India: Government of Haryana Grants Exemption from Periodic Renewals under Shops and Commercial Establishment Act

February 15, 2019

Analysis of the recent notification by labor department of Haryana Government

Introduction

The Punjab Shop and Commercial Establishments Act, 1958 is a state enactment which provides for the regulation of conditions of work and employment in shops and commercial establishments. The Act provides safety, health and welfare provisions that the employer in such establishment is required to implement. The owner or the authorized person of the establishments covered under the Act is required to register under the Act.

The Act provides for the regulation of the opening and closing time as well as weekly holiday. The primary aim of the Act is to ensure safety, health and welfare for the employees in such establishments. The Act prohibits employment of children and employment of women during night hours. The Act further provides conviction and monetary penalty for the violation of safety, health and welfare provisions by the employer.

Periodic renewal of Registration certificate

The Act provides for periodic renewal of Registration certificate by March 31, of every year with a grace period of thirty days. The Government of Haryana wide notification[1] dated November 21, 2018, has exempted commercial establishments and establishments from the requirement of periodic renewal of the Registration certificate.

Commercial Establishments and Establishments

“Establishment” as per the Act includes both commercial establishment as well as a shop. “Commercial establishment” is defined under the Act as any premises wherein any business, trade or profession is carried on for profit and includes journalistic or printing establishment and premises in which business of banking, insurance, stocks and shares, brokerage and produce exchange is carried on or which is used as hotel, restaurant, boarding or eating house, theatre, cinema or other place of public entertainment or any other place or any other place as may be declared. “Shop” is denoted as any premises where any trade or business is carried on or where services are rendered to customers and includes offices, store-rooms, godowns, sale-depots or ware-houses, whether in the same premises or otherwise, used in connection with such trade or business.

Analysis

The notification issued by the labor department of Haryana Government exempts establishments and commercial establishment from the requirement of periodic renewal of registration certificate mandatorily required to carry own the business by the establishments covered under the Act. Earlier, the owner of these establishments required to renew their registration certificate by March 31, with a grace period of 30 days.___________________________________
[1] Notification No. 11/23/2018-4Lab dated 21.11.2018 available at :http://storage.hrylabour.gov.in/uploads/labour_laws/Y2018/Dec/W1/D06/1544074366.PDF .

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