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Q. Model Shops and Establishments Bill: Comment on recently announced Model Shops and Establishments Bill 2016.
Jul 05, 2016 Related to : GS Paper-3

Ans :

Introduction-

Recently central government has approved the Model Shops and Establishment (Regulation of Employment & Conditions of Service) Bill 2016. The bill is one of the bold steps toward employment generation and providing favourable environment for doing business. It will cover only shops and establishments employing ten or more workers except manufacturing units. The bill will now be sent to States and Union Territories, and the States can change this as per their needs.

Key features of the bill-

  • It will cover establishments employing 10 or more workers except manufacturing units.
  • It provides freedom to operate 24/7 throughout the year.
  • It provides for women to be employed during night shift with adequate security.
  • It calls for no discrimination against women in the matter of recruitment, training, transfer or promotions.
  • The bill calls for better working conditions for employees such as drinking water, canteen, first aid etc.
  • It aims to bring uniformity in legislative provisions throughout the country.
  • It has provision of five paid festival holidays in addition to national holidays.

Analysis-

  • The model law aims at improving the working conditions of workers, creating more job opportunities, especially for women and providing favourable environment for doing business.
  • The model Shops and Establishments Bill one of the important legislation, which will boost employment opportunities for Indian youths. The provision of operating 24X7 will enhance the working hours of shops and establishments and due to enhanced working hours, more job opportunities would be created.
  • 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 would help the small shops from the restriction of opening and closing working hours and weekly close day.
  • Allowing employment of women in night shifts will enhance the gender diversity at work places and boost to employment opportunities to women. The establishments will have to ensure safety and better working conditions for female employees.
  • Similarly model bill tries to bring uniformity in legislative provisions, making it easier for all the States to adopt it and it would promote the fair competition among the States in improving the Governance and ease of doing business.

Suggestions-

  • Model bill is kind of suggestive piece of legislation, and implementation of its provisions rests on states, hence central government should take state governments’ on board and convince them.
  • 24/7 operation of shops and establishments needs security, hence states should ensure adequate securities before its implementation.

Conclusion-

The proposed model bill if implemented effectively will definitely generate more employment and creates favourable environment for doing business. It is welcome that the government has adopted a model law to remove the restrictions on shops and establishments in the country functioning as per the requirements of a globalised economy. It is a suggestive piece of legislation and states have liberty for adjustments as per their requirements. 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.


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