The Maharashtra Cabinet has approved significant amendments to the Factories Act, 1948 and the Maharashtra Shops and Establishments Act, 2017, increasing daily working hours in private establishments and factories. The move is aimed at aligning with international labor practices, boosting ease of doing business, and offering industries greater flexibility during high-demand periods.
Key Changes in Working Hours and Overtime
Under the amended rules:
- Factories: Daily working hours will rise from 9 to 12 hours, with rest breaks permitted after six hours instead of five.
- Shops and Establishments: Daily hours will increase from 9 to 10 hours.
- Overtime: The legal ceiling will be raised from 115 to 144 hours per quarter in factories and from 125 to 144 hours under the Shops and Establishments Act.
- Emergency duty shifts may extend up to 12 hours, subject to written worker consent.
Applicability of the Amendments
The new rules apply to establishments with 20 or more workers. Smaller businesses employing fewer than 20 workers will be exempt from registration certificates, though they must still notify authorities through a simplified intimation process.
Safeguards and Worker Rights
While extending working hours, the government emphasized safeguards for employees. Workers will continue to receive double wages for overtime, ensuring fair compensation. Additionally, the amendments are designed to provide more workplace flexibility for women, allowing them to work late hours once new labor codes are finalized.
Why the Changes Matter
The state government argues that the reforms will:
- Enhance ease of doing business, making Maharashtra more competitive.
- Attract investment by aligning labor laws with other progressive states such as Karnataka, Tamil Nadu, Telangana, Uttar Pradesh, and Tripura.
- Address industry concerns about labor shortages during peak demand cycles.
- Create a supportive work environment that balances employer needs with worker welfare.
The Bigger Picture
These amendments reflect a wider national shift toward modernizing labor laws to meet global standards. While businesses may benefit from greater flexibility, the effectiveness of these reforms will depend on their implementation and on ensuring that workers’ rights remain protected.
