What Amendments Did the Maha Cabinet Approve for the Factories Act and Shops Act?
Click to start listening
Synopsis
In a strategic move to attract investment and boost job creation, the Maharashtra cabinet has approved significant amendments to the Factories Act and Shops and Establishments Act. These changes promise to reshape labor laws and enhance worker protections. Discover how these revisions will impact employment and industry in Maharashtra.
Key Takeaways
- Factories Act amendments increase daily working hours from 9 to 12.
- Wage protections enhanced to prevent unpaid overtime.
- Overtime work limit raised from 115 to 144 hours per quarter.
- Shops Act revisions increase daily hours from 9 to 10.
- Small establishments (<20 workers) exempt from registration.
Mumbai, Sep 3 (NationPress) The Maharashtra cabinet, led by Chief Minister Devendra Fadnavis, has officially sanctioned revisions to the Factories Act, 1948 and the Maharashtra Shops and Establishments Act, 2017 aimed at boosting investment and enhancing employment opportunities.
The modifications to the Factories Act were endorsed following the guidance of a task force established by the Central Government. These reforms are designed to attract investment and bolster job creation in the state. Other states such as Karnataka, Tamil Nadu, Telangana, Uttar Pradesh, and Tripura have already implemented similar changes.
“These revisions will allow industries to function without interruptions during peak demand or labor shortages. Workers will receive additional income with enhanced wage protections. By extending the legal overtime threshold, workers will be safeguarded against being compelled to work extra hours without compensation. The existing practice of mandating unpaid overtime will be curbed,” the government stated.
This initiative will encourage job creation and safeguard labor rights. Adopting working hour standards aligned with those of other states will aid in attracting fresh investments. By prolonging the overtime work duration, workers will also earn double their wage rate, the government added.
“The amendment to Section 65 of the Factories Act, 1948 will extend the daily working hours in factories from 9 hours to 12 hours. Changes to Section 55 have proposed an increase in the rest period in factories to 30 minutes after six hours of work instead of the current five hours and thirty minutes. Furthermore, the limit for overtime work will rise from 115 hours per quarter to 144 hours per quarter, with a strict requirement that written consent from workers is necessary for such overtime work,” the government statement detailed.
Additionally, the cabinet approved changes to the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017. These amendments will apply to establishments employing 20 or more workers.
As per these amendments, daily working hours will rise from 9 to 10, with corresponding adjustments to the rest period. The duty schedule for employees tasked with urgent work will be extended from 10.5 hours to 12 hours, and the period for overtime work will increase from 125 hours to 144 hours.
Establishments with fewer than 20 employees will no longer be mandated to acquire a registration certificate; instead, they only need to notify the government about the commencement of their business, according to the government statement.
Point of View
The recent amendments approved by the Maharashtra cabinet reflect a significant shift towards modernizing labor laws to enhance economic growth and employment opportunities. While these changes aim to foster investment and align with practices in other states, it is crucial to balance this with the rights and protections of workers to ensure sustainable development.
NationPress
03/09/2025
Frequently Asked Questions
What is the main purpose of the amendments?
The primary aim of the amendments is to attract investment and create more employment opportunities in Maharashtra.
How will the working hours change?
The daily working hours for factories will increase from 9 hours to 12 hours, while shops will see an increase from 9 to 10 hours.
What protections are being added for workers?
The amendments will enhance wage protections and curb unpaid overtime practices, ensuring that workers receive compensation for extra hours worked.
Are there any exemptions for small establishments?
Yes, establishments with fewer than 20 employees will not need to obtain a registration certificate but must notify the government of their business.
Which other states have made similar changes?
States like Karnataka, Tamil Nadu, Telangana, Uttar Pradesh, and Tripura have already implemented similar amendments to their labor laws.
