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Gujarat Shops and Establishment Act, 2019

November 18, 2023

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This article has been written by Dhriti Thingalaya. This article gives a holistic view of the Gujarat Shops and Establishment Act, 2019 with regards to several provisions, objectives, and the impact that it had on the region. It also outlines various definitions in reference to the Act.

It has been published by Rachit Garg.

Table of Contents

Introduction

The labour class, also known as the working class, plays a very vital role in the functioning of businesses. Their contributions to the economy are multifaceted and include several commercial entities that engage in trade or commerce, such as residential hotels, shops, theatres, restaurants and other public places of amusement. In order to regulate and safeguard the rights of both employers and employees, foster employment opportunities and improve the working conditions of the labour class, several appropriate laws have been passed by the central and state governments. One such Act that was introduced by the Gujarat state was the Gujarat Shops and Establishment Act, 2019 form A. The Gujarat Shops and Establishments (Regulation of Employment and Services) Act, 1948, was revoked and replaced with the new notification of Gujarat Shops and establishment Act, 2019 which was passed by both the assemblies of the state legislature and was published in the official gazette after receiving the assent of the Governor in the Gujarat Government Gazette on March 7, 2019 and has been made effective from May 1, 2019. This new Act was brought into force due to the introduction of the Model Shops and Establishments (Regulation of Employment and Conditions of Services) Bill, 2016, by the Government of India. This Act enables the state to freely adopt it and make changes according to the necessary amendments required for industrial growth. The revamped Act has brought in various reforms and scopes of development in the workings of different commercial entities. It also stipulates additional compliance with statutory obligations by employers and for them to administer the rights of employees in the unorganised sector. The old Gujarat Shops and Establishments Act, 1948, stands repealed; however, various bye-laws, notices, registrations and any other rules or sub-rules created under this Act were to remain effective until a new rule under the provisions of the new Act was notified. As and when the Shops and Establishment Act Amendment Rules, 2020 were established, the above mentioned rules became ineffective.

Purpose and objective of the Act

The erstwhile Act, the Gujarat Shops and Establishment Act, 1948 (now repealed), was applicable to all establishments, irrespective of the number of workers employed. The new Act is applicable to establishments where 10 or more workers employed and not to small establishments. For establishments with less than 10 workers are required to intimate about their establishment, commencement of their business, and some other details to the facilitator/inspector (appointed under the new Act) in whose jurisdiction the business is located. This brings major compliance relief to smaller and newer establishments. The Act also outlines various requirements, such as enhancing overtime pay for workers, opening and closing hours of establishments, increasing charges for penalties in cases of non compliance, facilitating provisions for the welfare of women, leaves and holidays, and so on. Hence, the State of Gujarat is the second state after Maharashtra to adopt the Model Shops and Establishments (Regulation of Employment and Conditions of Services) Bill, 2016. It’s a progressive move by the state government that will enable ‘Ease of doing business’ among the retailers, said Kumar Rajagoapaln, CEO of the Retailers Association of India.

Important definitions

Section 2 of the Gujarat Shops and Establishments Act, 2019 has defined several words used under this Act, following are some of the important definitions

Employer [Section 2(b)]

It means an individual having ultimate power or authority over the affairs or operations of his business or over the establishment. It can either be a partner of a firm or association of individuals, a director of the company, or, in the case of any establishment owned by the central or state government, any person authorised to manage the operation of such establishment.

Establishment [Section 2(c)]

An establishment comprises various entities that are involved in manufacturing, trade, business, banking, insurance, brokerage, stocks, etc.

It also includes:

Professional consultants: Advocates, Architects, Engineer, Doctor and others
Medical facilities: Maternity homes, clinics, hospitals and more
Societies and Trusts: Societies registered under Societies Registration Act, 1860, whether formally registered or not, that engage in various business and trades.

Such other establishment as the State Government may,by notification in the Official Gazette, declare to be an establishment for the purposes of this Act.

