The Shops and Establishment Act Overview
The Shops and Establishment Act is state legislation enacted by various states to regulate the operation of shops and establishments within that state. The Act applies to non-hazardous manufacturing units employing fewer than 10 workers. The existing law regulates the opening and closing times 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 to enact a model central law, which states could consider for enforcement either by adopting the central law or by making necessary modifications through state law amendments.
Inadequacies in the Current Enforcement
It has been represented to the central government that the enforcement of the state Shops and Establishment Act by various states has led to the following inadequacies, affecting the ease of doing business for the shops and establishments covered under the Act:
1. Rigidity in the 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.
Proposed Model Shops and Establishment Act
The present proposal, among other things, 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 Acts.
2. Covers only establishments employing ten or more workers, except manufacturing units.
3. Freedom to operate 365 days a year.
4. Freedom for the opening/closing time of establishments.
5. Women to be permitted during night shifts.
6. No discrimination against women in 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. Provision of clean and safe drinking water.
10. Lavatory, creche, first aid, and canteen facilities by a group of establishments, if not possible individually due to space constraints.
11. Twelve days of casual cum sick leave.
12. One day of earned leave for every twenty days of work performed (can be accumulated up to 45 days).
13. Five paid holidays for festivals in addition to three national holidays.
14. Exemption of highly skilled workers (e.g., workers in I.T., Bio-Technology, and R&D divisions) 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 compliance with the provisions of the Act.
- Inspect establishments 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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39The Shops and Establishment Act is state legislation enacted by various states to regulate the operation of shops and establishments within that state. The Act applies to non-hazardous manufacturing units employing fewer than 10 workers. The existing law regulates the opening and closing times 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 to enact a model central law, which states could consider for enforcement either by adopting the central law or by making necessary modifications through state law amendments.
Inadequacies in the Current Enforcement
It has been represented to the central government that the enforcement of the state Shops and Establishment Act by various states has led to the following inadequacies, affecting the ease of doing business for the shops and establishments covered under the Act:
1. Rigidity in the 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.
Proposed Model Shops and Establishment Act
The present proposal, among other things, 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 Acts.
2. Covers only establishments employing ten or more workers, except manufacturing units.
3. Freedom to operate 365 days a year.
4. Freedom for the opening/closing time of establishments.
5. Women to be permitted during night shifts.
6. No discrimination against women in 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. Provision of clean and safe drinking water.
10. Lavatory, creche, first aid, and canteen facilities by a group of establishments, if not possible individually due to space constraints.
11. Twelve days of casual cum sick leave.
12. One day of earned leave for every twenty days of work performed (can be accumulated up to 45 days).
13. Five paid holidays for festivals in addition to three national holidays.
14. Exemption of highly skilled workers (e.g., workers in I.T., Bio-Technology, and R&D divisions) 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 compliance with the provisions of the Act.
- Inspect establishments 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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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
Acknowledge(0)Amend(0)
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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Maharashtra Shops And Establishments (Regulation Of Employment And Conditions Of Service) Act, 2.pdf