Establishment Compliance Services

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Why Do You Require Services for Establishment Compliance?

Legal Compliance

It is imperative for businesses to adhere to laws and regulations. Shop Establishment Compliance mechanisms are essential in ensuring that an organization fulfils its legal obligations.

Avoid Penalties & Fines

Non-compliance can lead to financial penalties and fines, which can be detrimental to businesses. Establishment Compliance Services assist organizations in avoiding such penalties by ensuring compliance with regulations.

Protecting Reputation

Maintaining compliance is crucial for safeguarding a business’s reputation. Establishment Compliance mechanisms play a vital role in identifying and mitigating potential risks to protect the reputation of an organization.

Managing Risks

Identifying potential risks and liabilities faced by the shop establishment and devising strategies to mitigate these risks through compliance measures.

Mitigating Risk

Establishment Compliance Services help in identifying compliance risks and developing strategies to mitigate them. By implementing procedures to prevent non-compliance, these services contribute to risk management within businesses.

Ensuring Quality

Compliance with industry standards not only fulfils legal requirements but also ensures the quality of products and services. This adherence to standards helps in meeting customer expectations and enhancing overall quality.

Overview:

Establishment compliance services encompass a wide range of activities and support provided to businesses to ensure adherence to various regulatory requirements, laws, and standards. These services play a vital role in helping businesses steer clear of legal complications, penalties, and damage to their reputation. 

Businesses are constantly faced with changing statutory regulations, making it imperative for HR Generalists to stay vigilant and well-informed about HR-related Acts and amendments to maintain full legal compliance. To address this challenge, an increasing number of organizations are opting to outsource periodic audits of their HR practices to expert external agencies like Sankhla Corporate Services Pvt Ltd.

top Establishment compliance services firm in delhi noida gurgaon
Establishment compliance firm in delhi NCE noida gurgaon jaipur
  • Branch establishment registration to investigations handled by government authorities.
  • We cover end-to-end compliance services from office
  • Maintain register records and periodic reporting
  • Empowering your Establishment System to succeed rather than control it. Upgrade, innovate and grow.
  • Our installation & compliance services help you obtain necessary permits, comply with labour laws

What Makes Outsourcing Beneficial?

  • Prevent legal disputes by ensuring compliance
  • Meeting labour laws promptly and consistently
  • Staying informed on evolving government regulations to minimize fines
  • Decreasing HR administrative expenses
  • Retaining full authority over the organization as an employer
  • Instant notifications regarding updates in industry practices
  • Providing expert advice in ambiguous situations.

The different types of shops and commercial establishments that fall within the purview of this Act are

Shop and establishment compliances in India
  • Retail and wholesale establishments are places where goods are sold to customers. These can include shops, stores, or any other location where products are offered for sale.
  • Service-oriented establishments, such as offices, store-rooms, go downs, warehouses, or workplaces, are places where services are provided to customers. These services may be related to the same trade or business.
  • Financial institutions like banks, insurance companies, and other similar establishments also fall under this category.
  • Additionally, places like restaurants, cafes, pubs, hotels, lodgings, and boarding houses are considered as service-oriented establishments.

Are you aware of it ?

  • Shops and commercial establishments that employ 10 or more workers will now have the freedom to operate all year round, with the flexibility to determine their opening and closing times.
  • In sectors such as information technology, highly-skilled workers will have a working day of 9 hours and a weekly working limit of 48 hours, as per the Shop Act regulations.
  • Furthermore, women will now have the permission to work during night shifts, allowing them to work 24/7.
  • The Shops and Commercial Establishment Act also requires the provision of transportation facilities for women’s safety during night shifts.
Establishment of Compliance as per labour laws
top 10 Shop and commercial Establishment of Compliance firms in gurgaon delhi ncr noida jaipur

Shop and  Establishment of Compliance mechanism:

Our team of consultants and labour law experts keep our clients updated on the latest changes and amendments in the Acts and Rules of the Shops and Establishments Act. This ensures that you stay compliant with the law and avoid any penalties or legal issues.

With our expertise in labour and industrial laws and our presence across pan India, we offer a single platform for all your establishments spread across multiple states. When starting a business, it is crucial to be aware of all the mandatory statutory regulations that your entity must adhere to, including taxation legislation, licensing requirements, LWF remittance, professional tax, periodical returns, and other elements of Shop Act compliance.

