Background
The Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 was enacted to regulate the working conditions of employees in shops, commercial establishments, residential hotels, restaurants, theatres and other establishments across Maharashtra. It replaced the earlier 1948 Act with the objective of ensuring uniformity, introducing online compliance processes, and aligning labour practices with modern business needs.
Applicability
The Act applies to all shops and commercial establishments in Maharashtra employing 20 or more workers. However, certain provisions relating to working conditions, safety, health and welfare also extend to establishments employing less than 20 workers.
Within a period of sixty days from the date of commencement of this Act or the date on which establishment commences its business, the employer of every establishment employing 20 or more workers shall submit application online in a Form A for registration to the Facilitator of the local area concerned, together with such fees and such self declaration and self-certified documents as may be prescribed, containing—
(a) the name of the employer and the manager, if any;
(b) the postal address of the establishment;
(c) the name, if any, of the establishment;
(d) the actual nature of the business of the establishment; and
(e) such other particulars as may be prescribed
On receipt of the application along with documents and the fees online, the Facilitator shall, register the establishment in the register of establishments and a Certificate of registration will be granted in Form B within 7 days from the date of submission of the application.
The employer of every establishment engaging less than 20 workers shall submit an online intimation in Form ‘F’to the Facilitator in whose jurisdiction the establishment is located of commencement of the business alongwith the required documents as specified in Part ‘C’ of the Schedule. Such intimation shall be given within 60 days of commencement of business.
Employers must prevent sexual harassment (incl. third-party cases), ensure lighting, maintain complaint boxes, display police/helpline numbers, appoint verified women guards where 10 or more women are employed, and provide separate lockable toilets for women.
No woman worker shall be required to work in any est except between 7-00 a.m & 9-30 p.m. However Night shift for women (9:30 p.m.–7:00 a.m.) are allowed only with written consent in Form L Min.3 women workers must be present in any night shift at all times Employer must provide safe, door-to-door transport with full details,police-verified drivers and guards Women working night shifts are entitled to 1 additional paid holiday for every 2 months At least 12 consecutive hours of rest is mandatory when switching between day and night shifts. No night shift during 24 weeks before & after childbirth of which at least 12 weeks shall be before expected child birth & for further such period if any, as specified in medical certificate stating that it is necessary for health of women worker or her child, relaxable only on request with a valid medical certificate Employer must annually submit an undertaking to Facilitator confirming compliance and protection of women’s safety, dignity,and honour
Every employer shall online upload the Annual Return in Form ‘R’ on the website within two months for the year ending on 31st December. A print copy of the same may be furnished as and when demanded by the Facilitator.
In case of any change in the information about the Registered Establishment, the employer is required to intimate such change in Form I to the Facilitator within 30 days of the change alongwith the required documents to be uploaded as specified in the application and Part ‘D’ of the Schedule.
The employer engaging ten or more workers shall notify to the Facilitator within thirty days from the date of closing of the business that the establishment has been closed for business in such Form J.
The employer of such establishment employing less than 20 workers shall notify to the Facilitator within thirty days from the date of the closing of the business that the establishment has been closed for business in such Form K.
Every employer registered under section 6, shall inform to the Facilt. in Form ‘T’ the names and designation and brief nature of duties of such persons who are discharging managerial function. The information in Form T shall be submitted annually and whenever there is any change, during the year.
Every employer registered under section 6, shall inform to the Facilt. in Form ‘T’ the names and designation and brief nature of duties of such persons who are discharging managerial function. The information in Form T shall be submitted annually and whenever there is any change, during the year.
Every employer shall inform in Form ‘U’ the names of such persons who are occupying position of confidential character in an establishment. However, the number of such persons shall not be more than one per cent. of the total strength of workers of the establishment subject to a maximum of fifty persons. The information in Form “U” shall be submitted annually and whenever there is any change, during the year.
Every employer must annually submit Form U disclosing persons holding confidential positions, limited to 1% of total workforce or 50 persons, whichever is lower, and must update and submit the form whenever any change occurs during the year.
