Shops, restaurants could stay open all night with a new proposed rule

In a development that could be beneficial for many businesses in the country, the government is all set to start a discussion which, if concluded well, could allow malls, restaurants, theatres and local markets to remain open all the time.

As per ET sources, the labour ministry will be holding the first round of three-party consultations with trade unions, employers and state representatives on Tuesday. These parties would be asked for their views about the proposed draft of Shop and Establishment Act.

"This will be a model central Act, which will be advisory in nature, not binding on states. After collating the views of all stakeholders, the draft will be finalised and moved for Cabinet approval," said an undisclosed source.

As of now, shops are required to remain shut on a specified day, and at specific times in the days. This is why we see malls and restaurants closing at midnight, with local markets taking their shutters down even earlier and being closed one day in the week.

The new law would be favourable for the brick and mortar showrooms that face tough competition from the round-the-clock functioning of the rapidly increasing e-commerce industry in the country