The Telangana Shops and Commercial Establishments Act, 1988, along with its Rules of 1990, applies to all shops and commercial establishments in designated areas within Telangana. This legislation aims to safeguard employee rights by regulating various aspects of employment. It sets forth guidelines for the payment of wages, terms of service, working hours, rest intervals, and overtime. Additionally, it dictates the opening and closing times of establishments, closed days, holidays, and leave entitlements, including maternity leave and benefits The Act also establishes standards for working conditions, prohibits the employment of children in certain capacities, and mandates the maintenance of employment records, thereby ensuring a structured and fair work environment.
Various compliances required under Telangana Shops and Commercial Establishments Act, 1988 read with Telangana Shops and Establishments Rules, 1990 are as under:
1.Opening and closing hours of shop (Section 7(1)): No shop shall on any day be opened earlier or closed later than such hour as may, after previous publication, be fixed by the Government by a general or special order in that behalf.
Provided that, 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 immediately following such hour.
2. Daily and weekly hours of work in shops (Section 9): No employee shall be allowed to work in any shop for more than 8 hours on any day and 48 hours in any week.
Any employee working in excess of the hours specified above shall be paid over-time wages, subject to a max. period of 6 hours in a week.
3. Spread over periods of work in shops (Section 11): The periods of work of an employee in a shop shall be so arranged that along with his intervals for rest, they shall not spread over for more than twelve hours in any day. Provided that, where an employee works on any day for the purpose of stock-taking and preparation of accounts, the spread over shall not exceed fourteen hours in any such day on payment of over-time wages.
4. Notice of weekly holiday (Section 12(4)): The weekly day on which a shop is closed shall be specified by the employer in a notice prominently exhibited in a conspicuous place in the shop.
5.Opening and closing hours (Section 15(1)):No establishment shall on any day be opened earlier, or closed later, than such hour as may, after previous publication, be fixed by the Government
6. Spread over Periods of Work (Section 18): The periods of work of an employee in an establishment shall be so arranged that along with his intervals for rest, they shall not spread over for more than twelve hours in any day: Provided that, where an employee works on any day for the purpose of stock-taking and preparation of accounts, the spread over shall not exceed fourteen hours in any such day on payment of over-time wages.
7. Children not to work in Establishment (Section 20): No Child shall be required or allowed to work in any establishment
8. Daily and weekly hours of work for young persons (Section 22): No young person shall be required or allowed to work in any establishment for more than 7 hours in any day and forty-two hours in any week nor shall such person be allowed to work overtime.
9. Maternity Leave (Section 24): The periods of absence from duty in respect of which a women employee is entitled to maternity benefit under section 25, shall be treated as authorized absence from duty, and the women employee shall be entitled to maternity benefit, but not to any wages for any of those periods.
10. Payment of Maternity Benefit (Rule 10):
11. Ventilation (Section 27): The premises of every establishment shall be ventilated as provided for in the laws relating to the municipalities, gram-panchayats or other local authorities for the time being in force.
12. Safety of employees where machineries are used (Section 28(2) Rule 13):
(1) Every dangerous part of machinery in an establishment other than a shop shall be securely fenced by safeguards of substantial construction which shall be kept in position while the part of machinery is in motion or in use.
(2) In every establishment where manufacturing process is carried on with the aid of electric power, suitable devices for disconnecting the power supply during the emergencies from running machinery shall be provided and maintained.
(3) No employee, with loose fitting clothes on, shall be allowed or made to work near the moving machinery or belt and the tight fitting clothes for the purpose shall be provided by the employer.
13. Encashment of leave (Section 30(1), (4)): Every employee who has served for a period of not less than two hundred and forty days during a continuous period of twelve months in any establishment shall be entitled for encashment of eight days of leave with wages that has accrued to him under sub-section (1) during the subsequent period of twelve months.
The employer shall pay to the employee the wages for the leave so encased by the employee within a week of receipt of the application for such encashment from the employee.
14. Pay during leave and holidays (Section 32): Every employee shall, for the period of the leave allowed under sub-sections (1) and (5) of section 30 or the holidays allowed under section 31, be paid at a rate equivalent to the daily average of his wages for the days on which he actually worked during the preceding month exclusive of any earning in respect of overtime.
15. Fixation of wage period by employer (Section 36): Every employer shall fix periods in respect of which such wages shall be payable. No wage-period shall exceed one month.
16. Payment of wages by 5th day after the wage period (Section 38(1)): The wages of every employee shall be paid before the expiry of the fifth day after the last day of the wage period in respect of which the wages are payable.
17. Payments of wages shall be made on a working day. (Section 38(4)): All payments of wages shall be made on a working day.
18. Display of Notice of Acts/Omissions (Section 41(2), Rule 17(i)(d): The employer shall display at or near the main entrance of the establishment or at a conspicuous place a copy in English and in Telugu of the list of acts/omissions as approved by the Chief Inspector.
19. Notice for termination of services of an employee (Section 47(1), Rule 20): No employer shall, without a reasonable cause terminate the service of an employee who has been in his employment continuously for a period of not less than six months without giving such employee at least one month’s notice in writing or wages in lieu thereof and in respect of an employee who has been in his employment continuously for a period of not less than one year, a service compensation amounting to fifteen days average wages for each year of continuous employment: Provided that every termination shall be made by the employer in writing and a copy of such termination order shall be furnished to the Inspector having jurisdiction over the area within three days of such termination.
20. Notice of Closure of Business in Telangana (Section 3(5), Rule 6 (3)): The employer shall, within fifteen days of the closure of the establishment, give intimation thereof in writing to the Inspector, who shall, on receipt of such intimation, remove the name of the establishment from the register of establishments and cancel the registration certificate.
21. Notice containing abstracts of the Act and Rules (Rule 29(4)): Every employer shall exhibit in his establishment a notice containing such abstracts of the Act and Rules as the Government may direct.
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