Top 10 things you must know about the Maharashtra Shops and Establishment Act, 2017

The Maharashtra Shops and Establishments

(Regulation of Employment and Conditions of Service) Act, 2017

(“Maharashtra Shops Act”)

 

  • Effective from December 19, 2017
  • Applicable to the Shops or Establishments in the State of Maharashtra, India.
  • Repeals Maharashtra Shops and Establishments Act, 1948 (“Previous Act”).

 

Top Ten Provisions

 

  1. Applicability to the Shops or Establishments:

 

  • Applicable to the Shops or Establishments where 10 or more workers are employed.

Upon registration, the Shop/ Establishment will receive a registration certificate online along with the Labour Identification Number (LIN).

 

  • For the Shops or Establishments, where less than 10 workers are employed, the Employer has to submit online intimation to the Facilitator – an officer appointed by the State Government and no other provisions applicable.

 

  1. Scope of ‘Establishment’ widened and not limited to ‘Commercial’ purpose only:

 

Unlike the definition provided under the Previous Act, the definition of Establishment now covers,

  • establishment of any medical practitioner (including hospital, dispensary, clinic, polyclinic, maternity home and such others;
  • offices of architect, engineer, accountant, tax consultant or any other technical or professional consultant;
  • private tuitions;
  • shop, residential hotel, restaurant, eating house, theatre or other place of public amusement or entertainment etc.;
  • a society registered under the Societies Registration Act, 1860, and a charitable or other trust which carries on, whether for purposes of gain or not, any business, trade or profession or work in connection with or incidental or ancillary thereto; and
  • establishment which carries on, any business, trade, manufacture or any journalistic or printing work, or business of banking, insurance, stocks and shares, brokerage or produce exchange or profession (collectively, “Core Scope”) or any work in connection with, or incidental or ancillary to, the Core Scope.

 

  1. Exempted Establishments:

 

The Maharashtra Shops Act does not apply to,

  • Establishments of the Central and State Government;
  • Establishments of Local Authorities;
  • Establishment of Mumbai Port Trust;
  • Establishment of Railway Administration;
  • Offices of Reserve Bank of India;
  • Offices of the Trade Commissioner and of Consular officers and other Diplomatic representatives of Foreign Government;
  • Offices of Air Service Companies;
  • Establishments used for treatment or care of infirm, destitute or mentally unfit;
  • Establishments pertaining to any kind of educational activities which are,
    • affiliated to any university established by law, or
    • recognised by the Divisional Boards under the Maharashtra Secondary and Higher Secondary Education Boards Act, 1965, or
    • recognised by the Directorate of Education or the Directorate of Technical Education as a private secondary or technical high school, Industrial Training Institute (I.T.I.), Polytechnic, Engineering Colleges or other technical institutions conducting courses recognised by Government); and
  • High Court Law Libraries and other Courts Law Libraries.

 

  1. Exempted Workers:

 

The Maharashtra Shops Act does not apply to,

  • Worker occupying position of confidential, managerial or supervisory character in an establishment;
  • Worker whose work is inherently intermittent; and
  • Member of the family of the Employer.

 

  1. Business open on 24X7 basis:

 

Earlier: - Shop/ Establishment to remain closed for 1 day in a week

Now: - Shop/ Establishment may be kept open for business on all days in a week, subject to the condition that every worker shall be allowed weekly holiday of at least 24 consecutive hours of rest.

 

  1. Changes in working hours:

 

Particulars

Under Maharashtra Shops Act

Under the Pervious Act

Working Hours

Maximum 9 hours per day

Maximum 48 hours per week

Maximum 9 hours per day

Maximum 48 hours per week

Relaxation Break during the work

Minimum half an hour for every 5 hours working

Minimum an hour for every 5 hours working

Limit on overtime

Maximum 125 hours in a period of 3 months

Maximum 6 hours in a week

 

  1. Leave and Accumulation of leave:

 

  • Introduction of Casual Leave:

8 days of paid casual leave per calendar year to be credited on quarterly basis, which will lapse if not availed by December 31st every year.

 

  • Revision in Earned Leave:

Every worker who has worked for a minimum period of 240 days in a calendar year will be allowed a paid leave with wages at the rate of 1 day for every 20 days of work performed.

 

  • Accumulation of Earned Leave:

Up to a maximum of 45 days as against 42 days under the Previous Act. Further, the worker is allowed to encash leave in excess of 45 days, if the Employer refuses to sanction the leave.

 

 

 

 

  1. Paid Festival Holidays:

 

8 paid festival holidays in a calendar year, including the compulsory holidays on 26th January, 1st May, 15th August, 2nd October.

 

  1. Welfare Measures:

 

  • Welfare measures such as first aid, canteen, drinking water, latrines and urinals, crèche facility have been introduced.

 

  • Establishments employing 100 or more workers are required to provide and maintain a canteen for the use of its workers.

 

  • Every establishment employing 50 or more workers shall provide and maintain a crèche within the same establishment or within a radius of 1 kilometre of the establishment. (Female workers to be allowed 4 visits to the crèche in a day – Requirements under the Maternity Benefit (Amendment) Act, 2017).

 

  1. Chief Facilitator and Facilitator:

 

Maharashtra Shops Act introduces the appointment of a ‘Chief Facilitator’ and a ‘Facilitator’ instead of an inspector as under the Previous Act.

 

Status Update Note:

 

  • The rules corresponding to the provisions of the Maharashtra Shops Act (related to application form, etc.) are not yet available in public domain.

 

  • Updating the official portal of the Government of Maharashtra to enable online application for registration or intimation of Shops/ Establishments to the Facilitator is in process.

 

  • Further notification from the Government of Maharashtra in this regard is expected in the near future.

 

  • Once above details are available, the Shops/ Establishments to whom this Note is relevant (Please refer Serial Nos. 1 to 3 of the Note), have to submit online application or intimation on or before February 17, 2018 – unless the timeline of sixty days is extended by the Government of Maharashtra.

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