The Gujarat Shops & Establishments (Regulation of Employment and Conditions of Service) Act, 2019 (“2019 Act”) was published in the gazette of the State of Gujarat on Mar 7, 2019 and has been in force from May 1, 2019.
The revamped Gujarat Shops & Establishments (Regulation of Employment and Conditions of Service) Act, 2019 has brought about various reforms in the law applicable to shops and establishments in the State and stipulates additional compliances by employers.
The erstwhile statute, being the Gujarat Shops & Establishments Act,1948 (“1948 Act”) now stands repealed, however, various bye-laws, notifications, registrations, notices etc. under the 1948 Act shall be considered as if being under the 2019 Act so long as there is no inconsistency with the 2019 Act. The 2019 Act primarily applies to those shops and establishments which have 10 or more workers.
Below is a gist of compliances and new requirements that are mandatory for the owners of shops and establishments in the State of Gujarat-
Registration
The shops and establishments already validly registered under the 1948 Act are not require to register themselves afresh under the new Act until the expiry of the previous registration. Traders and businessmen having up to 9 workers are exempt from registration. Such employers are required to submit an online application along with self-certified documents within 60 days of commencement of business. As regards shops and establishments having 10 or more workers, an application for registration, self-declaration and self-certified documents must be submitted to the concerned Inspector along with prescribed fees within 60 days of commencement of business. Once registered under the 2019 Act, the shops/establishments shall remain validly registered until there is change in ownership or nature of business. This means the registration obtained shall not be required to be renewed.
Women workers
The 1948 Act restricted women workers from working between 6 a. m. to 7 p. m. While generally, the 2019 Act does not allow women to work between 9pm and 6am, it provides room for the Inspector to pass an order allowing women to work between 9pm and 6am provided certain conditions are met. Key among these conditions are the employer ensuring transportation from the shop/establishment to the residence after obtaining consent of the woman, an environment conducive to the dignity of the women workers and night crèches. Further, an employer will be required to provide for a child crèche should the shop employ 30 or more women. The Inspector may pass an order allowing a common crèche for the children of women workers employed in a group of shops operating within a radius of 1 km.
Maintenance of records
The records and registers may be maintained manually or in electronic format. The employer must provide hard copy of these records and registers to the Inspector as and when demanded. All these documents must be present within the premises of the shop.
Working hours
An establishment may work on all seven days of the week provided that every worker gets at least 24 consecutive hours of rest. This means that Gujarat has become the first State to have shops and establishments remaining open 24/7 in areas under the jurisdiction of municipal corporations. This means that shops and establishments have the option to operate at all times subject to conditions.
Identity card
Employer is duty-bound to provide to each worker an ID card bearing particulars as may be prescribed.
Overtime & payment
An employer shall permit a maximum over time of 125 hours over three months of work. Further, a worker working overtime, i.e., more than 9 hours per day or 48 hours per week shall be entitled extra wages at the double the rate of his ordinary wages. This extra pay in lieu of overtime stood at one and a half times of the ordinary wages in the 1948 Act.
Click here to see the Act.
