Key points of the Model Shops and Establishments Act, 2016

1. MODEL SHOPS AND
ESTABLISHMENTS ACT
In a Nutshell

2. SHOPS AND ESTABLISHMENTS ACT
 The objective of the Act is to regulate the working
conditions of employees
 Labour is a subject in the Concurrent List under the
Constitution of India
 Hence, every state has implemented different
provisions of the Act
 The Centre proposed the Model Shops and
Establishments Act in 2016
 States can adopt the Act as it is or make suitable
changes to it

3. INADEQUACIES IN THE EXISTING SHOPS AND
ESTABLISHMENTS ACT
 Rigidity in the opening and closing hours of
establishments
 Lack of incentives for women to work
 Complexities in registration and annual renewal
procedures
 Problems in the maintenance of statutory records
 Arbitrariness in statutory inspections

4. GOALS OF THE MODEL SHOPS AND
ESTABLISHMENTS ACT
 Equity & inclusivity
 Uniformity in the provisions of law for enforcement
 Inclusivity by providing social security benefits to all
covered employees
 Promoting Ease of Doing Business
 Creating more job opportunities
 Innovation
 Single window system, better transparency
 Public accountability
 Better enforcement improves accountability & transparency
 Better enforcement in turn improves accountability and
transparency