Mumbai: Maharashtra could see a major reduction in units governed by the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017. The state cabinet has cleared amendments which will make the law applicable only to units employing 20 or more workers from the current 10 or more. There are 85 lakh shops and establishments governed by this law and the amendment will reduce the number to just around 56,000.However, labour laws governing social security like the Minimum Wages Act or Maternity Benefit Act will continue to apply even to small establishments which are out of the purview of the amended law, officials said.The cabinet passed amendments to the Maharashtra Factories Act 1948 too and both legislations face changes on issues including working hours, rest period and overtime. The amendments will have to be passed by the state legislature. In case of the Factories Act, a central legislation, presidential assent will also be needed.”This deregulation will be beneficial to both workers and employers and improve operational flexibility. It will boost employment,” said state labour secretary I A Kundan. “Currently, even small businesses employing 10 workers are loaded with compliances. The amendment will encourage people to set up small businesses and boost employment,” she said. The amendments will allow for working hours in shops and establishments to be increased from 9 to 10 hours per day and those in factories from 9 to 12 hours per day. The additional hours will be treated as overtime will be paid at twice the basic wage and allowance rate.The amendments state maximum working hours per week will be sealed at 48 hours and maximum overtime per week will be fixed at 60 hours.The amendments also increase the overtime period in a 3-month span to 144 hours from the current 100 hours under the Factories Act and 125 hours under the Shops and Establishments Act. The amendments also introduce a cap on working hours and overtime. “If the working hours and overtime limit is achieved within four days of the week, then the remaining two days will have to be given off as paid leave. This will promote work-life balance,” said Kundan. The amendments provide for a rest interval of 30 minutes per 6 hours instead of 5 hours now. Also working hours spread over time have been increased from 10.5 to 12. “This concept will particularly apply to the IT industry where working hours are spread out during the day,” said a senior official.Viren Shah from the Federation of Retail Traders Welfare Association welcomed the move. “This will help small shops to be free of registering themselves with the government and other paperwork. And there seem to be enough protections for employees,” said Shah.
