Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017

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 10 or more workers. However, certain provisions relating to working conditions, safety, health and welfare also extend to establishments employing less than 10 workers.

Compliance requirement under the Act in accordance with the Rules

  1. Shops and Establishment Registration Certificate (Section 6(1))

The employer of the establishment is required to apply for Registration of the Establishment under this Act within 60 days from the date of commencement of work in the said establishment.

  1. Form R: Annual Return (Section 26, Rule 27)

Employer is required to online upload Annual Return in Form R on the website within 2 months from the year ending on 31st December.

  1. Form I: Notice of Change in the Information about Commercial Establishment
    (Section 9)

In case of any change in the information about the Registered Establishment, the employer is required to intimate such change to the Inspector in the prescribed form within 30 days after the change.

  1. Form J / K: Notice of Closure of Establishment (Section 10)

In case of closure of an establishment, the employer is required to notify the same to the Inspector in writing within 30 days from the date of Closure of Establishment.

  1. Form T: Details of Persons Discharging Managerial Functions (Annual) (Rule 33)

Employer registered under the Act and having 10 or more employees shall annually inform to the Facilitator in Form ‘T’ the names, designation and brief nature of duties of persons who are discharging managerial function.

  1. Form T: Details of Persons Discharging Managerial Functions (Change)
    (Rule 33)

Employer shall inform to the Facilitator whenever there is any change in the names, designation and brief nature of duties of persons who are discharging managerial function in Form ‘T’.

  1. Form U: Details of Persons Occupying Position of Confidential Character (Annual)
    (Rule 34)

Employer shall annually inform to the Facilitator the names of persons who are occupying position of confidential character in an establishment in Form ‘U’.

  1. Form U: Details of Persons Occupying Position of Confidential Character (Change) (Rule 34)

Employer shall inform to the Facilitator whenever there is any change in the names of persons who are occupying position of confidential character in an establishment in Form ‘U’.

  1. Number of Persons Occupying Position of Confidential Character (Rule 34)

The number of persons doing confidential work shall not be more than 1 percent of the total strength of workers of the establishment subject to a maximum of fifty persons.

  1. Name Board of Establishment (Rule 35)

The Name Board of every establishment shall be in Marathi language in Devanagari Script and shall essentially be written in the beginning. The employer may also have the Name Board in any other language and script in addition to Marathi in Devanagari Script provided that the font size of the Marathi Name Board shall not be less than that of the Name Board in any other language.

  1. Maintenance of Muster-Roll cum Wages Register (Rule 26(1))

The employer shall maintain a Muster-Roll cum Wages Register in Form ‘Q’. Where any employer or manager maintains a Muster Roll-cum-Wages Register under the Minimum Wages Act, 1948, it shall not be necessary for him to maintain it separately under this Act.

  1. First-aid Appliances (Rule 24)

Every employer shall maintain a duly equipped first aid box in each establishment with the items mentioned in Rule 24 of the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Rules, 2018.

  1. Precautions for Safety of Employees in Case of Fire (Rule 23)

Every employer shall adopt and implement all the safety measures mentioned, suggested and recommended in the Fire and Safety Policy as declared by the Government from time to time. He shall also adopt and implement all such measures as suggested, recommended or directed by the Fire Officer, Department of the Local Authority, Fire Brigade or any such authority.

  1. Health, Safety and Welfare Committee (Rule 21)

Every establishment wherein 100 or more workers are ordinarily employed shall constitute a Health, Safety and Welfare Committee consisting of equal number of employer and workers’ representatives.

  1. Healthcare or Wellness Camps and Recreation, Cultural, Sports Activities
    (Rule 21(3)(iii))

The Committee shall conduct healthcare or wellness camps once in a year in the organisation or establishment.

  1. Notice of Accumulated Leave (Rule 20)

The employer shall communicate in Form ‘P’ to the concerned worker, whose leave has been carried forward and has reached the maximum limit allowed, as soon as possible in the first quarter of each calendar year (31st March). Such notice shall state that no further leave can be carried forward.

  1. Leave Book (Rule 19)

Employer shall provide each worker with a Leave Book in Form ‘O’. A copy of the same shall be retained by the employer. All entries of sanctioned earned leave shall be noted in the Leave Book. Any earned leave applied for and refused shall also be noted in the Leave Book with initials of the employer or his representative. If the Leave Book is lost by the worker, the employer or manager shall provide a duplicate copy.

  1. Identity Card to Employees (Section 17, Rule 18)

The employer of an establishment shall furnish to every worker an identity card which shall be produced by the worker on demand by the Facilitator. The employer may issue the identity card in electronic form subject to the condition that a hard copy shall be maintained and produced when demanded.

  1. Display of Notice (Form N & Form M) (Rule 16)

Employer shall display well in advance a shift schedule, along with weekly holiday showing the names and designation of all persons working in that shift. Such notice shall be in Form ‘N’ and kept in every establishment and made available for inspection to the Facilitator on demand.

  1. Complaint Box (Rule 13(1)(iv))

Every employer shall maintain a complaint box.

