• Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 has been made effective from December 19, 2017.
  • As a result, the erstwhile Maharashtra Shops and Establishments Act, 1948 stands repealed.
  • Majority of the obligations under MSEA 2017 apply to establishments employing at least 10 'workers'. Limited reporting requirements for smaller establishments.
  • MSEA 2017 replaces the definition of 'employee' with 'worker'. Individuals engaged through an agency and persons in positions of confidential, managerial or supervisory nature, are excluded.
  • Besides revision to provisions relating to leaves, holidays, overtime, etc., certain new requirements such as provision of a crèche facility, canteen, etc. have been introduced.
  • Enhanced penalties for non-compliance and contraventions.
  • Rules to MSEA 2017 are yet to be published.

The State Government of Maharashtra has ensured that the State continues to remain at the forefront of development and reform by becoming the first Indian State to overhaul its 70-year-old labour law for shops and establishments. Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 ("MSEA 2017") has been made effective from December 19, 2017 and replaces the erstwhile Maharashtra Shops and Establishments Act, 1948 ("MSEA 1948"). Maharashtra has two of the leading commercial cities, Mumbai and Pune, besides other important cities like Thane, Navi Mumbai, Aurangabad, Nasik and Nagpur. In fact, Mumbai is considered as the commercial capital of India.

BACKGROUND

Each Indian State has implemented a law on employment and working conditions for shops and commercial establishments operating in that State. With a view to make these shops and establishments laws more contemporary and uniform throughout the country and enhance ease of doing business in India, the Central Government had in July 20161 introduced the Model Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2016 ("Model SEA"). States could voluntarily adopt it by making suitable modifications based on state-specific requirements. In view of this, Maharashtra State has introduced MSEA 2017 which largely adopts the provisions contained in the Model SEA.

Footnote

1 http://pib.nic.in/newsite/PrintRelease.aspx?relid=146718.

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