West Bengal - Form X - Letter of Appointments

Thinking to run a business in West Bengal but not aware of the laws related to hiring employees in this state? You’ve landed at the right place. The West Bengal Shops and Commercial Establishments Act, 1963 caters to all such laws. Form X Letter of Appointments under this act needs to be issued to all the employees working in a shop or a commercial establishment.

Table of Contents

What is West Bengal Shops and Commercial Establishment Act, 1963?

The West Bengal Shops & Commercial Establishment Act, 1963 and Rules, 1964 applies to all the shops and commercial establishments in the areas notified by the Government of West Bengal. The Act aims at protecting the rights of employees by regulating the payment of wages, terms of services, work hours, rest intervals, overtime work, maternity leave, opening and closing hours, etc.

Definitions

Commercial Establishment refers to the commission, advertising, forwarding or commercial agency, or a clerical department of a factory or any industrial or commercial undertaking, an insurance company, bank, joint-stock company, broker's office or exchange, and includes such other class or undertakings as the State Government may, after taking into account the nature of their work, by notification, classify as commercial establishments under this act. However, it does not include a shop or an establishment for public entertainment or amusement.

Establishment for public entertainment or amusement refers to a hotel, restaurant, eating-house, cafe, cinema, or theatre and includes such other class or classes of concerns or undertakings as the State Government may, after taking into consideration the nature of their work, by notification, declare to be establishments for public entertainment or amusement under this act. However, it does not include a shop or a commercial establishment.

Shop refers to the premises used fully or partially for the sale of commodities or articles, either for cash or on credit, and includes any offices, store-rooms, or warehouses, whether in the same premises or elsewhere, used for selling or storage of commodities or articles for sale and also includes such other class or classes of premises as the State Government may, after taking into consideration the nature of the work carried on there, by notification, falls under the shops under this Act. However, it does not include an establishment.

Registration

Every shop-keeper or employer needs to apply for registration in the case of existing shops or- establishments if this Act applies within such date as the State Government may, by notification, specify, and in the case of new shops or establishments, if this Act applies within such period as may be prescribed, along with registering fee that applies.

Every such application shall contain—

The name of the shop-keeper or the employer;
The postal address of the shop or the establishment;
The name of the shop or the establishment;
Declaration of weekly closing days in the case of a shop;
Such other particulars as may be prescribed.

If the registering authority is contented with the particulars, then they shall register the shop or the establishment and shall issue a certificate of registration in the prescribed format to the shop-keeper or the employer. A register of shops and establishments shall be maintained by the registering authority. The certificate of registration needs to be displayed in a conspicuous place in the shop or the establishment by the shopkeeper or employer.

In case there is any change in the particulars of the application, the employer needs to inform the registering authority within seven days after the change has taken place. However, the declaration of weekly closing days in the case of a shop cannot be changed more than once in any year. If the registering authority is satisfied with the correctness of the information and on receipt of the fees, shall make the necessary changes in the Register of Shops and Establishments and shall make changes in the registration certificate, or issue a new certificate, if required.

In case the shopkeeper or employer wants to wind up his business, then he needs to inform the registering authority in writing within fifteen days of the winding up of his business. In case the registering authority is satisfied with the correctness of the information, then they shall remove the name of the shop or the establishment from the Register of Shops and Establishments and cancel the certificate of registration.

After the expiry of three years of the registration certificate, the shopkeeper or the employer needs to apply for the renewal of the registration certificate to the registering authority within thirty days after the expiry from the date of issue or renewal, whatever the case. The prescribed fee needs to be provided for the renewal of the certificate.

Letter of appointment

Every shopkeeper or employer needs to provide letters of appointment in Form X to all the employees. [or in a similar form considerably containing the particulars specified in Form X as may be approved by the State Government on requesting an application to it on this behalf by the shopkeeper or an employer]

In the case of every employed person who is in his shop or establishment, whatever be the case, within sixty days from the date on which these rules come into operation, and
In the case of every employed person in his shop or establishment, as the case may be, after these rules come into operation before the person so employed begins work:

Provided that it may not be necessary for a shopkeeper or an employer to issue such a letter of appointment to an employed person who has already been given a letter of appointment substantially containing the particulars specified in Form X.

Form X

Format of Form X Letter of Appointments

Name of the shop/establishment
Address
Name of the shop-keeper/employer
Registration No.
Name of the employee
Nature of the Appointment
Period for which appointment is based-whether temporary or permanent
Total wages per day/week/month
Basic pay
Dearness Allowance
Otherness Allowance
Signature of shopkeeper/employer
Date

An appointment letter in Form X needs to be issued to all the employees by the employers on joining the establishment.

Exemptions

West Bengal Shops and Commercial Establishments Act will not be applied to

Offices under the Central or State Government, the Reserve Bank of India, any railway administration, or any local authority;
Any railway service, airways service, water transport service, tramway or motor service, postal, telegraph or telephone service, any system of public conservancy or sanitation or any industry, business or undertaking which supplies power, light or water to the public;
Institutions for the treatment of the sick, infirm, destitute, or mentally unfit;
Shops or stalls in any public fair or baazar held for a charitable purpose; or
Stalls and refreshment rooms at railway stations, docks, or airports.

Compliances

Form A - Register of Shops and Establishments

Form B - Application for Registration

Form C - Notice of Change

Form D - Application for Renewal of Registration

Form E - Notice of Winding up of Business

Form F - Notice of Loss of Registration Certificate

Form G - Notice of Weekly Closure

Form H - Notice of Weekly Holidays

Form I - Register of daily hours of work and rest intervals of persons employed

Form J - Register of Leave

Form K - Notice of claim for maternity benefit

Form L - Delivery Certificate

Form M - Pay register

Form T - Notice of Overtime

Form U - Register of Overtime Work

Form V - Diary of Inspector for the month’s endings

Form W - Register of Employees

Form X - Letter of Appointments

Form 1 - Register of daily hours of work and rest intervals

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Key Takeaways

The West Bengal Shops & Commercial Establishment Act, 1963 and Rules, 1964 applies to all the shops and commercial establishments in the areas notified by the Government of West Bengal
The act aims at protecting the rights of the employees
There is a difference between a commercial establishment, shop, and an establishment
Every shop-keeper or employer needs to apply for registration
The registration certificate needs to be renewed after the expiry of the existing certificate
Every shop-keeper or employer needs to provide letters of appointment in Form X to all the employees
The format of Form X has been discussed in this article
There are certain exemptions when West Bengal Shops and Commercial Establishments Act does not apply