New Delhi: The clearance of the Model Shops and Establishments (Regulation of Employment and Conditions of Services) Act 2015 by the Union Cabinet that could make eating out and shopping 24/7 a reality soon, may also boost retail jobs.
According to a TOI report, hiring experts said that if the bill is adopted by states, it could lead to a 10 per cent growth in jobs across retail, IT and services sector.
Kumar Rajagopalan, CEO, Retailers Association of India, said that the total number of people employed by the retail industry might go up by 50 per cent to 6 cr by 2020, which is currently about 4 cr.
Also the bill would provide opportunities for women to join the Indian retail sector and improve the gender diversity which is currently at 20-23 per cent, way below than the global average of 50 per cent.
The act will also bring equality in legislative provisions, making it easier for all the states to adopt it and ensure uniform working conditions across the country.
Vikram Shroff, head-HR Law, Nishith Desai Associates, a legal and tax counselling firm said that different states will maintain uniform HR and leave policies, rather than being subjected to different provisions.
Also majority of IT companies who work with international customers beyond 8 pm or 9 pm or 24 hours will be benefitted with this move. IT companies have to take a special approval and permission on annual basis to work after of 8 pm/9 pm working hours which is not a business enabling term.
Retail industry has welcomed the decision by the government. Arun Chitnis, head of corporate communications, JLL India today welcomed Cabinet's move to clear Model Shops and Establishments (Regulation of Employment and Conditions of Services) Act 2015 and said that it will revolutionise India’s retail industry and improve ‘ease of doing business’.
"This will allow all public amusement establishments with at least 10 employees – such as restaurants, local markets, shopping malls and movie theatres - to operate 24x7, he said in a press statement.
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.
