Experts and companies are hailing the cabinet approval to the the model law allowing shops, malls and cinemas 24 hours seven days a week is cleared. They widely expect the move to create more jobs in the economy.

Here is a look at the impact the the Model Shops and Establishment (Regulation of Employment and Condition of Services) Bill 2016 will have on economy and companies:

1) Retailers have welcomed the decision, saying it will lead to a new level of retailing in the country. The move will also add ‘thousands’ of additional skilled jobs, besides providing flexibility and convenience to customers, they said. “This will definitely help in improving efficiency and a new level of retail can open up… I will call it the end of permission raj,” Govind Shrikhande, Shoppers Stop Managing Director and Customer Care Associate, has been quoted as saying in a PTI report.

2) For jobs, the move is seen as a major leg-up. Kumar Rajagopalan, CEO, Retailers Association of India, has told The Times of India that the staff count in the retail sector is likely to go up 50 percent to 60 million by 2020.

3) Claiming that achche din for retail are almost here, Anuj Puri of JLL said, "The retail sector accounts for about 15 percent of the country's GDP and this is expected to increase further with round-the-clock operations.  Already, the government had announced reforms to loosen restrictions on inbound investments in retail a few days ago. Single-brand retailers like Swedish furniture giant, IKEA, and smartphone manufacturer, Apple, stand to benefit."

4) The model law, which covers all establishments with 10 or more staff (no manufacturing units), will now have to be adopted by the state governments. Already Maharashtra and Andhra Pradesh have devised their own laws based on the draft model law. Anil Talreja, partner, Deloitte Haskins & Sells, sees other states too making required changes to their respective laws. "Now states have a guidance and they can follow. I don't see any problem there as it is a win-win for all," he said.


Source :- Firstpost