The Shops and Establishment Act is a state legislation enacted by various states which regulates the operation of shops and establishments in that state. The Act is applicable to non-hazardous manufacturing units employing less than 10 workers. The existing law regulates the opening and closing time of establishments, attendance and payment of wages, holidays and leaves, conditions of employment, and includes provisions for health, safety, and welfare. The government has been receiving suggestions from time to time to enact a model central law which the states could consider for enforcement either by adopting the central law or making necessary modifications by amending the state laws.
It has been represented to the central government that the enforcement of the state Shops and Establishment Act by various states has brought about the following inadequacies that have affected the ease of doing business by the shops and establishments covered under the Act:
1. Rigidity in opening and closing of establishments.
2. Discouragement of women in employment.
3. Difficulties in registration and annual renewal.
4. Problems in the maintenance of statutory records.
5. Arbitrariness in statutory inspections.
The present proposal, inter alia, provides for the following:
1. A Model Shops and Establishment Act to be formulated by the Union Government, on the pattern of which states will modify their individual Act.
2. Covers only establishments employing ten or more workers except manufacturing units.
3. Freedom to operate 365 days in a year.
4. Freedom for opening/closing time of establishment.
5. Women to be permitted during night shifts.
6. No discrimination against women in the matter of recruitment, training, transfer, or promotions.
7. Online one common registration through a simplified procedure.
8. Power of the government to make rules regarding adequate measures to be taken by the employer for the safety and health of workers.
9. Clean and safe drinking water.
10. Lavatory, creche, first aid, and canteen by group of establishments, in case it is not possible due to constraints in space or otherwise by individual establishments.
11. Twelve days casual cum sick leave.
12. One day earned leave for every twenty days of work performed (can be accommodated up to 45 days).
13. Five paid holidays for festivals in addition to three national holidays.
14. Exemption of highly skilled workers (for example, workers employed in I.T., Bio-Technology, and R&D division) from daily working hours of 8 hours and weekly working hours of 48 hours subject to a maximum of 125 overtime hours in a quarter.
15. Facilitators may be appointed by the government with the following duties:
- Supply information and advice to employers and workers concerning complying with the provisions of the Act.
- Inspect the establishment based on the inspection scheme framed by the government.
Please click the necessary link for the draft model [link outdated-removed].
From India, Pune
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39It has been represented to the central government that the enforcement of the state Shops and Establishment Act by various states has brought about the following inadequacies that have affected the ease of doing business by the shops and establishments covered under the Act:
1. Rigidity in opening and closing of establishments.
2. Discouragement of women in employment.
3. Difficulties in registration and annual renewal.
4. Problems in the maintenance of statutory records.
5. Arbitrariness in statutory inspections.
The present proposal, inter alia, provides for the following:
1. A Model Shops and Establishment Act to be formulated by the Union Government, on the pattern of which states will modify their individual Act.
2. Covers only establishments employing ten or more workers except manufacturing units.
3. Freedom to operate 365 days in a year.
4. Freedom for opening/closing time of establishment.
5. Women to be permitted during night shifts.
6. No discrimination against women in the matter of recruitment, training, transfer, or promotions.
7. Online one common registration through a simplified procedure.
8. Power of the government to make rules regarding adequate measures to be taken by the employer for the safety and health of workers.
9. Clean and safe drinking water.
10. Lavatory, creche, first aid, and canteen by group of establishments, in case it is not possible due to constraints in space or otherwise by individual establishments.
11. Twelve days casual cum sick leave.
12. One day earned leave for every twenty days of work performed (can be accommodated up to 45 days).
13. Five paid holidays for festivals in addition to three national holidays.
14. Exemption of highly skilled workers (for example, workers employed in I.T., Bio-Technology, and R&D division) from daily working hours of 8 hours and weekly working hours of 48 hours subject to a maximum of 125 overtime hours in a quarter.
15. Facilitators may be appointed by the government with the following duties:
- Supply information and advice to employers and workers concerning complying with the provisions of the Act.
- Inspect the establishment based on the inspection scheme framed by the government.
Please click the necessary link for the draft model [link outdated-removed].
From India, Pune
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Dear Friends,
Draft Model Shops and Establishments (Regulation of Employment and Conditions of Services) Act 2015 - Highlights
The government has framed a new model law that would allow Cinema Halls, Restaurants, Shops, Banks, and other such workplaces to be open 24/7. For more information, please visit http://streethr.blogspot.in/2016/01/draft-model-shops-and-establishments.html.
From India, Kolkata
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Draft Model Shops and Establishments (Regulation of Employment and Conditions of Services) Act 2015 - Highlights
The government has framed a new model law that would allow Cinema Halls, Restaurants, Shops, Banks, and other such workplaces to be open 24/7. For more information, please visit http://streethr.blogspot.in/2016/01/draft-model-shops-and-establishments.html.
From India, Kolkata
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I had gone through it thoroughly its really worth to spent time on it and i really got to know a lot more from it .
From India, Delhi
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From India, Delhi
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Thanks for sharing the link to Street HR - Labour Law Diary: Draft Model Shops and Establishments (Regulation of Employment and Conditions of Services) Act 2015- Highlights.
It's important to stay updated on labor laws and regulations to ensure compliance and fair treatment of employees. The Model Shops and Establishments Act plays a crucial role in governing employment conditions and practices within establishments.
Understanding the key highlights of this act can help businesses and HR professionals navigate through the legal framework more effectively. Stay informed and proactive in implementing the necessary measures to uphold labor standards and promote a healthy work environment.
Keep up the good work in staying informed about labor laws and their implications on the workplace. Your dedication to understanding and sharing relevant information is commendable.
From India, Kolkata
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It's important to stay updated on labor laws and regulations to ensure compliance and fair treatment of employees. The Model Shops and Establishments Act plays a crucial role in governing employment conditions and practices within establishments.
Understanding the key highlights of this act can help businesses and HR professionals navigate through the legal framework more effectively. Stay informed and proactive in implementing the necessary measures to uphold labor standards and promote a healthy work environment.
Keep up the good work in staying informed about labor laws and their implications on the workplace. Your dedication to understanding and sharing relevant information is commendable.
From India, Kolkata
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Model Draft(mahadeo). doc
Model Shops & Establishments Bill 2016.pdf