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Friday, 1 July 2016

Major Definitions of Model Shops and Establishments (Regulation of Employment and Conditions of Services) Act, 2016

Major Highlights of Model Shops and Establishments (Regulation of Employment and Conditions of Services) Bill 2016 can be read here

The following are the major definitions brought by the above act.



Major highlights

1.       Shop:-  The definition is  elaborated. As per new definition “warehouse or work house or work place for distribution of or packaging or repackaging or finished goods is carried on”

This will helps  retailers who are using distribution centers ( DC) .  Presently, in some places the authorities are forcing the retailers  take factory license as the activity of cold storage and repacking comes under the definition of Factories Act. 

2.       Overtime
Earlier the maximum allowed overtime was 120 hours per year and now it was proposed to increase 120 hours per quarter ( 3 months).  Wages for the overtime twice.

3.       Working hours
Retained same working hours i.e 48 hours week and 9 hours a day ( including 1 hour off).  But certain high skilled employees are exempted.

4.       Exemption from weekly closure
An Establishment (shop)  can work all the 7 days in a week.  

5.       Casual Leave – 8 days  (varies 7 to 12 days across the States)
6.       Earn Leave  (PL)  - 16 days ( 1 leave for every 20 days)  - maximum accumulation is 45 days.
7.       National and Festival Holiday – 8 days
8.       Crèche -  In every Establishment 30 or more woman workers are employed than a crèche to be provided.  Group Companies can together put a common crèche.   It is borrowed from Factories Act.
9.       Labour Inspector   - designated as Facilitator – hope they will change their attitude.

10.   Records can be maintained in electronic form  - Not devised any universal  forms / records , the existing records shall continue to be maintained.   It was proposed to come up with one or two forms

11.   Inspection -  Web Based inspection – AP and Telangana has already implemented, and it is free from any arbitrariness but shop/establishment shall require to maintain all the records.

A copy of model act can be found  Here

Shared by Binil Balakrishnan, Dinoct Inc, Manager - HR