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

A model law that allows shops, malls and cinema halls among other establishments to run 24x7 throughout the year got the Cabinet approval .
This move aimed at boosting job creation and consumption-led growth.
Highlights:

• The law will allow shops, malls and cinema halls, among other establishments to run 24×7 throughout the year.
• It covers establishments employing 10 or more workers except manufacturing units and will provide freedom to operate 365 days with flexibility on timing to open and close.
• It also provides for women to be employed on night shifts with adequate security, and calls for better working conditions for employees such as drinking water, canteen, first-aid, lavatory and creche.
• No discrimination against women in the matter of recruitment, training, transfer or promotions.
• Online one common Registration through a simplified procedure.
• Powers of Government to make rules regarding adequate measures to be taken by the employer for the safety and health of workers.
• Five paid festival holidays in addition to national holidays etc.
• Exemption of highly skilled workers (for example workers employed in IT, Biotechnology and R&D division) from daily working hours of 9 hours and weekly working hours of 48 hours subject to maximum 125 over-time hours in a quarter.
• The Bill will be sent to States/UTs so they can either adopt the Bill as it is or modify its provisions as per their requirements.

Analysis:

• 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. It will also give a boost to employment opportunities to women as they will be permitted to work during night shifts with adequate safety and security provisions.
• Model Bill would promote the fair competition among the States in improving the Governance and ease of doing business. The enhancement of working hours in shops and establishments 24X7 with adequate provision for protection of the workers will give rise to 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 provision of operating 24X7 is expected to boost up the retail market across the country and will give customer flexibility and convenience to shop any time.
• The model law provides for exemption of highly skilled workers (for example workers employed in I.T., Bio-Tech and R&D) from, daily working hours of 9 hrs and weekly working hrs of 48 hrs subject to maximum 125 over-time hrs in a quarter. This flexibility will enable the establishment to better services to their clients who cater to international customers especially in the IT sector.
• The uniformity in legal provisions across States/UTs will enable the employers to have uniform HR and leave policies across all establishment in various States and UTs.
• Allowing employment of women in night shifts, will enhance the gender diversity at work places and will also do away with the “protective discrimination” faced by women, who were exempted from working in night shift. The establishments will have to ensure safety and better working conditions for female employees by providing facilities such as late-night drops and crèches.

By: Vishal