Mr. Santosh Kumar recently moved from Punjab to Rajasthan and opened his commercial departmental store there. He also employed 4-5 employees under him, including a receptionist.
They wanted to know about the annual leaves and salaries that he would be paying them. He wasn't sure about the rules followed in a different state, and he knew the law followed in Punjab did not apply to his commercial establishment in Rajasthan.
So, he was asked to refer to the Rajasthan Shops and Establishments Act.
The Rajasthan Shops And Commercial Establishments Act, and Rules, apply to all stores and commercial facilities throughout Rajasthan. This law aims to protect the rights of workers.
The Rajasthan Shops and Establishments Act includes wage payments, working conditions, working hours, breaks, overtime, business hours, holidays, vacations, maternity leave and welfare, rules regarding the employment of children, record keeping, etc.
Table of Contents
- About The Rajasthan Shops and Establishments Act
- Registration of the shop or establishment under the Rajasthan Shops and Establishments Act
- Modifications in the Establishment as specified in the Rajasthan Shops and Establishments Act
- Daily and weekly hours under the Rajasthan Shops and Establishments Act
- Weekly Holidays As Per The Rajasthan Shops And Establishments Act
- Opening and closing time according to the Rajasthan Shops and Establishments Act
- Annual leave with wages under the Rajasthan Shops and Establishments Act
- Authority to exempt business establishments as specified in the Rajasthan Shops and Establishments Act
- Execution and appointment of inspectors under the Rajasthan Shops and Establishments Act
- Maternity Leave Under The Rajasthan Shops And Establishments Act
- 28A - Termination from the employer as per the Rajasthan Shops and Establishments Act
- Maintain The Registers, Records, And Post Notices As Per The Rajasthan Shops And Establishments Act
- Application Of The Workmen's Compensation Act, 1923 (Central Act VIII of 1923) Under The Rajasthan Shops And Establishments Act
- Compliance Forms
- Key Takeaways
About The Rajasthan Shops And Establishments Act
The Rajasthan Shops and Establishments Act integrates and amends laws governing labor and employment conditions in stores and commercial facilities.
Some Important Definitions
- A Commercial Establishment is a commercial, banking, administrative, or insurance facility where employees are primarily engaged in clerical work, hotels, restaurants, lodgings or cafeterias, cafes or other eateries, theatres, or other locations, including a management service. Includes facilities for public entertainment or entertainment purposes that can be declared commercial by the state government in the official bulletin to the extent of the meaning of this Act.
- Establishment means a store or commercial facility. A shop means any facility on which a transaction or business is conducted or services are provided to a customer, either on the same premises or used in connection with that transaction or business, but at a trading branch or non-shop offices, business facilities, or warehouses. The Rajasthan Shops and Establishments Act does not include establishments that are attached to factories where those employed in the store are entitled to the benefits given to workers under the Factories Act, 1948.
Registration Of The Shop Or Establishment Under The Rajasthan Shops And Establishments Act
At the time of enforcement of this law, existing institutions must send their registrations within 30 days from the date of enforcement of this law, and new institutions must send their registrations within 30 days from the date of the institution's operation.
Inspectors in the area should be provided with the registration details and the form of declaration, along with the given fee. The details to be included are:
- Employer and manager names (if any)
- Branch address
- The name of the company, if applicable
- Other information that may be needed
Upon receiving the statement and fees, the inspector confirms the verification and approval of the application or statement and will then register the facility using the prescribed method. He will issue a registration certificate to the employer in the prescribed format.
The registration certificate should be displayed in a visible location within the company.
The Rajasthan Shops and Establishments Act does not apply in the following cases:
- Offices under the central or state, or local governments
- Reserve Bank of India Office
- Facility for the medical treatment of the sick or mentally ill
- Individuals with sporadic work, such as travelers and caretakers
- A trade fair or bazaar to sell your work for charitable or other purposes other than private interest
- A library where books or periodicals are not rented
- Facilities for commercial purposes other than to make a profit, i.e., for charity, religion, or educational purposes
Modifications In The Establishment As Specified In The Rajasthan Shops And Establishments Act
Any changes should be notified to the inspector. The employer must notify the inspector in the prescribed form of any changes to the information contained in Section 4. The declaration should be submitted within 7 days of the changes being made.
After receiving and validating such notice, the inspector will make changes to the Business Register by such notice and correct the registration certificate or issue a new registration certificate if necessary.
