Maharashtra's New Permit Rules: How Will This Impact Labor Contractors and Traders?

Maharashtra Eases Permit Rules for Quick Processing

Maharashtra Chief Minister Devendra Fadnavis approved necessary changes in rules on Friday to enable applicants like labor contractors, traders, and industrialists to obtain necessary permits within three days.

"Now, those applying for permits under the Shops and Establishment license and permits to start factories will receive them within three days," an official release said.

Failure to grant permits within this period would be considered as "permit granted," the release stated.

Fadnavis has also decided to modify the Contract Labour (Regulation and Abolition) Rules, 1971, to allow a labor contractor to obtain a registration permit within three days of application, as mentioned in the release.

Previously, labor contractors used to receive such permissions for a one-year period, but according to the latest norms, they will now receive these permits for an indefinite period.

Do you think corruption in the Maharashtra Labour Department and Gumasta Department will be reduced as a result of this? Also, has online registration helped in reducing corruption in PF and ESI?

Thank you.

Whether the corruption levels will reduce is something none of us can tell. However, now businesses will have a valid approval/permit with immediate effect instead of being in suspended mode for months together. The next move should be to put these documents and their status online.

Benefits of the Online Portal

I think the move of the PF department to initiate the online portal is very good for common users who now know the status, their balances, etc. Set-off and reconciliation are also eliminated. Department officials can't pass orders where money is not received or mark a record with retrospective effect. So definitely, the scope for corruption has reduced. But there are still those who want to be out of line, and they will continue to pay.

It is a good move by the Maharashtra CM. This initiative will likely be adopted by other states and will definitely benefit labor contractors and industries.

Regards,
J L Trivedi
Ahmedabad

Please find attached draft notifications by the Maharashtra Government on amendments in:

1. Maharashtra Factory Rules
2. Maharashtra Contract Labour Rules
3. Maharashtra Shops & Estb. Rules

These notifications are inviting objections and suggestions from all within the stipulated period as mentioned therein. Upon the expiry of the stated period, the draft will be taken into consideration.

There is a significant increase in the license fee, registration fee, and security deposit under CLRA.

Regards