Factory [Section 2(d)]

A factory is defined as any location or any surrounding area that qualifies as a factory as per the criteria given under clause (m) of Section 2 and Section 85 of The Factories Act, 1948.

Local authority [Section 2(h)]

Local Authority means:

A Municipality constituted under the Gujarat Municipalities Act, 1963.
A Municipal corporation constituted under the Gujarat Provincial Municipal Corporations Act, 1949.
A Panchayat constituted under the Gujarat Panchayats Act, 1993.

Register of establishments [Section 2(l)]

It can be defined as a register maintained for recording the registrations of shops and establishments under this Act either manually or electronically.

Shift [Section 2(n)]

It means where the same kind of work is carried out in an establishment that is taken care of by different sets of workers, each set of workers is called a group or a relay, and thus each set of group work during different periods of the day, and each of such periods is called a shift.

Shop [Section 2(o)]

It’s a premise where different types of goods are sold and purchased, either by retail or wholesale, and includes a storeroom, a godown, an office or a warehouse, whether in the same location or otherwise, but it doesn’t include a factory.

Wages [Section 2(q)]

It refers to complete compensation in monetary terms for the work done by an individual who is employed in a particular establishment, provided the terms of an employment, explicit or implied, are fulfilled. It includes:

Any remuneration agreed upon during the court settlement, tribunal decision or award passed
Any compensation that a person is entitled to receive in respect of overtime work, or holidays or
Additional payments as per the terms of employment agreement.
House rent allowance payable in cash
Any amount a person is entitled to during the law in force at that time.
Any sum payable as a result of termination of employment as stipulated by law or any relevant document.

Exclusions under this provision are as under:

Bonuses not forming part of terms of employment agreement nor a part of any of the court orders.
The value of accommodation, light, water, medical services or any other amenities that are excluded from the wage calculation.
Travel allowance or the value of travel concessions
Gratuity paid upon termination, except for specified cases
Any sum paid to the worker employed to cover specific expenses due to the nature of their work.

Spread-over [Section 2(p)]

Spread-over means the period between the commencement of the work and the termination of the work of a worker on one day.

Worker [Section 2(s)]

Any individual including any person sent through an outsourcing agency (except an apprentice under the Apprentices Act,1961) is employed to do any manual, unskilled, skilled, operational, technical or clerical work for hire or reward whether the terms of employment be express or implied.

Essential provisions of the Act

Chapter 2 : Registration of Shops and Establishments

Registration of Shops or Establishments

Section 6 talks about Registration of Shops and Establishments From the date of commencement of any shop or business or from the beginning of any establishment, the employer of the respective shop engaging 10 or more workers within a period of 60 days must submit an application for registration in Form A to the concerned inspector. Along with the fees payable and relevant self-certified documents as they may be prescribed in Form A of the schedule: Provided that nothing contained herein above shall apply to the shops and establishments already having valid registration under the gujarat Shops and Establishment Act,1948 until the expiry of their registration.

FORM A

(See rule 3)

