On June 29, 2016, the Union Cabinet, chaired by the Prime
Minister Shri Narendra Modi finalized and approved the Model Shops
and Establishment (Regulation of Employment and Conditions of
Service) Bill, 2016 ("Model Bill"). The States are free
to either adopt the Model Bill or modify its provisions. The Model
Bill has several provisions which relate to working hours, safety
of women, discrimination against women, arrangement of
crèche at workplaces, provision of paid leaves to employees,
safety and welfare of employees, night shifts etc. Perhaps the most
outstanding feature of this Model Bill is that it may allow the
commercial establishments to operate round the clock and on all
days of the week if so required.
This Model Bill is being hailed as a welcome legislation for shops
and commercial establishments as it will encourage trade and
commerce, more specifically in the area of retail. Also, the Model
Bill will bring uniformity in the law across all states and
encourage conducive employment conditions across the Indian
jurisdictional landscape.
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