This article is written by Bogineni Naga Jyothi. This article provides a brief knowledge of the Andhra Pradesh Shops and Establishment Act, 1988. The article discusses the concept of the shops and commercial establishments legislation with special reference to the Andhra Pradesh Shops and Commercial Establishments Act of 1988.
It has been published by Rachit Garg.
Table of Contents
Introduction
India is currently the fifth-largest economy in the world. The majority of the economy comes from shops and establishments. The Andhra Pradesh Shops and Establishments Act,1988,(hereinafter referred as the Act) is enacted to control and manage the conditions of work and employment in shops and commercial establishments. This article writes down the materiality of this Act, important interpretations and provisions in the Act, the process of registration, renewal, and cancellation, and important immunities. The Andhra Pradesh Shops and Establishment Act was enacted in 1988 by the government of Andhra Pradesh.
Objectives and applicability of Andhra Pradesh Shops and Establishment Act, 1988
The essential aim of this Act is to protect the rights of the employee and fulfil the obligations of the employer towards the employee. This Act is applicable to all the shops and establishments in the whole state of Andhra Pradesh.
Important definitions
Chief inspector
Section 2(2) of the Act defines the chief inspector as a person who is appointed by the government by official notification.
Child
Section 2(3) defines a child as a person who is under the age of fourteen.
Commercial establishment
Section 2(5) defines an establishment used for commercial purposes. An establishment which carries on any trade, business, profession, or any work in connection with or incidental or ancillary to any such trade, business, or profession, or which is a clerical department of a factory or an industrial undertaking, or which is a commercial, trading, banking, or insurance establishment, and includes an establishment under the management and control of a co-operative society, an establishment of a factory or an industrial undertaking that falls outside the scope of the Factories Act, 1948 and such other establishment as the Government may, by notification, declare to be a commercial establishment for the purpose of the act and but it does not include shop.
Employee
According to Section 2(8) of the Act, ‘employee’ means a person completely or part-time employed in, and in correlation with, any establishment, and it may be an apprentice or a clerical worker in the establishment. It does not include the relations of an employer or his partner who is living with and depending upon such employer.
Employer
According to Section 2(9), ‘employer’ means a person having authority over the set of circumstances of an establishment or an organisation, and the employer may be the manager, agent or other person acting in the general management or control of an establishment or an organisation.
Establishment
Section 2(10) of the Act defines the establishment as a commercial establishment and such other establishments as a shop, restaurant, eating house, residential hotel, lodging house, theatre, or entertainment, and includes a notifiable establishment that is notified by the government through this Act.
Factory
Section 2(11) of the Act defines a factory as a building or buildings where manufacturing processes are carried out.
Registration certificate
According to Section 2(19) of the Act, a registration certificate is issued by the state government under this Act.
Shop
Under Section 2(21) of the Act, ‘shop’ means an area where any trade or business is carried on or where utilities are provided to customers, as well as the shop run by a cooperative society, an office, a store room, godown, warehouse, or work place, and such other establishments that are notified under government notification to be shops for the purposes of this Act.
Wages
Section 2(23) of the Act defines wages as the compensation or remuneration paid for the services rendered by the employee during the course of employement.
- Any remuneration or compensation ordered by the court or any tribunal between the employer and employee as a settlement is to be considered as wage.
- Any remuneration or salary given for the services rendered by overtime work or work on holiday by the employee is considered as wage.
- Any bonus payable during the course and terms of employment is considered as wages.
- The sum of the amount payable at the time of termination of employment, with or without deductions comes under the purview of the wages.
- An amount of money entitled by the employee through any scheme designed under any law is to come under wages. But the profitable shares as a bonus, house accommodation, medical assistance and water supply, the Provident Fund payable by the employee, and travel allowances are not considered wages under this Act.
Young person
Section 2(25) of this Act defines a young person as a person who is under the age of 18 and who is not a child.
Important provisions of Andhra Pradesh Shops and Establishment Act, 1988
Process of registration under the Act
Section 3(1)(i) of the Act defines that, in the case of an existing establishment, within 30 days of its establishment, the employer has to give the application to the inspector containing such particulars along with the prescribed fee for registration.
Under Section 3(1)(ii), each and every employer, in the case of a new establishment, within thirty days from the date on which the establishment commences its work, has to give the application to the inspector for registration.
On receipt of the application, the inspector, after the process of verification, can issue the certificate of registration to the employer who shall display it at a prominent pace of establishment.
If there are any changes in any particulars, every employer has to disclose the information to the inspector within fifteen days after the change has taken place.
If the employer wants to close the establishment, within fifteen days of its closure, the employer shall intimate that information to the inspector, where the inspector is satisfied with such intimation that the establishment has been closed, he shall remove the name of such establishment from the register and cancel the registration certificate.