Every employer shall inform in Form ‘U’ the names of such persons who are occupying position of confidential character in an establishment. However, the number of such persons shall not be more than one per cent. of the total strength of workers of the establishment subject to a maximum of fifty persons. The information in Form “U” shall be submitted annually and whenever there is any change, during the year.
Every employer must annually submit Form U disclosing persons holding confidential positions, limited to 1% of total workforce or 50 persons, whichever is lower, and must update and submit the form whenever any change occurs during the year.
Every employer must annually submit Form U disclosing persons holding confidential positions, limited to 1% of total workforce or 50 persons, whichever is lower, and must update and submit the form whenever any change occurs during the year.
The Name Board of every establishment shall be in Marathi language in Devnagari Script and shall essentially be written in the beginning: Provided that,the employer may also have the Name Board in any other language and script in addition to Marathi in Devnagari Script. Provided further that, the font size of Name Board in Marathi shall not be less than that of the Name Board in any other language: Provided also that, no establishment where Liquori served or sold shall have a Name Board in the name of legends or fort.
Every entry in register/records shall be authenticated digitally or manually by employer/manager or any authorised person. The entries relating to overtime shall be made after completion of such overtime work. In case both employer and manager are absent on any day, entries shall be authenticated by such person as authorised in writing by employer Where office, store-room, godown, warehouse or work place used in connection with trade and business of est. is situated at premises other than premises of such establishment, all such registers, records and muster-rolls required may be separately so maintained in respect of such office, store-room, godown, warehouse or work place, etc. Every register, record and notice required to be maintained, exhibited or given under these rules shall be either in Marathi or English language. Every employer or manager shall preserve inspection records of Facilitator for a period of t 3 years and shall produce the same whenever demanded by the Facilitator
Every employer or manager shall preserve the inspection records of the Facilitator for a period of three years and shall produce the same whenever demanded by the Facilitator
Every employer must maintain a duly equipped first-aid box in each establishment containing adequate sterilised dressings (small, medium and large), burn dressings, sterilised cotton-wool, dressing scissors, and iodine or mercurochrome solution.
Every employer shall take all the measures to protect the premises and the workers therein from the danger of fire. He shall adopt and implement all such measures as suggested, recommended or directed by the Fire Officer, Department of the Local Authority or Fire Brigade of that local area or any such authority. It shall be his duty to follow the norms and guidelines for protection against fire as per the provisions of any law for the time being in force or any direction or instruction issued by any Local Authority or any such authority wherein the establishment is situated. The employer shall produce, whenever demanded by the Facilitator, a copy of the order or instruction or guidelines, etc. issued by the Fire Officer of Local Authority or any such authority.
Every establishment wherein one hundred or more workers are ordinarily employed, there shall be constituted a Health, Safety and Welfare Committee, consisting of equal number of employer and worker’s representatives.
The representative of the employer and workers on the Health, Safety and Welfare Committee shall include,
(i) Senior official who by his position in the organisation can contribute effectively to the function of the said Committee and he shall be the
Chairman.
(ii) Representatives of Head of all the Departments or In-charge of Sections of the establishment, e.g. sales, purchase,
material, personnel, marketing, finance etc., if any.
(iii) Maximum ten workers representative nominated by the workers of the establishment as members of the said Committee. The said Committee
shall have sufficient number of representatives of women worker, wherever women workers are employed
The Health, Safety and Welfare Committee must inspect premises for accident-prone or hazardous conditions, ensure their rectification, conduct annual health or wellness camps, create awareness on diseases, epidemics and disasters, and organise annual recreational, cultural and sports activities.
To conduct social and educational awareness programmes like Swaccha Bharat Abhiyan, Tree Plantation, Family Welfare, Beti Bachao-Beti Padhao, etc.
It shall be the duty and responsibility of the said Committee to organize above event with due care and diligence.
The employer or manager shall communicate in Form ‘P’ to the concerned worker, whose leave, which has been carried forward has reached the maximum limit allowed under subsection (5) of section 18, as soon as possible in the first quarter of each calendar year. Such notice shall state that no further leave can be carried forward.
