Updated: Sep 19
Kerala shop and establishment act is an Act to consolidate and amend the law relating to the regulation of conditions of work and employment in the shops and commercial establishments in the State of Kerala. It is applicable to whole state of Kerala. Kerala Shops and Commercial Establishments Workers Welfare Fund Board was formed, aiming the well-being and relief of self employed as well as the employees who comes under the Kerala shops and Commercial Establishment Act of 1960. It also focuses on awarding pension to these employees and thereby ensuring their welfare. This programme came to being vide G.O (M.S) No 29/2007 employment (S.R.O No 235/2007) on March 15, 2007.
Employees in the age group of 18 to 55, who is self employed or those employees who works in the shops that comes under the Kerala shops and Commercial Establishment Act of 1960, can become members of this welfare fund board. Every commercial establishments must register under Shop and Establishment Act 1960 along with D & O Trade license issued by the Local Self Governments. Both this registrations are mandatory for every commercial establishments before starting commercial operations and appointing an employees.
Applicability of of Shop and Establishment Registration
It extends to the whole State of Kerala and applies to all shops and commercial establishments except those specifically exempted under the Act.
Establishment has been defined in section 2(8) of the Act as shops or ,commercial establishments which may be small, medium or big establishments. Small establishments means an establishment having nil employees or upto five employees are employed, medium establishment means an establishment having six or more but less than 20 persons are employed and big establishment means and establishments having 20 or more employees are employed
How to Register under Shop and Establishment Act ?
Every employer of an establishment should make an online application in Form B 1 with treasury receipt showing that the prescribed fee has bee paid to the competent authority within thirty days from the date of commencement of its work. The competent authority shall if satisfied register the establishment and issue a registration certificate in Form B II. The registration certificate granted shall be renewed every year at least thirty days before the expiry of the period, on payment of required fee (Sec. 5A(1)).
Note: After successful submission of online application, take a printout of application, challan and employee details in Form 4. Submit it the concerned Labour office by the authorized signatory for Labour Officer Authorization. The competent authority shall not grant or renew a registration certificate unless the provisions of this Act and Rules have been substantially complied with
Registration and Renewal Fees
If the application for renewal of registration is not submitted within the time limit specified in Section 54(6) a fee of 25% in excess of fee ordinarily payable shall be paid for such renewal.
For any amendment in the registration certificate an application shall be given in Form B III. Fee for amendment is Rs. 50/- Fee for duplication certificate shall also be Rs. 50/- (Rule 2 G).
Any person aggrieved on the decision of the competent authority refusing to grant or renew a registration certificate or cancelling or suspending the same may within sixty days of the receipt of the order appeal to the appellate authority. Fee for appeal is 10% of the fee to be paid for registration [Section 5B Read with Rule 2A to 2G]
Documents Required for Shop and Commercial Establishment Registration in Kerala
Kerala D & O Trade License (For Proprietorship business)
Address proof (Rent Agreement/ Aadhaar)
PAN of the Applicant
List of Employees with Name and Address, DOB, Designation and Year of Joining
MOA / AOA / Certificate of Incorporation/ Partnership Deed/ LLP Agreement
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Monthly Contribution and Welfare Schemes
Every commercial establishments registered under Kerala Shop and Commercial Establishment Act 1960 must deduct a flat deduction of a fees prescribed by the Labour Welfare Fund Act 1975 from the monthly payments to the employees and the same amount also contributed by the Employer ; must deposit with in the due date of 5th of next Month. This Fund will be utilized for the Welfare activities and benefits of the Employee. The eligible employees can apply for the benefits of Labour Welfare Fund. The standard deduction from an employee and employer is Rs. 20 per month. With this fund state governments have lot of Labour Welfare and Benefits Schemes to Members of LWF.
