The Legal Metrology department, Ministry of Consumer Affairs has issued the following notifications in regard to Packaged Commodities and disposing of old inventory -
The central Government introduced 'The Model Shops and Establishment (Regulation of Employment and Condition of Services) Act 2015' which has been cleared by the cabinet today.
The Model Act seeks to allow shops, malls and other retail establishments to operate throughout the year with flexibility to open and close at their convenience. In addition, the Model Act provides for women to be employed in night shifts with adequate security. The Model Act calls for better working conditions for workers which include facilities such as drinking water, canteen, first aid, lavatory and creche.
The objective of the Act is to bring uniformity in the legislative provisions related to shops and establishments across the country. It seeks to ensure uniform working conditions across the country. States may consider enforcing the Act either by adopting the central law or making necessary modification in the existing state laws.
RAI welcomes the initiative taken by the Central Government and is committed to working with the state governments to ensure hassle-free adoption.
“The move is likely to prove highly beneficial for restaurants, retailers,malls, movie theatres and other entertainment entities will also help bring incremental tax income into the government’s kitty and generate employment. It’s a win-win situation for all the parties involved - companies, employees, government and consumers," said RAI CEO Kumar Rajagopalan. The Model Act also allows women to work late hours, leading to increase in employment of women in retail in the country. IT sector in India has benefitted, thanks to women being able to work in the industry without gender based discrimination.
While he lauded the government for the initiative, he felt that this is merely one of the steps for facilitating ease of doing business as Shops and Establishments Act covers only certain aspects of retail. The need is to look at retail as a driver for the nation’s economy and address all aspects through a comprehensive national retail trade policy. “Three states in the country have already done quite a bit on this front — Karnataka, Maharashtra and Andhra Pradesh have announced retail policies for their respective states that address aspects over and above labour laws such as skill development and development of retail and entertainment zones. However, the move from the central government is a great step towards getting the state governments to start thinking retail, start thinking employment and start thinking customer efficiencies,†he concluded.
A copy of the Model Act can be downloaded here
Addendum
Labour, being a concurrent subject, the State Government are required to adapt the model Act or required to carry out the changes in the existing Shops Acts.
The following are the major differences from the earlier Acts.
1. The definition of shop is elaborated. As per new definition, "warehouse or work house or work place for distribution of or packaging or repackaging or finished goods is carried on"
This will helps retailers who are using distribution centers (DC). Currently, in some places, retailers are compelled to take factory license as the activity of cold storage and repacking comes under
the definition of Factories Act.
2. Earlier, the maximum allowed overtime allowed was 120 hours per year. It is now proposed to increase it to 120 hours per quarter (3 months) with increase in wages too.
3. Establishments that employ 30 or more women, have to provide a creche. Group companies can together put a common creche. This is borrowed from Factories Act.
4. Records can now be maintained in electronic form.
5. Web-based inspection is now allowed. AP and Telangana have already implemented this.
Retailers Association of India (RAI) has been working with Government of Karnataka (GoK) to create a retail policy for the state. RAI is pleased to inform you that the GoK announced the Karnataka Retail Trade Policy on 13 June 2016.
This is the first time that the state of Karnataka has announced a policy facilitating retail trade in the state.
The policy allows relaxation of rules under the Shops and Establishments Act with respect to working hours, work shifts and employment of part-time workers. The policy also allows the retail sector to operate 365 days a year with extended working hours from 5 am to 11 pm. Furthermore, the policy also relaxes working hours for women and permits maintenance of various records in an electronic format.
The policy will be valid for five years from the date of notification and aims to enhance ease of doing business in the state.
RAI believes that the announcement of the policy will take retail trade in the state of Karnataka to a new high.
A copy of the policy can be downloaded here.
Retailers Association of India is pleased to inform you that the Government of Telangana has renewed the notification exempting retail establishments in the state from weekly closure as mandated by the Shops and Establishments Act provided they comply with the statutory requirements laid down by the government in the notification.
The renewed notification is valid for a further period of three years starting from 16.06.2016.
Please click here to view the notification.
RAI had earlier represented the issue to the State Government. Acting on the representation, the Government issued a notification to that effect for a period of one year, which expired on 15.06.16. RAI then requested the State Government to renew the same.
RAI, on behalf of the entire retail fraternity, thanks the progressive State Government of Telangana for considering its submission.
Retailers Association of India is pleased to inform that the Government of Andhra Pradesh has issued a notification exempting retail establishments in the state from weekly closure as mandated by the Shops and Establishments Act. Please click here to view the notification.
This means that brick-and-mortar retail establishments in the state can now keep their stores open 365 days a year, provided they comply with the statutory requirements laid down by the government in the notification.
