Maharashtra Shops and Establishments Act, 2017
Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017
The Government of
Maharashtra, vide notification dated 7th September 2017 has notified
the Maharashtra
Shops and Establishments (Regulation of Employment and Conditions of Service)
Act, 2017.
Maharashtra, vide notification dated 7th September 2017 has notified
the Maharashtra
Shops and Establishments (Regulation of Employment and Conditions of Service)
Act, 2017.
Key Highlights:
- Definition
of “Establishment”: Under the Act of 2017 “establishment”
u/s 2(4) continues to include: “society
registered under the Societies Registration Act, 1860, and a charitable or other trust, whether
registered or not, which carries on, whether for purposes of gain or not”. - Applicability:
However, as a welcome change, the regulation of conditions of service and
employment under the 2017 Act does not
apply to establishments employing less than ten workers. This is in
contrast with the 1948 Act which applies to all establishments irrespective of
the number of workers employed. Thus, this amendment comes as a significant
compliance relief to smaller entities. - Online
Application: To register an establishment, the employer
shall now submit an online application within sixty days from commencement of
the 2017 Act or commencement of business. Upon acceptance of the application
and verification, a ‘Labour Identification Number’ (LIN) will be issued by the
Facilitator. The 1948 Act does not provide for an online system of
registration. Also, 1948 Act mandates registration within thirty days from
commencement of business. - ‘Facilitators’:
The 2017 Act provides for appointment of ‘Facilitators’, instead of ‘Inspectors’
to enforce the provisions of the 2017 Act. In addition to the duties of the
Inspectors, the Facilitators shall also advice the employers and workers for
complying with the provisions of the 2017 Act. In addition to powers of search
and seizure, ‘facilitators’ will also be responsible for advising workers and
employers for better compliance. - Validity:
The validity of registration certificate granted by the Facilitator under 2017
Act shall be for a period requested by the applicant, for a maximum of ten
years. Further, the time period for submitting an online application for
renewal of the certificate is not less than thirty days. Validity period of the
certificate under the 1948 Act is between one to three years, with a prescribed
period of fifteen days for making an application for renewal. - Cancellation:
A new provision providing for cancellation of registration has been introduced.
Registration obtained through misrepresentation or suppression of material
facts or by submitting false or forged documents or false declaration or by
fraud, gives ground to the Facilitator to cancel registration of the
establishment. The employer shall notify the Facilitator within thirty days of
closure of business, as opposed to ten days prescribed under 1948 Act. - Opening
& Closing Hours: The 2017 Act provides that opening
and closing hours of different classes of establishments, different premises,
shopping complex or malls, will be prescribed by the State Government by
notifying separate rules. This is opposed to the 1948 Act, which provides a
uniform opening time, unless prescribed otherwise, for all establishments. Taking
cue from market demand, the Government is expected to come up with separate
opening and closing hours for different classes of establishments such as malls
and shopping complexes. Though a specific prohibition on discrimination with
women workers has been introduced, an option has been provided to extend their
working hours with their consent. This reflects a great degree of flexibility
being introduced in the functioning of shops and establishments in the State of
Maharashtra. Accordingly, a new provision prohibiting discrimination against
women workers, and separately regulating their conditions of work has been
introduced. The provision prohibits discrimination of women in matters of
recruitment, training, transfers or promotion or wages. Further, it provides
that woman workers shall not be allowed to work except between 7:00 am and 9:30
pm. However, women workers may be allowed to work beyond these hours, if they
consent and the employer ensures adequate facilities to provide them with
adequate security. The 1948 Act only provides that women shall not be allowed
to work beyond 9:30 pm, though certain industry exceptions were made by the
Government in the Schedule to the 1948 Act. - Leave:
The provisions on leave have been streamlined by providing casual leaves and
earned leaves to workers. Further, the welfare provisions have also been
widened, with a specific duty created on the employer to provide adequate
health and safety measures. The 2017 Act has thus incorporated provisions to
improve the conditions of service for the workers. Accordingly, a new provision
has been introduced, which entitles every worker to eight days of casual leave
in a year. The workers can accumulate earned leave up to a maximum of forty-five
days. Further, every worker who has worked for a period of two hundred and
forty days or more shall be allowed paid leave for a number of days calculated
at the rate of one day for every twenty days of work performed during the
previous year. - Electronic
records: Registers can now be maintained
electronically as well, by the employers. - Health
& Safety: The 2017 Act creates a specific
obligation on every employer to take measures relating to the health and safety
of the workers, including prevention of accidents. As opposed to the 1948 Act,
these measures have been broadened further, and include cleanliness, lighting,
ventilation and prevention of fire, first aid, canteen, creche facilities, etc. - Penalties:
The 2017 Act provides for enhanced penalties for violation to a maximum fine of
INR 100,000 and in the case of a continuing contravention, with an additional
fine which may extend to INR 2,000 every day. This is in stark contrast to the
1948 Act, which provides for a minimum fine of INR 1,000 and a maximum fine of
INR 5,000 for violations.
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