Every employer shall provide to each worker with a book called ‘Leave Book’ in Form ‘O’. A copy of the same shall be retained by employer. All the entries of sanctioned earned leave as per section 18 shall be noted in the Leave Book. Any earned leave applied for and is refused shall also be noted in the Leave Book with initials of the employer or his representative in the respective column of Leave Book. If the Leave Book is lost by the worker, the employer or manager shall provide him the duplicate copy of the same. However, every employer shall be free to maintain Leave Book in such format as he deems fit providing therein all the particulars which would be inconsonance with Form ‘O’.
Every employer must issue an identity card to each worker, to be produced on demand to the Facilitator, containing employer name, establishment name and address, worker’s name and age, date of joining, department, nature of work, designation, employer/manager’s signature with date, and blood group.
Other particulars on identity card
(1) Along with the particulars to be contained in the identity card of worker specified in section 17 of the Act, the identity card shall also contain an
emergency contact number of worker.
(2) The employer may issue identity card in electronic form subject to the condition that a hard copy of the identity card shall be maintained and a
copy of the same shall be produced as and when demanded by the Facilitator.
Part-time worker wages must be calculated by dividing the applicable per-day minimum wage or the prevailing per-day wage of permanent workers doing similar work by 8 hours and adding 15%, whichever results in the higher amount.
Wages payable to a part time worker shall be computed by dividing the per day rate of Minimum Wages applicable to that schedule employment by eight (hours) with fifteen per cent. rise in it or by divided the prevailing rate of per day wages fixed for permanent workers doing similar nature of work in that establishment by eight (hours) with fifteen per cent. rise in it, whichever is higher.
Where an establishment operates in shifts, the employer must prepare and display in advance a shift schedule along with weekly holidays in Form N, clearly showing names and designations of all persons in each shift, to ensure workers are informed of their shift and weekly rest.
There shall be not less than twelve consecutive hours of rest or gap between the last shift and night shift whenever a worker is changed from day shift to night shift and also from night shift to day shift
Employer shall display a notice on his website and at a conspicuous place of the premises of the establishment on a notice board showing the hours of work, rest-interval, weekly holiday in Form ‘M’
No adult worker shall be required or allowed to work in any establishment for more than 10 hours in any day and 48 hours in any week. No adult worker shall be asked to work continuously for more than six hours unless he has been given a break of not less than half an hour
Provided that, the working hours or weekly holiday may be relaxed in case of work of urgent nature with the previous permission of the Facilitator
The spread-over of a worker in the establishment shall not exceed twelve hours in any day
Where a worker in any establishment is required to work beyond nine hours a day or forty-eight hours a week, he shall be entitled, in respect of the overtime work, wages at the rate of twice his ordinary rate of wages. The total number of overtime hours shall not exceed one hundred and forty- four hours in a period of three months.
No deduction shall be made from the wages of any worker in an establishment on account of any day on which it has been a weekly holiday under this section. If a worker is employed on a daily wage, he shall nonetheless be paid his daily wage for the day of his weekly off. If a worker is paid a piece rated wage, he shall nonetheless be paid his wage for the day of his weekly holiday, at a rate equivalent to the daily average of his wages for the days on which he has actually worked during the six days preceding such holiday, exclusive of any earning in respect of overtime: Provident that, nothing in this sub-section shall apply to any worker whose total period of continuous employment is less than six days.
Every worker shall be allowed a weekly holiday with wages. Workers are entitled to 8 days casual leave with wages in every calendar year which shall be credited into the account of the worker on a quarterly basis, but shall laps if unavailed at the end of the year.
The leave admissible under this section shall be exclusive of all holidays whether occurring during or either at the end of the period of leave.
Worker who has worked for a period of 240 days or more in an establishment during a calendar year shall be allowed during the subsequent calendar year, leave with wages for a number of days calculated at the rate of 1 day for every 20 days of work performed by him during the previous calendar year.
