The model law also provides for women to be employed in night shifts with adequate security. It also calls for better working conditions for workers like drinking water, canteen, first aid, lavatory and creche.
"The 'Model Shops and Establishment (Regulation of Employment and Condition of Services) Bill 2016 is listed on agenda of the Cabinet meeting scheduled tomorrow," a source said.
The model law will not require Parliament's approval.
The model law is aimed at generating addition employment as the shops and establishment will have freedom to operate for longer hours requiring more manpower.
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According to the proposal, it will cover establishments employing 10 or more workers except manufacturing units and will provide freedom to operate 365 days in a year with flexibility on timing to open and close.
It also provides exemption for highly skilled workers like those in IT, biotech, from daily working hours (9 hours) and weekly working hours (48 hours).
Centre has been receiving suggestions from time to time to enact model law, which the states could consider for enforcement either by adopting the central law or necessary modification by the state law.