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Compliance Requirements under MP Shops and Establishment Act, 1958

1. Form C: Registration Certificate of Establishment (Madhya Pradesh Shops And Establishments Rules, 1959 – Section 6, Rule 3)

Within 30 days from the date on which this Act applies to an establishment, its employer shall send to the Inspector of the area concerned a statement, in the Form-A, as may be prescribed containing-

a)  name of the employer, manager and person holding positions of management, if any;

b)  postal address of, and the date of starting the business by, the establishment;

c)  name, if any, of the establishment;

d)  category of the establishment, i.e. whether it is a shop, commercial establishment, residential hotel, restaurant, eating- house, theatre or other place       of public amusement or entertainment;

e)  such other particulars, as may be prescribed.

Registration certificate to be issued under sub-section (3) of section 6 shall be in Form C.

Section 6 (5): Registration certificate shall be renewed not being less than 5 years

2. Display of Registration Certificate in MP (MP Shops and Establishment Act, 1958 – Section 6 (3))

Registration certificate shall be prominently displayed at the establishment.

3. Form D: Notice of Change (Madhya Pradesh Shops And Establishments Rules, 1959 – Section 7, Rule 7)

Employer must notify the Inspector, in Form-D, of any change in particulars furnished under Section 6 within 7 days of such change.

4. Form E: Notice of Closure of Establishment (Madhya Pradesh Shops And Establishments Rules, 1959 – Section 8, Rule 8)

A notice regarding closing of an establishment to the Inspector within 10 days of closing the establishment in Form E and it shall be accompanied by the Registration certificate of such establishment.

If any employer transfers his establishment to any other person he shall within ten days of such transfer notify the fact to the Inspector.

5. Working Hour Limit for Employees in Shops and Establishments in MP (MP Shops and Establishment Act, 1958 – Section 11 (1), (2))

(1) Employees cannot be made to work more than 48 hours a week; daily limit is 9 hours for shops and 10 hours for commercial establishments.

(a) No employee in any shop or commercial establishment shall be required or allowed to work for more then 48 hours in a week.

(b) Subject to clause (a) no employee shall be required to work-

(i) in any shop, for more than 9 hours on any day;

(ii) in any commercial establishment, for more than 10 hours on any day.

(2) Any employee may be required or allowed to work in a shop or commercial establishment for any period in excess of the limit fixed under sub-

      section (1) if such period does not exceed 144 hours in any quarter.

6. Fixation of Overtime on Specified Days for Accounting or Stock-Taking in MP (Madhya Pradesh Shops And Establishments Rules, 1959 – Section 11 (3), Rule 9)

On not more than six days in a year, which the Government may fix by rules made in this behalf, for activities such as accounts finalisation, stock-taking, settlements or other prescribed purposes, and that excess work does not exceed 24 hours.

Following days and not more than 3 days preceding any of such days shall be the days for additional overtime for purposes of making of accounts, stock-taking or settlement under sub-section (3) of section 11

a) 31st day of March;

b) 30th day of June;

c) 30th day of September;

d) day of Diwali;

e) 31st day of December; and

f) last day of Vikram Samvat

Provided that in lieu of any day or days mentioned above the employer may substitute any other day or days as the case may be which shall be intimated to the Inspector at least three months before the day on which he intends to take excess work.

7. Notice for Requiring Employees to Work Beyond Normal Hours in MP (Madhya Pradesh Shops And Establishments Rules, 1959 – Section 11 (3), Rule 10)

Issue a written notice in English or Hindi informing the Inspector about the employer’s intention to require employees to work beyond the normal period on any day prescribed under Rule 9, ensuring that the notice reaches the Inspector at least two days before such day.

8. Daily Spread-over Limits for Employees in MP (Section 12)

Ensure that the daily spread-over of an employee does not exceed 12 hours, except in the following permitted situations:

(i) up to 13 hours when the shop/establishment remains entirely closed for at least 3 continuous hours in a day

(ii) up to 14 hours when the employee works as per Section 11(2);

(iii) up to 16 hours when the employee works as per Section 11(3).

9. Weekly holiday of shops and establishment in MP (Section 13)

Every establishment must remain closed on one fixed weekly day. The employer shall decide this day at the start of the year, notify the Inspector, and display it prominently. Any change is permitted only once in three months and must also be notified and updated in the displayed notice.

