Model Shops and Establishment (Regulation of Employment and Conditions of Service) Bill, 2016.

The Union Cabinet has approved the Model Shops and Establishment (Regulation of Employment and Conditions of Service) Bill, 2016. The Bill will now be sent to States/UTs to adopt the bill as it is or after modifying its provisions as per their requirements.

Aim

The Model Shops and Establishment bill is welfare legislation that intends to bring equality in the regulation of employment and conditions of service throughout the country.

The Model bill is aimed at

1. improving the working conditions of workers,
2. creating many more job opportunities for women, and
3. providing a favorable environment for doing business.

Features

• The Model bill shall apply to the shops and establishments employing ten or more workers except for manufacturing units.
• Women to be permitted during the night shift, if the provision of shelter, restroom ladies toilet, adequate protection of their dignity and transportation, etc. provided.
• No discrimination against women in the matter of recruitment, training, transfer, or promotions.
• The Bill provides for freedom to operate 365 days in a year and opening/closing time of establishment.
• Bill provides for one common Registration for establishments online in a simplified procedure.
• It empowers the Government to make rules regarding adequate measures to be taken by the employer for the safety and health of workers.
• The Model Bill seeks to propose a number of welfare provisions including provisions for drinking water, lavatory, crèche, first – aid, and canteen facilities and employer’s responsibility for health and safety of the workers.
• It puts a cap that employees can work for a maximum of 9 hours a day and 48 hours a week, and up to maximum overtime of 125 hours in a quarter.
• It exempts highly skilled workers (for example workers employed in IT, Biotechnology, and R&D division) from daily working hours.
• It would bring about uniformity in the legislative provisions across the country and facilitate the ease of doing business and generate employment opportunities.
• It provides paid holidays for the workers which will be 18 days Earned Leaves, 8 days Causal Leaves, weekly holidays and 5 festival leave in addition to National holidays.

Impact

• The provision of operating 24X7 is expected to boost up the retail market across the country and will give customers flexibility and convenience to shopping at any time.
• The enhancement of working hours with adequate provision for the protection of the workers will give rise to the requirement for additional manpower which will result in additional employment.
• It is expected that the Model law if adopted by State will lead to growth in jobs, especially in the retail, IT, hospitality, and services sector.
• The Model bill would help the small shops from the restriction of opening and closing working hrs and weekly close days.
• The uniformity in legal provisions across States/UTs will enable the employers to have uniform HR and leave policies across all establishments in various States and UTs.
• It would promote fair competition among the States in improving the Governance and ease of doing business.