Maharashtra Shops & Establishments Amendment 2025: Key Highlights and Impact

Maharashtra Shops & Establishments Amendment 2025: Key Highlights and Impact

Description :

Learn about the Maharashtra Shops & Establishments (Amendment) Ordinance 2025. Key changes include higher registration thresholds, extended daily hours, revised spread-over, and increased overtime limits. Find out how this affects employers and workers.


📌 Introduction

The Government of Maharashtra has issued the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) (Amendment) Ordinance, 2025 to reform employment conditions and reduce compliance burdens on businesses. This amendment brings significant changes in registration thresholds, working hours, spread-over limits, and overtime provisions under the Maharashtra Shops and Establishments Act, 2017.


📌 Key Amendments in 2025

1. Registration Threshold

  • Before: Establishments with 10 or more employees had to register.

  • Now: The threshold has been raised to 20 or more employees.

  • Establishments with less than 20 employees now only need to intimate the authorities about their business.

Impact:
👉 This reduces compliance burden for small businesses while ensuring flexibility in operations.


2. Daily Working Hours

  • Before: Maximum 9 hours per day, with a weekly cap of 48 hours.

  • Now: Extended to 10 hours per day, subject to the same weekly cap of 48 hours.

Impact:
👉 Provides greater flexibility for businesses to manage peak hours, emergencies, and seasonal demand.


3. Rest Intervals

  • Before: Workers could work 5 continuous hours without rest.

  • Now: Extended to 6 hours without rest.

Impact:
👉 Aims to smoothen work adjustments, though employers must ensure employees are not overburdened.



4. Spread-over in Establishments

  • Before: The daily spread-over (including rest) was 10.5 hours.

  • Now: Increased to 12 hours.

Impact:
👉 Establishments can now manage extended working shifts legally, with due breaks.


5. Overtime Limit

  • Before: Maximum 125 hours per quarter.

  • Now: Increased to 144 hours per quarter.

Impact:
👉 Workers can earn more overtime, provided it is properly recorded and compensated. Employers gain flexibility in handling sudden workload increases.


📌 Objectives Behind the Amendment

The Statement of Objects and Reasons highlights:

  • To reduce compliance burden on small businesses.

  • To encourage job creation and business growth.

  • To provide operational flexibility to industries.

  • To ensure workers’ protection by formalizing overtime rules.

  • To promote Ease of Doing Business & Ease of Living in Maharashtra.


📌 Practical Implications

  • Employers: Relief for small shops with <20 employees, more flexibility in managing shifts and peak demand.

  • Employees: Higher potential earnings through overtime, though concerns about longer working hours may arise.

  • Government: Balances economic growth with labor protection.


📌 Frequently Asked Questions (FAQs)

Q1. What is the new threshold for registration under the Act?
👉 Registration is now mandatory for establishments with 20 or more employees.

Q2. Can employees be forced to work overtime under this law?
👉 No. Overtime is not mandatory and must be voluntary, with proper compensation.

Q3. What is the maximum working spread-over allowed now?
👉 A worker cannot be required to stay in an establishment for more than 12 hours a day (including rest).

Q4. Does the weekly working hour limit change?
👉 No, it remains 48 hours per week.


📌 Conclusion

The Maharashtra Shops and Establishments Amendment 2025 is a progressive reform aimed at balancing Ease of Doing Business with employee welfare. By reducing registration requirements for small establishments and providing flexibility in working hours, the state is encouraging economic growth while safeguarding workers’ rights through regulated overtime provisions.







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