Chanakya IAS Academy Blog

The article highlights the major features of the The Model Shops and Establishments (Regulation of Employment and Conditions of Service) Bill, 2016.

  • The Model Shops and Establishments (Regulation of Employment and Conditions of Service) Bill, 2016 is a bold step toward employment generation that is Centre’s priority.
  • 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.
  • It will cover only shops and establishments employing ten or more workers except manufacturing units. However, the States can change this as per their needs.
  • The main provisions of the Model Bill include:
    • Freedom to operate 365 days in a year and opening/closing time of establishment,
    • Women to be permitted during night shift, if the provision of shelter, restroom, ladies toilet, adequate protection of their dignity and transportation etc. exits,
    • No discrimination against women in the matter of recruitment, training, transfer or promotions,
    • Online 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, clean and safe drinking water, first-aid, lavatory, crèche and canteen by group of establishments, in case, it is not possible due to constraint in space or otherwise by individual establishment and five paid festival holidays in addition to national holidays etc.
  • The bill will lead to:
    • Improving the working conditions of workers
    • Creating many more job opportunities for women and
    • Providing favourable environment for doing business.
  • Other provisions of the bill:
    • Workers’ Rights and Welfare measures- The Model law provides for provision of common Latrines and urinals, Crèche, Canteen facility by a group of employers, which is a very progressive step.
    • It provides paid holidays for the workers which will be 18 days Earned Leaves, 8 days Casual Leaves, weekly holiday and 5 festival leaves in addition to National holidays.
    • Women- 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.
    • The Model Bill provides for the crèches. It would result in the making the workplace/shops Establishment attractive for the employment for women resulting in increase in employment of women.
    • Due to enhanced working hours, more job opportunities would be created. Moreover such jobs in Shops and Establishment are suited for women.
    • Business- The Model law would help the small shops from the restriction of opening and closing working hours and weekly close day.
    • 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 hours 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.
    • In addition to the above the 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 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.

Question:

Model Shops and Establishment (Regulation of Employment and Conditions of Service) Bill, 2016 aims to promote the fair competition among the States in improving the Governance and ease of doing business. In light to this statement, discuss the major provisions of the bill. Suggested Approach

  1. Major provisions of the bill.
  2. Benefits in brief.
  3. Impact on federalism.

Link: http://pib.nic.in/newsite/erelease.aspx?relid=0

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Read 251 times Last modified on Thursday, 07 July 2016 13:52
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