No deduction shall be made from the wages of any employee in a shop or commercial establishment on account of any day on which it has remained closed under this section. If any employee is employed on daily wages he shall nonetheless be paid wages for the weekly holiday equal to the average of daily wages earned by him during the preceding six working days. If any employee is paid a piece rate wage, he shall nonetheless be paid his wage for the day on which the shop or commercial establishment remain closed at a rate equivalent to the daily average of his wages for the days on which he has actually worked during the six days preceding such closed day, exclusive of any earning is respect of overtime.

10. Weekly Holiday Adjustment on Public Festival (Section 13 (2))

If the fixed weekly holiday falls on a public festival, the employer may keep the establishment open, provided another closed day is given within three days before or after the festival and the Inspector is notified at least seven clear days in advance.

11. Opening and closing hours of restaurants and eating-houses in MP (Section 14)

Ensure restaurants/eating-houses operate only between 5:00 a.m. and 1:30 a.m.; employees may work only between 4:30 a.m. and 2:00 a.m.; customers present at closing may be served for up to 30 minutes after closing time.

Subject to the provisions of sub-section (1), the Government may fix later opening or earlier closing hours for different restaurants or eating-houses or for different areas or for different periods of the year.

12. Restriction on selling of good in MP (Section 15)

Before and after the hours fixed for the opening and closing of shops under section 9, no goods of the kind sold in such shops shall be sold in any restaurant or eating-house except for consumption on premises.

13. Working hour limits & permissible overtime for hotels/restaurants/eating-houses in MP (Section 16)

(1) Employees in residential hotels, restaurants, or eating-houses shall not work more than 48 hours per week and 9 hours per day.

(2) Additional work up to 144 hours in any quarter may be allowed beyond these limits.

(3) On a day notified under Section 14(3), employees may work up to 3 extra hours beyond the daily limit.

14. Maximum spread-over limits for employees in hotels, restaurants and eating-houses in MP (Section 17)

Spread-over of an employee in a residential hotel, restaurant or eating-house shall not exceed 14 hours.

15. Weekly Holiday in a Establishment in MP (Section 18)

No deduction shall be made from the wages of any employee in a residential hotel, restaurant or eating-house on account of any holiday given to him under sub-section (1). If any employee is employed on a daily wage, he shall nonetheless be paid wages for the weekly holiday equal to the average of the daily wages earned by him during preceding six working days.

16. Issuance of identity card to employees in residential hotel, etc. in MP (Section 18-A)

Employers shall furnish every employee in a residential hotel, restaurant or eating-house an identity card which shall be kept by the employee when on duty and shall be produced on demand by an Inspector. Such card shall contain the following and such other particulars as may be prescribed namely:-

(a) the name of the employer;

(b) the name, if any, and the postal address, of the establishment;

(c) the name and age of the employee;

(d) the hours of work, the interval for rest, if any, and the holiday of the employee;

(e) the signature (with date) of the employer;

(f) the identity mark of an employee; and

(g) signature or thumb impression of the employee.

17. Closing hour of theatres or other places of public amusement or entertainment in MP (Section 19)

Notwithstanding anything contained in any other enactment for the time being in force, in theatre or other place of public amusement or entertainment shall, on any day, be closed later than 1 a.m.

18. Restriction on Sale of Goods After Shop Closing Hours in MP (Section 20)

After the hour fixed for the closing of shops under section 9, no goods of the kind sold in shop shall be sold in any theatre or other place of public amusement or entertainment except for consumption on premises

19. Working hour limits for theatre and amusement establishment employees in MP (Section 21)

(1) No employee in a theatre or other place of public amusement or entertainment shall be required or allowed to work for more than forty eight hours in a week and nine hours in a day.

(2) Any employee may be required or allowed to work in a theatre or other place of public amusement or entertainment for a period in excess of the limit fixed under sub-section (1) if such additional period does not exceed 144 hours in any quarter

20. Spread-over limits for theatre and amusement establishment employees in MP (Section 22)

Spread-over of an employee in theatres/amusement establishments does not exceed 12 hours per day unless extended by Government with prescribed conditions.

21. Holidays in a week for theatre and amusement establishment employees in MP (Section 23)

No deduction shall be made from the wages of an employee in a theatre or other place of public amusement or entertainment on account of any holiday given to him under sub-section (1). If any employee is employed on a daily wage he shall nonetheless be paid wages for the weekly holiday equal to the average of the daily wages earned by him during the preceding six working days.

