address changes within the same jurisdiction, which is simpler than surrender and re-registration.
What is the penalty for not renewing a Shop and Establishment License?
Operating with an expired license is treated similarly to operating without a license. Penalties include: 1. Fine of 1,000 to 10,000 rupees (varies by state), 2. Additional fine for each day the establishment continues to operate without a valid license, 3. The Inspector may issue a show cause notice requiring you to explain why legal action should not be taken, 4. In extreme cases, the establishment may be ordered to close until a valid license is obtained. Most states provide a grace period after expiry, but best practice is to renew well in advance.
Do e-commerce companies need a Shop and Establishment License?
Yes, e-commerce companies that have a physical office, warehouse, or any premises where employees work need a Shop and Establishment License for that location. Even if the business entirely is conducted online, the physical office where employees, managers, or packing staff work is an 'establishment' under the Act. This applies to: online marketplaces, direct-to-consumer brands with offices, warehousing and logistics companies, and digital service companies. The license is often required as a supporting document for GST registration, PF registration, and bank account opening.
How is the Shop and Establishment License related to GST registration?
The Shop and Establishment License and GST registration are separate registrations but are often interconnected: 1. Some GST officers accept the Shop and Establishment License as valid address proof during GST registration. 2. The license confirms that a legitimate business operation exists at the declared address. 3. Some states require the GST number on the Shop and Establishment registration form. 4. For virtual office based businesses, both registrations may use the virtual office address. The two registrations serve different purposes (labour/employment conditions vs. indirect tax) but together establish your business legitimacy.
What information must be displayed at the shop or establishment?
The Act requires the following to be displayed prominently at the establishment: 1. The registration certificate itself (original or certified copy), 2. A notice of weekly holiday indicating which day of the week the establishment is closed, 3. A notice of daily working hours showing opening and closing times, 4. Name and address of the employer, 5. Name and address of the Inspector having jurisdiction over the area, 6. Information about employee rights under the Act. Non-display of required notices can attract fines during inspections.
Who can inspect a registered establishment?
The Inspector appointed under the Shops and Establishments Act has the power to: 1. Enter and inspect any establishment during working hours, 2. Examine registers, records, and employment documents, 3. Question the employer or employees about working conditions, 4. Issue notices for non-compliance, 5. Initiate prosecution for violations. Inspections may be routine, complaint-driven (when an employee or member of the public files a complaint), or surprise inspections. Maintain all required records and registers to handle inspections smoothly.
What are the employee welfare provisions under the Act?
Key employee welfare provisions include: 1. Working hours limit: 8 to 9 hours per day, 48 hours per week. 2. Overtime compensation: Double wages for overtime work. 3. Weekly holiday: At least one paid day off per week. 4. Annual leave: 15 to 21 days of earned leave per year after completing one year. 5. Sick and casual leave: 7 to 12 days depending on the state. 6. Maternity leave: As per the Maternity Benefit Act. 7. Clean and ventilated workplace: Requirements for lighting, ventilation, temperature, sanitation, and drinking water. 8. Termination notice: Minimum notice period before termination (14 to 30 days depending on the state and tenure). 9. No employment of children: Below 14 years in most states.
How is the Shop and Establishment License different from a Factory License?
The Shop and Establishment License covers commercial establishments (shops, offices, restaurants, hotels) and is issued by the local municipal or labour authority under the state's Shops and Establishments Act. A Factory License is required for manufacturing units and is issued under the Factories Act, 1948 by the state's Chief Inspector of Factories. Factories are defined as premises where manufacturing is carried out with 10 or more workers (with power) or 20 or more workers (without power). If you run an office along with a factory, you may need both licenses for different parts of your operations.
Can a partnership firm or LLP get a Shop and Establishment License?
Yes, all types of business entities can obtain a Shop and Establishment License, including sole proprietorships, partnership firms, LLPs, private limited companies, public limited companies, Section 8 companies, trusts, and societies. The application is filed in the name of the business entity with the authorized person's details. For partnership firms, include the partnership deed. For LLPs, include the LLP Agreement. For companies, include the Certificate of Incorporation and Board Resolution.
What is the timeline for getting a Shop and Establishment License?
