Termination Requirements Under New Shops And Establishments Act

These days, everyone is witnessing major reforms happening in Indian labour laws in order to strengthen the workforce community and to replace the archaic regulations which does not fit in the current regime. One of such reforms is the enactment of new Shops and Establishments Act ("S&E Act") on the lines of Model Shops and Establishments (Regulation of Employment and Conditions of Service) Bill, 2016 ("Model S&E Act"). There were three major reasons behind introducing this Model S&E Act; first, it modernizes existing legal provisions; second, it is intended to simplify business operations; and third, it is an effort to harmonize national legislation.

Significant reforms that have been introduced in the S&E Act for workers includes working hours, regulations related to women employment, limit on working overtime and appointing facilitators to enforce the provisions of the S&E Act. A substantial increase in penalties has been made under the new legislation to ensure