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A LECTURE BY

KESHAV KORGAONKAR
(BA., LL.B(GEN), DIR&PM, DLL&LW, MPM, DIP CYBER LAW)

Subject: The Bombay Shops and Establishment Act, 1948

This act is a social piece of legislation of the State Government enacted to prevent sweat laborers
of Un-organized sector.
Also to regulate the condition of work and employment and therefore to secure maximum
benefits to the employees working in different categories of establishment viz. Shops,
Commercial Establishments, residential hotels, restaurants, eating houses, theatres and other
places of public amusement or entertainments are mainly protected by the provisions of this act.
An Act to consolidate and amend the law relating to the regulation of 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. Whereas it
is expedient to consolidate and amend the law relating to the regulation of 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 and
for certain other purposes hereinafter specified.

APPLICABILITY & COVERAGE :


It applies to all local areas specified in Schedule-I Establishment means any establishment to
which the Act applies and any other such establishment to which the State Government may
extend the provisions of the Act by notification Employee means a person wholly or principally
employed whether directly or through any agency, whether for wages or other considerations in
connection with any establishment Member of the family of an employer means, the husband,
wife, son, daughter, father, mother, brother or sister and is dependent on such employer

IMPORTANT DEFINATIONS :
Commercial Establishment
Establishment
Shop
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Residential Hotel, Restaurant or Eating House


Theatre
Employee
Employer

FORMS AND FORMALITIES :


Form 'A': This form is prescribed for registration of the Estts. under Bombay Shops & Estts. Act, 1948.
Registration is made under Sec 7(1)(4) of the said act.
Form 'B': This is prescribed for the periodical renewal of registration certificate say for one year or three
at a time. Renewal is made under sec 7(2A) of the Bombay Shops and Estts. Act.
Form 'E': This form is prescribed for making any subsequent change in the information already
submitted in form 'A'.
The Registration Certificate is generally valid upto 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
fifteen days before the date of expiry of Registration Certificate in hand by submitting prescribed form
'B' alongwith prescribed renewal fees to the concerned Shop Inspector.

COMPLIANCE :

During the course of enforcement the inspectors have to visit various establishments and to detect
breaches of the provisions of the Act and rules framed there under and to launch prosecutions on
defaulters accordingly.
The major breaches of the provisions of the Act consist of non-registration, non-renewal, opening of
establishment before prescribed hours, closing of establishments later than prescribed hours, exceeding
total hours, continuous work without rest interval, spread over, not granting privilege leave, keeping
establishment open on weekly closed day, calling employees for work on their weekly offs, employing
female employees after prescribed hours, employing child labour, not providing Identity Cards to certain
class of employees, not paying wages as per rates prescribed under Minimum Wages Act. etc.

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The major of breaches of the provisions of rule are of the nature of procedural lapses. Viz. Not
maintaining prescribed register of employment, leave register, visit book, lime washing register, not
providing leave book to the employees or not making suitable entries therein, not producing requisite
record register, notices for inspection on demand, etc. not displaying name board in Marathi /

Devnagari Script etc.

REQUIRED DOCUMENTS FOR REGISTRATION :


Memorandum of Articles of Association/Trust deed / Partnership deed.
Premises purchase Agreement.
List of Directors/ Partners / Name of Proprietor
1st Bank Account opening proof/Bank Account No. details.
First Income Tax Assessment order/PAN
BMC Undertaking / declaration
Date of commencement of business proof
Generally the following Registers/ records/ notices etc. are to be kept by the different categories
Register of Employment Employers of Shop or Commercial Establishment ---- In prescribed
form H or J as the case may be. Register of leave in form M Leave Book in form N Notice
in form L specifying the days of holidays. To maintain a Muster-Roll Cum-Wage Register as
laid down under Rule 27(1) of Maharashtra Minimum Wages Rules 1963. Notify to the Sr.
Inspector (Shops & Establishments) at the beginning of the every calendar year regarding list of
closed day of the respective year. The employer has to provide Identity Cards to the certain class
of employees. The Employer has to apply for seeking permission to maintain computerized
records The employer also has to obtain permission for ladies working beyond 8.30 p.m. under
Sec 33 of the Act. (However as per the notification dated June 2002, Government has waived
such conditions with respect to certain class of industries including CALL CENTRES.

PROVISIONS RELATING TO OPENING AND CLOSING HOURS OF


SHOPS, RESTAURANTS AND EATING HOUSES ETC :
Opening hours:For shops dealing with milk ,vegetables, etc-5.00a.m others 7.00a.m
For commercial establishments Not earlier than 8.30 a.m
For residential hotels, restaurants and eating houses- not earlier than 5.0a.m and work not related
to be started before 4.30 a.m
For young persons and women not before 6.00a.m
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Closing hours:For shops:- Not later than 8.30p.m.those dealing with pan bidi ,cigarette etc 11.00 p.m.
For commercial establishment:- Not later than 9.30 p.m.
For residential hotels, restaurants and eating houses not later than midnight , work not to be
carried after 00.30a.m. Customers served at the time of closing to be served within 15 minutes.
For theatres and public entertainment -00.30 hours.
For young persons and women 7.00 p.m and 9.30 p.m.

Hours of work
Nine hours a day and 48 hours a week.
Spread over 11 / 12 hours

OBLIGATION AND LIABILITY OF EMPLOYER :


a) Display the registration certificate prominently in the shop.
b) Keep a Visitors book and it should be made available for officers/ staff from the
Municipal corporations, who come to inspect the premises.
c) Display the signboard of the shop in Marathi / Devnagri script.
d) Keep the shop / Commercial Establishment closed for one day in a week compulsory.
e) Notice of the holiday to be displayed prominently in the shop / establishment.
f) No deduction of wages in respect of permanent employees for the weekly off day.
g) The Shop-owner/Establishment /Employer has choose the day of the week, for which he
wants to keep the shop / establishment closed, generally Sunday ( being Public holiday
under the Negotiable Instrument Act, 1881) or on Monday or on other day being Zonal
weekly off day as fixed by BMC in Mumbai jurisdiction.
h) Notify such closed days at the beginning of the year to the Inspector and display a notice
prominently at conspicuous place in the shop or commercial establishment.

OFFENCES AND PENALTIES :


Contravention of Section 12: Hawking prohibited before opening and after closing hours of
shops. No person shall carry on in or adjacent to a street or a public place the sale of any
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goods before the opening and after the closing hours fixed under sections 10 and 11 for the
shops dealing in the same class of goods in the locality in which such street or public place is
situated., except sale of news papers- Fine Rs1000-5000.
Contravention of section 18(-2): It shall not be lawful for an employer to call an employee
at, or for an employee to go to, his shop or commercial establishment or any other place for
any work in connection with the business of his shop or commercial establishment on a day
on which such shop or commercial establishment remains closed. Fine Rs.500-5000.
Contravention of section 24,31, 65 by employer- other provisions regarding weekly holiday
regarding Fine Rs.500-5000.
False entries by employer/ manager in registers etc- Fine Rs.1000-5000.
Wilful obstruction to Inspector- Fine Rs.1000-5000.

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