The scope of Shop and Commercial Establishment Act 1960
Hours of Work and Wages for Overtime
No employee shall be required or allowed to work for more than eight hours on any day and forty eight hours in any week. (Sec. 6)
Any employee who works more than the normal working hours shall be paid wages at the rate of twice the ordinary rate of wages, [Section 7]
Spread Over and Interval for Rest
The period of work of an employee inclusive of his interval for rest shall not spread over more than ten and a half hours in a day. At least one hour rest shall be given every day after four hours continuous work. [Sec 8 and 9]
Closing of Shops and Grant of Weekly Holidays
Every shop shall be entirely closed on one day of the week and such day shall be permanently exhibited in a conspicuous place in the shop. In each week a holiday of one whole day shall be allowed to the persons employed in the shop. [Section 11(1)]
Holiday and Leave
Every employee in an establishment shall be entitled to the following leaves in a year :
Twelve holidays with wages after twelve months' continuous service in the establishment. This may be accumulated to a maximum of 24 days. ( Sec 13 (1).
Twelve days' sick leave with wages on the ground of any sickness incurred or accident sustained by him sec 13 (2) (a).
Twelve days' casual leave with wages on any reasonable ground. Sec 13 (2) (b)
Special casual leave for sterilization (sec 13 A)
Wages during the leave period (Sec 14)
On production of the certificate in Form B IV from Medical Officer not below the rank of Asst. Surgeon employed in the Department of Health Services or from the head of a medical institution recognized by the Government, an employee shall be entitled to special casual leave with wages for six days in the case of male employees and fourteen days in the case of female employees.
The employee shall be paid the daily average of his or her total full time earning during leave period. [Read with Rule 21]
Dismissal of an Employee
An employee employed continuously for not less than six months shall not be dismissed except for a reasonable cause and at least one months' notice or wages in lieu of such notice.
The employee whose services are dispensed with may appeal to the appellate authority within sixty days from the date of delivery of the order. The decision of the appellate authority after hearing both the parties shall be final. [Section 18 read with Rule 3]
Employment of Children and Women
The employment of children except as an apprentice is prohibited in the complaints. A complaints committee shall be constituted in the establishment consisting of five members headed by a woman. (Rule 6B)
Maintenance of Register and Records by the Employers
Maintain a Register of Employment in Form A or B (Sec. 30) Rule 10(l)
Maintain a Service Record in Form BB (Rule I0 (1) A
Maintain a record of hours of work of employees in Form D (Rule 10(3)
Exhibit a notice of holiday of employees in Form E (Rule 10(4)
Exhibit a notice containing extracts of the Act and Rules (Rule I0 (5) )
Maintain register of holidays and leave in Form F (Rule 10 (9) )
Maintain a inspection book (Rule 10 (11) )
Exhibit a notice of weekly holiday in the establishment (Sec II (1) )
Exhibit the registration certificate in the establishment (Sec 5 (c)(1)
Where ten or more persons are employed a quarterly return in Form H to to inspector for the month of March, June, September and December before the 10th of the succeeding month (Rule 12 A).
Penalties under Shop and Establishment Act 1960
The offence under this act and Rules are punishable as :
I) Breach of section 5A and 5C -
(a) With fine which may extend to Rs. 5,000 and Rs. 250 every day during which breach continues after conviction. [Sec 29(1)(a)]
(b) Rs. 250 everyday during which the breach continues after the receipt of notice from the competent authority to discontinue such breach (Sec.29(1)(b)
II) Contravenes Sections 5D, 5E, 5F, 6,8,9,to 11, 12, 13, 13A, 14, 18, 21, 21A and 22 - With fine which may extent to Rs. 5,000 and for the subsequent offence Rs. 10,000 Sec 29(1A)
Appellate Authority [under rule 7]
(against orders passed under chapter VI (Heath and safety)
Authorized Officer for exercising power[under Section 5 and 35]
(Granting exemption from the provisions of the Act for a period upto 30 days at a time)
Authorized Officer for exercising power [under Section 10(2)]
(Fixation of opening and closing hour of establishments)
(i) Labour Commissioner
(ii) District Labour Officers (E)
Note : Rules wherever specified are the Kerala Shop and Establishment Rules, 1961 published as Notification No. 87427/LS/60/HLD dt. 15-01-1962 in Kerala Gazette No. 10 dated 06-03-1962.
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