Risk Based Inspections, through Amendment in Shops and Establishments Ordinance, 1969

Reform Description  Inspections to be Conducted based on Level of Risk Involved and Compliance Record of a Business

Before: Labour departments used to inspect all businesses on frequent basis and businesses particularly those where no risk of safety and security is involved, often complain about unnecessary and frequent inspections

After: Now for compliant and low risk businesses, no. of inspections has been decreased. Un-necessary inspections are eliminated.

Sector  Retail
Beneficiaries All Businesses (Retailers)
Jurisdiction/Location  KP
Department  Directorate of Labour, Government of KP
Date of Implementation  28-06-2021 (KP)
Details Difficulty ●      Inspections of businesses by the labour department were conducted on uniform criteria without consideration to risk and compliance record. This meant that businesses with low and medium risk had the same no. of inspections as high-risk businesses.
Analysis ●      There was a need to introduce the risk based inspection system.
Solution  ●      For the purpose of inspection three classes; low risk and better past compliance record, medium risk and moderate past compliance record, and high risk and poor compliance record have been devised.

●      Businesses with “low risk and better compliance record” will not be unnecessarily bothered by the inspection inspector as there will be only one yearly inspection required.

●      Businesses with “medium risk and moderate past compliance record” there will be only two inspections in a year, not more than once in six months’ time.

●      Businesses with “high risk and poor compliance record” may be inspected as and when deem fit by the inspector.

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