Do you know the procedure you must follow if you plan to open a business in Uttar Pradesh?
The first thing to consider is whether you would like to operate a shop, establishment, or commercial establishment, the meaning and definition of all three are different according to the Uttar Pradesh S&E Act.
Here we will discuss what all comes under the provisions of the Uttar Pradesh Shops and Establishments Act and Rules and learn how you can register your new enterprise under the Act. This is done using Form L, which is a vital form of compliance as specified under the Act.
The Uttar Pradesh S&E Act is mainly laid out to protect employees' rights. It monitors details like proper registration of every firm using Form L, regulation of wages, working hours, leaves and holidays of employees, adherence to the local and state authority, etc.
Every state in India has its own shops and establishment rule. Let us learn more about the Act here and the mandatory Form L that encompasses the filing and registration procedure.
Table of Content:
- Registration of Shops and Establishments
- Terms and Conditions for Renewing, Duplicating, or Amending Your Registration Certificate
- Registrar's Certificate Renewal
- Certificate of Registration Amendment
- Employers Are Required to Maintain Employee Registers
- The Offences and Punishments
- Important Factors within the Uttar Pradesh Shops and Establishments Act
- Key Takeaways
Registration of Shops and Establishments
As soon as a business is started up or as soon as the Uttar Pradesh Shops and Establishments Act comes into effect, the owner shall apply to the Inspector for a Form L Registration as soon as they start a business. Employers are required to use Form K to register themselves.
To register the store, every owner must submit an application in Form L to the chief Inspector within 3 months of the day he opens his business and submit it to the concerned Inspector.
The owner needs to mention vital details about his new firm and the key specifications of all employees working under him. The same needs to be presented to the authorized official for approval. Only after this will the shop be entitled as a registered firm under the Uttar Pradesh Act for establishments.
Terms and Conditions for Renewing, Duplicating, or Amending Your Registration Certificate
- It is mandatory to obtain a registration certificate for a period of time as prescribed by the Chief Inspector under Uttar Pradesh Shops and Establishments Act; it is renewable for a further period of time as specified
- There will be no expiration date attached to any registration certificate or renewal certificate; if a registration certificate is renewed or a registration certificate is reissued within a specific period of time, it will remain valid for that period
- Certain requirements need to be met in order for the renewal of a registration certificate to be processed; a renewal application for the registration certificate needs to be submitted carrying details of the facility and the employees in the Form M
- There will be a charge of 12.5% as the registration fee and fees for late payments will be applicable
- There shall be no transferable nature of the Form L certificate as specified in the Uttar Pradesh Shops and Establishments Act; if the ownership is transferred from one person to another, the new owner will have to reapply for registration using Form L
- If there is any alteration or modification in the details that have been provided in Form L of the firm, the same need to be notified to the authorized office within 15 days using Form N
- An application for the issuance of a duplicate copy of the registration certificate shall be made to the Inspector responsible at the time of demolition of the registration certificate or tearing of the registration certificate, or defacing of the registration certificate using Form O; the authorized Inspector will issue a copy of the registration certificate after the owner has paid the fee for the same
- There is a requirement that an owner must notify within 15 days of the closure of a shop or commercial establishment that he is closing it down in writing; to proceed with the closure, the Inspector must be notified in writing as per the Uttar Pradesh Shops and Establishments Act
- As a rule, every employer must display the registration certificate within the premises in such a place that it is clearly visible to all
Registrar's Certificate Renewal
After the expiration of the registration certificate, it can be renewed for another five years. In the case of the second renewal, the period of renewed registration would also be five years.
Once the vehicle owner has paid the prescribed fee to renew the vehicle's registration certificate, the vehicle's registration can be renewed for a period of up to ten years, provided the owner pays the prescribed fee for the renewal.
In order to renew the registration certificate, you need to make an application to the Inspector in charge of the concerned district.
A plain piece of paper can be used to make the application, and it should contain the following information:
- The name of the owner of the property
- The name and address of the establishment where the shop is located
- Approximately how many employees there are
- Payment of the prescribed fee as specified under the Uttar Pradesh Shops and Establishments Act
Applicants who fail to submit a Form L registration application or renewal application within the stipulated time will be required to pay a late fee in addition to the prescribed fees if no application is made within the stipulated time.
If you are registering using Form L or renewing your patent for the first time or if you are renewing it for the third time, late fees will be charged at the rate of 12-1/2% of the fee of registration or renewal, per month, in addition to the prescribed fee for registration or renewal.
Certificate of Registration Amendment
If any changes need to be made to the registration certificate, then the owner will need to inform the Inspector of the changes within fifteen days of the date on which the changes were made. Changing the number of employees, changing the address of the establishment, or any other changes have occurred in the company, for example.
When the concerned Inspector is satisfied with the accuracy of the facts presented by the owner, he will make the appropriate changes in the register of establishments and the registration certificate or issue a fresh one, whichever may be necessary, based on his investigation and found them to be accurate as per the Uttar Pradesh Shops and Establishments Act.
There is a requirement that the owner of the establishment displays the registration certificate prominently and conspicuously in its establishment.
Registration, maintenance of records, the appointment of an inspector, and whatever documents or records that are asked for should be provided to the Inspector as issued in the Uttar Pradesh Shops and Establishments Act.
As a general rule, an employer must maintain appropriate compliance and display the required notices prescribed by the Uttar Pradesh Shops and Establishments Act.
As part of the Uttar Pradesh Shops and Establishments Act, every employer must maintain a record of the inspections conducted by the Inspector in his shop or commercial establishment. If the Inspector requests the record, the record should be provided to him or her on demand.
Form 'G' is a document every employer must maintain with 25 plus employees.