22. Issuance of identity card to employees in a theatre etc. in MP (Section 23-A)

Employer shall furnish every employee in a theatre, or other places of public amusement or entertainment an identity card which shall be kept by the employee when on duty and shall be produced on demand by an Inspector. Such card shall contain the following and such other particulars as may be prescribed, namely:-

a) name of the employer;

b) name, if any, and the postal address of the establishment;

c) name and age of the employee;

d) hours of work, the interval of rest, if any, and the holiday of the employer;

e) signature (with date) of the employer;

f) identity mark of an employee; and

g) signature or thumb impression of the employee.

    23. Prohibition on Employment of Children in Establishments in MP (Section 24, Rule 12)

No child shall be required or allowed to work whether as an employee or otherwise in any establishment, notwithstanding that such child is a member of the family of the employer

An Inspector can ask the employer to prove the age of any worker who appears to be a child or young person. The employer must provide either a school record, a birth certificate, or an age certificate from a registered doctor in Form-H.

24. Restriction on working hours for young persons and women in MP (Section 25)

No young person or woman is required or allowed to work in any establishment before 7 a.m. or after 9 p.m., even if they are part of the employer’s family.

25. Working hour limits and rest break requirements for young persons in MP (Section 25-A)

No young person shall be required or allowed to work whether as an employee or otherwise, for more than 5 hours in any day. No young person, shall be required or allowed to work whether as an employee or otherwise, for more than 3 hours in any day unless he take a rest of at least half an hour.

26. Form I: Leave Register (Section 26, Rule 13 (1) / Rule 20 (4))

Every employer of an establishment shall maintain a register of leave in Form I in respect of each employee in the establishment.

A person employed in an establishment to which this Act applies shall be entitled:

(a) after every 12 months’ continuous employment, to privilege leave for a total period of one month; and

(b) in every year to casual leave for a total period not exceeding 14 days. Further, leave under sub-clause (a) shall not at any time accumulate for a total period exceeding 3 months. Casual leave shall not be combined with privilege leave.

27. Form J: Leave Book (Section 26, Rule 13 (2))

Employer shall provide each employee with a book called “Leave Book” in Form-J.

28. Form K: Register for entering refusal of leave (Section 26 (3), Rule 13 (3))

Register for entering refusal of leave to be maintained under sub-section (3) of section 26 shall be in Form K.

29. Payment of leave wages at average daily wage rate (Section 27)

Every employee shall be paid for the period of his leave at a rate equivalent to the daily average of his wages for the days on which he actually worked during the preceding three months, exclusive of any earning in respect of overtime.

30. Advance payment of leave wages (Section 28)

An employee who had been allowed leave under section 26 shall, before his leave begins, be paid half the total amount due to him for the period of such leave

31. Periodic lime-washing and colour-washing of establishment interiors in MP (Section 31, Rule 15)

(1) Inspectors may require lime-washing or colour-washing earlier than the standard two-year interval if the premises are found unclean. All beams, rafters, doors, window frames and other woodwork (except floors) must be painted or varnished once every seven years and maintained in a clean condition. Dates of all lime-washing, colour-washing, painting or varnishing must be recorded in a register in Form L and produced to the Inspector when required. These requirements do not apply to: (i) rooms used solely for storage; (ii) walls or roofs made of materials such as galvanized iron, tiles, asbestos sheets, glazed bricks; (iii) establishments or parts where the Inspector considers such treatments unnecessary for maintaining cleanliness under Section 31.

(2) Where cleaning or washing of ornaments using acids is carried out, adequate drainage must be provided, leading to treatment tanks where harmful substances are neutralised or made safe before discharge into regular drains or sewers.

32. Ventilation requirement for establishment premises in MP (Section 32, Rule 15-2B)

On any premises in an Establishment, adequate ventilation shall be provided and maintained at all times in rooms or buildings where dangerous gas, vapours, fumes or dust may be devolved.

33. Provision of Protective Safety Equipment in MP (Madhya Pradesh Shops And Establishments Rules, 1959 – Rule 15-2C)

The employer must provide and maintain suitable protective appliances such as hand gloves, footwear, breathing masks, and goggles for employees working in processes involving dangerous gas, vapour, fumes, or dust.

34. Periodic Medical Examination for Acid-Related Processes (Madhya Pradesh Shops And Establishments Rules, 1959 – Rule 15-2D)

Medical examination of employees engaged in cleaning or washing ornaments using acid must be conducted by a qualified medical practitioner within 15 days of initial employment and subsequently every six months.

35. Form K-3: Medical Examination Record (Madhya Pradesh Shops And Establishments Rules, 1959 – Rule 15-2D)

Employees engaged in cleaning or washing ornaments must undergo medical examination by a qualified medical practitioner, and examination records must be maintained in Form K-3.

