Overview of the Maharashtra Shops and Establishments Act, 2017 PDF

The Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 (“2017 Act”) was enacted to replace the earlier 1948 legislation. The 1948 Act had become inadequate in view of changes in trade, commerce and service-oriented sectors. The 2017 Act therefore:

1. Consolidates provisions relating to working hours, leave and overtime;
2. Introduces digital registration and renewal processes;
3. Provides welfare facilities such as crèche and canteen obligations;
4. Strengthens protections for women workers, particularly with respect to night work; and
5. Prescribes higher penalties for non-compliance.

It is essentially a complete shift from paper-based regulation to a modern compliance framework.

Purpose and Scope of the Maharashtra Shops and Establishments Executive Summary

The statute regulates the conditions of employment in shops, hotels, restaurants, theatres, professional offices, IT and consultancy firms, among others. It is not restricted to commercial outlets alone. An executive summary of the law is often relied upon by employers and HR managers who require clarity on their obligations without reading the bare text of every provision.

Applicability and Compliance Under the Maharashtra Shops Act Compliance Corrida Legal

The Act applies throughout the State of Maharashtra. Establishments employing ten or more workers must obtain registration under Section 6. Those employing fewer than ten are still required to file intimation under Section 7. In Corrida Legal’s experience, the following

compliance steps are critical:

• Timely registration / intimation through the online portal;
• Maintenance of registers and records in the prescribed form;
• Periodic renewal of certificates (up to 10 years validity permitted);
• Inspection readiness and facilitation of authorities.

Failure to comply attracts penalties which may extend up to ₹1,00,000, apart from continuing fines.

Understanding the Maharashtra Shops and Establishments Act Rules PDF

The State Government has notified detailed rules under the 2017 Act. These are as important as the principal legislation because they set out the forms, procedures, and practical conditions for compliance. For instance, rules mandate:

• Display of signboards in Marathi (Section 36A);
• Provision of crèche facilities for establishments with 50+ workers;
• Filing of annual returns in electronic form.

Access to the rules PDF is therefore essential for day-to-day compliance.

Why Refer to the Maharashtra Shops Act 2017 Key Provisions Summary

Employers often prefer a consolidated key provisions summary because it highlights the following points in simple terms:

• Maximum daily working hours (9 hours) and weekly limits (48 hours);
• Overtime entitlements (twice the ordinary rate);
• Weekly holiday and festival leave requirements;
• Minimum health, safety and welfare facilities;
• Powers of inspectors (Facilitators) and penalties for contraventions.

Such a summary allows business owners to quickly review obligations without going through the entire bare Act.

Registration and Renewal Process under the Maharashtra Shops and Establishments Act, 2017 PDF

Section 6 of the Act requires establishments employing ten or more workers to obtain registration. The law is clear: registration must be completed within sixty days either from the commencement of the Act or from the date on which the establishment begins business.

The registration certificate contains:

1. Details of the employer and the manager;
2. Postal address and nature of business;
3. Period of validity (which may extend up to ten years).

The certificate is issued online. It must be kept available for inspection and produced whenever demanded by the Facilitator. In practice, delay in applying is one of the most common lapses seen in inspection reports.

Small Establishments – Maharashtra Shops and Establishments Executive Summary

Section 7 applies where fewer than ten workers are employed. Such establishments are not required to register but must submit an intimation online. The intimation records the name, nature of business and number of workers.

Two points are worth noting:

• The Facilitator issues only a receipt of intimation, not a certificate.
• If the workforce later increases to ten or more, full registration under Section 6 becomes compulsory.

The executive summary is that “small” does not mean “exempt”; even the smallest business must notify the authority.

Renewal – Maharashtra Shops Act Compliance Corrida Legal

A certificate is valid for the period requested but cannot exceed ten years. Renewal must be sought thirty days before expiry. Late renewal, if filed within thirty days after expiry, attracts an additional late fee of half the renewal fee.

From Corrida Legal’s review of employer records, the following are recurring compliance issues:

• Renewal applications filed after expiry, leading to penalty;
  • Certificates not updated when the manager or nature of business changes;
  • No intimation filed on closure of business.

Employers are advised to maintain an internal calendar so that renewals are not overlooked.

Cancellation and Change – Maharashtra Shops and Establishments Act Rules PDF

The Facilitator is empowered to cancel registration where it was obtained through misrepresentation, false documents or suppression of facts. Before cancellation, an opportunity of hearing must be provided.

Section 9 also obliges employers to notify every change in particulars. The rules PDF prescribes the forms and the time within which such notice must be given. Non-compliance exposes the employer to penalty and future inspection risk.

