States are requested to waive the Shop -; Establishment Act for banks

19 Jul 2022 , 10:46 AM

All states have received a letter from the finance ministry asking them to exempt banks from the Shop and Establishment (S&E) Act’s application and requirements.

Following concerns from some banks regarding state governments’ attempts to impose certain requirements on the lenders with reference to their own labor laws, this has happened.

According to a government official, banks had also been instructed to address their issues via the state-level banking committee, or SLBC.
“The Indian Banks’ Association had agreed with some banks’ worries. In response, we raised the issue with the state governments, “Considering that banks are regulated organizations that adhere to Reserve Bank of India norms, he continued, most states are on board.

Each state has a Shop and Establishment Act that primarily governs the working conditions of those employed in retail and commercial establishments. This legislation covers pay, hours worked, leave, holidays, and other terms of employment.

Sunil Mehta, the chief executive of the IBA, acknowledged that the lenders association had alerted the government to this problem. “The administration has pledged complete support in a few states where there were some challenges,” he continued.

According to a different bank executive, private sector lenders are primarily affected by the problems. He said that they will also push through SLBCs to make sure that state governments respect the finance ministry directive. “State authorities used to strive to enforce timings and state regulations on contractual workers,” he said.

The daily and weekly working hours have been limited to 12 hours and 48 hours, respectively, under the new labor rules. The Code on Wages (2019), the Code on Industrial Relations (2020), the Code on Social Security (2020), and the Code on Occupational Safety, Health & Working Conditions (2020) are the four labor codes.