36. Precaution against fire in Establishment in MP (Madhya Pradesh Shops And Establishments Rules, 1959 – Section 33, Rule 16)

No person shall smoke or use a naked light or cause or permit any such light to be used in the immediate vicinity of any inflammable material in any establishment.

37. Form N: Register of Employees Attendance, Wages, Overtime, Fine or other deductions etc. (Madhya Pradesh Shops And Establishments Rules, 1959 – Section 54, Rule 20 (1))

Every employer shall maintain a register of employees showing attendance, wages over-time work, fines and other deductions an account of wages in respect of each employee under him in Form ‘N’

38. Form O: Notice of Holiday to Employees (Madhya Pradesh Shops And Establishments Rules, 1959 – Section 54, Rule 20 (2))

Every employer shall exhibit in his establishment a notice in Form O, specifying the days on which his employees shall be given a holiday. Notice shall be exhibited before the persons to whom it relate cease work on the Saturday immediately preceding the first week during which it is to have effect.

Every employer shall exhibit in his establishment a notice containing such extracts of the Act and these rules in English or in the language of the majority of the persons employed by him as the local authority or Government may direct.

Every employer shall exhibit in his establishment in English or in the language of the majority of persons employed by him a copy of leave rules applicable to his employees.

Any notice required to be exhibited under this rules shall be exhibited in such manner that it can be readily seen and read by any person whom it affects and shall be renewed whenever it becomes defaced or otherwise ceases to be clearly legible.

39. Form P: Notice of Periods of Work (Madhya Pradesh Shops And Establishments Rules, 1959 – Section 54, Rule 20 (3))

Every employer must display a notice in Form P showing the daily working hours & rest or meal intervals for employees. Notice must be exhibited before the close of business on Saturday preceding the week in which specified hours take effect & must remain displayed as long as those hours are followed

Every employer shall exhibit in his establishment a notice containing such extracts of the Act and these rules in English or in the language of the majority of the persons employed by him as the local authority or Government may direct.

Every employer shall exhibit in his establishment in English or in the language of the majority of persons employed by him a copy of leave rules applicable to his employees.

Any notice required to be exhibited under this rules shall be exhibited in such manner that it can be readily seen and read by any person whom it affects and shall be renewed whenever it becomes defaced or otherwise ceases to be clearly legible.

40. Form Q: Notice of closed day or an alteration in closed day (Madhya Pradesh Shops And Establishments Rules, 1959 – Section 54, Rule 20 (5))

Every establishment shall prominently display in a conspicuous place a notice showing the day of the week on which the establishment shall remain closed. If there is an alteration in such a day the employer shall give notice to the Inspector in Form Q and exhibit a copy of such notice.

Every employer shall exhibit in his establishment a notice containing such extracts of the Act and these rules in English or in the language of the majority of the persons employed by him as the local authority or Government may direct.

Every employer shall exhibit in his establishment in English or in the language of the majority of persons employed by him a copy of leave rules applicable to his employees.

Any notice required to be exhibited under this rules shall be exhibited in such manner that it can be readily seen and read by any person whom it affects and shall be renewed whenever it becomes defaced or otherwise ceases to be clearly legible.

41. Form R: Notice of substitution of weekly holiday on account of public festival (Madhya Pradesh Shops And Establishments Rules, 1959 – Section 54, Rule 20 (6))

If any day notified as holiday under sub-section (1) of section 13 has been substituted being a day of public festival under provisions of sub-section (2) of the said section, the employer shall give notice of the change to the Inspector in Form R and exhibit a copy of such notice.

Every employer shall exhibit in his establishment a notice containing such extracts of the Act and these rules in English or in the language of the majority of the persons employed by him as the local authority or Government may direct.

Every employer shall exhibit in his establishment in English or in the language of the majority of persons employed by him a copy of leave rules applicable to his employees.

Any notice required to be exhibited under this rules shall be exhibited in such manner that it can be readily seen and read by any person whom it affects and shall be renewed whenever it becomes defaced or otherwise ceases to be clearly legible.

42. Preservation of Register, Records, and Notices (Madhya Pradesh Shops And Establishments Rules, 1959 – Section 54, Rule 20 (11))

Registers, records and notices relating to any calendar year shall be preserved till the end of the next calendar year.

43. Overtime Wage Rate in MP (Madhya Pradesh Shops And Establishments Rules, 1959 – Section 55)

Where an employee in any establishment is required to work in excess of the nine hours on any day and 48 hours in any week, he shall be entitled, in respect of the overtime work, to wages at the rate of twice his ordinary rate of wages.