(a) any days of lay-off, by agreement or contract or as permissible under the model standing orders or standing order certified under Industrial
Employment (Standing Orders) Act, 1946;
(b) in the case of a woman worker, maternity leave as provided for in the Maternity Benefits Act,1961 ;
(c) the leave earned in the year prior to that in which the leave is availed; or
(d) the worker has been absent due to temporary disablement caused by accident arising out of and in the course of his employment, shall be
deemed to be days on which the worker has worked in any establishment for the purpose of computation of the period of two hundred and forty
days or more, but shall not earn leave for these days.
Every worker shall be paid for the period of his leave earned under sub-sections (3) and (4) at a rate equivalent to the daily average of his wages for the days on which he actually worked during the preceding three months, exclusive of any earnings in respect of overtime.
Every worker, who has been employed for not less than 3 months in any year, shall for every 60 days on which he has worked during the year be allowed leave, consecutive or otherwise, for a period of not more than 5 days.
Every worker shall be paid for the period of his leave earned under sub-sections (3) and (4) at a rate equivalent to the daily average of his wages for the days on which he actually worked during the preceding three months, exclusive of any earnings in respect of overtime.
Establishment wherein fifty or more workers are employed shall provide and maintain a suitable room or rooms as crèche for the use of children of such workers
Provided that, if a group of establishments, so decide to provide a common crèche within a radius of 1 KM, then, the same shall be permitted by the Chief Facilitator, subject to such conditions as may be specified in the order.
The employer to provide and maintain in the establishment, wherein not less than 100 workers are employed or ordinarily employed to maintain a canteen for the use of its workers
Provided that, if a group of establishments, so decide to provide a common canteen, then the same shall be permitted by the Chief Facilitator by an order, subject to such conditions as may be specified in the order.
Every establishment must keep its premises clean, hygienic and free from infection, ensure adequate ventilation and lighting, and prevent accumulation of rubbish, filth or debris within the premises or surrounding areas so as to avoid insanitary conditions or harmful effluvia.
Every employer shall take such measures relating to the health and safety of the workers including cleanliness, lighting, ventilation and prevention of fire as may be prescribed.
Every employer shall be responsible for providing constant adequate supervision of the workers employed in the establishment and to ensure the compliance with the rules relating to health and safety made under sub-section (1) and for taking steps necessary to prevent accidents.
Where the employer refuses to sanction the leave under sub-section (3) which is due when applied fifteen days in advance, then the worker shall have a right to encash leave in excess of forty-five days. Provided that, if a worker is entitled to leave other than causal and festival leave under this section, is discharged by his employer before he has been allowed the leave, or if, having applied for and having been refused the leave, he quits his employment on account of retirement, resignation,death or permanent disability, the employer shall pay him full wages for the period of leave due to him.
A worker shall be entitled to eight paid festival holidays in a calendar year, namely, 26th January, 1st May, 15th August and 2nd October and four such other festival holidays as may be agreed to between the employer and the workers as per the nature of business, before the commencement of the year.
For holiday on these days, he shall be paid wages at a rate equivalent to the daily average of his wages (excluding overtime),which he earns during the month in which such compulsory holidays falls. Provided that, the employer may require any worker to work in the establishment on all or any of these days, subject to the conditions that for such work the worker shall be paid double the amount of the daily average wages and also leave on any other day in lieu of the compulsory holiday
Penalty & Punishment
Section 29 –
Whoever, contravenes the provisions of this Act or the rules made thereunder shall be liable to penalty which may
extend to one lakh rupees and in case of continuing contravention, with an additional penalty which may extend to two thousand rupees for every day during which such contravention continues :
Provided that, the total amount of penalty shall not exceed two thousand rupees per workers employed.
If any person is found to have committed second or subsequent contraventions under sub-section (1), then he is liable to penalty which may extend to two lakh rupees for such contravention:
Provided that, the total amount of penalty shall not exceed two thousand rupees per worker employed
Conclusion
The Act provides a comprehensive framework balancing employer flexibility with employee welfare. It emphasizes digitized registration and returns, ensures fair working hours and leave entitlements, and places strong focus on women’s safety and workplace welfare. Employers must comply with the provisions to avoid penalties and to create a safe, fair, and legally compliant work environment.
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