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Wednesday, 20 December 2017

Revised Maharashtra Shops and Esablishments Act Comes Into Effect

When the proposed Shops and Establishments Act for the state of Maharashtra vide a bill earlier this year, it created an instant buzz. The changes proposed through this revised Act have been significant in terms of both implication and impact. However, the last three months have only prompted speculation and discussion. Even with the framework in place, the Act was complete and widely circulated, but yet to be passed. In its latest move, the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 finally sees the light of day as it comes into effect from 19th December, 2017.

Here is a summary of all that the Act conveys:

Act and Applicability

-          The Maharashtra Shops & Establishments Act is replaced with the new Act

-          It applies to all establishments other than factories

-          Provisions that are similar to those in the Factories Act have been incorporated into the Act

-          Rules shall be framed under the Act by the Government

-          Government to appoint Chief Facilitator under the Act


-          Establishments are to apply for online registration. Labour Identification Number (LIN) will be provided to each

-          Intimation needs to be given to chief facilitators online, for all establishments employing less than 10 members. Relevant documents must be uploaded, following which intimation receipt will be received from concerned authorities

-          Maximum years of renewal is now 10 years

-          Annual returns to be filed by all establishments

Salient Features

-          Identity card to be given to all workers

-          Hours of work, overtime, compensatory off, etc. shall all be taken into consideration

-          Leave rules shall include accumulation and encashment of leave, eight paid festival holidays, 8 days casual leave

-          Woman worker can work from 9.30pm to 7am with her consent, and provided employers maintain her dignity, honour, protection from sexual harassment at the premises and until her doorstep

-          Health and safety provisions for workers

An official cop of the Gazetted Notification is available for view at

The notification declaring date of effect of the Act can be found at