The Central Government introduced 'The Model Shops and Establishment (Regulation of Employment and Condition of Services) Act 2016 (hereinafter referred as The Model Bill) on 29th June 2016 which has been one of the key asks of the Retailers Association of India for the overall benefit and the growth of the Indian retail sector. The Model Bill is a progressive move by Shri Narendra Modi Government since it enables states to choose to keep shops and other such establishments open 24×7 all through the year. This would give a substantial boost to employment generation and will also benefit the consumers in terms of more convenience and accessibility.

RAI has been pursuing all the State Governments to adopt the Model Bill. The State Government of Maharashtra has already adopted the Model Bill and introduced the Maharashtra Shops and Establishment Act 2017.

We are pleased to inform you that the State Government of Gujarat has also amended the Gujarat Shops and Establishment Act and the amended bill will be presented in the upcoming assembly session.

The key reforms introduced in the new bill are:

1. Retailers having less than 10 employees will not be required to register under the Shops and Establishment Act. A simple letter informing the commencement date of the business, the address of the business, and the nature of business would be sufficient.
2. Retailers do not need to renew the shop license annually. The act proposes only one-time permission.
3. Shops and establishments can be kept open 24 x 7 subject to compliance of appropriate conditions.

We believe that move by the State Government with definitely enable 'Ease of Doing Business' in the State of Gujarat.