Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 has been implemented w.e.f 19th December 2017

The Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Rules, 2018, Notified on 23rd March 2018, replaces the erstwhile Maharashtra Shops and Establishments Rules, 1961.

The Rules are applicable to all commercial establishments in Maharashtra State, which employ 10 or more employees (not covered under the Factories Act).

Definition of Establishment 
[Sec. 2(4)]

“establishment” means an establishment which carries on, any business, trade, manufacture or any journalistic or printing work, or business of banking, insurance, stocks and shares, brokerage or produce exchange or profession or any work in connection with, or incidental or ancillary to, any business, trade or profession or manufacture;

and includes establishment of any medical practitioner (including hospital, dispensary, clinic, polyclinic, maternity home and such others), architect, engineer, accountant, tax consultant or any other technical or professional consultant;

and also includes a society registered under the Societies Registration Act, 1860, and a charitable or other trust, whether registered or not, which carries on, whether for purposes of gain or not, any business, trade or profession or work in connection with or incidental or ancillary thereto;

and includes shop, residential hotel, restaurant, eating house, theatre or other place of public amusement or entertainment; to whom the provisions of the Factories Act, 1948 does not apply ;

and includes such other establishment as the State Government may, by notification in the Official Gazette, declare to be an establishment for the purposes of this Act;

In Earlier Act : It was not applicable to Chartered Accountants, Medical Practitioners and Legal Practitioners

Registration & Renewal of License

The provisions of the act shall be applicable on establishments employing 10 or more employees. Therefore the registration under the act shall not be applicable for establishments having less than 10 employees ( However the same shall not be applicable for the establishments already registered and having the valid S&E and till the expiry of the said registration. (Only Online Registration).

Intimation of Commencement of business by such employer engaging less than ten employees

The employer of every establishment engaging less than ten employees shall submit an online intimation in Form ‘’F” of commencement of the business along with the required documents.

Issue of Receipt of Intimation – After receiving an intimation in Form “F” alongwith all the documents, a receipt of such intimation in Form “G” shall be issued to the applicant online.

In Earlier Act : Registration was applicable even for zero head count

• Maharashtra Shops and Estb., Act, 2017 :- The application for registration under the Act should be filed within 60 days from the commencement of operation.

In Earlier Act : it was Within 30 days from the commencement of operation

Maharashtra Shops and Estb., Act, 2017: The renewal of registration need to be applied online, not less than 30 days before the date of expiry of registration.

In Earlier Act : it was 15 days prior to the expiry

No Fees payable for S&E License

There will be no fees charged for the following: application for registration, renewal of certificate of registration, and changes in the certificate of registration. However, the employer may have to pay the electronic transaction or service charges as periodically fixed by the state government for availing e-services under the 2017 Act and the 2018 Rules.

In Earlier Act : Fees payable as per the Schedule on the basis of Employees strength.

Working Hours

Maximum 9 hours/day (excluding lunch hours) & 48 hours/ week

Interval / Rest: An employee must be allowed an interval of rest of at least 1/2 hour after 5 hours of continuous work

Every Six Days work perform Seventh day should be the paid holiday.

Spread over

The spread-over of an employee in establishment shall not exceed 10.5 hours in any day.

In Earlier Act : Earlier 11 hours in any day.


The total number of overtime hours shall not exceed 125 hours in a period of 3 months. It has to be paid double the ordinary rate of salary / wages.

In Earlier Act : Earlier 6 hours in a week

Identity Card

The employer of an establishment shall furnish to every employee an identity card. Such card shall contain the following and such other particulars as may be prescribed, namely :—

the name of the employer ;the name, if any, and the postal address, of the establishment;the name and age of the employee;date of joining, department, nature of work, designation;the signature (with date) of the employer or manager;Blood Group;Aadhaar Card Number.

In Earlier Act : There was no such provision

Earned Leave

Earned Leave – One day earned leave for every 20 days of work.

Maximum accumulation of Earned Leaves shall not exceed 45 days.

Further the employee is allowed to encash leave in excess of 45 days, if the employer refuses to sanction the leave.

In Earlier Act : it was 21 days in year for the 240 days work performed, maximum accumulation of 42 days.

Casual Leave

Casual Leave : 8 days (8 days in a year which shall be credited into the account of the employee on a quarterly basis, i.e. per quarter 2 days).

In Earlier Act : Earlier there was no provision for casual leave

Earlier (Existing) Benefits will be continued in Case of Earned Leave, Sick Leave, Casual Leave and any other benefits

Any Benefit, Law, Contract, Custom or Usage applicable before the commencement of this Act is not affected. Such benefits shall 
remain unaffected. (Such benefits shall be continued)

National and Festival holidays

Employees shall be entitled for holidays on 26-Jan, 1-May, 15-Aug, & 2-Oct and 4 such other festival holidays, agreed by the employer and employees.

In Earlier Act :- No provision of Festival holidays

Women Employees

No women shall be discriminated in the matter of recruitment, training, transfers, promotion or wages.

