Maharashtra Govt. notifies Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) (Amendment) Ordinance, 2025

The Government of Maharashtra has notified the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service)(Amendment) Ordinance, 2025 (“Ordinance”) to amend the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 (“Principal Act”). This Ordinance is effective immediately.

Key Highlights:

1. Increase in threshold limit of 10 or more employees to 20 or more employees in any establishment for registration and other regulatory provisions of the Act-
   1. The employee threshold for applicability of the provisions of the Act except Section 7 (Intimation of commencing business by an establishment) has been increased to 20 workers instead of 10 workers. Now the provisions of the Act except Section 7 will apply to establishments employing 20 or more workers.
   2. The employee threshold for applicability of the provisions of Section 7 (Intimation of commencing business by an establishment) and Section 36A (Display of name board in Marathi) of the Act has been increased to less than 20 workers instead of less than 10 workers. Further the employee threshold for applicability of the provision of Section 6 (Registration of establishment) of the Act has been increased to 20 workers instead of 10 workers. Now Establishments with less than 20 workers will no longer need a registration certificate from the Facilitator but they will only need to provide an intimation of their business. This measure has been introduced in order to reduce compliance burden for smaller businesses, encourage job creation and eliminate the fear of non-compliance.

2. Increase in daily hours of work from the existing 9 hours up to 10 hours, inclusive of rest intervals, subject to a maximum of 48 hours in any week- The limit of 9 hours of daily working hours has been increased to 10 hours. This measure aims to create greater economic activity, enhance employment opportunities and give establishments the flexibility to handle emergencies, peak demand, or staff shortages without disruption.
3. Increase in maximum continuous working hours- The limit of 5 hours of continuous work has been increased to 6 hours without rest interval to provide flexibility and smoother adjustments to the daily maximum hours of work.
4. Increase in spread-over of working hours- The spread-over of working hours has been extended from the existing 10 ½  hours to 12 hours in a day. This measure aims to accommodate the increased daily working hours and to provide greater scheduling in establishment.
5. Increase in overtime period- The overtime period within a quarter has been increased from 125 hours to 144 hours. This change will increase workers’ earning potential and formalize overtime practices, ensuring that all additional hours are properly recorded and compensated, which will help in preventing exploitation of workers.

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Source: Government of Maharashtra