The Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017, was enacted on December 19, 2017. This Amendment Act repeals the previous Maharashtra Shops and Establishments Act, 1948, and applies to all establishments that employ ten or more workers in the State of Maharashtra. The Act provides for safeguarding the rights of employees.
Registration of an establishment:
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- In the case of establishments with ten or more employees:
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- Every establishment with more than ten employees must register by making an application appropriately.
- One must make the application within 60 days from the commencement of an Act or business.
- The registration certificate will be valid for as long as the applicant specifies, but with a limit of ten years.
- The registration will become void if obtained through suppression, misrepresenting material facts, or giving forged documents.
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- In the case of establishments with less than ten employees:
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- Every establishment with less than ten employees must inform the facilitator (Government authority through this Act) by making an application within 60 days from the commencement of an Act or business.
- If the number of employees reaches ten or more at any time, the establishment must obtain registration in the same manner prescribed in the Act
Functions of Facilitator:
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- Section 43 of the Act authorizes a local authority to control the provision within its local jurisdiction through its chief executive officer or an officer subordinate to him.
- However, the state government is responsible where there is no jurisdiction over local authorities.
- According to Section 45, local authorities are entitled to carry out duties by the state government’s order.
- The state government is also entitled to cease the duties of any local authority.
Benefits of the Act:
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- The Act provides feasible working hours for the employees, which shall not exceed nine hours a day and 48 hours a week.
- In case of a Spread-over of employees in the establishment, the working hour shall not exceed ten and half hours on any day and 12 hours in case of urgent work.
- The employees are also entitled to overtime wages.
- The Act protects and prohibits discrimination against women employees.
- The Act also provides for the welfare of the employees in terms of health, safety, and other basic facilities.
Latest Amendment:
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- The Maharashtra Government, vide its notification dated February 22, 2023, declared Nagar Panchayats under Section 341A of the Maharashtra Municipal Councils and the Industrial Townships Act, 1965, and panchayats to be the local authorities for the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017.
- Furthermore, the Maharashtra Government declared that the Municipal Corporation of Brihan Mumbai and all other Corporations, Municipal Councils, Nagar Panchayats, and village panchayats should be responsible for enforcing the provisions of Section 36A of the said Act regarding the board name to be in “Marathi” within their territorial jurisdiction.
The Aftermath of the Amendment:
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- According to Section 2(10) of the Amendment Act, 2017, local authority means and includes the municipal councils constituted under the Maharashtra Municipal Councils Act, the Nagar Panchayats and Industrial Townships Act, 1965, and any other body that the state government specifies. On 22nd February 2023, the Maharashtra government, via notification, added “Panchayats” to the definition of local authorities, giving it a broad interpretation. The constitution of India envisages panchayats as institutions of local governance that are equally responsible for the administration within their local jurisdiction.
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- Language plays a vital role when it comes to businesses. This modification related to the board name being in Marathi will invoke culture and help the establishments work effectively.