Requirements of the registration
- Details of the employer.
- Permanent address of the establishment.
- Name of the establishment.
- Category of the establishment.
- Additional information that may be required.
Renewal of the registration
After the application is made according to Section 4 of the Act by the employer with a prescribed fee, the inspector renews the registration certificate for a period of one year or for a number of years as prescribed. The renewal application should be done before thirty days of its expiration .
The application for the renewal of registration must be submitted within thirty days of the expiration of the registration. Otherwise, the applicant must pay the penalty after the expiration of the registration for the renewal of the registration.
Revocation and suspension of the registration certificate
Under Section 5 of the Act, the registration certificate will be revoked and suspended if the applicant obtained it by misrepresentation, fraud or suppression of any material facts; or the employer has willfully contravened any of the provisions of this act or the rules made thereunder, the inspector can revoke and suspend the certificate after giving the employer an opportunity to show cause.
Advantages of the registration
- After the registration of the establishment, the employer can get benefits under the various government schemes.
- can get authorization to operate the business bank accounts.
- Will get the legal identity to conduct business in the state or region.
Appeal against the revocation or suspension
Section 6 defines that any person aggrieved by the order made under Section 5 of the Act can appeal to the prescribed authority within 30 days of the communication of the order. The appellate authority can accept the appeal after the expiration of the limitation if he is satisfied by the reasons furnished by the applicant. The appellate authority shall dispose of the appeal within two months after being heard.
Key provisions of shops
Opening and closing hours of the shops
As per Section 7 of the Act, the government notifies the opening and closing hours of the shops by the official notification; no shop shall open the shops before the opening time or after the closing time prescribed by the government. As per Section 7(1), any customer who was being served or was waiting to be served in any shop at the hour fixed for its closing may be served during the quarter of an hour instantly following such hour.
Under Section 7(2) of the Act, the government may fix different hours for different classes of shops or for different areas or for different times of the year.
Selling is prohibited outside the shops
According to Section 8 of the Act, the sale of any goods that are adjacent to or in a public place before the shops is prohibited before opening and after the closing of the shops by government notification.
But this section does not apply to these categories, which are vegetables, newspapers, fruits, flowers, and other goods that have a time interval permitted by the government in the official notification.
Daily and weekly hours of work in a shop
Section 9(1) defines that the employee shall not be allowed to work more than eight hours in a day and 48 hours in a week. If the employee wants to work overtime, the maximum period is only six hours a week.
Employees are allowed to work in any shop for the extra time than usual time described under sub section 2 of Section 9 if the following conditions are satisfied:
- The working hours of the employee shall not exceed twelve hours, including overtime.
- The spread over shall not exceed thirteen hours a day including rest intervals.
- The total number of working hours in a week shall not exceed 62 hours including overtime.
- Any employee is not allowed to work overtime for more than seven days at a stretch .
Interval of rest
According to Section 10 of this Act, every employee under this Act shall get an interval of rest at least an hour for every five hours of work.
Closing of shops and grant of holiday
According to Section 12(1) of this Act, on every Sunday, every shop or establishment shall remain closed. The chief inspector may fix the different timings for different shops, for different areas, or for the different classes of shops according to Section 12(3) of this Act.
Closing of shops on special occasions
In addition to the holiday mentioned under Section 12 of the Act, the chief inspector may, by notification and with the previous approval of the government, close the shops and establishments on special occasions.
Keys provisions of Establishments other than the shops
Opening and closing hours of the establishments
As per Section 15 of the Act, the government notifies the opening and closing hours of the establishments by official notification; no establishment shall open before the opening time or after the closing time prescribed by the government.
Daily and weekly hours of the establishment
Under Section 16(1) of the Act, an employee in any establishment shall not be allowed to work therein for more than eight hours in any day and forty eight hours in any week.
Employees are allowed to work in any establishment for the longer than usual time described under sub section 2 of Section 16 for the following conditions are satisfied:
- The working hours of the employee shall not exceed twelve hours, including overtime.
- The spread over shall not exceed thirteen hours a day, including rest intervals.
- The total number of working hours in a week shall not exceed 62 hours, including overtime.
- Any employee is not allowed to work overtime in any establishment for more than seven days at a stretch.
Interval for rest of the establishment
Section 17 defines the interval of rest; every employee under this act shall get the interval of rest at least an hour for every five hours of work. The chief inspector may reduce the interval of the rest to half an hour when the time of the work of an employee is less than eight hours.
Spread over the period of work
Under Section 18 of the Act, the work of every employee should be arranged properly with an interval of rest. The work shall not be spread for more than twelve hours a day, and the employees working for the purpose of account preparation shall not exceed the time interval of fourteen hours per day.
