Kerala Shop and Establishment Registration

Kerala Shop and Establishment Registration is a license issued by the Labour department of the state Government of Kerala. Kerala shop and commercial establishment act 1960 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 applies to the whole state of Kerala. Kerala Shops and Commercial Establishments Workers Welfare Fund Board was formed, aiming for the well-being and relief of self-employed employees under the Kerala shops and Commercial Establishment Act of 1960. Kerala Shop and Establishment Registration is comer under the act ” Kerala shop and commercial establishment act 1960. It also focuses on awarding pensions to these employees, ensuring their welfare. This program came to being vided 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 are self-employed, or those who work in the shops that come under the Kerala shops and Commercial Establishment Act of 1960 can become members of this welfare fund board. Every commercial establishment must register under Shop and Establishment Act 1960 along with D & O Trade license issued by the Local Self Governments. Both these registrations are mandatory for every commercial establishment before starting commercial operations and appointing employees.

Applicability of Kerala 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.
• The 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 mean an establishment has nil employees, or up to five employees are employed; medium establishment means an establishment having six or more, but less than 20 persons are engaged; and big establishment means establishments have 20 or more employees.

How to Register under Kerala Shop and Establishment Act?

Every Employer of an establishment should make an online application in Form B 1 with a treasury receipt showing that the prescribed fee has been paid to the competent authority within thirty days from the commencement date 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 upon payment of the required fee (Sec. 5A(1)).

Note: After successfully submitting the online application, take a printout of the application, challan, and employee details in Form 4. Please submit it to 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 registration renewal is not submitted within the time limit specified in Section 54(6), a fee of 25% more than the 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. The amendment fee is Rs. 50/- Fee for the duplication certificate shall also be Rs. 50/- (Rule 2 G).

Any person aggrieved by the decision of the competent authority refusing to grant or renew a registration certificate or canceling or suspending the same may appeal to the appellate authority within sixty days of the receipt of the order. The fee for the request is 10% of the fee to be paid for registration [Section 5B Read with Rule 2A to 2G]

Documents Required for Kerala Shop and Establishment Registration

• Pan and Aadhaar of the Applicant
• Address proof (Rent Agreement / G.S.T. Certificate/ Aadhaar)
• List of Employees with Name and Address, D.O.B., Designation, and Year of Joining
• MOA / AOA / Certificate of Incorporation/ Partnership Deed/L.L.P. Agreement

Monthly Contribution and Welfare Schemes

Every commercial establishment registered under Kerala Shop and Commercial Establishment Act 1960 must deduct a flat deduction of 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 within 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 help of the Labour Welfare Fund. The standard deduction from an employee and Employer is Rs. 20 per Month. With this Fund, state governments have a lot of Labour Welfare and Benefits Schemes for Members of L.W.F.

The scope of the Shop and Commercial Establishment Act of 1960

Hours of Work and Wages for Overtime

No employee shall be required or allowed to work more than eight hours on any day and forty-eight hours on any week. (Sec. 6)Any employee who works more than the regular working hours shall be paid wages at the rate of twice the ordinary rate of wages [Section 7]

Spread Over and Interval for Rest

An employee’s work period, including his interval for rest, shall not spread over more than ten and a half hours in a day. At least one hour of rest shall be given every day after four hours of 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 for 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 :

1. 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).
2. Twelve days’ sick leave with wages on the ground of any sickness incurred or accident he sustained sec 13 (2) (a).
3. Twelve days’ casual leave with wages on any reasonable ground. Sec 13 (2) (b)
4. Special casual leave for sterilization (sec 13 A)
5. Wages during the leave period (Sec 14)

On production of the certificate in Form B IV from a 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. Employees shall be paid the daily average of their total full-time earnings during the 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 Month’s notice or wages instead of such information. The Employee whose services are dispensed with may appeal to the appellate authority within sixty days from the order’s delivery date. The decision of the appellate jurisdiction after hearing both 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 under Kerala Shop and Establishment Act

1. Maintain a Register of Employment in Form A or B (Sec. 30) Rule 10(l)
2. Maintain a Service Record in Form B.B. (Rule I0 (1) A
3. Maintain a record of hours of work of employees in Form D (Rule 10(3)
4. Exhibit a notice of holiday of employees in Form E (Rule 10(4)
5. Exhibit information containing extracts of the Act and Rules (Rule I0 (5) )
6. Maintain a register of holidays and leave in Form F (Rule 10 (9) )
7. Maintain an inspection book (Rule 10 (11) )
8. Exhibit a notice of weekly holiday in the establishment (Sec II (1) )
9. Exhibit the registration certificate in the establishment (Sec 5 (c)(1)
10. Ten or more persons have employed a quarterly return in Form H to the inspector for March, June, September, and December before the 10th of the following Month (Rule 12 A).

Penalties under Shop and Establishment Act 1960

The offense under this Act and Rules are punishable as I) Breach of section 5A and 5C – (a) With a 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 every day during which the violation 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 extend to Rs. 5,000 and for the subsequent offense Rs. 10,000 Sec 29(1A)

Appellate Authority [under rule 7]

(against orders passed under chapter VI (Heath and safety) Labour Commissioner

Authorized Officer for exercising power[under Section 5 and 35]

(Granting an exemption from the provisions of the Act for a period of up to 30 days at a time) Labour Commissioner
Authorized Officer for exercising power [under Section 10(2)] (Fixation of opening and closing hours 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/L.S./60/H.L.D. dt. 15-01-1962 in Kerala Gazette No. 10 dated 06-03-1962.