SOME MAJOR CHANGES INTRODUCED BY THE MAHARASHTRA SHOPS AND ESTABLISHMENTS (REGULATION OF EMPLOYMENT AND CONDITIONS OF SERVICE) ACT, 2017
The Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 (hereinafter referred as 'New Act') has been enforced on 19th December 2017 and the Maharashtra Shops and Establishments Act 1948 (hereinafter referred as 'Old Act') shall stand repealed
1. APPLICABILITY: According to Section 1(4) of the New Act, the Act is applicable to establishments employing 10 or more persons. Establishments with less than 10 workers will no longer be regulated under the New Act and will not have to apply for the Registration under New Act, however they just need to intimate the Facilitator of having commenced its business in the manner as prescribed under the New Act
However, the Old Act did not have any such criteria
2. REGISTRATION: According to Section 6 of the New Act, Establishment employing 10 or more worker is required to register the establishment within 60 days from the date of commencement of the this Act or from the date on which the establishment commences its business by submitting an online application to the Facilitator in the manner as prescribed under this Act and on receipt of the online application the Facilitator will issue a registration certificate online along with the Labour Identification Number (LIN)
3. VALIDITY OF THE REGISTRATION CERTIFICATE: According to Section 6(3) of the New Act, the Registration Certificate obtained of an establishment can be applied for 10 years as against the existing 3 years. This is a big relief to employers from applying for renewal after every few years
4. WOMEN CAN WORK IN NIGHT: According to Proviso Clause of Section 13(2) of the Act, now women workers with their consent are allowed to work during 9:00 pm - 7:00 am. 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
However, the Old Act did not expressly allowed women workers to work beyond the working hours. Therefore, the establishments were required to obtain exemption under the Act or were required to submit undertaking if they were already exempted from the timing provisions, to the Concerned Authority, as the case may be
5. FACILITATOR: The New Act provides for appointment of a "Chief Facilitator" and a "Facilitator" as the Concerned Authority instead of Inspector
6. LEAVE: According to Section 18 (2) of the Act, worker shall be eligible to avail 8 days casual leave in every year, which shall lapse at the end of the year, if not availed.
Further according to Section 18(3) of the Act, the worker who has worked for not less than 240 days shall be allowed leave at the rate of 1 day for every 20 days work performed during the previous calendar year.
Under the Old Act the Maharashtra Shops and Establishments Act, 1948, workers who had worked for not less than 240 days were eligible to avail 21 days leave
7. ACCUMULATION OF LEAVE: According to Section 18(5) of the New Act, workers entitled to leave shall be allowed to accumulate leave upto a maximum of 45 days
The Old Act, allowed workers to accumulate leave upto 42 days
8. ESTABLISHMENTS CAN OPERATE 24 X 7: According to Section 16(1)(a) of the New Act, a department or any section of a department of the establishment may work in more than one shift at the discretion of the employer and if more than one shift is worked, the worker may be required to work in any shift at the discretion of the employer
Further according to Section 16(b) of the New Act an establishment can be kept open for business on all days in a week but every worker shall be allowed weekly holiday of at least 24 consecutive hours of rest
Earlier, under the Old Act, establishments, except those establishments which were exempted from the timing provisions under Schedule II, were required to obtain exemption under Section 4 of the Old Act, from the timing provisions
9. HOLIDAYS: The New Act, entitles workers to get 8 festival holidays namely 26 January, 1 May, 15 August, 2 October and four such other festival holidays as may be agreed between the employer and the workers
10. WELFARE PROVISIONS: The New Act also provides for welfare facilities to be provided to the workers such as:
a. Provision of First-Aid
b. Safe working environment for women employees
c. Provisions for cleanliness, lightening, ventilation etc
d. Provide sufficient supply of drinking water
e. Every establishment having 50 or more employees shall have to provide a suitable room as crèche for children of workers
f. Establishment employing more than 100 employees shall be required to provide facilities of canteen in the establishment
11. PENALTY: According to the New Act, whoever, contravenes the provisions or the rules made thereunder, shall be punishable with a 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 such contravention continues, provided that, the total amount of fine shall not exceed two thousand rupees per workers employed.
However, the Old Act, has provided for a minimum fine of one thousand rupees and maximum fine of five thousand rupees for each offense
Thanks & regards |
Advocate Poonam Gola |
Legal Advisor |
+(91)-(22)-67104943, +(91)-9321727245 |