Ensuring compliance with labour laws for shops and establishments can be a challenge due to the fluctuating and state-specific regulations. Sankhla consultants offer a comprehensive solution to address all your procedural compliance needs. From registering your establishment to maintaining necessary registers, submitting periodic returns, and handling inspection notices from government authorities, we provide a one-stop solution.

Sankhla Corporate Services Pvt. Ltd. specializes in helping companies obtain exemptions under the Shops and Establishments Act. Whether it’s obtaining permission for extended working hours, operating shops throughout the year, or complying with other applicable Indian labour laws, we ensure that your business operates smoothly and complies with all statutory requirements.

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Who Requires Services for Establishment Compliance?

No matter the size or industry of your business, compliance is a critical aspect that should not be overlooked. Let our experts at Sankhla consultants guide you through the compliance journey, providing you with the necessary support and expertise to meet all regulatory requirements and standards.

Establishment compliance mechanisms play a vital role in the success of businesses and organizations. They are particularly important for ensuring that companies meet regulatory requirements and standards. Small businesses often rely on these services to comply with local and state regulations, while larger corporations need them to manage compliance across multiple locations.

At Sankhla consultants, our Shop and Establishment Compliance Services offer a comprehensive solution to help businesses navigate the complex landscape of legal and regulatory challenges. Our dedicated team of compliance experts supports you at every step, ensuring your establishments meet all regulatory requirements seamlessly.

Maintaining a positive reputation is crucial for any business, and our shop & Establishment Compliance unit mechanisms can help you achieve that. By ensuring high-quality operations and demonstrating your commitment to compliance, you can build trust with customers, business partners, and stakeholders.

By partnering with us, you can rest assured that your organization will adhere to legal obligations, minimizing the risk of potential legal issues and associated financial penalties. Our proactive approach to risk management enables us to identify and address compliance risks before they become problematic, allowing you to focus on running your business smoothly.

Establishment compliance services’ component parts include:

Legal Compliance Audits involve conducting comprehensive reviews of the organization’s activities and procedures to pinpoint potential areas of non-compliance or vulnerability. This encompasses examining employment procedures, safety measures, environmental laws, tax obligations, and other relevant aspects.

Maintaining Documentation and Records

Assisting in the maintenance of accurate and up-to-date records and documentation required for compliance purposes. This may include employment records, safety reports, tax filings, and more.

Representation and Liaison

Serving as a point of contact between the establishment and regulatory authorities. Representing the business in compliance-related matters, responding to inquiries, and providing assistance during regulatory inspections or audits.

Offering Compliance Software Solutions

Providing access to software tools or platforms that streamline compliance management processes. These solutions may include features like deadline tracking, generating compliance reports, and managing regulatory documentation.

Developing Policies and Procedures

Assisting in the creation and implementation of policies, procedures, and internal controls to ensure compliance with applicable laws and regulations. This may involve developing employee handbooks, safety manuals, anti-discrimination policies.

Training and Educations

Conducting training sessions and providing educational resources to employees on various compliance-related topics. These may include workplace safety, diversity and inclusion, data protection, and other relevant subjects.

Regulatory Updates and Monitoring

Keeping up-to-date with any changes in laws, regulations, and industry standards that are relevant to the establishment’s operations. Ensuring that the business remains compliant with these updates by implementing necessary measures.

Comprehensive compliance support from start to finish:

  • Display of legal abstracts & notices.
  • Submission of legal payments.
  • Coordination support for Inspections.
  • Preparation and updating of Legal Registers.
  • Assistance with accident-related compliance.
  • Acquire, modify, and refresh Registration Certificates.
  • Preparation and submission of Legal Returns & Legal Notices.
  • Support for the Principal Employer’s compliance as per the scope.
  • Consultation on the formation of Legal Committees.
  • Implementation of advanced automation tools for permanent Establishment Compliance Services.
  • Establishment/branch registration
  • Government Officials inspection management
  • Securing exemptions for smooth business operations
  • Legislation updates for prompt actions
  • Technology support for compliance automation.

