SHOPS AND ESTABLISHMENTS ACT

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Context:

A recent investigation into SRBC & Co. LLP has raised concerns about labour practices in the workplace.

Details

The probe into SRBC & Co. begins after the unfortunate death of 26-year-old official auditor.  This led the Maharashtra Labour Department to take action.

The LLP has been in business since 2007, but it is not registered under the Maharashtra Shops and Establishments Act. The investigations revealed that the corporation violated local labour regulations to protect workers' rights.

Key Take away from this Case Safeguards are needed to protect young professionals entering the labour market. Many young workers experience pressures that can harm their physical and mental health; thus, clear guidelines are required to ensure well-being in corporate settings. Present labour standards may not be strict enough to protect workers, reforms are urgently needed to eliminate implementation gaps by modifying policies and creating clear rules for workplace safety and worker welfare. Companies must respect labor rules to avoid penalties and maintain a safe working environment prioritising employee well-being.

About Shops and Establishments Act

Each state has its own version of the Shops and Establishments Act to address its local economies' unique needs and challenges. It regulates several commercial organisations, including shops, stations, and other establishments. 

The law applies to all business establishments in a state and ensures that the company complies with regulations regarding employee welfare. The law does not cover factories governed by the Factories Act 1948.

Key areas that are regulated  under the Act 

• The establishments should set specific working hours. This ensures that employees are not overworked. 
• The employees are entitled to specified rest and meal periods.
• The employment of children in shops and establishments is prohibited.
• It outlines various leave entitlements, including annual, maternity, and sick leave.
• The act regulates wage payments, including holiday pay and deductions from wages.

Before Starting Operations, the company must be licensed under the Shop and Establishment Act. The registration process involves submitting important business details to the Chief Inspector. After approval, a registration certificate is issued, which must be displayed on the establishment's premises.

If the company wishes to close its operation, it must inform the Chief Inspector in writing within 15 days to ensure that it is officially registered.

Highlights of the Model Shops and Establishments Bill 2016

A Model Shops and Establishments (RE&CS) Bill 2016 has been circulated to all States/UTs for adoption with appropriate modification. The objective is to allow companies to be more flexible regarding working hours, ensuring the safety and welfare of employees.

It applies to shops and establishments with 10 or more employees.  It allows businesses to operate 365 days a year, a significant change from old laws that required many shops and establishments to close on certain days.

It made it mandatory for employers to ensure clean and safe working conditions. This includes providing drinking water, first aid, and bathrooms in cases where space is a constraint.

It allows women to work night shifts under conditions that protect their dignity and safety. Employers must provide adequate shelter, bathrooms, and transportation to ensure safety and security during late hours. It prohibits discrimination against women in matters such as recruitment, training and promotion.

Each employee is entitled to five paid holidays in addition to national holidays. This policy ensures that employees have time for family and personal relaxation.

Employees can work a maximum of 48 hours per week or nine hours daily. Employers should also ensure that no employee works for more than five hours without a half-hour break. Employers who violate the rules under the act will be fined or face other legal consequences.

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Source: 

The Hindu

Lawcrust 

IndiaFilings 

PIB

PRACTICE QUESTION Q.Consider the following statements regarding labour legislation in India: 1. The Industrial Disputes Act 1947 requires the formation of Industrial Tribunals to resolve disputes. 2. The Minimum Wage Act 1948 empowers state governments to establish minimum wages for specific occupations. 3. Under the Trade Unions Act of 1926, trade unions can bargain collectively on behalf of their members. How many of the above statements are correct? A) Only one B) Only two C) All three D) None Answer: C Explanation: Statement 1 is correct: The Industrial Disputes Act 1947 establishes industrial tribunals. These tribunals adjudicate workplace disputes and guarantee fair and just outcomes. Statement 2 is correct: The Minimum Wage Act 1948 authorises state governments to establish minimum wages for various employment categories. This guarantees that workers are fairly compensated for their efforts. Statement 3 is correct: The Trade Unions Act 1926 recognises trade unions' right to represent their members in collective bargaining and establishes a legal framework for their creation and operation.