The Shops and Establishment Act is a state legislation enacted by various states
which regulates operation of shops and establishment in that state. The Act is
applicable to non-hazardous manufacturing units employing less than 10 workers. The existing law regulates opening and closing time of establishment, 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 from time to time to enact a model central law which the states could consider for enforcement either by adopting the central law or making necessary modifications by amending the state laws.
It has been represented to the central government that the enforcement of the
state Shops and Establishment Act by various states has brought about the following inadequacies that have affected the ease of doing business by the shops and establishments covered under the Act:-
1. Rigidity in Opening And Closing of establishments.
2. Discourages Women in employment.
3. Difficulties in Registration & Annual Renewal.
4. Problems in Maintenance of Statutory Records.
5. Arbitrariness in Statutory Inspections.
3.1. The present proposal, inter-alia, 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 Act.
2. Covers only establishments employing ten or more workers except
3. Freedom to operate 365 days in a year.
4. Freedom for opening/closing time of establishment.
5. Women to be permitted during night shift.
6. No discrimination against women in the matter of recruitment, training, transfer or promotions.
7. Online one common Registration through a simplified procedure.
8. Power of Government to make rules regarding adequate measures to be taken by the employer for the safety and health of workers.
9. Clean and safe drinking water
10. Lavatory, Creche, First Aid and Canteen by group of establishments, in case, it is not possible due to constraint in space or otherwise by individual establishment
11.Twelve days casual cum sick leave.
12. One day earned leave for every twenty days of work performed (can be
accommodated up to 45 days)
13.Five paid holidays for festivals in addition to three national holidays.
14. Exemption of highly skilled workers (for example workers employed in 1.T., Bio- Technology and R&D division) from. daily working hours of t hrs and weekly
working hrs of 48 hrs subject to maximum 125 over-time hrs in a quarter.
15. Facilitators may be appointed by the Government with the following duties –
(i) Supply information and advice to employers and workers concerning
complying with the provisions of the Act.
(ii) inspect the establishment based on inspection scheme framed by the
Necessary Draft Model enclsoed .