In accordance with the provisions of this Uttar Pradesh Shops and Establishments Act, all employers who employ more than 25 employees must put up a notice containing excerpts from the Act in the workplace.
Employers Are Required to Maintain Employee Registers
It is the duty of the employer to maintain all compliance-related records and registers. He should update them on a daily/monthly/quarterly, or annual basis as required. The owner needs to preserve the records for a minimum of 6 years.
The official Inspector can ask for any record at any time, and the owner should provide the same without delay or non-compliance. Failure to do may invite penalties as specified in the Uttar Pradesh Shops and Establishments Act.
The Offences and Punishments
A violation of this Act will be punished in accordance with the provisions of the Uttar Pradesh Shops and Establishments Act.
The provisions enacted in respect of the Uttar Pradesh Shops and Establishments Act provide that any person who violates any of the provisions of the Act shall be liable to a fine, which can, in the case of the first offense, range from 100 rupees to 500 rupees and in the case of subsequent offenses, the fine may range from 100 rupees to 1000 rupees.
Important Factors within the Uttar Pradesh Shops and Establishments Act
The primary aim of the Uttar Pradesh Shops and Establishments Act is to look after the social and economic welfare of employees working in a shop or establishment. Form L is duly filled by the owner at the time of registration which contains vital details of the store and the employees.
Here are some important considerations and rules that are specified by the Uttar Pradesh Shops and Establishments Act:
Schedule of Workhours
The provisions of Section 6 of the Labor Code require that no employer shall ask or permit an employee to work for longer than five hours on any day if they are a child.
- An individual under the age of 18 must wait six hours
- As for any other employee, he or she must work an eight-hour day
- In addition, it should be established that any employee, who does not qualify as a child or a young person, is allowed to work longer than the hours of work mentioned previously, provided that the total number of work hours per day (overtime included) does not cross ten unless it is a day of stocktaking or accounting
- Nonetheless, it should be noted that no more than fifty hours of overtime work may be performed in any given quarter in total
- There is a provision in Section 7 of this Uttar Pradesh Shops and Establishments Act that requires all businesses to arrange their working hours in such a way that each employee gets a break of at least half an hour to rest after at least five continuous hours of work, and the duration of the working hours, as well as the breaks of rest of each employee, do not exceed twelve hours per day
- Every employer must notify the Inspector whenever an employee has/allowed to work overtime; the employer must provide information giving the employee's name and the duration of the overtime work within 24 hours of the end of the overtime period
In the case of an employee who has worked more than the fixed work hours (e.g., eight hours), the employer must pay him twice the ordinary wage rate if the employee has worked more than the specified number of hours.
A registered shop or commercial establishment, which is not included in Schedule I, is required by Section 8 of the Act to be closed on at least one day of the week and on public holidays (including Independence Day, Republic Day, Gandhi Jayanthi, Holi Parewa, Kartiki Poornima, Eid al Fitr, Diwali Parewa, etc.) in the course of the year.
It is provided in Section 9 of the Act that every employee, except individuals employed as watchmen or caretakers, shall be given a holiday on every close day that is a public holiday, as well as one whole day every week that is a public holiday.
Under Section 10, every employee who is in continuous employment will be allowed fifteen days of earned leave for each year in continuous employment.
Any other caretaker who works continuously for 12 months and is employed under the same owner gets 60 days of earned leaves per the Act's provisions.
Assessment of Earned Leave
The maximum accumulation of earned leaves in 3 leaves can not exceed 45 days. If there is the refusal of any leave that is requested by the employee, he will have to have his leaves encashed by the employers in this case.
Leaves of absence due to illness
If the employee has continuously been working for more than 6 months, he can take a maximum of 15 days of sick leave. To get his leave approved as paid leave, and if the sick leave duration is more than 3 days, he may have to present a doctor's certificate.
Leaves on a casual basis
An employee can avail of 10 days of casual leave. A casual leave application must be made in writing by the employee in order to be considered. An employee who is not able to take advantage of earned leave in a given year will have the earned leave added to the amount of earned leave he or she will possess in the following year, provided that the employee may take no more than 45 days of earned leave at any one time.
It shall be the employer's responsibility to pay the employee the wages for earned leave if the employee terminates the employment with his employer or terminates it on his own accord.
As per Section 11, if an employee receives earned leave and it is refused by his or her employer, he or she can encash it as well as his or her normal wages.
Wages Paid to Workers
The employer shall fix a period in which the wages will be disbursed to the employees, which can be of 30 days, 15 days, 7 days, or even daily.
A wage period consisting of a month is regarded as a wage period, and all employers are required to pay their employees' wages before the 7th of the following month of the wage period to which the wages are due.
Form L under UP Shops and Establishment Act
Applications for registration of enterprises are made through Form L, and it is necessary to fill the same for the statement of facts. Form L is given below for reference:
Uttar Pradesh Form L application is mandatory for the registration of companies under the Uttar Pradesh Shops and Establishments Act. It is a necessary tool for each company to partake in when registering under the Act. Form L comprises important details of the firm/business with details of employees and particulars of the facility.
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- Uttar Pradesh Shops and Establishments Act regulates the payments of wages, terms of service, work hours, rest intervals, overtime work
- To register your shop, store, establishment, or facility, every owner of a shop or business establishment must submit an application in Form L
- There will be a charge of 12.5% of the fee for registration in Form L and renewal of a certificate in case of late payment as specified in the Uttar Pradesh Shops and Establishments Act
- A is regarded as a wage period
- The Uttar Pradesh Shops and Establishments Act considers the rights and duties of employees and workers in shops, stores, and commercial establishments.
- Besides other compliances that need to be followed as per the Uttar Pradesh Shops and Establishments Act, Form L is n integral form that the owner or employer needs to fill to register his shop/establishment