MODEL SHOPS AND ESTABLISHMENT (REGULATION OF EMPLOYMENT AND CONDITION OF SERVICES) BILL 2016

Economic Affairs Employment related Issues

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Background

· The Union government has come up with the Model Shops and Establishment (Regulation of Employment and Conditions of Service) Bill, 2016 to boost employment generation. The Bill is supposed to be sent to States/UTs so that they will be able to modify their individual Acts, if they so desire {intra-state trade comes under state list}. The States/UTs can either adopt the Bill as it is or modify its provisions as per their requirements.

Provisions

· It will cover establishments employing 10 or more workers except manufacturing units

· To provide freedom to operate 365 days in a year and opening/closing time of establishment. This could mean that shops and establishments can operate 24/7

· Women to be permitted during night shift, if necessary amenities and adequate protection of their dignity exists

· Powers of government to make rules for adequate measures to be taken by the employer for safety and health of workers

· No discrimination against women in the matter of recruitment, training, transfer or promotions.

· Five paid festival holidays in addition to national holidays etc.

· Lavatory, crèche, first-aid and canteen by group of establishments, in case it is not possible by individual establishments

· Model Bill to bring about uniformity in legislative provisions, making it easier for all the States to adopt it

· To ensure uniform working conditions across the country and ease of doing business, generate employment opportunities

Positive Aspects

· The Model Bill is a suggestive piece of legislation and has been finalized keeping in view the spirit of co-operative federalism.

· This gives liberty to States for fine tuning the Model bill to suit their requirements.

· This is expected to generate competitive and challenging spirit amongst the States and create an environment which is conducive for large scale employment generation at every level, especially in smaller and medium towns.

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