LUCKNOW: Imagine you are opening a small shop, a restaurant, a coaching centre or even a new office. One of the first things you are asked for is a business registration document. You need it to open a current bank account, apply for licences, prove that your business legally exists, comply with labour rules related to employees and much more. For decades, this registration has been done under the Shops and Commercial Establishments Act, popularly known as the Shop Act. The law governed several aspects of business operations like number of working hours of employees, weekly holidays taken by them, leaves policy, wages payment and other related service conditions. Under the existing shop law, businesses are generally required to register within 30 days of starting operations. Now, that is about to change in Uttar Pradesh.
The Yogi Adityanath government is preparing to replace the 60-year-old Shop Act with the Occupational Safety, Health and Working Conditions (OSH) Code, a labour reform law passed by Parliament in 2020, to replace the state’s decades-old Shop Act. It will create a single system for registrations and compliance. It is likely to affect lakhs of shopkeepers, traders, restaurants, hotels, offices and employees across Uttar Pradesh. Here’s everything you need to know in simple language.
What is the OSH Code?
The Occupational Safety, Health and Working Conditions (OSH) Code is part of the Centre’s labour law reforms aimed at simplifying India’s complex labour regulations. Instead of multiple laws and different compliance requirements, the OSH Code seeks to create a single, uniform framework for businesses and workers. According to the government, the code has significantly reduced legal complexities:
- Multiple labour laws have been merged into a single framework
- The number of sections and rules has been drastically reduced
- Businesses that earlier needed registrations from several departments can now work with a single registration system
- Multiple licences and returns have been replaced with fewer forms and a simplified compliance process
Why Is Uttar Pradesh Replacing the Shop Act?
The government’s view is straightforward i.e., fewer laws, less paperwork and easier compliance for businesses. The Yogi Adityanath government wants to bring the state’s labour laws in line with the Centre’s labour reforms. Officials are of the view that if there is a single framework instead of multiple overlapping laws, it will make it easier for businesses to operate and for the UP government to regulate them.
What Will Change Under the New Rules?
One of the biggest changes is related to registration requirements. Under the proposed system, commercial establishments employing 10 or more workers will be required to register under the OSH Code. They will have to comply with its provisions related to workplace safety and employee welfare. Businesses may also have to follow specific standards regarding:
- Workplace safety
- Health and hygiene conditions
- Employee welfare measures
- Working conditions and record maintenance
The idea is to create a uniform system where all establishments follow similar standards.
How Will It Affect Shop Owners and Businesses?
For many business owners, the major advantage will be the simplified compliance. Instead of dealing with multiple laws, forms and licences, businesses may eventually have to work under one streamlined framework. Ultimately, this will reduce the paperwork, save time and lower administrative costs. However, businesses with 10 or more employees may also have to meet additional safety and health standards, which could increase compliance responsibilities in some cases.
For workers, the OSH Code will strengthen the workplace safety and improve working conditions. The Yogi government says the new framework will ensure better protection of workers’ rights and create more uniform standards across different sectors. Employees may benefit from improved health and safety norms and clearer rules regarding working conditions.
For now, one thing is clear: if the OSH Code replaces the old Shop Act, lakhs of businesses and workers across Uttar Pradesh will have to adjust to a new regulatory framework that aims to balance business convenience with employee welfare.