APPLICATION FOR REGISTRATION

Sr.No.	Table of Contents
1.	Name of Establishment
2.	Postal address and situation of the establishment
3.	Date of commencement of business
4.	Nature of business
5.	Address of the office,storeroom,godown,warehouse or workplace if any other than the address mentioned above(should be filed only when the office,showroom etc is not separately registered under the Act)
6.	Name of the employer
7.	Residential address of the employer
	Status,Designation
	Mobile no. or E-mail Id
	Aadhar Card No. (optional)(copy)
8.	Category of establishment(Shop/establishment)
	Type of Organisation(proprietor,LLP, Partnership, Company/Trust/Cooperative Society/ Board)
9.	Details of the Partner/Director/Trustee/Board and Society members	Name and Residential address	Aadhar Card No..	Mobile no. and email id
10.	Government Resolution no. incase of Board/Corporation(upload copy)
11.	In case of Company or LLP company registration or partnership registration certificate, of appropriate authority(upload copy )
12.	Incase of Co-operative Society or Trust, the certificate of registration of appropriate authority(upload copy)
13.	Reserve bank of India/Securities and exchange Board of India/ Insurance Regulatory and development Authority of India. Registration no. or any such Registration no. which is mandatory before starting such business as banking/mutual fund/ share/Finance lending Institute/insurance etc.(upload a copy)
14.	Name of the member of the employers family employed in the establishment
15.	Name of the other persons occupying position of management or workers engaged in confidential capacity
16.	Manpower/Worker Details
	Persons working in managerial/Supervisory/Confidential Capacity
	No. of workers other than above
	No. of apprentices under the Apprentices Act,1961(52 of 1961)
	No. of contract labour
	No. of part-time workers
	Total
17.	a) Name and residential address of authorised person	Name and email id	Aadhar Card no.	Mobile no.
	b)Name and residential address of manager	Name and email id	Aadhar Card no.	Mobile no.
18.	(A)Is this place of business conducted in owned premises?	Yes/No
	If yes, details of the place or business as per agreement	Name of the owner-
		Address of the premises-
		Plot no.-
		Gala/Shop no.-
		City Survey no.-
		Name of the society/Building-
		Name of the Road-
		Locality, District,taluka,Village-
		Pin no.-
	If the place of business is located in Self-owned premises, documents mentioned at Serial no.(4) of Part-A of the schedule should be uploaded along with the application.
	(B)Is the place of business conducted in rental premises?	Yes/No
	If yes upload any one of the document relating to the owner of the premises	Name of the owner-
		Name of the lease-
		Address of the premises-
		Plot no.-
		Gala/Shop no.-
		City Survey No.
		Name of the building/Society-
		Name of the Road-
		Pin no.-

	If the place of business is located in rented or leased premises,documents mentioned at serial no.(5) of part-A of the schedule should be uploaded along with the application.
19.	Is the business conducted in the premises rented/owned by any member of the family relative?	Yes/No.
	If yes, no objection letter for doing such business, in the premises of such owner shall be obtained and uploaded, along with documents mentioned in Column no. 18
20.	Is the business conducted in the premises of a flat/apartment/residential unit of a housing society?	Yes/No
	If yes, obtain a no objection certificate from society or any such authority responsible for maintenance of the premises, along with documents mentioned in Column no. 18.

Fees to be paid by an establishment employing 10 or more workers during the time of registration for different categories of businesses/trades. The fees to be paid along with the application for registration in Form-G shall be as specified below. The fees shall be paid through e-payment where online access is available.

Sr. No.	Category of Establishment	Fees to be paid in Rupees
1.	Establishments	500/-
2.	Shops	500/-
3.	Residential Hotels	2500/-
4.	Restaurants and Eating Houses	1000/-
5.	Theatres and other places of public amusement or entertainment	5000/-

Every application submitted, either online or offline, shall be scrutinised by the concerned Inspector. If the application is complete in all respects, i.e., all the required documents are submitted either online or otherwise, payment of the requisite fees is done and Form A is filled completely without any misleading facts, then the inspector will register the shop in the Register of Establishments to be maintained in Form C and on the demand of the employer, the registration certificate will be produced by the inspector.

A registration certificate issued under Sub Section 2 shall remain in force until a change in ownership or nature of business takes place. In case these changes occur, the employer shall submit a notice to the Inspector for the issuance of a new registration certificate. On receipt of such notice, the Inspector shall scrutinise the same and shall either sign digitally or otherwise, as the case may be, and issue a fresh modified certificate within one day from the date of receipt of such notice. However, if the notice is not complete or is not supported by the required documents or if the prescribed fees is not paid, he shall reject the notice within one day by mentioning the reasons thereof.

Intimation by establishment having less than 10 workers

Section 7 is about intimation by establishments having less than 10 workers. Within 60 days of the commencement of a business, the employer of an establishment employing less than 10 workers must intimate the concerned Inspector in whose jurisdiction the business is located, by submitting an online application, a self declaration and self certified documents in a prescribed manner after reviewing all the details of the establishment. The inspector shall provide a receipt of intimation to the respective employer of that establishment. The details of the receipt of interpretation will be recorded online in such a form as may be prescribed.

