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18 EL & 8 CL (2CL each qtr) and accumulation 45 days.
From India, Mumbai
Maharashtra Shops and Establishment Act, 2017.
The amendments to the Maharashtra Shops and Establishments (Regulation of
Employment and Conditions of Service) Rules, 2018 here (
The Maharashtra Shops and Establishments (Regulation of Employment and
Conditions of Service) Act, 2017
( came into
effect December 20, 2017. The 2017 Act replaces the Maharashtra Shops and
Establishment Act of 1948.
Previously, the federal government enacted the Model Shops and Establishments Act
in 2016 that revised the regulatory norms for operating commercial establishments in
India. Following this, several states initiated legislation to implement the new rules in
their respective state jurisdictions.
Maharashtra is the first state in India to draft the new Shops and Establishments law.
The law is applicable to all commercial establishments in the state, (not covered under
the Factories Act), which employ 10 or more workers.
Firms that employ more than 10
workers must obtain a license under the
Maharashtra Shops and Establishments
Act within 60 days after the new Act

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comes into effect (December 20) or once a firm’s current license expires.
The registration can be done online, and all records will be maintained
electronically. Further, the commercial entity can determine the validity period
of its registration, which cannot exceed 10 years. Firms which employ less than 10 works must still register under the Act but do not require a license.
Key changes to the 1948 Maharashtra Shops and Establishment Act
The Act introduces significant reforms for the employment conditions for workers in the
following areas:
Hours of operation – Certain businesses in Maharashtra may now stay open
24/7. This includes movie theaters, restaurants, financial institutions, medical
practices, and retail outlets. The Act excludes any establishment which sells alcohol or
cigarettes from remaining open passed existing deadlines.
Working hours for women – The Act allows female workers the ability to work work
passed 9:30pm so long as their employer provides safe transportation from the work
site to their residence.
Protection of women – The Act prohibits the discrimination of women workers in
matters of recruitment, training, promotion, and wages. Generally, women workers will
be required to work only between 7 a.m. and 9:30 p.m. In emergencies, women may
choose to work beyond these hours, provided the work space is safe and transport is
made available for her to commute back to her residence.
Over time – The working hours for employees will not exceed nine hours per day and
48 hours per week. Otherwise, the employer must pay employees double their regular
wages as over time.
Holidays and leave – The Act specifies that workers are eligible to eight casual
leaves (CLs), and can accumulate 45 days of paid leave during a year. The
establishment will declare eight days as paid festival holidays, including four national
holidays. The other four festival holidays may be mutually agreed between the
establishment and its workers.
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Welfare of workers – The law makes it mandatory for the establishment to ensure
adequate arrangements are made for the health and safety of workers
6014.html/). Cleanliness, hygiene, ventilation, and lighting also come under the
definition of safety of workers.
Specifically, the law mentions the following safety measures:
Provision of first-aid facilities in the place of work;
Provision and maintenance of sufficient and clean drinking water at suitable
points, conveniently situated for all persons employed in the establishment;
Provision of washroom facilities for men and women;
Establishments employing 50 or more workers must provide crèche facility for
the use of children of such workers; and
Establishments employing 100 or more workers must provide and maintain a
canteen for the use of its workers.
Compliance and flexibility under the 2017 Maharashtra
Shops and Establishments Act
The Act appoints facilitators to enforce its provisions. Facilitators will inspect the
premises of registered establishments, review documents, and advice establishments
towards complying with the norms. Any establishment that deviates from the standards
and norms specified under the Shops and Establishment Act will be liable to a fine of
Rs 100,000.
However, it is useful to note that by not regulating the working conditions in firms
engaging less than 10 workers, the Act provides significant compliance relief for
micro, small, and medium sized firms (MSMEs).
Finally, responding to concerns raised by business associations, the Maharashtra
state government has proposed different working hours for different categories of
establishments. Malls, restaurants, movie theatres, and other recreational centers are
likely to benefit the most from this move.
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From India, Bangalore
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