Introduction

With the introduction of Maharashtra Shops and Establishments (Regulation of

Employment and Conditions of Service) Act 2017 (hereinafter referred as MSEA
2017), on December 19, 2017, the previous act, i.e, Maharashtra Shops and
Establishments Act 1948 (hereinafter referred as MSEA 1948), has been
revoked. If we look into the background and the reason behind enactment of
this statute, we will see that in July 2016, Central Government published Model
Shops and Establishment (Regulation of Employment and Conditions of Service)
Act 2016 and the states were free to adopt the same with necessary state-
specific modifications. The introduction of this Model SEA 2016, was having
three major reasons behind this – i) to make these legal provisions more
contemporary ii) to enhance the ease of doing business and iii) to implement a
more or less uniform statute throughout the country.

Maharashtra is the first state to adopt the Model SEA 2016, with few state-
specific amendments to remain at the forefront of industrial development and
reforms. It is the first state to change the 70 year old statute. Considering the
fact that Maharashtra is having two leading commercial and industrial cities of
the state – Mumbai and Pune, this is surely a long step forward.

While making the adaptation of Model SEA 2016 and while repealing the earlier
applicable statute of 1948, few changes have been introduced.

Applicability of the Act

Maharashtra Shops and
Maharashtra Shops and Establishment Establishments (Regulation of
Act 1948 Employment and Conditions of
Service) Act 2017

Legal Provision
Legal Provision Section Section

It was applicable to all such All provisions, except section 7, 1(3)

establishments irrespective shall be applicable to all such
of the number of employees establishments throughout the
employed. state of Maharashtra who is
employing 10 or more workers.

It was applicable to all
employees employed either
directly or through an
agency, whether for wages
or other considerations. This
included the apprentices
also but did not include the
family member(s) of the
employer
The MSEA 1948 had
2(8) and
separate definitions for
2(4)
Establishment and
respectively
Commercial Establishment
Both MSEA 1948 and MSEA 2017 are not applicable to the factories covered under the
Factories Act 1948.
Employer
Maharashtra Shops and
Establishment Act 1948
However, the provisions of
section 7 shall only be
applicable to such
establishments who are
employing less than 10 workers
The definition of employee has
been replaced by that of the
worker doing CUSTOM (Clerical,
Unskilled, Skilled, Technical,
Operational, and Manual) work
for hire or reward. The terms of
employment can be expressed
or implied. Unlike the earlier
definition of employee, it does
2(6) not include the apprentices. 2(26)
Moreover, as per section 3(11),
the provisions of the act shall
not apply to a worker who is
holding the position of
confidential, managerial or
supervisory nature in an
establishment.
MSEA 2017 has one detailed
definition of establishment
which includes trades, 2(4)
professions and various
businesses specifically.
Maharashtra Shops and Establishments
(Regulation of Employment and
Conditions of Service) Act 2017
 Legal Provision
MSEA 1948 simple defined
the term Employer as a
person owning an
establishment or having
ultimate control over its
affairs
Registration of Establishment
Maharashtra Shops and
Establishment Act 1948
Legal Provision
Registration was mandatory
for all establishments
irrespective of the number of
employees employed.
The time limit for making the
application was 30 days as
per section 7(4)
The validity of the
registration or its renewal
was between 1 to 3 years
and within 15 days the
application for renewal had
to be made.
Section Legal Provision Section
MSEA 2017 broadened the scope
of the definition and has included
the partners of firms, directors of
2(7) 2(3)
companies and persons appointed
by the Government to manage
affairs.
Maharashtra Shops and Establishments
(Regulation of Employment and
Conditions of Service) Act 2017
Section Legal Provision Section
It is applicable to establishments
where 10 or more workers are
employed.
Establishments employing less
than 10 workers are not needed
to apply for registration. The
7(1) application is to be made within 6(1)
60 days.
However, establishments already
covered under MSEA 1948 are not
required to get registered under
MSEA 2017 till the earlier
registration is valid
7(2-A) The term of the registration 6(3)
and 7(2- certificate is not fixed. It will be
B) entirely based on the application
made by the applicant. However,
the maximum tenure can be of 10
years.

Opening Hours & Closing Hours
Maharashtra Shops and
Establishment Act 1948
Sectio
Legal Provision
n
Commercial Establishments
were allowed to get opened on
or after 8.30 am and closed not
later than 9.30 pm unless there
was a specific exemption from
the State Government. MSEA
13
1948 had separate provisions
w.r.t the opening and closing
hours of restaurants, residential
hotels, theatres or other places
of amusement and
entertainment
Close Day and Weekly Holiday
The application for renewal of the
registration certificate or the
renewed registration certificate
has to be made at least 30 days
prior to the date of expiry with
required fees
Maharashtra Shops and
Establishments (Regulation of
Employment and Conditions of
Service) Act 2017
Legal Provision Section
Under MSEA 2017 nothing is
prescribed about the opening
and the closing hours. State
Government holds the authority
to notify in the official gazette
opening and closing hours for
different establishments,
premises, shopping complex or
mall. This may vary for different
area for a different period.
11
However, For Permit Rooms,
Beer Bars, Dance Bars, Hookka
Parlors, Discotheques and all
such other establishments
where liquor in any kind is
served or for wine and all kinds
of liquor shops, specific opening
and closing hours have been
specified vide notification dated
19 December 2017.

