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The Maharashtra government has approved amendments to the Factories Act, 1948 and the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017, introducing the following changes:
Key Highlights of the Amendments
Factories
- Daily work hours increased to 12 (from 9).
- Weekly work limit raised to 60 hours (from 48).
- Overtime cap revised to 144 hours per quarter (from 115).
- Rest break of 30 minutes now mandated after 6 continuous hours (earlier 5).
- Written consent of workers required for overtime.
Shops & Establishments (20+ employees)
- Daily hours increased to 10 (from 9).
- Overtime cap raised to 144 hours per quarter.
- Emergency duty permissible up to 12 hours.
- Units with fewer than 20 employees are exempt from registration, only simplified intimation is required, but they are still covered by central protections.
Government's Stated Intent
- The reforms are designed to enhance transparency and ensure better compensation for workers, aligning with industry needs.
- The Labor Department has reiterated that safeguards such as guaranteed overtime pay, written consent, and rest periods are built-in to protect workers and prevent exploitation.
- State officials have highlighted that these changes aim to:
- Improve the investment climate and ease of doing business.
- Support industries during seasonal peaks and labor shortages.
Context
- The move brings Maharashtra in line with similar reforms in Karnataka, Tamil Nadu, Telangana, Uttar Pradesh, and Tripura.
- The government has also indicated that the amendments will provide legal protections for women employees, ensuring a balance between workplace flexibility and employee rights.
While the Cabinet has approved these amendments, they will come into force only after the Legislature passes the bill.
Our Comments
The amendment's aim is to provide greater flexibility in working hours, simplified compliance, and operational efficiency for industries and labor.
Impact on Industries/Businesses
Operational Flexibility:
- Businesses can run longer or staggered shifts, enabling round-the-clock operations.
- Helps industries like manufacturing, IT, logistics, retail, and e-commerce to optimize production and service delivery.
Ease of Compliance:
- Simplified labour regulations reduce administrative and legal hurdles, allowing businesses to focus on core operations.
Benefits to Labor
Employment Opportunities:
- Extended and flexible working shifts can create more job opportunities, especially in high-demand sectors.
Earnings Potential:
- Workers may benefit from overtime pay, allowances, and flexible shifts, potentially increasing income.
Safeguards & Welfare:
- The amendments include provisions for rest intervals, weekly offs, and worker safety, including measures for women and vulnerable employees.
Overall Impact
The amendment's aim to balance business growth with labour welfare, making Maharashtra a more competitive and inclusive industrial hub.
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