Things to consider for Establishment Compliance Services:

  • Registering an establishment/branch
  • Handling government inspections
  • Securing necessary exemptions for smooth business operations
  • Providing updates on legislative changes for prompt action
  • Offering tech support for compliance automation
  • Managing registration certificates
  • Maintaining statutory registers
  • Submitting statutory returns and notices
  • Displaying statutory abstracts and notices
  • Processing statutory payments
  • Assisting with accident-related compliance
  • Coordinating inspections with government officials
  • Supporting principal employer compliance
  • Advising on statutory committee formation
  • Establish compliance requirements

Work scope and services offered

  • Submitting monthly MIS reports to the client
  • Providing information on labour law notifications and amendments
  • Updating and maintaining all statutory registers, as well as retrieving necessary documentation when required
  • Submitting all statutory returns to the respective authorities as per the specified periodicity
  • Ensuring the submission and display of all statutory notices at the respective sites within the required timeframes
  • Registration certificate for establishment – New / Renewal / Closure (Applicable for one-time model only)
  • Registration certificate under the Contract Labour Registration Act – New / Renewal / Closure (Applicable for one-time model only)
  • Establish of compliance mechanism
  • Attending periodic client reviews.
  • Timely remittance of statutory payments
  • Profession Tax registration – (Applicable for one-time model only)
  • Displaying all statutory abstracts at the respective sites
  • Conducting audits of vendor/contractor compliances (Applicable for one-time model only)
  • Providing consulting support for accidents-related matters
  • Handling notices and inspections with the respective authorities
  • Acting as a liaison with statutory authorities
  • Offering legal consulting support through internal consultants of the service provider
  • Notifying, applying, and obtaining possible exemptions under labour laws on behalf of the client (Applicable for one-time mode)

Compliances under Delhi NCR shops and establishment Act:

The Delhi Shops and Establishment Act, 1954, regulates the working conditions and employment rights in shops and commercial establishments in the Delhi NCR region. Businesses are required to adhere to various provisions under this Act to ensure legal and operational compliance. 

To ensure the smooth and lawful operation of shops and establishments in Delhi NCR, it is crucial to comply with these provisions. Businesses are advised to seek guidance from legal experts or compliance professionals to stay updated with any amendments or changes in the law.

Below are the key Compliance under shops and establishment act:

1. Establishment Registration:

  •   All shops and establishments must register under the Act within 90 days of commencement.
  •   The application for registration should be submitted to the Chief Inspector in the prescribed form along with the necessary fees.

2. Registration Renewal: Registration must be renewed periodically as specified by the authorities.

1. Work Hours:

  • Daily and weekly working hours must be followed. 
  • Adult workers should not exceed 9 hours of work per day and 48 hours per week.
  • All employees should have a weekly holiday.

2. Overtime: Overtime work should be compensated at twice the regular rate.

3. Rest Intervals: Rest periods during working hours must be provided.

4. Spread-over: The spread-over of an employee should not exceed 10.5 hours in a day.

5. Opening and Closing Hours: The Act prescribes specific opening and closing hours for establishments. It changes based on the type of business.

  • Annual Leave: Employees are entitled to annual leave with wages. Generally, it is 15 days of leave for every 12 months of continuous service.
    Casual and Sick Leave: Employees are also entitled to casual leave and sick leave as per the provisions of the Act.
  • Annual Leave with Wages: Employees are entitled to annual leave with wages. The specific number of days and eligibility criteria should be adhered to.
  • Other Holidays Leaves: Casual leave, sick leave, and other types of leave should be provided as per the Act.
  • Weekly Holidays: Every employee is entitled to at least one day off in a week.
  • There are restrictions on the employment of women and young persons in certain establishments, particularly in terms of working hours and conditions.
  • Restrictions on Employment of Women: Women employees must adhere to specific provisions regarding their working hours and conditions, which are in place to ensure their safety and welfare.
  • Employment of Young Persons: Strict adherence to regulations regarding the employment of children and young persons is mandatory.

Employers must ensure the health and safety of their employees by providing clean and safe working conditions, adequate lighting, ventilation, and sanitary facilities.

  1. Cleanliness Health and Hygiene:
  •    The premises must be maintained clean and hygienic.
  •    Ensure adequate lighting and ventilation for optimal working conditions.