Provided that nothing contained herein above shall apply to shops and establishments already having valid registration under the Gujarat Shops and Establishments Act, 1948, until the expiry of their registration.

Cancellation of registration of a shop or establishment

Section 8 is regarding the cancellation of registration of a shop or establishment. If at any point the Inspector finds that the registration has been obtained through misrepresentation or certain material facts have not been disclosed, or forged documents were submitted during the time of verification, then in that case the Inspector shall provide a benefit of doubt to the employer by accepting the notice issued by the employer.

A notice requires an employer to have an opportunity to be heard as to why the registration should not be cancelled.
If within 10 days from the date of receipt of notice, the employer fails to present his case with relevant documents, the inspector is authorised to cancel the registration of such shop or establishment.
If within 10 days the employer submits his case along with relevant documents, and if the Inspector is content about the correctness of the case presented or otherwise then he may either withdraw or cancel the registration of such shop or establishment as the case may be and remove the same from the register of establishments maintained in Form C.

Notice for change in Particular

Section 9 deals with the duty of the employer to communicate with the Inspector regarding any change in any of the particulars contained in the application. Any changes in the certificate shall be submitted in Form G to the Inspector as per Section 9 of the Act, along with the required documents as specified in Part C of the Schedule. In addition to these, fees to be paid along with the Application for Registration in Form G is to be submitted.

The Inspector on receiving such a notice along with the prescribed fees and all the necessary documents, shall sign the document either digitally or otherwise, record the changes in the register of establishments, and proceed to provide a fresh registration certificate within one day from the date of receipt of such notice. However, if the notice is incomplete, not supported by relevant documents, or fees are unpaid then the Inspector is eligible to cancel the notice within one day by giving suitable reasons for the same.

Notice for closure of Businesst

Section 10 is about the employer of an establishment employing 10 or more workers shall inform the Inspector within 30 days from the date of the closing of business that the establishment has been closed for business in Form H.
The employer of an establishment employing less than 10 workers shall inform the Inspector within 30 days from the date of the closing of business that the establishment has been closed for business in Form I.
On receiving such information and being satisfied about its correctness, the Inspector shall remove the entry of such shop or establishment from the register of establishments and cancel the registration certificate.
If the Inspector does not receive the information but is otherwise satisfied that any shop or establishment has been closed, he may remove the entry of such shop or establishment from the register of establishment and cancel such certificate.

Chapter 3 : Duties of Employer

Health and safety of workers

Section 11 is related to the duty of every employer to take preventive steps relating to the health and safety of its workers. Regular supervision of the workers during their shifts needs to be undertaken to ensure compliance of rules for health and safety is being made according to sub-section 1.

Fixing the working hours

Section 12 is regarding No worker must be compelled to work for more than 9 hours in a day and 48 hours in a week, and the worker who has been continuously working for 5 hours straight should be provided with a half an hour of break. In cases of urgent nature, weekly holidays or working hours can be relaxed with prior permission from the Inspector.

Prohibition of discrimination of women

Section 13 is about

No women worker shall be discriminated against on the grounds of training, promotion, recruitment, wages etc.
No women workers shall be accepted or allowed to work in any establishment except between the hours of 6 am to 9 pm.
Provided the concerned Inspector is satisfied with necessary provisions or measures undertaken for the safety and protection of a woman worker.

Spread-over hours of work

Section 14 states that from the commencement of the workers’ day in the business of an establishment to the end of the day, it shall not be more than ten and a half hours. In cases of intermittent work, the working hours can extend to twelve hours, but not more than that.

Payment of wages for overtime

Section 15 deals with when a worker is required to work in an establishment beyond 9 hours a day or 48 hours a week, he shall be entitled to receive double the amount of his ordinary wages in respect to the overtime work that he/she has completed. The total number of overtime working hours shall not exceed one hundred and twenty five hours in a period of three months.