  1. Display of Phone Numbers (Rule 13(1)(iv))

Every employer shall display the phone numbers of the local police station, control room and women helpline number prominently in the establishment.

  1. Women Security Guard (Rule 13(1)(v))

A sufficient number of women security guards shall be engaged in establishments employing not less than 10 women workers. Police verification of such women security guards shall be mandatory.

  1. Consent for Working at Night by Women Workers (Rule 13(2)(i))

Women workers can be allowed to work during 9.30 p.m. and 7.00 a.m. in any establishment only after obtaining their consent in Form ‘L’.

  1. Minimum Number of Women in Night Shift (Rule 13(2)(ii))

The number of women workers employed in the night shift shall not be less than 3 at any point of time.

  1. Transportation Facility for Women Working in Night Shift
    (Rule 13(2)(iii))

Employer shall provide safe and secure separate transportation facility for all women workers working in the night shift from the workplace to the doorstep of their residence and vice-versa. The employer shall maintain details of drivers, guards and all such workers engaged for transportation, and police verification of all such workers shall be mandatory.

  1. Prohibition of Women Working in Night Shift During Maternity
    (Rule 13(2)(vi))

No woman worker shall be allowed to work in night shift during the period of 24 weeks before and after her childbirth, of which at least 12 weeks shall be before the expected childbirth, and for such further period if certified by a qualified medical practitioner. This restriction may be relaxed at the request of the woman worker if supported by a medical certificate.

  1. Undertaking by Employer Regarding Women Workers (Rule 13(2)(vii))

Employer shall annually submit an undertaking to the Facilitator that he shall provide all the facilities mentioned in this rule and take due care and diligence regarding the safety, dignity and honour of women workers in general and particularly of those in night shift.

  1. Daily and Weekly Hours of Work and Interval for Rest (Section 12)

No adult worker shall be required or allowed to work in any establishment for more than 9 hours in any day and 48 hours in any week. No adult worker shall be asked to work continuously for more than five hours unless given a break of not less than half an hour.

  1. Spread-over in Establishments (Section 14)

The spread-over of a worker in an establishment shall not exceed 10.5 hours in any day, and in case of intermittent or urgent work, the spread-over shall not exceed 12 hours.

  1. Overtime Wages (Section 15)

Employer shall pay overtime wages where a worker in any establishment has worked beyond 9 hours a day or 48 hours a week.

  1. Maximum Hours of Overtime (Section 15)

The total number of overtime hours shall not exceed 125 hours in a period of three months.

  1. Compensatory Leave (Section 16)

If a worker is denied a weekly holiday, the compensatory leave in lieu thereof shall be given within two months of such weekly holiday.

  1. Casual Leave (Section 18(2))

Workers are entitled to 8 days of casual leave with wages in every calendar year, credited on a quarterly basis. Such leave shall lapse if unavailed at the end of the year.

  1. Earned Leave for Worker with 240+ Days of Service (Section 18(3))

A worker who has worked for 240 days or more in an establishment during a calendar year shall be allowed, during the subsequent calendar year, leave with wages at the rate of 1 day for every 20 days worked in the previous year.

  1. Earned Leave for Worker Employed for Not Less Than Three Months
    (Section 18(4))

Every worker employed for not less than 3 months in a year shall, for every 60 days worked, be allowed leave for a period of not more than 5 days, consecutive or otherwise.

  1. Crèche Facility (Section 23)

Every establishment employing fifty or more workers shall provide and maintain suitable room or rooms as a crèche for the use of children of such workers. A group of establishments may, with permission of the Chief Facilitator, provide a common crèche within a radius of 1 km subject to specified conditions.

  1. Canteen Facility (Section 24)

Every establishment employing 100 or more workers shall provide and maintain a canteen for the use of workers. A group of establishments may, with permission of the Chief Facilitator, provide a common canteen subject to specified conditions.

  1. Cleanliness, Lighting and Ventilation (Rule 22)

The premises of every establishment shall be clean and free from infection with proper ventilation and lighting. No rubbish, filth or debris shall be allowed to accumulate or remain in such a manner that effluvia can arise within the area of the establishment or its surroundings.

Penalties & Punishments

  • Whoever, contravenes the provisions of this Act or the rules made thereunder shall be punishable with fine which may extend to one lakh rupees and in the case of a continuing contravention, with an additional fine which may extend to two thousand rupees for every day during which such contravention continues: Provided that, the total amount of fine shall not exceed two thousand rupees per workers employed.
  • If any person who has been convicted of any offence punishable under sub-section (1) is again guilty of an offence involving a contravention or failure of compliance of the same provision, he shall be punished on a subsequent conviction with fine which may extend to two lakh rupees
  • Establishment having less than 10 Employees: Whoever, contravenes the provisions of this section or rules framed thereunder shall be punishable with a fine of rupees one thousand.

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.

Disclaimer: The information contained in this Article is intended solely for personal non-commercial use of the user who accepts full responsibility of its use. The information in the article is general in nature and should not be considered to be legal, tax, accounting, consulting or any other professional advice. We make no representation or warranty of any kind, express or implied regarding the accuracy, adequacy, reliability or completeness of any information on our page/article. 

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