Oct 01, 2017

Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017

The Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 (‘2017 Act’), which received assent of the Governor of Maharashtra on September 7, 2017, will come into force and repeal the Maharashtra Shops & Establishments Act, 1948 with effect from such date appointed by the State Government by notification in the Official Gazette. Some of its key provisions are:i. It applies to establishments employing 10 or more workers. Establishments with less than 10 workers are only required to provide an intimation of commencement/closure of business.ii. The registration certificate granted under the 2017 Act would be valid for a period of up to 10 years.iii. The employer is required to notify the relevant authority within 30 days of closure of its business.iv. Overtime is payable where a worker is required to work beyond nine hours a day or 48 hours a week, subject to a maximum of 125 overtime hours in a period of three months.v. The 2017 Act prohibits discrimination against women in matters relating to recruitment, training, transfers, promotion or wages. Women workers may now be allowed to work between 9:30 PM to 7:30 AM, if they consent to the same and the employer provides adequate protection and transportation.vi. Every worker is entitled to eight days of casual leave with wages in a calendar year, to be credited to his/her account on a quarterly basis, but which will lapse if not availed by the end of the year. Workers who have worked for a period of at least three months are entitled to five days leave for every 60 days worked during the year and those who have worked for 240 days are entitled to 18 days paid leave during the subsequent year. Paid leaves of up to 45 days can be accumulated by workers.vii. Establishments with 50 or more workers are required to provide crèche facilities. Further, the State Government may require establishments with 100 or more workers to maintain canteen facilities. A group of establishments may provide a common crèche and canteen facilities, subject to prescribed conditions.viii. The penalties have been enhanced, with inter alia a maximum fine of Rs. 1 lakh (approx. US$ 1,500) and an additional fine of up to Rs. 2,000 (approx. US$ 30) per day for continuing contravention.

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