Facility Closure Notified To Inspectors
The employer will notify the inspector in writing within 10 days of the facility's closure. After receiving the information and verifying its validity, the inspector removes this entity from the entity's registration and removes the registration certificate.
Daily And Weekly Hours Under The Rajasthan Shops And Establishments Act
Workers employed in an establishment must not be obliged or permitted to work more than 9 hours a day, 48 hours a week.
Total working hours, including overtime, must not exceed 10 hours on all days except inventory and account preparation dates. Also, the total number of hours an employee has worked overtime in any quarter must not exceed 50 hours.
Children between the ages of 12 and 15 may not work more than 3 hours a day in any profession.
Pay For Overtime Under The Rajasthan Shops And Establishments Act
If an employee of the company works more than 9 hours a day or more than 48 hours a week, he/she is entitled to a wage of 1.5 times the normal wage rate of his overtime work. For this section, "normal wage rate" means the basic wage plus such allowance.
Bonuses are not included.
Opening And Closing Time According To The Rajasthan Shops And Establishments Act
The establishment may not open earlier than the time determined by the general or special order of the state government by sub-section 2 and may not close later than that.
After making its necessary inquiry in a prescribed manner, the state government may determine when to open or close an establishment or establishment category in any region by general or special legislation.
Weekly Holidays As Per The Rajasthan Shops And Establishments Act
Each business is closed one day a week. The employer decides this day at the beginning of the year, notifies the inspector, and posts it in a notice posted in a visible place in the store or company.
The employer cannot change this day more than once every six months and must notify the inspector of the change and make the necessary changes to the store or commercial facility notification.
Regardless of subsection 1, if the state government is confident that the business is hiring additional staff to meet the requirements of subsection 3, the employer can keep the business open for the week.
All employees of the company must rest at least one day a week. This does not undermine the existing practices of companies that allow a day and a half of rest.
The employer shall not be permitted to summon or second an employee at the place of business or other location on weekly holidays or on the day of the week to carry out work related to the business of the place of business. The facility remains closed. Nothing will be deducted from the employee's wages in the establishment for the weekly off given to the employee under sub-section (1).
Weekly off is paid to him even if the employee is hired daily.
Annual Leave With Wages Under The Rajasthan Shops And Establishments Act
All employees who have worked for the company for 240 days or more in a calendar year shall be granted the following number of paid leave in the calendar year:
- For adults, one day every 12 days that they have worked in the previous calendar year
- If it is a child, then one day every 15 days in the previous calendar year
Salary During Leave Period As Mentioned In The Rajasthan Shops And Establishments Act
Leave granted to employees under Article 14 is paid at a rate equal to the daily average of full-time total income on the day of work the month before the leave, excluding overtime and bonuses.
Payment Of Advance
Employees who have been given a leave of 4 days or more for adults and 5 days or more for children shall be paid the wages for the leave period before the start of the leave.
Power To Make Rules
The state government may issue rules that require employers to keep a register containing the required information and require the register to be available for inspection by inspectors under the Rajasthan Shops and Establishments Act.
Authority To Exempt Business Establishments As Specified In The Rajasthan Shops And Establishments Act
If the state government is convinced that the leave arrangements that apply to employees of the establishment are as favorable as those outlined in this chapter, by written order, the establishments can be exempted by the law.
The provisions of this chapter are subject to the conditions that may be specified in the order.
Prohibit The Employment Of Children Under The Rajasthan Shops And Establishments Act
Children under the age of 12 may not even be able to work in any establishment.
Employment Of Women (The Rajasthan Shops and Establishments Act)
Announcement of night-time employment. Women or children between the ages of 12 and 15 may not work at night in any facility, whether employees or not.
Execution And Appointment Of Inspectors Under The Rajasthan Shops And Establishments Act
The state government may, upon notice, appoint a person or group of persons within the boundaries of the assigned region that it deems appropriate as an inspector for this Act.
The state government may oversee the enforcement of this law and, therefore, the authority to appoint inspector orders.
Maternity Leave Under The Rajasthan Shops And Establishments Act
If a woman is absent while eligible to receive maternity benefits under this law or because of a medically recognized illness resulting from pregnancy or childbirth, it will be treated as a permitted and paid absence.
Childbirth Allowance By The Rajasthan Shops And Establishments Act
All women employed by the company for at least 6 months before childbirth shall be eligible for maternity leave for 6 weeks immediately before and after, including the day of childbirth.