The notification also includes -
1. Extended working hours for Store from 06:00 AM to 11:00 PM
2. Employment of Part time workers
3. Permission to employ women in all shifts
4. Maintenance of employee related records in electronic format
The Ministry of Agriculture and Farmers Welfare issued the latest amendments in the in the Insecticide rules 1971. As per the latest amendment, issued by the Department of Agriculture and Co-operation, ‘A person who applies for grant for license to sell, stock, or exhibit for sale or distribute insecticides shall possess or shall employ a person possessing a graduate degree in Agriculture Sciences, or Biochemistry, or biotechnology or Life science or in science with Chemistry or Botany or Zoology as a minimum qualification.’
Subsequently RAI submitted a representation to Hon’ble Joint Secretary, Ministry of Agriculture and Farmer Welfare to exempt retailers from this mandatory requirement. The new amendment poses certain impediments to the retail industry which can be addressed without increasing the risk exposure. Most retail outlets are engaged in the sale of “household insecticides†which pose considerably less risk to life as compared to other industrial or commercial insecticides which indeed need to be regulated more strictly.
Please find the representation here.
Retailers Association of India (RAI) brought together retailers from across the country on a common platform to welcome the new guidelines stated in the DIPP Press Note 3 issued on March 29 which define the emerging new channels. “The note is testimony to the fact that the government wants to ensure a level playing field for all channels.
Retailers Association of India (RAI) brought together retailers from across the country on a common platform to welcome the new guidelines stated in the DIPP Press Note 3 issued on March 29 which define the emerging new channels. “The note is testimony to the fact that the government wants to ensure a level playing field for all channels. RAI would like to applaud the government for taking a stand on the same. The move received much appreciation from all members of RAI,†said Kumar Rajagopalan, CEO, RAI.
Retailers appreciated the clarification on several important aspects of FDI in e-commerce considering that many e-commerce players in the country have been accessing FDI funds while behaving like quasi retailers. The new guidelines seek to set this right this by clearly defining what construes an e-commerce entity following a marketplace-based model and what it can and cannot do if it seeks FDI through the automatic route.
Retailers were unanimous in their belief that this clarification can create a level playing field only if the government puts its enforcement machinery into action. They believe that it’s high time the e-commerce entities securing international funds and international e-commerce retailers adhered to the laws of the land.
Retailers were positive that, if enforced, the policy will in fact foster a new environment of collaboration between retailers and marketplaces that would ensure customer convenience and delight.
“The clarification has ensured that marketplaces, if run in the right spirit, could complement retailers by acting like malls online. Retailers would be happy to collaborate with them in the same way as they have collaborated with malls so far,†said Rajagopalan.
Enforcement will also encourage a good startup ecosystem in technology as well as retail brand spaces in line with ‘Startup India’ programme of the Honourable Prime Minister of India.
To ensure enforcement of the new DIPP guidelines on FDI in e-commerce, retailers have also submitted a collective note to DIPP. In their submission, retailers have suggested further clarifications to the clauses in the policy that will help prevent its contravention.
Note: A copy of the RAI submission to DIPP is enclosed.
Click here to Download Photos. Download Press Release, click here.
The Department of Industrial Policy and Promotion (DIPP) has issued a notification clarifying FDI guidelines with regards to E-commerce in India.
The Note contains definitions of E-commerce, E-commerce entity, Inventory-based model E-commerce, Marketplace based model of E-commerce and specifies what the marketplaces are allowed to do with regards to FDI. To view the Notification, click here.
Retailers Association of India has been representing to various state governments in regard to the 365 days store opening permission. After various meetings with the officials of the state governments, the government of Maharashtra and Tamil Nadu has issued notifications with respect to permission for keeping the retail stores open 365 days a year.
Please find the Maharashtra notification attached here.
Please find the Tamil Nadu notification attached here.
Retailers Association of India (RAI) has been working with Government of Maharashtra to create a retail policy for the state. On representation by RAI, the Government of Maharashtra unveiled Maharashtra Retail Trade Policy. This is the maiden retail trade policy for the state.
The policy was announced by Honorable Chief Minister of Maharashtra, Shri Devendra Fadnavis on 15th February 2016 in Mumbai during Maharashtra Investment Seminar (Make in India Week). Hon Industries Minister of Maharashtra – Shri Subhash Desai, Hon Chief Secretary of Maharashtra – Shri Swadhin Kshatriya, Hon Principal Secretary of Industries, Maharashtra – Shri Apurva Chandra and Hon Development Commissioner of Industries, Maharashtra – Shri Surendrakumar Bagde were among the government dignitaries present during the launch of the policy.
Shri Fadnavis handed over the policy to Retailers Association of India in the presence of eminent RAI members - Shri B S Nagesh and Shri Kumar Rajagopalan of Retailers Association of India, Shri Jamshed Daboo of Trent Hypermarket, Shri Krish Iyer of Walmart India and Shri C P Toshniwal of Futuregroup. The policy will be valid for five years from the date of notification and aims to revolutionise ease of doing business in the state, encouraging retailers to invest in the state.
All retailers have welcomed the policy, acknowledging it as a memorable occasion for entire retail industry and a great initiative undertaken by the Maharashtra State Government to provide retail with an industry status.
To download Retail Trade Policy, Click here
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