Holidays
Every employee in any establishment shall be allowed a holiday under Section 19 of this Act and no deduction shall be made from the wages of any employee in an establishment on account of which a holiday has been allowed in accordance with this section.Giving a holiday once a week can help you work more efficiently.
Employment of children, women, and young person
According to Section 20 of the Act, no child is allowed to work in any establishment.
According to Section 21 of the Act, young persons are not allowed to work in any establishment before 6 AM and after 7 PM.
According to Section 23 of the Act,, women are not allowed to work in any establishment before 6 AM and after 8.30 PM.
Maternity leave and benefits
Becoming a mother is a great thing in every woman’s life. After pregnancy, a woman should be very careful until delivery, and she needs rest as she nears delivery. Every woman employee shall be entitled to maternity leave and benefit under Sections 24 and 25 of the Act. She shall be entitled for six weeks before delivery. No woman employee shall be entitled to receive such benefit for any day during any of the aforesaid periods, on which she attends work and receives wages thereof.
Health and safety
Maintaining the health of employees by the management leads to more productivity in the work and a chance of raising the economy which affects the development of the country. The following sections come under the health and safety measures to be taken by the employer.
Cleanliness
According to the Section 26 of the Act, the premises should be kept clean and free from malodorous use by the methods as may be prescribed.
Ventilation
Section 27 of the Act defines that the premises of every establishment shall be ventilated by the methods prescribed by the GramaPanchayats and Municipalities or other local authorities for the time being in force.
Precautions for the safety of the employees
Under Section 28 of the Act, the employer shall take safety measures for the welfare of the employee.
Key provisions related to wages
- According to Section 30 of this Act, every employee who worked for two hundred forty days or more for a continuous period of twelve months in an establishment, the employee shall get paid leave for fifteen days for a subsequent period of twelve months and such paid leaves may accumulate upto a maximum period of 60 days.
- Every employee in any establishment shall get twelve days of paid sick leave and twelve days of paid casual leave during his first twelve months of continuous service and during every subsequent twelve months of such service.
- Every employee can get eight days of paid leave in a year.
- Under Section 35 of the Act, every employer is responsible for the payment of wages for the services rendered by the employees.
- Section 36 defines that every employer must fix the wage periods, whether on a monthly, daily, or weekly basis.
- According to Section 37 of the Act, the employee can get twice the regular wages when the employee works overtime.
- Under Section 39, wages should be paid to the employee using the money in use.
Deductions
Under Section 40 of this Act, the employer shall give the whole wage to the employee without any deductions. In exceptional cases, the employer can deduct the wages, and those are mentioned below:
- Retrieval of the advanced amount as a deduction.
- For the services provided by the employer to the employee.
- For the absence of duty.
- Deductions for the taxes payable by the employee.
- For the damages or loss caused by the employee.
- For the house accommodation given by the employer to the employee.
- Deductions are made with the written consent of the employee.
- For the amenities and services provided by the employer to the employee.
- Deductions for the payments of Co-operative societies like Post- Office and LIC.
- deductions necessary to be obliged by the order of a court or other competent authority to make such an order.
- Deductions as fines and penalties lawfully imposed to the employee by the employer
- Deductions for the subscription of Provident Fund And Income Tax.
Appointment and powers and duties of the inspectors and the Chief Inspectors
- Under Section 57 of the Act, the inspectors and chief inspectors are appointed by the official notification of the government. The respective jurisdictions are allotted to the inspectors and chief inspectors.
- Section 58 defines that the Chief Inspector can execute the powers and duties of an inspector under this Act.
- Under Section 59, inspectors can assist the subordinates and can inspect the premises and the registers during working hours. The inspector can execute the power and duties allotted to him.
Penalties for offences
Under Andhra Pradesh Shops and Establishment Act, 1988, Penalties are discussed in Chapter XI of the Act. Any employer who makes any false or incorrect statement under Section 3 shall be punishable with fine which may extend to one hundred rupees.
Any employer who fails to comply with any of the provisions of the Sections 3, 4, 5, 7, 9 to 12, 13, 15 to 32, 34 to 47, 49, 68 and 69 shall be punishable for a first offence with fine which may extend to rupees one hundred, for a second offence with fine which shall not be less than rupees two hundred and fifty but which may extend to rupees five hundred and for the third or subsequent offences with imprisonment for a term that may extend to three months and with a fine which shall not be less than rupees five hundred but which may extend to rupees one thousand.
The one who violates the provisions of the Section 8 of the Act shall be charged for the first violation with fine which may extend to rupees of one hundred and for the subsequent violation with fine which may extend to rupees of two hundred and fifty .
The one who infringes the provisions of subsection 3 of the section 48 and subsection 2 of the section 48 of the Act shall be punishable with fine which may extend to rupees fifty per each day during the offence proceed with.