Women employees with their consent shall be allowed to work between 9:30 p.m. and 7 a.m., in any establishment only after obtaining her consent in Form “L”.

In which adequate protection of their dignity, honour and safety, protection from sexual harassment and their transportation from the establishment to the doorstep of their residence as may be prescribed are provided by the employer or his authorised representative or manager or supervisor.

Hiring women security guards

Employing woman security guards is now mandatory in establishments employing not less than 10 women employees. The 2018 Rules specify the number of such security guards required, depending on the size of the workforce.

The establishment must also undertake mandatory police verification of the candidates who are recruited as women security guards.

Additional paid holiday for women employees

Every women employee who works during the night as per her shift schedule is entitled to one additional paid holiday for every two months in a year.

Maternity leave for night shift women employees

The Rules provide that women employees cannot work night shifts during a period of 12 weeks before and after child birth, of which at least 12 weeks must be before childbirth, and any further period that as may be specified in her medical certificate.

Safety of women in the workplace

Every employer has to submit an annual undertaking stating their provision of all the facilities mentioned under Rule 13 of the Rules. These include conditions for the employment of women in general as well as during night shifts.

In Earlier Act : There was no such provision for women Employees

Provision of Creche or Suitable Room for the use of Children

Establishment wherein fifty or more employees are employed, there shall be provided and maintained a suitable room or rooms as crèche for the use of children of such Employees. Provided that, if a group of establishments, so decide to provide a common crèche within a radius of one kilometre, then, the same shall be permitted by the Chief Facilitator, subject to such conditions as may be specified in the order.

In Earlier Act : There was no such provision

Part time employment

Wages payable to a part time employee is calculated by dividing the per day rate of ‘minimum wages’ applicable to that category of employment by eight hours plus a fifteen percent rise on it or by dividing the prevailing daily wage rate for permanent employees doing similar nature of work in that establishment by eight hours plus a fifteen percent rise on it, whichever is higher.

No part time employee should be allowed to work overtime under any circumstances. This is to prevent the misuse or exploitation of part time employees.

In Earlier Act : There was no such provision for Part Time Employment.

Health, Safety, and Welfare Committee

A Health, Safety and Welfare Committee must be formed in establishments with 10 or more employees, under the 2018 Rules; it should consist of an equal number of employer and employee representatives, respectively.

The committee must also have a sufficient number of women representatives, wherever women employees are employed.

In Earlier Act : There was no such provision.

Fire and safety framework

Every employer has to adopt and implement all the safety measures mentioned, suggested, and recommended in the government’s Fire and Safety Policy, which may be further updated periodically.

Information regarding persons discharging managerial function

This relates to the information provided to the facilitator in Form ‘T’ on the names, designation, and brief nature of the duties of persons who perform management functions. It must be submitted annually and whenever there is any change, during the year.

In Earlier Act : There was no such provision

Information regarding persons doing confidential work

The information in Form ‘U’ relates to the names of persons who provide confidential information to the establishment. This needs to be submitted annually and whenever there is any change, during the year.

In Earlier Act : There was no such provision

Complaint box and display of numbers

Every employer must maintain a complaint box and display the phone numbers of the local police station, police control room, and women area helpline prominently in the establishment.

In Earlier Act : There was no such provision

Name Board in Marathi

The Name Board – Marathi in Devnagari Script

Along with Marathi, other Language may be use

Provided also that, no establishment where liquor is served or sold shall have a Name Board in the name of legends or fort.

Preservation of records

Every employer or manager must preserve the inspection records of the local facilitator (official seeking compliance) for a period of three years.

Cancellation of Registration Certificate / License

Where the Facilitator proposes to take action under Section 8 for cancellation of registration he shall, –

i) by a notice require the employer to submit his say as to why the registration shall not be cancelled.

ii) if, within 10 days from the date of the receipt of the notice, the employer fails to submit his say alongwith relevant documents, the facilitator may cancel the registration.

If within the period of ten days, the employer submits his say alongwith all relevant documents the facilitator may, after considering the say and the documents either withdraw the notice or cancel the registration as he may deem fit.

Filing annual return

Every employer must upload the annual return online in Form ‘R’ on the website within two months for the year ending on December 31, instead of the financial year ending on 31st December.

In Earlier Act : There was no such provision

Penalty on compounding of offence

The maximum fees for compounding of an offence (making a settlement to avoid prosecution) may be imposed by the compounding officer shall not be less than 50 percent of the maximum fine specified for such offence under the 2017 Act.

Penalty for contravention of the Act

The penalty for contravention of the Act and the rules has been enhanced to INR 100,000 and in case of continuing contravention an additional fine which may extend to INR 2000 for every day during which the contravention continues. Further, for repeated offenders the fine may extend to INR 2,00,000.

In Earlier Act : The Earlier Act provides for a minimum fine of INR 1,000 and a maximum fine of INR 5,000.

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