Context: Recently, the Uttar Pradesh Cabinet cleared a proposal to extend the scope of the UP Shops and Commercial Establishment Act, 1962, to cover any establishment employing 20 or more workers such as medical clinics, tax consultants, architects etc.
Proposed Amendments:
Boost to Business Activity: The government believes this will further accelerate business activity in the state.
Expansion of the Act to the Entire State: The Act has also been expanded from urban areas to the entire state, covering all districts and rural areas as well.
Inclusion of Additional Commercial Establishments: By expanding the scope of the Act, the government has also included medical facilities such as clinics, polyclinics and maternity homes, architects, tax consultants, technical consultants, service providers, service platforms, and other similar commercial establishments under the law.
Revised penalties: Violations will now attract penalties of Rs 2,000 for the first offence and up to Rs 10,000 for subsequent offences, compared to the previous Rs 100-Rs 500 range.
Updated Shift Timings: Key changes include revised timings for women’s night shifts, from the earlier 9 pm to 6 am, now updated to 7 pm to 6 am.
Enhanced Employee Rights and Safety: This will also provide employees working in these establishments the right to safe working conditions and benefits.
Employers must also provide appointment letters to all employees.
Additionally, before filing any legal case, an employer must now be issued a mandatory 15-day improvement notice, a provision that did not exist earlier.
Support for Smaller Establishments: This will allow smaller establishments to continue their economic activities without additional burden, whereas employees in larger establishments will receive all benefits under the Act.