2. Safety Measures: Necessary safety measures must be implemented to prevent accidents and safeguard employees.

  • Display of Notices: Prominent display of notices, such as weekly holidays, working hours, and wages, is required within the establishment.
  • Inspections:  Authorities conduct regular inspections to ensure compliance with the Act, and any discrepancies or violations found during these inspections must be promptly addressed.

Penalties for Non-compliance: Non-compliance can result in penalties, including fines and other legal actions as specified under the Act.

Grievance Redressal Mechanism: Establishments should have an effective mechanism in place to address employee grievances.

Wage Payment: Wages should be paid on time as per the employment contract and prevailing laws.

Maintenance of Records: Proper records of employment, wages, leave

Notification of Changes: Any changes in the ownership, address, or other significant details of the establishment must be notified to the relevant authorities.

Acts listed to be covered under

Establishment compliance services FAQs:-

How to download shop and establishment certificate online?

To download the Shop and Establishment Certificate online, follow these steps:

  1. Visit your state’s official labour department portal (e.g., for Maharashtra, visit the Maharashtra Labour Department website).
  2. Log in using your credentials: If you don’t have an account, first register on the portal.
  3. Navigate to the Shop and Establishment section: Look for the option related to “Shop and Establishment Registration.”
  4. Enter your application/reference number: Use the number you received during the registration process.
  5. Download the certificate: Once the application is approved, the certificate will be available for download.

Ensure you have a stable internet connection and all necessary details handy to avoid delays.

How do i register for shop and establishment act?

To register for the Shop and Establishment Act online, follow these steps:

  1. Visit your state’s Labour Department website:- Each state has its own official portal (Example:- Haryana, Maharashtra, Delhi, Karnataka etc.).
  2. Create an account:- Register on the website by providing your basic details like name, email, and mobile number etc.
  3. Fill the application form:- Select the option for “Shop and Establishment Registration” and enter the required details, such as business name, address, and number of employees.
  4. Upload necessary documents:- This typically includes identity proof, address proof, and business-related documents.
  5. Pay the registration fee:- The fee varies by state and is based on the size and type of the business.
  6. Submit the application:- After reviewing all details, submit the application online.
  7. Download the certificate:- Once approved, the registration certificate will be available for download from the official portal.

This process ensures compliance with local labour laws, protecting both employers and employees.

How to establish a company?

To establish company in India, follow these steps:

  1. Choose a business structure: Select the type (e.g., Private Limited, LLP, Sole Proprietorship).
  2. Register your business name: Pick a unique name and register it with the Ministry of Corporate Affairs (MCA).
  3. Obtain a Digital Signature Certificate (DSC): Required for filing documents electronically.
  4. Apply for Director Identification Number (DIN).
  5. Incorporate the company: File the incorporation form (SPICe+) with the MCA.
  6. PAN & TAN application: Apply for PAN and TAN for tax purposes.
  7. Register for GST if applicable.
  8. Open a company bank account.

These steps ensure you legally establishment company and maintain business compliance.

How to apply for registration certificate for shops & establishments?

To apply for a registration certificate for shops & establishments, follow these steps:

  1. Visit the official labour department website for your respective state (e.g., Maharashtra, Delhi, Karnataka).
  2. Register on the portal: Create an account by providing essential details like your name, email, and mobile number.
  3. Fill in the application form: Select the “Shops and Establishments Registration” option and provide necessary information such as business name, address, and employee details.
  4. Submit required documents: Upload important documents like identity proof, address proof, and business registration documents.
  5. Pay the application fee: Complete the payment online. Fees vary by state and business size.
  6. Submit the form online: After filling out the form and attaching the documents, submit your application.
  7. Download the certificate: Once approved, you can download the registration certificate directly from the portal.

This registration is mandatory for compliance with the Shops and Establishments Act, ensuring legal business operations.

How to fill shop and establishment form?