Shift working and Rest

Section 16 is related to A department or section of a department of an establishment may work more than one shift at the discretion of an employer.
A shop or establishment may work on all days in a week provided that they are allowed weekly holidays.
If the worker is not granted a weekly holiday, he shall be entitled for the same within 2 months of providing a weekly holiday.
The period and hours of work in a week for all workers shall be informed in writing and shall be sent to the Inspector electronically or otherwise.

Furnishing Identity Cards to the Workers

Section 17 states that the employer of a shop or establishment shall issue an identity card to the worker, containing all the necessary details, which shall be produced by the employee when demanded by the Inspector.

Chapter 4 : Leave with pay and payment of wages

Weekly Holidays: Every employee is entitled to a weekly holiday as directed by the state government for different shops and establishments on various days of the week as designated by the Government.
Casual Leave: Workers are granted 7 days of casual leave in a calendar year. unused casual leaves at the end of the year will lapse.
Sick Leave: Every labourer is granted 7 days of medical leave with wages in a given Calendar year. Similar to casual leaves, if sick leaves are un-availed at the end of the year, they will lapse.
Earned Leave: Workers who have worked for 240 days or more during a given calendar year will be entitled to earned leaves in the subsequent year. The number of days is calculated at the rate of 1 day for every 20 days of work performed in the previous year.
Accumulated Earned leave: Every worker shall be permitted to accumulate earned leave up to a maximum of 63 days.
Leave Encashment: If an employer refuses to grant leave due under earned leave provisions when applied for 15 days in advance, the worker has the right to encash leave in excess of 6 days.
Festival Holidays: Workers have the right to 8 paid leaves during festivals, including significant days like 26th January, 15th August, and 2nd October and other 5 days as agreed upon by the employer and worker.
Compensatory Work: Employers can require workers to work on festival days and, in return, have to either pay double the wages or provide holiday on another day.

Chapter 5 : Welfare provisions

In addition to the obligation of the employer in providing sufficient supply of wholesome drinking water and latrine facilities for both men and women as may be prescribed. However, in cases of space constraints, common urinal facilities should be made available for both men and women.
The New Act also prescribes that if an establishment employs 30 or more women workers then a suitable room or creche facility for the children of those workers should be maintained. A group of establishments decided to provide creche within a radius of 1km, subject to the conditions which are prescribed by the labour department.
Every employer shall provide at the place of work first-aid facilities as may be prescribed.
When in an establishment there are 100 or more workers employed, then in that case the employers are also required to maintain a canteen for the use of its workers. Provided that if a group of shops or establishments decide to provide a common canteen, then the same shall be permitted by the Inspector by an order,subject to such conditions as may be specified in the order.

Chapter 6 : Enforcement and Inspection

Provisions for Enforcement of the Act

Section 24 talks about local authorities being responsible for enforcing the provisions of this Act within their respective jurisdiction under the supervision of the Act.
For areas without a local authority, the government can authorise an individual responsible for enforcement through official notification.
Both local authorities and the state government can appoint Inspectors to look after the enforcement of the provisions of this Act.

Powers and duties of Inspector

Section 25 deals with The state government may create an inspection scheme for shops and establishments which can include a web-based Inspection Schedule.
Provide advice and information to employers and workers to comply with the Act.
Inspect shops or establishments within their respective areas.
Report defects found during inspection to the state government.
Enter premises with reasonable notice and assistance if needed
Examine premises, records, registers and take evidence for enforcement purposes.
Require individuals to provide information regarding the establishment

Section 25(3) is concerned with any person who is required to produce any document to the respective Inspector or is required to provide any information then he/she is legally bound to do so within the meaning of Section 175 and 176 of the Indian Penal Code.

Section 25(4) is about the provisions of the Code of Criminal Procedure, 1973 under sub-clause (e) of clause (ii) of Sub-section 2, may apply to the search or seizure made under the authority of a warrant issued under Section 94 of the said Code.

