Has the Maharashtra Government Introduced a Bill to Amend the Shops and Establishments Act for Small Businesses?
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Synopsis
On December 8, the Maharashtra government took a significant step by presenting a bill designed to modify the Shops and Establishments Act. This initiative aims to ease the compliance burden on small businesses while ensuring the protection of workers' rights, fostering a more flexible operational environment.
Key Takeaways
- Mandatory registration for establishments with 20 or more workers.
- Maximum daily working hours set at 10 hours.
- Increased quarterly overtime limit to 144 hours.
- Increased safety measures for women in night shifts.
- Focus on reducing compliance burden for small businesses.
Nagpur, Dec 8 (NationPress) The Maharashtra state government introduced a bill on Monday aimed at modifying the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017. This amendment seeks to alleviate the compliance burden on small enterprises while ensuring robust protection for workers.
The proposed legislation mandates registration for establishments employing 20 or more workers, a change from the previous threshold of 10. For those with fewer than 20 workers, only a business intimation is required, eliminating the need for full registration.
Furthermore, the maximum daily working hours have been adjusted to 10 hours, including rest periods, with a cap of 48 hours per week, an increase from the previous limit of 9 hours per day.
The quarterly overtime cap has been raised from 125 hours to 144 hours, enabling businesses to assign overtime work more flexibly during peak periods.
This is anticipated to enhance workers' earning potential and formalize overtime practices, ensuring that all extra hours are accurately logged and compensated, thus preventing worker exploitation.
Importantly, overtime work will not be compulsory for employees. Additionally, the maximum daily work span has been extended to 12 hours from 10.5 hours, encompassing the total time from the start to the end of duty, including breaks.
For women working night shifts, safety and security measures have been bolstered in the subsequent Draft Rules. This includes mandatory pick-up and drop-off services, well-lit workspaces, a minimum of two female workers on duty, and CCTV surveillance.
The bill highlights Maharashtra's status as India's most economically vibrant state, home to a vast industrial and service sector employing a significant workforce. The state's initiative aims to ease compliance burdens for small businesses, fostering economic development while safeguarding workers' rights under various laws.
The proposed regulatory reforms are expected to enhance operational flexibility and lower compliance burdens, ultimately driving economic growth in the region, as stated in the bill.
"To align with the reforms in regulations and procedures regarding the Ease of Doing Business and Ease of Living, it is essential to alleviate the compliance burden on smaller establishments. It is also critical to allow operational flexibility in working hours without altering the fixed weekly limit of 48 hours," the bill noted.
Point of View
I believe this bill reflects a progressive approach towards enhancing the business environment in Maharashtra. By lowering compliance burdens for small businesses while ensuring worker protection, the state is taking a balanced path towards economic growth. This initiative, if implemented effectively, could serve as a model for other states, aligning with national goals of improving the ease of doing business.
NationPress
10/12/2025
Frequently Asked Questions
What changes does the bill propose regarding worker registration?
The bill proposes mandatory registration for establishments with 20 or more workers, raising the previous requirement of 10. Establishments with fewer than 20 workers will only need to submit a business intimation.
How do the working hours change under the new bill?
The maximum daily working hours will now be 10 hours, with a weekly cap of 48 hours. Additionally, the maximum daily spread over has been extended to 12 hours.
What safety measures are in place for women working night shifts?
The new regulations include mandatory pick-up/drop-off services, well-lit workplaces, a minimum of two women workers on duty, and CCTV surveillance to enhance safety.
