The Government of Maharashtra has notified the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 on September 7, 2017 ("Notified Act") which provides for the regulation of conditions of employment and other conditions of service of workers employed in shops, residential hotels, restaurants, eating houses, theatres, other places of public amusement or entertainment and other establishments and for matters connected therewith.
The Notified Act shall repeal the Maharashtra Shops and Establishments Act, 1948 ("Previous Act"), which currently regulates the service conditions of all employees including the hours of work, payment of wages, overtime, leave, holidays and other conditions of service.
From an implementation perspective, the provisions of the Notified Act will come into force on such date as the state government may, by notification in the official gazette, appoint.
The Notified Act seems to be on the lines of the Model Shops and Establishment (Regulation of Employment and Conditions of Service) Bill, 2016 ("Model Bill") approved by the Central government. The Model Bill had been sent to States/UTs to enable them to amend their existing shops and establishment legislations in accordance with the provisions of the Model Bill.
Briefly, the Notified Act extends the applicability of majority of the provisions of the act only on establishments employing 10 or more workers. It provides freedom to operate 365 days in a year provided workers are given a weekly off and certain other provisions are complied with. It further provides that different opening and closing hours would be prescribed for different categories of establishments, thereby recognising the requirement of flexibility in operational hours depending on the industry needs. The Notified Act also amends the provisions relating to overtime requirements, permissible leave accumulations etc. Accordingly, establishments will have to modify their existing employee handbook or policies to align it with the provisions of the Notified Act. From a compliance point of view, the Notified Act introduces the requirement of filing an annual return and providing crèche facility.
As a pro employer measure the Notified Act increases the timelines for applying for registration, increases the period of validity of registration from a maximum of 3(three) to 10 (ten) years, permits maintaining registers electronically and introduces the appointment of Facilitators instead of inspectors who shall not only oversee enforcement, but also advise employers on ensuring compliances with the provisions of the Notified Act.
The employers should also take note that the Notified Act provides for enhanced penalties and stringent punishments for its contravention.
With this new law, the State Government of Maharashtra has taken a remarkable step in the arena of labour law reforms, which is likely to have a positive impact on both the employer and employees across industries.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
