The Rajasthan government issued a significant compliance relaxation: MSMEs with up to 10 employees are now exempt from mandatory registration under the Shops & Commercial Establishments Act. An updated draft for a new 2025 Shops & Establishments Bill also outlines streamlined norms for working hours, leave entitlements, and services. This reduces red tape for thousands of micro-businesses while preserving core worker protections.
Source: @TimesOfIndia
For local entrepreneurs, this is breath—less bureaucracy, more focus on doing rather than filing. Retailers and small service units often operate on razor margins; this exemption feels like trust. For workers, the clarity over hours and leave rights—even in relaxed setups—means they don’t fall through cracks. HR leaders in MSMEs now have room to breathe—and some must rethink how informal work transitions to formal culture.
This change aligns with ease-of-doing-business goals without diluting protection: Minimum Wage, Maternity, and POSH still apply. HR heads in MSMEs should ensure informal workers are still paid fairly and know their entitlements, even if paperwork is lighter. Update employee onboarding, clarify hours and leave norms—even on handwritten notepads—to translate legal lean-away into inclusive practice.
If your shop didn’t have to register, what would you spend that saved time on?
How can small businesses ensure worker rights thrive even with lighter paperwork?
Source: @TimesOfIndia
For local entrepreneurs, this is breath—less bureaucracy, more focus on doing rather than filing. Retailers and small service units often operate on razor margins; this exemption feels like trust. For workers, the clarity over hours and leave rights—even in relaxed setups—means they don’t fall through cracks. HR leaders in MSMEs now have room to breathe—and some must rethink how informal work transitions to formal culture.
This change aligns with ease-of-doing-business goals without diluting protection: Minimum Wage, Maternity, and POSH still apply. HR heads in MSMEs should ensure informal workers are still paid fairly and know their entitlements, even if paperwork is lighter. Update employee onboarding, clarify hours and leave norms—even on handwritten notepads—to translate legal lean-away into inclusive practice.
If your shop didn’t have to register, what would you spend that saved time on?
How can small businesses ensure worker rights thrive even with lighter paperwork?
Small businesses can ensure worker rights thrive even with lighter paperwork by following these steps:
1. Maintain Transparency: Even if the paperwork is lighter, it's crucial to maintain transparency about employee rights and entitlements. This can be done through regular communication and meetings.
2. Update Onboarding Process: The employee onboarding process should be updated to include a detailed explanation of worker rights, working hours, leave norms, and other relevant information. This will ensure that every new employee is aware of their rights from the start.
3. Regular Training: Regular training sessions should be conducted to educate employees about their rights and responsibilities. This will also help in creating a culture of respect and understanding within the organization.
4. Fair Treatment: Ensure that all employees are treated fairly and equally, irrespective of their role or position in the company. This includes fair pay, equal opportunities for growth, and a safe and healthy working environment.
5. Grievance Redressal: Establish a robust grievance redressal mechanism to address any issues or complaints related to worker rights. This will not only help in resolving issues promptly but also in building trust among the employees.
6. Compliance with Laws: Despite the relaxation in rules, businesses should continue to comply with all relevant laws such as Minimum Wage, Maternity, and POSH. This will ensure that worker rights are not compromised in any way.
By following these steps, small businesses can ensure that worker rights thrive even with lighter paperwork.
From India, Gurugram
1. Maintain Transparency: Even if the paperwork is lighter, it's crucial to maintain transparency about employee rights and entitlements. This can be done through regular communication and meetings.
2. Update Onboarding Process: The employee onboarding process should be updated to include a detailed explanation of worker rights, working hours, leave norms, and other relevant information. This will ensure that every new employee is aware of their rights from the start.
3. Regular Training: Regular training sessions should be conducted to educate employees about their rights and responsibilities. This will also help in creating a culture of respect and understanding within the organization.
4. Fair Treatment: Ensure that all employees are treated fairly and equally, irrespective of their role or position in the company. This includes fair pay, equal opportunities for growth, and a safe and healthy working environment.
5. Grievance Redressal: Establish a robust grievance redressal mechanism to address any issues or complaints related to worker rights. This will not only help in resolving issues promptly but also in building trust among the employees.
6. Compliance with Laws: Despite the relaxation in rules, businesses should continue to comply with all relevant laws such as Minimum Wage, Maternity, and POSH. This will ensure that worker rights are not compromised in any way.
By following these steps, small businesses can ensure that worker rights thrive even with lighter paperwork.
From India, Gurugram
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