The timeline varies by state and mode of application: Maharashtra (Online): Instant to 48 hours. Delhi (Online): 1 to 3 working days (often same day). Karnataka: 7 to 15 working days. Tamil Nadu: 7 to 15 working days. Gujarat: 7 to 10 working days. West Bengal: 10 to 15 working days. General: Online applications are processed faster (1 to 7 days in states with streamlined systems) compared to physical applications (15 to 30 days). Some states with reform-oriented approaches issue the certificate immediately upon online submission with verification done later.
Do I need a Shop and Establishment License if I already have GST registration?
Yes, GST registration and Shop and Establishment License are completely separate requirements administered by different authorities for different purposes. GST registration is a tax compliance under the central CGST Act and state SGST Acts. The Shop and Establishment License is a labour law compliance under the state's Shops and Establishments Act. Neither substitutes for the other. You need both if your business meets the criteria for both (which most businesses do). Additionally, you will likely need professional tax registration, PF registration, and ESI registration as separate compliances.
Can the Shop and Establishment License be obtained for a coworking space or shared office?
Yes, businesses operating from coworking spaces or shared offices can obtain a Shop and Establishment License using the coworking space address. Requirements include: A signed agreement with the coworking space provider, NOC from the coworking space allowing you to use the address for registrations, a utility bill or address proof of the coworking space, and your business registration documents. Some states accept virtual office addresses as well. The coworking space provider may already have a master Shop and Establishment License for their premises, but individual businesses usually need their own registration.
What changes require amendment or modification of the license?
You must notify the licensing authority and amend your registration for the following changes: 1. Change of establishment name or trade name, 2. Change of address (requires new registration in most states), 3. Change of employer or management (new owner, change in partnership, change in directors), 4. Change in nature of business or addition of new business activities, 5. Significant increase or decrease in number of employees, 6. Structural changes to the premises. Most amendments can be filed online through the state portal. Failure to report changes within the prescribed time (usually 15 to 30 days) can attract penalties.
Is a Shop and Establishment License required for a startup?
Yes, startups need a Shop and Establishment License regardless of their DPIIT Startup India recognition or MSME registration. There is no startup exemption from this requirement. Any startup with a physical office where employees (including the founders themselves) work needs to register under the Shops and Establishments Act. The license is often among the first compliances a new business should complete alongside company registration, GST registration, and opening a business bank account.
What employee termination rules apply under the Shops and Establishments Act?
The Act prescribes rules for termination and retrenchment: 1. Notice period: Employers must give 30 days' notice (or pay in lieu of notice) for employees who have completed 3 months of service. 2. Reason for termination: Must be communicated in writing. 3. Settlement: All pending dues (wages, leave encashment, bonus) must be paid on or before the last working day. 4. No termination during leave: An employee cannot be terminated while on sanctioned leave. 5. Unfair dismissal: Employees can file complaints with the Inspector if they believe the termination was unjust. Some states provide additional protections like the requirement to conduct a disciplinary inquiry before termination.
How do I get a Shop and Establishment License for a restaurant or food business?
Restaurants and food businesses need the Shop and Establishment License plus additional specific licenses: 1. Shop and Establishment License from the municipal corporation (process same as any other establishment), 2. FSSAI License (food safety registration) from the Food Safety and Standards Authority of India, 3. Fire Safety Certificate from the fire department, 4. Health/Trade License from the local health department. For the Shop and Establishment License specifically, restaurants must declare their proposed operating hours (some states allow extended hours for restaurants/eateries). Mention the nature of business as 'restaurant' or 'food service establishment' in the application.
What are the consequences of violating working hour provisions?
Violating working hour provisions under the Shops and Establishments Act can result in: 1. Fine of 500 to 5,000 rupees for first-time violations, 2. Higher fines and possible imprisonment up to 3 months for repeated violations, 3. Employees can file complaints with the Labour Inspector or the state labour court, 4. The Inspector can issue improvement notices with a deadline for compliance, 5. Persistent violations can lead to cancellation or non-renewal of the Shop and Establishment License. Overtime work beyond prescribed hours must be compensated at double the ordinary rate of wages.
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