Clearence for Model Shops and Establishments (Regulation of Employment and Conditions of Services) Bill 2016

The Model Shops and Establishment (Regulation of Employment and Condition of Services) Bill 2016 has been cleared by the Cabinet, which help in generating additional employment as shops and establishments will have freedom to operate for longer hours round the year.

The law covers all premises — barring factories — with work related to printing, banking, insurance; stocks and shares brokerage; theatres and “any other public amusement” which is currently not covered under the Factories Act 1948. All such units that employ 10 or more workers will come under this Act. For the first time, workers’ right will be protected for those working in godowns, warehouses or workplace related to packaging activities. This will bring e-commerce companies under the labour law rulebooks. However, the implementation of the approved Model Shops and Establishments (Regulation of Employment and Conditions of Services) Bill, 2016 will depend on States, as it only acts as an advisory to the State governments, which will have the option to adopt this or make changes to it according to their needs.

The model bill has provision for five paid holidays for festivals besides national holidays. Also, “highly skilled workers” in the information technology sector or bio-technology are proposed to be exempted from daily working hours of nine hours and weekly working hours of 48 hours.  

Protection for women

“Women to be permitted during night shift, if the provision of shelter, rest room, ladies toilet, adequate protection of their dignity and transportation etc exists,” Labour and Employment Ministry said in a statement. 

The law 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).

Here are 5 quick points you should know: 

1. Who Comes Under Its Purview:
All public amusement establishments such as shopping malls, restaurants and local markets, which are not covered under the Factories Act 1948. These establishments must employ at least 10 or more employees to be able to come under the Act. 

2. Act Not Applicable To Who
Government offices such as banks including the Reserve Bank of India, insurance companies and factories that are covered under the Factories Act 1948 will not be covered under the legislation. 

3. Who Will It Benefit
The Act aimed at increasing the ease of doing business could be a game-changer for retailers as competition will increase between online and offline players. The implementation of this Act will also generate high employment opportunities for both men and women. 

4. Women Can Now Work 24/7
Women will now be permitted to render services in 24/7 establishments. Companies will be mandated to facilitate women with safe transportation services and other related facilities such as creches during night schedules. 

5. Can It Be Opposed
The implementation of this Act is expected to be issued as an advisory to states. A consensus with trade unions, who have been calling this Act biased towards multinational companies, will not need to be arrived.

News Credits: Here

Shared by Sanjaya Kumar, Thejo Engineering Limited, Sr. Manager HR

Long Term Settlement - Between Renault Nissan and workers at Chennai plant - 57% increase in wages

Renault Nissan Automotive India Private Ltd on Wednesday said it has concluded three year wage agreement with its workers.
In a statement issued here, the company - a joint venture between Renault of France and Nissan Motor of Japan - said it has signed formally a three year Long Term of Settlement agreement with its employee representative union, the Renault Nissan India Thozhilalar Sangam (RNITS)

In September 2015 , India's largest carmaker, Maruti raised wages by Rs 16,800 per month while Ford announced a Rs 15,700 hike per month. In February 2016, Hyundai completed its negotiations with its union, giving hikes ranging from Rs 7,000 - Rs 19,500 depending on the cader.

Employees at the Renault Nissan alliance plant in Oragadam will get highest pay increase the auto industry has ever seen after the employees union signed a 3 year landmark agreement with the management.

The agreement will be effective from April 1, 2016 until March 31, 2019. It entails a host of benefits for the employees of the Renault-Nissan alliance.

According to the agreement, all 3,750 employees will get a flat increase of Rs 19,100 per month at the end of the third year. The employees are currently earning an average of Rs 33,000 per month, thus bagging a 57% hike.

Besides the rise, the employees will be covered under group term insurance worth 2 times of cost-to-company or Rs 15 lakh, whichever is higher. They will also be eligible for medical insurance up to Rs 2 lakh, parents and dependents included.

Apart from the monetary benefits, the management has agreed to facilitate creation of an employee township near the factory. A supermarket will be set up within the factory.

Beginning of this year the factory reached the production milestone of one million cars and recently, started third shift operations in response to increasing demand for its products.

Shared by Sanjaya Kumar, Thejo Engineering Limited, Sr. Manager - HR