Closure – Maharashtra Shops Act 2017 Key Provisions Summary

Under Section 10, closure of an establishment must be intimated to the Facilitator within thirty days. Once verified, the authority removes the establishment from the register and cancels the certificate.

The key provisions summary can be stated simply:

• Closure → Intimation within 30 days;
• Intimation not given → Penalty;
• Once recorded → No further liability under the Act.

Working Hours and Overtime Rules under the Maharashtra Shops and Establishments Act, 2017 PDF

Section 12 restricts the working hours of adult workers to:

1. A maximum of nine hours in a day; and
2. Forty-eight hours in a week.

No worker can be asked to work for more than five hours continuously without at least half an hour of rest. These limits are not optional — they are statutory requirements. Employers must therefore organise shifts and duty rosters accordingly.

Women Workers and Night Shifts – Maharashtra Shops and Establishments Executive Summary

Section 13 prohibits discrimination against women in recruitment, promotion, wages or transfers. The law permits women to work only between 7.00 a.m. and 9.30 p.m.. Work beyond these hours is allowed only if:

• The worker provides her written consent;
• The employer ensures safe transportation from the workplace to her residence; and
• Adequate safety and anti-harassment measures are in place.

The executive summary is that women may be engaged in night shifts but only under strict protective conditions. Corrida Legal advises employers to document such consents and facilities to avoid inspection objections.

Spread-Over Rules – Maharashtra Shops Act Compliance Corrida Legal

Section 14 provides that the “spread-over” (i.e., the total period between the start and finish of duty, including rest intervals) must not exceed 10.5 hours in a day. Where work is intermittent or urgent, it may be extended to 12 hours. retail and hospitality sectors, especially during festive seasons. Employers should keep shift records and stagger staff to remain compliant.

Overtime Wages – Maharashtra Shops and Establishments Act Rules PDF

Section 15 requires that any work beyond nine hours per day or forty-eight hours per week must be paid at twice the ordinary rate of wages. Overtime cannot exceed 125 hours in any period of three months.

The rules PDF clarifies the method of calculating ordinary rate and requires records of overtime to be maintained for inspection. Non-payment or under-payment of overtime has been a common ground for penalties.

Weekly Holiday – Maharashtra Shops Act 2017 Key Provisions Summary

Section 16 mandates that every worker must be allowed at least 24 consecutive hours of rest in a week. If weekly holiday is denied, compensatory leave must be granted within two months. If a worker is made to work on a rest day, wages must be paid at double the

ordinary rate.

The key provisions summary for employers:

• One weekly rest day is compulsory;
• No deduction from wages for weekly off;
• Compensatory leave must be granted if rest day is denied;
• Penalties apply for failure to comply.

Leave and Holidays under the Maharashtra Shops and Establishments Act, 2017 PDF Weekly Holidays – Maharashtra Shops Act 2017 Bare Act Download

Section 16 requires that every worker must be allowed a weekly holiday of not less than twenty-four consecutive hours of rest.

It is important to note:

• An establishment may remain open every day of the week, but the worker cannot be denied his weekly rest.
• If a worker is asked to work on the rest day, then compensatory leave must be granted within two months.
• No deduction from wages is permitted for the weekly holiday. Daily-rated workers and piece-rated workers are also entitled to be paid for the day.

In practice, inspectors often check duty rosters and wage registers specifically to confirm whether weekly holidays are being observed.

Casual Leave and Earned Leave – Maharashtra Shops and Establishments Executive Summary

Section 18 of the Act deals with leave. The provisions are as follows:

• Eight days of casual leave with wages in every calendar year, credited quarterly. Unused casual leave lapses at year-end.
• Earned leave at the rate of one day for every twenty days worked in the previous calendar year, provided the worker has worked for at least 240 days.
• A worker who has completed three months of service is entitled to leave at the rate of five days for every sixty days worked.

The executive summary is that employees are entitled both to short-term casual leave and longer earned leave. These are minimum statutory benefits and cannot be waived by contract.

Festival Holidays – Maharashtra Shops Act Compliance Corrida Legal

The Act prescribes eight paid festival holidays. Of these, four are compulsory (26 January, 1 May, 15 August, 2 October). The other four are to be agreed upon between the employer and employees at the start of the year.

Corrida Legal has seen disputes arise where employers fail to publish the agreed list in advance. To avoid such disputes:

1. Publish and circulate the holiday list in January;
2. Obtain signatures of acknowledgment from employees;
3. If work is taken on a festival holiday, double wages and a substitute holiday must be given.