If any employer fails to have the possession of a defendable certificate of registration, in fails to comply with the provisions of sections 3, 4 and 5 shall be punishable, if it repeats the offence he shall be punishable with a fine which may extend to rupees two hundred and fifty for each day throughout the offence proceed with.
Miscellaneous provisions of Andhra Pradesh Shops and Establishment Act, 1988
Under Section 68 of the Act, the employer should maintain the records and display of notices, etc that are prescribed by the government.
According to Section 69 of the Act, every employee is restricted from doing double employment on the holiday prescribed by this Act, and also this Act also restricts the employer from knowingly permitting an employee to work on holiday.
Exemptions
- This Act shall not apply to any establishment under the state and central governments, the Reserve Bank of India, local authorities, or railway administration operating any railway under clause 20 of Article 366 of the Indian constitution.
- This Act shall not apply to the establishment of oil fields and mines.
- This Act shall not apply to establishments in bazaars that are held temporarily for a period of not exceeding one month.
- This Act shall not apply to the employee whose monthly salary exceeds sixteen hundred rupees .
- This Act shall not apply to the caretakers, sweepers, travelling staff, or the persons employed for loading and unloading of goods at godowns.
- Sections 7 and 15 of this act shall not apply to the hospitals, chemists and druggists, hairdressing shops and residential hotels and hostels attached to the colleges or schools, or educational institutions.
- Sections 7 and 15 shall not be applicable to the employees who are working in the hospitals and those who are chemists and druggists.
- The opening and closing hours of the Act shall not apply to the education institutes and hostels attached to the school or college, clubs and residential hotels, hair salons and also to refreshment rooms at airports and railway stations, bus stops and to those establishments whatever selling the carbonated water or ice water and to the establishments selling the funeral necessities.
- Under subsection 3(A) of Section 73, sections 7,9,12,15 shall not apply to the persons whose work is irregular like sweepers and caretakers, or travelling staff etc.,.
- According to sub-section 3(B) of Section 73, sections 7,9,12,15 shall not apply to those who are employed in the loading and unloading of goods at godowns.
- The government may discharge either immutably or for a short time, any establishment or class of establishments or persons or class of persons, from all or any of the provisions of this Act by the notification, subject to such circumstances as they may consider relevant.
- Government may by notification, apply any of the provisions of this Act to any class of persons or establishments broached in those subsections other than those mentioned in clause (b) of sub-section (1) of Section 73 and the government may modify or cancel any such notification.
Judicial pronouncements
Gopalakrishnan v. Assistant Inspector of Labour Rayadurg(2000)
Facts of the case
In this case, the petitioner is a chartered accountant practising at Rayadurg and the respondent is an Asst. labour officer Rayadurg has issued inspection orders and notices on 07-03-1991 and stated that on inspection on 20-02-1991 under Andhra pradesh Shops and Establishment Act,1998. The petitioner was asked to show cause notice within seven days as to why penal action under the said Act should not be taken against him. Immediately he gave a reply to that notice stating that the office of chartered accountant and auditors would not be covered under the said Act. After considering the reply of the petitioner, the respondent gave impugned order on 25-05-1991 stating that the petitioner office comes under the said Act. Aggrieved by the order the petitioner filed a writ petition.
Issues of the case
Does the office of the chartered accountant come under the purview of the section 2(21) of The Andhra Pradesh Shops and Establishment Act ?
Judgement
The judgement is given by the Honourable Judge Elipe Dharmarao, J is that the maintenance of the office of the chartered accountant for practice is a profession like an advocate profession. The respondent under the misconception of law thought that the office of Chartered Accountant comes within the purview of Section 2(21) of the said Act and issued the above notice. Therefore the impugned order passed by the respondent is illegal and liable to set aside. The judgement is in favour of the petitioner.
Conclusion
This Act safeguards the rights of the employees and teaches the employer to fulfil his obligations. After the enactment of this Act the employees are benefited, like working hours and holidays, wages, special provisions relating to women and young persons, maternity benefit and many other favourable things for the employee. If this Act works properly in the state, most of the employees will live their lives peacefully without any tension.
Frequently Asked Questions (FAQs)
Is registration compulsory for the establishment under the Andhra Pradesh Shops and Establishment Act ,1988?
Every employer of the establishment must register under Form C of the Andhra Pradesh (Issuance of Integrated Registration and Furnishing of Combined Returns under various Labour Laws by Certain Establishments) Act 2015.
What is Form-C of the Andhra Pradesh Shops and Establishment Act,1988?
Form-C means a certificate of verification under this Act.
To whom appeals shall lie against revocation of suspension of registration certificate?
According to Sub-section(1) of Section 6, against the orders of revocation or suspension of the registration certificate shall lie to the concerned labour officer in whose jurisdiction the establishment or shop is located.
References
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