Section 25(5) talks about Every Inspector appointed under Section 24 shall be deemed to be a public servant within the meaning of Section 21 of the Indian Penal Pode.

Chapter 7 : Records and Returns

Maintenance of Registers and Record

Section 26 is related to the requirement that employers maintain records and registers as prescribed by the Act in a specified form and manner.
Records can be maintained manually or electronically, but hard copies of the necessary documents need to be provided if requested by the Inspector.
Employers or their respective representatives must furnish all the relevant records, notices or registers for inspection when demanded by the Inspector.
All such records and registers must be kept within the premises of the shop.

Annual Returns

Section 27 talks about The employer must produce an annual return in a specified form and manner to the relevant authority,which can also be submitted electronically.

Chapter 8: Offences and Penalties

Penalty for non-registration of shop or establishment

Section 28 states that whoever runs an establishment without registration in breach of the provisions of Section 6, shall be punishable with a penalty of ten thousand rupees, which also includes registration fees. On recovery of the amount of fine and the fees payable, the establishment is deemed necessary to apply for registration, and then the registration certificate shall be issued by the Inspector.

Offences by companies

Section 31 is regarding when an offence under this Act has been committed by a company and it has been proved that due to the negligence on the part of the director, the managing partner or managing agent shall be liable to be guilty of an offence and shall be proceeded against and punished accordingly.

Cognizance of Offences

Section 33 provides that no court shall take cognizance of any offences committed under this Act unless the complaint is made by an Inspector within 3 months from the date on which the commission of this offence takes place.
The Metropolitan Magistrate or Judicial Magistrate of the First Class shall try an offence punishable under this Act on the basis of Rules mentioned thereunder, notwithstanding anything contained in Code of Criminal Procedure, 1973.

Compounding Offences

Section 34, in connection with compounding means any person can settle the case by paying a fine and this can happen either before the beginning of the prosecution or after its initiation.Under this Act certain offences can be compounded.
A designated officer assigned with the task of managing issues relating to Compounding, as may be determined by the state government through official notification. This officer has the authority to accept the fine provided for the offence.
Limitation of this Act is that it does not apply to those persons who have committed the offence more than once or more within a five-year period from the date of either:

Committing a similar offence that was previously compounded
Committing a similar offence for which a person has been previously convicted.

Every officer will exercise his powers subject to direction, control, and supervision.
Every application for the compounding of an offence shall be made in a prescribed format
If the compounding of an offence is made before the initiation of the prosecution no such prosecution shall be instituted against the offender.But where the composition of an offence is done after the institution of prosecution procedure then the officer appointed shall refer the same matter in writing to the Court in the form of Notice. On receiving such a notice , the offender against whom such a notice has been compounded will be discharged.

Chapter 9: Miscellaneous

Section 35 deals with opening and closing hours of the shops or establishments located in and around the municipal corporation, hotel premises, national highway, railway platforms, state roadways, bus station premises, may be kept open for 24 hours if and only if the establishment complies with all the requirements regarding working hours,leaves and holidays, spread-over, weekly offs. Other shops and establishments may be kept open throughout the year between 11pm. to 6 a.m.
Section 36 is about protection of rights of the workers under any other Law, nothing in this Act shall prevent the worker from exercising his or her rights and privileges that he/she is entitled to while working in the shop or establishment at the date of commencement under any law, contract,agreement,or any award or custom binding upon the employer if such rights or privileges are more favourable to him than that would be entitled under this Act.
Section 37 talks about protection of action taken in good faith. No suit ,prosecution or legal proceeding shall lie against any public servant or any other person acting under the direction of such public servant done or intended to be done under this Act. Same applies to the Government no suit, prosecution or legal proceeding shall lie against government servant for any damage caused or likely to be caused anything in good faith done or intended to be done in pursuance of this Act.
Section 38 states that the provisions of the Act shall be in addition to and not in derogation of, the provisions of any other law for the time being in force.
Section 39 is in connection with the powers vested in the State Government to make rules through a notification in an Official Gazette. All acts made under this Act shall be subject to the condition of previous publication. All rules made under this Act shall be laid down for 30 days before the State Legislature as soon as they are formulated. During this period the Rules will be subject to modification by the State Legislature. Then this rescission or modification will be published in the Official Gazette and will be made effective thereunder.
Section 40 is concerned with dealing with any difficulty that may arise during giving effect to the provisions of the Act. In such a situation, the State Government as mentioned in the order of the official Gazette takes necessary actions to expediently solve the issue that has arised without breaching the provisions of the Act.
Section 41 states that the Gujarat Shops and Establishments Act, 1948 will be repealed upon the inception of the New Act. However any existing rules,regulation,appointments,legal proceedings under the Old Act will continue to be valid and enforced under the New Act as long as they are not in conflict with the New Act, unless and until superseded by a New Act, order, or regulation. Any penalties or legal proceedings ongoing against a trial shall be continued as if the Old Act is still in effect until the proceedings is completed or the penalty amount is recovered.

