India: Draft Maharashtra Shops And Establishments (Regulation Of Employment And Conditions Of Service) Rules, 2018 Notified

Last Updated: 26 February 2018
Article by Anshul Prakash and Parag Bhide

Most Read Contributor in India, July 2019


On 2 February 2018, the Government of Maharashtra (Government) notified draft Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Rules, 2018 (Draft Rules) under the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 (2017 Act) for public comments. The Draft Rules, once made effective, will repeal the Maharashtra Shops and Establishments Rules, 1961 (1961 Rules).

Key Highlights

Key highlights of the Draft Rules are:

  • Applicability: In line with the applicability of the 2017 Act, the Draft Rules apply only to establishments employing 10 (ten) or more workers.
  • Registration Process: Under the Draft Rules, the employer of an establishment has to submit an online application for registration, which will be assigned to the local Facilitator. If the Facilitator approves the application, the employer is required to digitally sign the application within 7 (seven) working days. Similarly, an application for renewal of registration must be made online. Under the 2017 Act, the deadline for applying for renewal is 30 (thirty) days prior to the expiry of the registration certificate.
  • Online intimation of commencement of business: An employer of an establishment with less than 10 (ten) employees is required to submit an online intimation (reporting) of commencement of business to the local Facilitator in Form F.
  • Opening and Closing timings of establishments: The Draft Rules empower the Government, in public interest, to fix opening and closing timings of any or all classes of establishments after obtaining views of the jurisdictional Municipal Commissioner and Police Commissioner (if necessary).
  • Obligations of employer employing women night shift workers: The Draft Rules bar employers from requiring women workers to work from 9:30 pm to 7:00 am without obtaining their consent in the prescribed manner. The Draft Rules have also created multi-fold obligations for employers in respect of women night shift workers. Employers are required to strictly implement and enforce the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. Additionally, employers are obligated to provide proper lighting and illumination, separate toilets with safety lock facility, sanitary napkins and separate pick and drop facilities for women workers. The 1961 Rules only provide that no woman would be allowed to work after 9:30 pm, irrespective of her consent.
  • Maternity leave for women night shift workers: The Draft Rules provide that women workers cannot work in the night shift during a period of 24 (twenty-four) weeks before and after child birth, of which at least 12 (twelve) weeks must be before child birth, and any further period that may be necessary for her health or that of her child, as may be specified in her medical certificate.
  • Conditions of employment with respect to workers in shifts: The Draft Rules introduce new provisions which prohibit overlapping shifts, and mandate at least 12 (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. The employer is also required to display well in advance, on their website and at a conspicuous place of the premises, a shift schedule, showing the names and designation of all persons working in that shift, so that each worker is aware of the shift during which he/she has to work.
  • Emergency contact: There is an additional provision in the Draft Rules for the inclusion of emergency contact number in the worker's identity card, which is not prescribed under the 1961 Rules.
  • Notice of accumulated leave and Leave Book: Under the Draft Rules, the employer or manager will be required to, in the first quarter of each calendar year, notify the names of all workers who have accumulated earned leave up to the maximum limit of 45 (forty-five) days. Further, the entries for both earned leaves sanctioned, and those which were applied for and refused, will be made in the same Leave Book.
  • Constitution of Health, Safety and Welfare Committee: A Health, Safety and Welfare Committee (Committee) is required to be constituted in every establishment wherein 100 (one hundred) or more workers are employed. The Committee will be composed of the employer's and the workers' representatives in the manner prescribed under the Draft Rules. The Committee is responsible for surveying and identifying accident prone or hazardous objects or spots in the premises, rectifying such spots, conducting health and wellness camps once a year, creating awareness about epidemics or natural calamities, conducting recreational and cultural activities and programmes for employees' social and educational awareness.
  • Provision of Latrines and Urinals: This is a new provision in the Draft Rules obligating employers to provide a clean urinal and latrines facility with supply of anti-bacterial liquid soap, with separate provisions for men and women. The latrine or urinal is required to be well ventilated with exhaust fan and lighted, and safe for the use of women workers in particular. It should also have proper provisions for water supply and flushing of waste. Such detailed specifications were not present in the 1961 Rules.
  • Maintenance of Registers and Records: The multiplicity of forms and the requirement of maintaining a 'visit book' as prescribed in the 1961 Rules has been done away with. The employer must maintain a Muster-Roll cum Wages Register in a uniform format. The Facilitator has the power of inspection in place of the Inspector and every employer or manager is required to preserve the Facilitator's inspection records for a period of 5 (five) years and produce them on the Facilitator's demand. The time limit prescribed for preservation of registers and records is 2 (two) years under the 1961 Rules.
  • Compounding of Offences: In accordance with the 2017 Act, the Draft Rules prescribe the procedure for compounding of offences. The Compounding Officer, which the Government by notification may specify, must pass a detailed order within 7 (seven) working days from receipt of the application. The order must then be forwarded to the concerned local Facilitator for serving the same to the defaulting employer within working seven days. The maximum compounding fees cannot be less than 75 (seventy-five) per cent of the maximum fine specified for such offence under the 2017 Act. The 1961 Rules did not have any provision for the compounding of offences.
  • Persons discharging Managerial Functions: The Draft Rules provide for the definition of 'managerial provisions' as meaning 'all such functions which are inherently supervisory in nature and are bestowed with powers and authority to take all policy and administrative decision in an organisation, e.g. power to sanction leave, award increment, take disciplinary action, to terminate, suspend or dismiss a worker or indulge in policy making decision regarding any aspect of the business or service conditions of workers and such other similar powers.' Every employer registered under the 2017 Act is required to inform the Facilitator the names and designation and brief nature of duties of such persons, who are discharging managerial function. There was no such provision in the 1961 Rules.


Like the 2017 Act, the Draft Rules represent major reforms. The process for registration and maintenance of records has been digitized, which allows ease of compliance. In accordance with market demand, the Draft Rules allow flexibility in fixing different opening and closing hours for different classes of establishments such as malls and shopping complexes. The Draft Rules also provide for relief to non-compliant employers by giving them the option of compounding of offences.

Most importantly, the Draft Rules provide for considerably widened welfare provisions as compared to the 1961 Rules, especially for women workers, in order to ensure their dignity and safety. The Constitution of a 'Health, Safety and Welfare Committee', for ensuring safer premises and provision of recreational programs and social awareness to employees, is another step towards ensuring a healthy working environment. However, no provision for exemption of employer and manager from criminal liability if they prove that they used due diligence or that another person committed the offence in question without their knowledge, consent or connivance has been included in the Draft Rules.

While the Draft Rules are aimed to facilitate ease of doing business and safety issues, we will have to wait till final rules are notified to further analyse their impact.

The content of this document do not necessarily reflect the views/position of Khaitan & Co but remain solely those of the author(s). For any further queries or follow up please contact Khaitan & Co at

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
In association with
Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions