The Maharashtra government is considering significant changes to the Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017, which governs working hours in businesses such as shops, hotels, and entertainment venues. The proposal, if cleared, would raise the daily working limit for employees in private establishments from nine to ten hours.
Key Changes Proposed
The state labour department recently presented a draft to the cabinet, outlining five major changes to the 2017 law. The most notable is the extension of the maximum workday. According to the draft amendment to Section 12 of the Act, “No adult worker will be required or allowed to work in any establishment for more than 10 hours on any day.”
Other proposed changes include:
- Increasing the continuous working stretch from five hours to six hours, provided a 30-minute break is included.
- Expanding the overtime ceiling from 125 hours to 144 hours per quarter.
- Raising the maximum daily working limit from 10.5 hours (including overtime) to 12 hours.
- Removing the cap of 12 hours per day in urgent work scenarios, effectively eliminating any upper ceiling.
Applicability of the Law
Currently, the legislation applies to establishments with 10 or more employees. The proposed amendment seeks to raise this threshold, making the law applicable only to businesses employing 20 or more workers. This change could exempt a large number of small and mid-sized enterprises from compliance.
Cabinet Seeks More Clarity
Although the presentation was made during the state cabinet meeting, ministers have asked for further clarity before a final decision. Officials noted that the changes were proposed following long-pending demands from industry groups, which have been pushing for more flexibility in workforce management.
A senior minister, requesting anonymity, confirmed: “The ministers wanted more clarity on provisions and their impact and hence the decision was put on hold today.”
What It Means for Workers and Employers
If approved, the new rules would align Maharashtra’s private-sector labour laws with the evolving demands of employers, especially in high-pressure industries. However, the absence of a maximum daily limit in urgent cases has sparked concerns about employee welfare and exploitation risks. Labour unions are likely to scrutinize these amendments closely in the coming weeks.
