Kerala Shops and Commercial Establishment Act 1960

Understanding the Kerala Shops and Establishments Act, 1960

The Kerala Shop and Establishment Act of 1960 aims to formalize commercial operations and uphold the entitlements of those employed within them. This legislation sets forth essential standards concerning annual compensation, leave entitlements, working hours, holidays, maternity provisions, among other benefits applicable throughout Kerala.

To legally conduct business in Kerala, companies are mandated to register under this Act, securing the crucial license that permits their operation. The following article elaborates on the specifics of registering a shop and commercial establishment in Kerala, providing comprehensive insight into fulfilling these legal obligations.

Key Definitions

Under this Act, the term "commercial establishment" encompasses a wide array of entities including administrative services where office functions predominate, hospitality venues such as hotels and restaurants, recreational spaces like theaters, and any other ventures that the government officially designates as commercial through gazetted notifications.

  • "Establishment" generally refers to a place where business is conducted.
  • "Shop" is defined as locations involved in trade, business activities, or providing services to customers. This includes offices, storerooms, or warehouses connected to these operations. However, it excludes commercial establishments and shops associated with factories where workers are protected under the Factories Act of 1948.

Registration Eligibility

The Act applies to all businesses within Kerala, necessitating registration for every enterprise regardless of size. This means that all retail outlets, lodging facilities, eateries, entertainment venues, and other public spaces are required to register under the Kerala Shops and Establishments Act.

Exemptions

Certain establishments are exempt from the registration requirements of the Kerala Shops and Commercial Establishment Act and these include:

  • Employees in management positions within an establishment.
  • Individuals offering services that require travel.
  • Undertakings by the central or state government.
  • Establishments managed by local or cantonment authorities, as well as the Reserve Bank of India.
  • Temporary shops in marketplaces during fairs.
  • Establishments not covered under the Factory Act of 1948.

Online Registration Process

To register under the Act, follow these steps:

  1. Begin by visiting the official website of Kerala's Labour Department.
  2. Select "Online Registration" and proceed after reviewing the guidelines.
  3. Choose the district and registration office relevant to your establishment under the Kerala Shops and Establishments Act 1960.
  4. Provide essential details such as:
    • The name of the company and its manager.
    • The business's name and official address.
    • The nature of the business.
    • The number of male and female employees.
    • The owner’s contact number.
  5. Download, complete, and upload the employee information format.
  6. Note down the temporary registration and application numbers.
  7. Download the challan for payment of the required fees.
  8. Print the application using the temporary registration number for display.

Required Documents

Applicants must prepare the following documents for registration:

  • Details of the employer or manager.
  • Trust, partnership, or association deeds.
  • Bank Details
  • Rental deed (if applicable).
  • Information on managers, directors, and officers.
  • PAN and Aadhaar details of applicants.
  • A list of employees with their personal details and job designations.
  • Memorandum of Association (MOA) or Articles of Association (AOA).
  • Certificate of incorporation.

Registration Fees

The registration costs vary depending on the number of employees:

  • No employees: Rs. 10
  • Up to 5 employees: Rs. 50
  • 5-10 employees: Rs. 50
  • 10-20 employees: Rs. 200
  • 20-30 employees: Rs. 300
  • 30-50 employees: Rs. 500
  • 50-100 employees: Rs. 1000
  • Above 100 employees: Rs. 2000

Checking Application Status

To check the status of your application:

  1. Visit the official website of the Kerala Labour Department.
  2. Enter your registration number.
  3. Complete the captcha verification and click "show."

Certificate Validity

The registration certificate is valid for one year from the date of issue. Renewal applications should be submitted at least 30 days before the expiration date.

Online Renewal Process

To renew your shop license online:

  1. Visit the official Kerala Labour Department website.
  2. Navigate to the "online renewal" portal.
  3. Select "renewal of registration."
  4. Review the license details.
  5. Choose the renewal period.
  6. Upload the employee details format after filling it out.
  7. Apply for renewal.

Key Rules Under the Act

Here are some vital regulations for shops and commercial establishments operating in Kerala:

  1. Employment Restrictions: Prohibits child labor and restricts the working hours for women and young individuals.
  2. Working Hours: Limits work to eight hours daily and forty-eight hours weekly, with a maximum of ten hours including overtime. Breaks are mandatory after four hours of work.
  3. Exemptions: Pregnant women are exempt from heavy lifting and certain work before and after delivery.
  4. Employment Regulations: Employees with over six months of service cannot be terminated without a valid reason. Notice is required for those with less than six months of service. Employers must compensate employees for leave and holidays.
  5. Weekly Closure: All establishments must close one day a week, with the designated day displayed prominently.
  6. Annual Leave: Employees are entitled to 12 days of paid vacation after one year of service, extendable up to 24 days, plus 12 days of sick leave.
  7. Employee Rights: Special and casual leave provisions exist, with overtime capped at fifty hours per quarter and compensated at twice the regular wage.

Regulations prescribe certain penalties for non-compliance, including fines that escalate for ongoing violations, covering various breaches related to workplace standards and employee welfare. Compliance ensures adherence to legal standards related to workplace conditions, employee rights, and operational protocols.

Advantages of Registration

The advantages of registering under the Kerala Shops and Commercial Establishment Act include:

  • Provides legal validation for your business
  • Confers the right to conduct business within Kerala.
  • Allows the opening of a current business bank account.
  • Supports compliance with state government inspections.
  • Qualifies business owners for applicable government benefits.

These guidelines simplify the shop and establishment registration process in Kerala, aiding in the smooth setup and operation of businesses within the state.