The state government stipulates each maternity benefit and can also determine the payment method of maternity allowance.
28A - Termination From The Employer As Per The Rajasthan Shops And Establishments Act
The employer cannot dismiss any employee who has continuously worked for an establishment for at least 6 months, except after giving notice at least one month in advance or after giving advance to such workers, unless there is a good reason to do so.
Dismissal of employees can only be granted in case of illegal activity, as evidenced by sufficient evidence created by the state government for that purpose and recorded during the investigation.
A dismissed or dismissed worker may file a written complaint within 30 days of receiving the dismissal or notice of dismissal in a prescribed manner with the prescribed authority for one or more of the following reasons:
- There was no reason not to use his service
- No notice has been provided to him under subsection (1)
- He is not guilty of cheating
The prescribed authorities will notify the employer of the complaint, briefly record the evidence submitted by the parties, listen to them, investigate as deemed necessary, and then issue a written order stating the reason.
Maintain The Registers, Records, And Post Notices As Per The Rajasthan Shops And Establishments Act
According to general or special orders from the state government, employers are required to keep registries and records and prescribed notices on the branch premises. All such registries and records shall be kept on the premises of the entity to which they relate.
Application Of The Workmen's Compensation Act, 1923 (Central Act VIII of 1923) Under The Rajasthan Shops And Establishments Act
The Workmen's Compensation Act, 1923 (Central Act VIII of 1923) and the rules below apply to all store employees or trade with the necessary changes.
When the Act's provisions are applied to the establishment prescribed in subsection (1), the inspector appointed based on this Act shall be the inspector to enforce the provisions of the Act within the scope of jurisdiction.
Form 1 - Section 4 Declaration-All employers must register their shops or establishments with the Ministry of Labor in Form 1-Section 4 Declaration
Form 2 - Facility Registration-All employers must register their facility with the Ministry of Labor as per the Rajasthan Shops and Establishments Act
Form 4 - Change Notification – All employers must notify the Ministry of Labor of any changes that affect the organization in the Form 4 Change Notification.
Form 5 - Request for Renewal of Registration Certificate-All employers must renew their office registration certificate according to the Rajasthan Shops and Establishments Act
Form 7 - Notice of Close Day or any Change in it-All employers must display Form 7-Notice of the Day Off or any change about that prominently on the blackboard
Form 9 – Section 24 Birth Notice – All employers must ensure that Form 9 – Section 24 Birth Notice is completed by an employee on maternity leave
Form 10 - Physician Certificate – All employers must obtain a health check-up and Form 10 Physician Certificate before hiring an individual, as mentioned in the Rajasthan Shops and Establishments Act
Form 11 - Employment Records-All employers must maintain Form 11-Employment Records in the required format.
Form 12 - If business hours are normally consistent-All, employers with consistent working hours must maintain Form 12 in a given format
Form 13 – Employee Daily Time Disclosure – All employers must maintain Form 13 under the Rajasthan Shops and Establishments Act– Employee Daily Time Disclosure in the required format
Form 14 – Employee Working Hours Record – All employers must record and record the number of working hours for each employee on Form 14 – Worker Working Hours Record
Form 15 - Weekly Holiday Notifications – All employers must retain and post Form 15 Weekly Holiday Notifications as specified under the Rajasthan Shops and Establishments Act
The Rajasthan Shops and Establishments Act ensures certain rights and privileges for employees working in shops and establishments. Any provision of this Act shall be an employee of the shop/establishment as of the date this Act came into force by any other law, contract, practice, or arbitral award, settlement, or binding contract applicable to the establishment.
It takes effect for employers and employees of such facilities when such rights or privileges are in his favor over those granted to him under the Rajasthan Shops and Establishments Act.
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- The Rajasthan Shops and Establishments Act 1958 considers the monitoring of working conditions and employment in the shops and commercial establishments in the state of Rajasthan
- The Rajasthan Shops and Establishments Act considers integral factors of employment like wage payment, weekly offs, annual leaves, opening and closing of shops, working hours, maintenance of records, etc
- The Rajasthan Shops and Establishments Act is powered by the State government and may include establishments like hotels, shops, restaurants, entertainment shops, etc., and where any business activities are being conducted for the customers
- The Rajasthan Shops and Establishments Act encompasses 12 compliance forms, and the employer should properly maintain the details
- The State Government assigns an Inspector to run a thorough investigation, inspection, and monitoring of the compliance of The Rajasthan Shops and Establishments Act in all shops and establishments