Understanding the Shops & Establishment Act in Maharashtra: What Changes for Businesses with Fewer Than 10 Employees?

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Shops & Establishment Act in Maharashtra

The Shops & Establishment Act is applicable in Maharashtra only if the establishment employs 10 or more employees, as per the Maharashtra Shops and Establishment Act, 2017 - Amendment dated 07.09.2017. The Government of Maharashtra issued an Amendment Notification on 07.09.2017 covering the following major changes:

Registration Requirements

Shops & Establishment Registration is NOT required if the establishment employs less than 10 workers. In other words, Shop Act Registration is applicable only if the establishment employs 10 or more workers. This change provides significant relief for thousands of establishments previously covered under the act, even if they employed less than 10 workers.

Application Process for Establishments with 10 or More Workers

All establishments employing 10 or more workers must, within sixty days from the commencement of this Act or the date on which the establishment begins its business, submit an online application in a prescribed form for registration to the Facilitator of the local area concerned. This application should be accompanied by the required fees and self-declaration and self-certified documents.

Intimation Process for Establishments with Less than 10 Workers

For establishments employing less than 10 workers, within sixty days from the commencement of this Act or the date on which the establishment starts its business, the employer must give an intimation of having commenced the business to the Facilitator in whose jurisdiction the establishment is located. This is done by submitting an online application in a prescribed form, along with self-declaration and self-certified documents. The Facilitator will issue a receipt of intimation to the employer in the prescribed form and manner.

Impact of the Amendment

No Shop Act Registration or renewals are required if the establishment employs less than 10 employees; only an online intimation is necessary.
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The Shops and Establishment Act in Maharashtra mandates that establishments employing 10 or more workers are subject to registration, as per the Amendment dated 07.09.2017. Here are the key points to consider:

- Registration Requirement:
- Establishments with less than 10 workers are not required to register under the Shop Act.
- Registration is mandatory for establishments employing 10 or more workers.

- Application Process:
- Employers with 10 or more workers must submit an online application for registration within sixty days of the Act's commencement or the establishment's business initiation.
- Employers with less than 10 workers need to provide an online intimation to the Facilitator within the same timeframe.

- Procedure:
- For establishments with 10 or more workers, the application should include prescribed fees, self-declarations, and self-certified documents.
- Establishments with less than 10 workers need to submit a self-declaration and relevant documents for intimation.

- Impact:
- No registration or renewals are necessary for establishments with less than 10 employees.
- Only an online intimation is required for such establishments.

This amendment provides relief to small establishments and streamlines the registration process based on the number of employees, simplifying compliance with the Shops and Establishment Act in Maharashtra.
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