Maharashtra Shops and
Establishment Act 1948
Sectio
Legal Provision
n
Establishments were
required to remain
18
closed for at least one
day of the week
No provision of
Compensatory off in
such cases where
weekly off is not given
Hours of work, Rest Interval, Spread Over
Time and Overtime
Maharashtra Shops and Establishment
Act 1948
Legal Provision
As per MSEA 1948 daily hours
of work was limited to 9 hours
maximum and weekly it was
48 hours
Maharashtra Shops and Establishments
(Regulation of Employment and Conditions of
Service) Act 2017
Legal Provision Section
Establishments can remain open
throughout the week without closing the
same for one full day. The only clause is 16(1)(b)
that every worker is to be allowed a
weekly holiday of at least 24 hours.
In case such a weekly holiday was
denied, compensatory off is to be given
in lieu of such weekly holiday within 2
16(1)(c)
months from the date of the weekly
holiday along with twice the rate of
ordinary wages.
Maharashtra Shops and
Establishments (Regulation of
Employment and Conditions of
Service) Act 2017
Section Legal Provision Section
The daily and weekly limit
remains same as that of
MSEA 1948. However, in
14(1) case of urgent work, working 12
hours of weekly holidays may
be relaxed based on prior
permission of the Facilitator
 Rest interval was provisioned
for at least 1 hour for every 5
hours of work performed.
15 and
Though in case of employees
15(a)
engaged in the commercial
respectively
activity of any factory the rest
interval was of at least half an
hour.
The spread overtime on any
normal day was up to 11
hours for any commercial
establishment unless it is
exempted specifically.
In MSEA 1948 the
accumulated overtime hours
was maximum up to 6 hours
14(2)
in a week. The hours shall be
calculated beyond 9 hours a
day or 48 hours a week
Holidays, Leaves and Leave Encashment
Maharashtra Shops and
Establishment Act 1948
Legal Provision Section
4 paid holidays in a 35(4)
calendar year –
26th January, 1st May,
15th August and
Rest interval has been
reduced to half an hour for
the adult workers employed
12
in any establishment, for
every 5 hours of work
performed.
The spread over time has
been reduced to 10½ hours
on a normal day. However, it
16 can be extended up to 12 14
hours when the work is of
intermittent or urgent
nature.
In MSEA 2017 the
accumulated overtime hours
is allowed maximum up to
125 hours in a period of 3 15
months. The hours shall be
calculated beyond 9 hours a
day or 48 hours a week
Maharashtra Shops and Establishments
(Regulation of Employment and Conditions
of Service) Act 2017
Legal Provision Section
8 paid holidays in a calendar year – 18(7)
26th January, 1st May, 15th August
and 2nd October and 4 others as will
be mutually agreed upon between the
 workers and the employer. These are
2nd October to be communicated before the
commencement of the year.

As per MSEA 2017, 8 days casual leave

is allotted in a calendar year which is
No Provision for Casual to be credited to the worker’s leave
18(2)
Leaves data on a quarterly basis. If unavailed,
those leaves will lapse at the end of
the year

As per MSEA 2017, 1 day of annual

As per MSEA 1948, 21
days of annual leaves
with wages were allowed
35(b)
to employees who have
worked for at least 240
days in a year.
leave with wage has been allotted for
every 20 days of work performed
provided that the worker has worked
18(3)
for at least 240 days in the preceding
calendar year. This is parallel to the
provision of annual leave with wages
under the Factories Act 1948.

Annual leave
Proviso Annual leave accumulation is allowed
accumulation was 18(5)
of 35(b) up to 45 days
allowed up to 42 days

In case of refusal of annual leave by

the employer (subject to application 15
No provision for annual days in advance), the worker shall get
18(6)
leave encashment the right to encash the number of
annual leaves, as per section 18(3), in
excess of 45 days.

Compensatory off for Festival Holidays

Maharashtra Shops and
Maharashtra Shops and Establishment Act Establishments (Regulation of
1948 Employment and Conditions of
Service) Act 2017

Legal Provision Section Legal Provision Section


As per MSEA 1948, employees, for
working on designated festival
holidays was provided with a
compensatory off plus twice the
amount of wages for that day
The provision (i.e., as per
section 35(4) of MSEA Act
1948) is applicable for the
35(4) workers as per MSEA Act 18(7)
2017.

