Maharashtra Shops and Establishment Act, 2017

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Note: We explain 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 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.

Welfare of workers – The law makes it mandatory for the establishment to ensure adequate arrangements are made for the health and safety of workers. 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 US$1,535 (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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22 thoughts on “Maharashtra Shops and Establishment Act, 2017

    Vikas Khurana says:

    Basis the review of the notification dated September 7, 2017, i understand that it will come into force on the date of publication in the official gazette and it has not been published in official gazette yet. please clarify?

    Thank you for your query. The information has been corrected: the Act will come into force upon date published in the Official Gazette.

    goutam dnanoba sasane says:

    please confirm small shop without any worker shop act licence is necessary or not

    Hello Goutam, Small shops which employ less than ten employees must still register with the Maharashtra government but do not require a licence. Thank you for contacting India Briefing.

    Prakash Punjabi says:

    Pl let me know on which site we have to register, As I have one employee.And after registration do I Have to take a hard copy for Record’s.

    M Fernandes says:

    for less then 10 employees if any changes in the numbers for eg from 7 to 6 or 6 to 7 do we need to inform the department of the changes

    Parth says:

    I already have a shop act license with 10 workers and this shop act was taken out in the month April 2017, before this act was proposed. Do i need to get a seperate license to run my cafe(no liquor) for 24 hrs or can i run my place directly without any permission from the government authorities.

    Moeez Khan says:

    Hello,

    Can anyone please help with where to register for employees less than 10 , since site aaplesarkar is not working , All my work is stucked and banks too not accepting without Gumasta

    @Moeez. Have you tried registering through Maharashtra’s Labor Department? Try: https://lms.mahaonline.gov.in/ Thanks.

    @M Fernandes. Employers must apply for a license under the Maharashtra Shops and Establishment Act only when they employee 10 or more employees. However, businesses with under 10 employees must still register under the Act.

    @Parth. You require a licence under the Act for each individual business you run. If the cafe has been incorporated as a separate business you will require an additional license. Thank you for writing to India Briefing.

    @Prakash. Thank you for writnig to India Briefing. You need to register with the Maharashtra government’s Labour Department’s Licence Management System. The portal can be found here: https://lms.mahaonline.gov.in/

    shweta says:

    Are there any amendments with respect to employee identity card?

    Bradley Dunseith says:

    @Shweta. Thank you for reaching out to India Briefing. As per the new Maharashtra Shops and Establishment Act, employers must provide each employee with an identity card which includes the following:
    (a) the name of the employer ;
    (b) the name, if any, and the postal address, of the establishment;
    (c) the name and age of the worker;
    (d) date of joining, department, nature of work, designation;
    (e) the signature (with date) of the employer or manager;
    (f) Blood Group;
    (g) Aadhaar Card Number.

    SHANKAR D ATTARKAR says:

    Dear Madam,
    we have already registered our firm and obtained Gumasta Lincence from BMC..Which date has been expired in June 2018..Do we need to renew the Gumasta Lincence? Our firm has only 4 employees…

    Jaikishan Sachdev says:

    Hi. I have a query. I am running back and spine clinic at all India level. people who do consultation and treat are physiotherapist. I want to know if add Spine Surgeon to my team who would also do consultation. would i require additional license?

    @jaikishansachdev: No additional license is required but the clinic should maintain a record of the employment of its staff, including letters of employment issued and hours of work as well as the registration certificates of doctors/surgeons/consultants/nurses/pharmacists with the State Medical Councils. For more information, please reach out to our services team in India, https://www.dezshira.com/office/india.

    @shankar: Gumasta license is required for establishments with 10 and more employees, and employers have to apply for their Renewal of Registration Certificate within 15 days of expiry of the existing Registration Certificate.

    Hoshang says:

    Can anyone help me with in depth of how many leaves an organisation has to give to it’s employees with valid Laws and the bifurcation of the leaves too.

    DHAVAL SHAH says:

    CAN WE APPLY FOR MULTIPLE SHOP AND ESTABLISHMENT CERTIFICATES ON A SINGLE ADDRESS? WE HAVE THREE PROPRIETOR COMPANIES OPERATING FROM ONE ADDRESS.

    Hi Dhaval Shah. Thank you for your query. Yes, you can apply for the respective licenses. However, this is a situation where you need to gain clarity from the inspector responsible for the area. For guidance and assistance, please contact us at: https://www.dezshira.com/office/india

    Hi Hoshang. Thank you for your query.
    Employees in India are entitled to a certain number of leaves per year aside from national holidays and weekly days off. The number and type of leave (casual/sick/privileged) depends on the industry, employer, and state (Factories Act and states’ Shops and Establishment Act). Generally, a minimum of seven days casual leave and 14 days sick leave is provided to regular employees without loss of pay. For assistance, please contact our service team at: https://www.dezshira.com/office/india

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