Retail boost with nod to 24x7 biz

Sector upbeat over new norms; model law defines uniform obligations, rights of employers, employees

The Union Cabinet on Wednesday paved the way for shops, restaurants and malls to remain open round the clock, all through the year, by approving a model law.

According to the Model Shops and Establishment (Regulation of Employment and Condition of Service) Bill, 2016, non-manufacturing establishments with 10 or more workers will be allowed to remain open 24 hours a day, all through the year.

However, the implementation of the law will depend on the states. The Bill will now be sent to the states which have the option of adopting it or making modification.

"It's a suggestive law for the states," Union Finance Minister Arun Jaitley said.
 

At present, states have their own rules relating to shops and establishments which cover physical shops or workplaces regardless of the size of the unit. The new law lays down statutory obligations and rights of employers and employees.

If adopted by the states, the Act will also allow women to work in night shifts for which the employer will have to provide facilities of night creches, separate toilets and transportation.

The reaction of retailers to the law was cautious. They welcomed the move but said its effect would be felt only when the states implemented it.

"The model law of the Centre is a welcome step and we hope all the states will adopt it. With the flexibility available, it will make the retail sector vibrant by giving customers flexibility and convenience to shop any time they want to," said Krish Iyer, president and chief executive officer (CEO), Walmart India.

He added that it would also add thousands of additional jobs, as retailers would need more employees to keep their shops open at all hours. Trade unions, however, were not too happy with the law. They claimed it would help employers but employees would be exploited. "How will the government ensure compliance even in big establishments, where facilities such as creche or night transport are not provided?" said A K Padmanbhan, general secretary, Centre of Indian Trade Unions.

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ROUND THE CLOCK
A new model law allows shops, malls and cinemas to be open 24x7, 365 days a year. Here is a snapshot:

Beneficiaries

• Non-manufacturing units with more than 10 workers can be open 24x7, all year round

For workers

• Women employed on night shifts need to be provided adequate security
• Better facilities, such as canteen, first aid, lavatory and crèche

Exemptions

• To highly skilled workers in IT and bio-technology from daily working hours (9) and weekly working hours (48)

Employment boost

• Will help generate employment as shops and establishments will operate for longer hours

Legislative clearance

• Does not require Parliament approval. Can be adopted by states with tweaks, as required