Conclusion

The Gujarat Shops and Establishment Act is a progressive step by the state government, which has certainly provided clarity in terms of the procedural loopholes that remained uncovered in the previous Act of Gujarat Shops and Establishment Act, 1948. The New Act’s foundation is based on the legislation of the Model Shops and Establishments Act, 2016. Nevertheless, it has replicated several provisions from the previous Act but has made the necessary modifications that would benefit the people at large.

The applicability of the new Act has been reduced to establishments employing 10 or more workers and shops/establishments engaging less than 10 workers must provide an online intimation. This has reduced the hassle for small establishments by providing a major compliance relief. Also by introducing a provision for Cancellation of Registration Certificate it would lead to reduction of fraud shops/establishments that would mislead the consumers or employees in case of misrepresentation of facts. At the same time the New Act increases the penalties to a great extent which would provide an effective deterrent. The New Act also provides flexibility in terms of the working hours of establishments located in different areas of the region. It is creditable to note that there are specific provisions dealing with women’s right to work including providing them with various benefits and prohibiting discrimination against them and also providing them with the benefit of creche facilities for establishments above a certain size. Establishments with 30 or more women workers are required to provide this facility which is in contradiction to the 2017 Judgement of the Maternity Benefit Act, 1961 wherein establishments with 50 or more women workers are required to maintain a room as a creche.

Despite such reforms having been introduced, the New Act does not specify the minimum statutory notice period which may be issued by an employer during termination as opposed to the Old Act which provides a minimum 30 days time period for employees who have been in service for not less than 1 year. Due to such an ambiguity the employer might consider issuing a notice period in accordance with the Old Act. Also, the Gujarat Shops and Establishment Act 2019 in conjunction with the Gujarat Shops and Establishment Act, 2020 Rules does not offer significant responsibility when it comes to the deployment of women workers during night shifts, Because the extent of flexibility relies upon the discretion of Inspector’s order permitting establishments to employ women for night shifts.

Frequently Asked Questions

What is the difference between MSME, shop and establishment?

MSME refers to the business that falls under the micro small and medium enterprises based on their turnover and investment, shops means where buying and selling of goods takes place, establishment is a place which includes restaurants, hotels, theatres and other public enjoyment parks. MSME is a centralised registration process and Shop and establishment are localised registration processes.

How can one apply for the Shop and Establishment Act?

Employers of establishments or shops can register their shops or establishments, or modify, cancel their registration through eNagar Portal and receive an update via email or SMS so the Business operators can also avail these services from other sources as well, like Ahmedabad Municipal Corporation’s portal.

What is a Gumastadhara Certificate?

Gumastadhara Certificate is a licence that gives you authority to run a business in a particular place. It’s a legal obligation owned by the Municipal Corporation of Gujarat Shops and Establishment Act.

What documents are required for a Gujarat Shop License Act?

Business operators of shops and establishments require Address proof, Id proof, PAN Card, details of the employees, Payment Challan to avail Registration Certificate for their respective shops.

References

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