The Model Shops and Establishment Act was recently cleared by the government. This makes eating joints and theaters being open 24×7 a possibility. This is an act meant to generate new employment opportunities and also to open up new avenues to generate income for the government by way of taxes etc. and will bring in sweeping changes to the existing Shops and Establishments Act which was enacted to protect the interests of the employees and regulate hours and conditions of work, particularly in unorganized sectors.
What the Model Shops and Establishments Act proposes
The act proposes that shops and establishments can now operate 365 days of the year and all days of the week and may also determine their own timings or opening and closing. This act will apply to local markets, malls, theaters and restaurants that employ 10 or more people and will be applicable to employees that do not fall within the Factories Act.
It is expected that these changes will help bring off line establishments on par with online stores which currently enjoy a competitive edge over bricks and mortar stores by permitting shoppers to shop 24×7. Not only will these changes generate new employment opportunities, it also opens up newer avenues for women by permitting them to work 24/7 if employers can offer safe transportation services, crèches and so on. Non discrimination of female employees is also proposed by this act.
Stipulations for 8 days of casual leave and for festival holidays are envisaged by the new act. Businesses and employers will be required to provide facilities such as toilet, drinking water, canteen and crèche if the establishment employs more than 100 employees.
What will remain unchanged
Employee protection is still envisaged by the act, which says that 9 hours a day or 48 hours a week is the maximum that employees can be made to work. Maximum overtime is also specified. Stipulations such as, employee breaks after 5 hours of work and one weekly holiday will remain in place. It is not clear whether the provisions relating registration of establishments will change or not.
When will it become reality?
Currently this bill has been approved by the cabinet and will not require parliament approval. It will be up to the states; how and what to implement from the model act. Since this is a model act, it application may not be binding on all states and implementation in various states may differ since. There may be significant law and order issues to sort out before implementation is possible.
Author – Reena Daruwalla
