international employment law firm alliance L&E Global
India

India: The Government of Gujarat has enacted the new Gujarat Shops and Establishment Act, 2019 (“New S&E Act”), which has come into force from May 1, 2019

The key provisions and changes under the New S&E Act are as mentioned below:

  1. The New S&E Act is applicable to establishments employing 10 or more workers. Establishments employing less than 10 workers are required to intimate the facilitator (the authority appointed under the New S&E Act, in whose jurisdiction the business is located) with such information as may be required pertaining to the business of the establishment. The Old S&E Act was applicable uniformly to all establishments.
  2. The Old S&E Act was not applicable to employees occupying managerial position in an establishment. However, under the New S&E Act, no such exemption has been provided. Therefore, it seems like the provisions of the New S&E Act will also be applicable to employees occupying managerial positions in an establishment.
  3. The New S&E Act contains provisions against discrimination of women workers in relation to recruitment, transfer, training, promotion and wages. Further, provisions in relation to the safety of female workers have also been incorporated under the New S&E Act. As per the provisions of the New S&E Act, no female workers are required to or allowed to work in an establishment except between 6 am and 9 pm, unless the inspector (appointed under the New S&E Act) is satisfied that the establishment has adequate safety and transportation measures in place for its female workforce.
  4. The number of paid festival holidays has been increased from 4 days a year to 8 days a year.
  5. The quantum of penalty under the New S&E Act for certain violations have been significantly increased as compared to the Old S&E Act.