Working of Women Workers

Maharastra Shops and Establishments
Maharashtra Shops and
(Regulation of Employment and Conditions of
Establishment Act 1948
Service) Act 2017

Sectio
Legal Provision Legal Provision Section
n

Women workers are allowed to work after

9.30 pm subject to fulfilment of the
following conditions

1. Consent of the woman worker has

been obtained
2. The employer provides adequate
safety and protection of honor &
dignity.
Women employees
were prohibited 3. The employer provides enough
33(3) 13
from working protection from instances of sexual
beyond 9.30 pm harassment at the workplace.
4. Women workers are provided with
proper transportation facility from
their workplace to their doorstep
by the employer.
However, the state government can
prohibit the employment of women workers
after 9.30 pm and before 7 am of the
following day for any business or trade or
occupation in such areas as deem fit.
Double Employment
Maharashtra Shops and Establishments
Maharashtra Shops and
(Regulation of Employment and
Establishment Act 1948
Conditions of Service) Act 2017

Legal Provision Section Legal Provision Section

Double employment on a
holiday or during leave had
been prohibited
No such provision for the
65
prohibition of double employment

Termination of Employment
Maharashtra Shops and
Establishments (Regulation
Maharashtra Shops and Establishment Act
of Employment and
1948
Conditions of Service) Act
2017

Legal Provision Section Legal Provision Section

Employer was needed to provide

1. 30 days notice period or

payment in lieu of the same
to employees who had
been in continuous 66(a) and
employment for at least 66(b) No provision
one year. respectively
2. 14 days notice period or
payment in lieu of the same
to employees who had
been in continuous
employment for less than a
year but more than 3
months
Inspection and Enforcement
Maharashtra Shops and Establishments
Maharashtra Shops and
(Regulation of Employment and Conditions of
Establishment Act 1948
Service) Act 2017

Sectio
Legal Provision Legal Provision Section
n

Instead of Inspectors MSEA 2017 has

introduced Facilitators.

1. The State Government shall

appoint the Chief Facilitator for
the state and other
Facilitator(s) having a specific
Inspectors were demographic area within the
appointed for State.
implementation of the 48 2. The main objective of the 28
provisions of MSEA Facilitator is to advise the
1948 employers and the workers
towards better compliance of
the act.
3. Instead of inspection at any
reasonable time based on the
discretion of the labour
authorities, inspections will be
done on a random web-
generated way.

Offences & Penalties

Maharashtra Shops and Establishments
Maharashtra Shops and
(Regulation of Employment and Conditions of
Establishment Act 1948
Service) Act 2017

Legal Provision Section Legal Provision Section

For statutory violations 52 to For statutory violations of the provisions 29 to

of the provisions of the 57 of the act, the penalties are ranged from
 Rs.1,00,000/- to Rs.5,00,000/-. In case
the contravention is continued,
act, the penalties were
additional fine of Rs.2000/- per day shall
ranged from Rs.1000/- 31
be imposed. However, the total fine shall
to Rs.15000/-.
not exceed Rs.2000/- per worker
employed

MSEA 2017 states that if the employer is

found guilty in case of contravention of
any provision(s) of the act that has
No imprisonment resulted in the bodily injury or death of
provision was their the worker, the employer will be 30
under MSEA 1948 awarded punishment of imprisonment up
to 6 months or fine not less than
Rs.2,00,000/- and up to Rs.5,00,000/-
or with both.

Identity Card
Maharashtra Shops and Establishments
Maharashtra Shops and
(Regulation of Employment and Conditions
Establishment Act 1948
of Service) Act 2017

Legal Provision Section Legal Provision Section

Identity Card to be
Identity Card to be provided to the
provided to the
workers by the employer for any
employees by the
establishment. Apart from employer’s
employer for any 25 17
and worker’s basic details, it must
residential hotel,
contain worker’s blood group and
restaurant or eating
Aadhaar card number
house.

New Provisions in MSEA 2017

 Displaying a list of workers in the managerial, supervisory or
confidential role either in the website of the employer or at a
conspicuous place of the establishment. These workers will be covered
within the scope of the act. [Section 3(11)]
 Casual Leaves of 8 days in a calendar year. [section 18(2)]
 In line with the Equal Remuneration Act 1976, MSEA Act 2017 brings
the provision of no discrimination for women workers in matters like
recruitment, promotion, wage, training or transfer. [Section 13(1)]
 Earn Leaves shall not be calculated for the availed maternity benefit of
the women workers. However, these days shall be taken into
consideration for computation of 240 days in a year. [Section 18(8)(b)]
 Crèche Facility for establishments employing 50 or more workers. A
group of establishments may operate a common crèche within a radius
of one kilometre, subject to prior conditional permission by the Chief
Facilitator. [Section 23]
 Canteen Facility is to be provided by the employer where at least 100
workers are employed. A group of establishments may operate a
common canteen, subject to prior permission by the Chief Facilitator
[Section 24]
 Employer has the discretionary power to run any department or any
section of the same in more than one shift. The worker will get the
work in any shift, as will be decided by the employer. [Section 16(1)]
 Employers are now permitted to keep records in electronic format.
They will be required to submit duly signed hard copies of the same to
the Facilitators upon demand at the time of inspection. [Section 25(2)]
 MSEA 2017 states that if the employer is found guilty in case of
contravention of any provision(s) of the act that has resulted in the
bodily injury or death of the worker, the employer will be awarded
punishment of imprisonment up to 6 months or fine not less than
Rs.2,00,000/- and up to Rs.5,00,000/- or with both. [Section 30]