Accumulation and Encashment – Maharashtra Shops and Establishments Act Rules PDF

Earned leave may be accumulated up to forty-five days. If more leave is due but not sanctioned, the excess must be encashed.

The rules PDF also clarifies that for calculating 240 working days:

• Maternity leave, accident leave and certain lay-offs are counted as days worked;
• However, no fresh leave is earned during such periods.

In practice, inspectors often verify whether encashment has been provided when leave beyond the 45-day limit has been refused.

Key Compliance Points – Maharashtra Shops Act 2017 Key Provisions Summary

To summarise the position:

• Weekly holiday is compulsory.
• Casual leave – 8 days.
• Earned leave – 1 day for every 20 worked, subject to 240 days.
• Festival holidays – 8 days (4 fixed + 4 agreed).
• Accumulation of earned leave up to 45 days only.
• Refusal of due leave gives right to encashment.

These are the key provisions summary. Non-compliance may attract penalty under Section 29 of the Act.

Enforcement and Penalties under the Maharashtra Shops and Establishments Act, 2017 PDF

The Act (Chapter VI) provides for appointment of a Chief Facilitator and Facilitators. These officers are empowered to advise employers, conduct inspections, and enforce compliance.

It may be noted:

• Inspections are to be carried out under a randomised system, web-based in nature.
• Facilitators have authority to enter premises, examine registers, question workers.
• They may seize copies of documents if an offence is suspected.

In effect, the inspection is not supposed to be harassment-oriented but compliance-oriented. However, in practice, inspectors still expect hard copies to be produced even if records are maintained electronically.

General Penalties – Maharashtra Shops and Establishments Executive Summary

Section 29 prescribes penalty for contravention of the Act or Rules. The fine may extend to

₹1,00,000, with additional fine of ₹2,000 per day for continuing contravention.

• For repeat offences, fine may extend to ₹2,00,000.
• The cap is calculated per worker employed.

The executive summary here is that penalties are significant and are often imposed per-day, not merely per-incident.

Accident-Related Contraventions – Maharashtra Shops Act Compliance Corrida Legal

Section 30 is stricter: where a contravention results in serious injury or death, punishment may extend to six months imprisonment, or fine not less than ₹2,00,000 (may extend to ₹5,00,000), or both.

Corrida Legal has observed that prosecutions under this section are not common, but once initiated, they carry serious reputational and financial consequences. Employers in manufacturing, hospitality, and warehousing sectors must be especially careful.

Obstruction and Refusal – Maharashtra Shops and Establishments Act Rules PDF

Section 31 penalises obstruction of a Facilitator or refusal to produce registers. Fine may extend to ₹2,00,000. The rules PDF further clarifies that refusal includes not furnishing information when called for.

It is clarified that:

• Even preventing a worker from being questioned amounts to an offence.
• Failure to produce electronic records on demand can also be treated as refusal.

Cognizance and Compounding – Maharashtra Shops Act 2017 Key Provisions Summary

• Section 32: No Court can take cognizance unless a complaint is filed by the Facilitator within 3 months (6 months if order is disobeyed).
  • Section 33: Offences may be compounded, except those punishable with imprisonment only.

The key provisions summary is:

• Cognizance requires Facilitator’s complaint.
• Compounding allowed once, not for repeat offenders within five years.
• Composition orders must be complied with; failure attracts additional 20% fine.

Conclusion – Why Compliance Matters under the Maharashtra Shops and Establishments Act, 2017 PDF

The Act is not a formality. It directly regulates how employers run their establishments on a daily basis. Registration, leave, safety, inspection – all of these are not optional but legal obligations.

Timely registration & adherence

Employers must obtain registration/intimation within the prescribed time and keep renewals in order. Delay or omission often shows up during inspection, leading to immediate penalty notices. Compliance in time is far easier than compounding later.

Risk of penalties

Contraventions attract fines up to ₹1,00,000, with daily penalties for continuing breaches. In accident cases, liability may include imprisonment and fines in lakhs. Inspectors frequently focus on registers, leave encashment, holiday lists, and signage. Even small lapses are treated as violations.

How Corrida Legal can help

Corrida Legal regularly assists employers across sectors — retail, IT, hospitality, manufacturing — in understanding their obligations, preparing compliance

calendars, and facing inspections. Our role is not limited to reading the law but translating it into practical steps:

• Preparing documentation and registers in the prescribed format;
• Advising on overtime, leave encashment, festival holidays;
• Handling renewal delays and compounding proceedings; and
• Training HR teams to avoid recurring lapses.

The message is clear: compliance is cheaper than default. Early registration, proper records, and regular reviews save both money and reputation.

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