In a bid to generate new jobs and offer flexibility to small and medium retailers, banks, shops, malls, cinema halls and other establishments to operate 24X7, the Union Cabinet cleared Model Shops and Establishment (Regulation of Employment and Condition of Services) Bill 2016 on Wednesday.
The law will also enable women to work in odd hours during the night with mandatory cab services and other facilities. The move comes at a time when the Government aims to boost job creation and consumption-led growth.
It also calls for better working conditions for employees such as drinking water, canteen, first aid, lavatory and creche. “The main aim of this Bill is to increase employment generation. like in the case of malls, which operate all seven days in a week and they don’t have any fixed working hours. All those shops where number of workers is 10 or more should be allowed to choose timings and days,” Finance Minister Arun Jaitley said in a Press meet on Cabinet decisions.
As per the proposal mooted by the labour Ministry, the model law can be adopted by States with a provision of modifying it as per their requirements. This is designed to bring in uniformity in legislative provisions, making it easier for all the States to adopt it and ensure uniform working conditions across the country. The Centre has been receiving suggestions to enact the model law, which the States could consider for enforcement either by adopting the central law or necessary modifications by the State law.
The Bill, which covers shops and establishments employing 10 or more workers except manufacturing units, will not require Parliament’s approval. “Since it is a model Bill on a State subject, it will be sent to the States,” said Jaitley, adding that the Bill also prescribed for compulsory holidays and provides for a provision for permitting women to work in night shifts.
“The employment generation was less as there was protective discrimination. We used to protect women but they were discriminated. Besides, there are provision for transportation and other amenities,” Jaitley added.
It also provides exemption to highly-skilled workers like those in IT and bio-technology from daily working hours (9 hours) and weekly working hours (48 hours), subject to maximum 125 over-time hours in a quarter.