To fill out the Shop Establishment form accurately, follow these steps:

  1. Visit the official state labour department website: Go to the portal designated for Shop and Establishment registration (e.g., Odisha, Punjab, Haryana, Rajasthan, Maharashtra, Delhi, Karnataka).
  2. Log in or create an account: Register on the portal with your email and mobile number, or log in if you have an existing account.
  3. Select the Shop and Establishment Registration form: Find the appropriate form for registering under the Shops and commercial Establishments Act.
  4. Enter business details:
  • Business Name: Provide the registered name of your shop or establishment.
  • Address: Input the complete address where the business operates.
  • Type of Establishment: Specify whether it’s a retail shop, office, or other type of establishment.
  1. Provide owner details: Include information about the business owner, such as name, address, and contact details.
  2. Enter employee information: Fill in the number of employees, their designation, and other relevant details.
  3. Upload necessary documents:
  • Identity Proof: Proof of identity for the business owner.
  • Address Proof: Utility bills, rental agreements, or other documents confirming the business address.
  • Business Registration Certificate: If applicable.
  1. Pay the registration fee: Complete the online payment process, which varies by state and business size.
  2. Review and submit the form: Check all details for accuracy and submit the form online.
  3. Download the license: After approval, download your Shop and Establishment license from the portal.

Following these steps ensures compliance with local regulations and legal recognition for your business.

How to apply for shop and establishment license online?

To apply for a shop and establishment license online, follow these steps:

  1. Visit your state’s official labour department website: Each state in India has a specific portal for shop and establishment registration (Example:- Maharashtra, Delhi, Karnataka).
  2. Register or log in: Create an account by providing basic information like your name, email, and phone number, or log in if you already have an account.
  3. Choose the Shop and Establishment Registration option: Navigate to the section for Shop and Establishment Act registration or licensing.
  4. Fill in the application form: Enter all necessary details, including the shop or business name, address, type of establishment, number of employees, etc.
  5. Upload required documents: Attach important documents like identity proof, business address proof, and business registration certificates.
  6. Pay the application fee online: Make the payment, which varies depending on the size and nature of the business, through available payment options on the portal.
  7. Submit the application: After completing the form and attaching documents, submit the application for review.
  8. Download the license: Once your application is approved, you can download the shop and establishment license from the portal.

This online process ensures compliance with the Shops and Establishments Act, providing legal recognition for your business.

What is leave policy for employees in India?

In India, the leave policy for employees is regulated by various labor laws and differs across states and industries. The main laws governing employee leave in India include the Factories Act, 1948, and the Shops and Establishments Act (varies by state). Here’s a general overview of the leave types available to employees:

1. Casual Leave (CL)

  • Employees are entitled to casual leave for personal or unforeseen reasons.
  • The number of casual leave days typically ranges from 7 to 12 days per year, depending on state laws.

2. Sick Leave (SL)

  • Employees can avail of sick leave in case of illness or medical needs.
  • Sick leave usually ranges between 7 to 12 days annually.
  • Unused sick leave is often carried forward.

3. Earned Leave (EL)/Annual Leave

  • Employees are entitled to paid leave, also known as earned or privilege leave.
  • Under the Factories Act, employees earn 1 day of leave for every 20 days worked.
  • These leaves are accumulated annually and can often be carried forward to the next year.

4. Maternity Leave

  • As per the Maternity Benefit Act, 1961, female employees are entitled to 26 weeks of paid maternity leave for the birth of the first two children.
  • For the third child and beyond, the leave is reduced to 12 weeks.
  • Adoptive mothers and commissioning mothers are also eligible for 12 weeks of leave.

5. Paternity Leave

  • Though not universally mandated, some organizations provide paternity leave to male employees, usually ranging from 7 to 15 days.

6. Public Holidays

  • Public holidays are fixed by the government, with a minimum of 10 to 14 days per year, depending on the state and industry.

7. Compensatory Off

  • If employees work on a public holiday or weekly off, they are entitled to compensatory leave.

8. Bereavement Leave

  • Some companies offer bereavement leave in case of a death in the family. The number of days varies by company policy.

9. Leave Without Pay (LWP)

  • If all other leave entitlements are exhausted, employees can opt for leave without pay, subject to management approval.

State Variations

The Shops and Establishments Act governs the leave policies for commercial establishments and varies from state to state. States may have different leave entitlements, especially concerning earned leave and sick leave.

For example:

Maharashtra Shops and Establishments Act requires at least 8 days of casual leave and 5 days of sick leave per year.

Karnataka Shops and Establishments Act mandates 12 days of casual leave and 12 days of sick leave annually.