Maharashtra Govt Approves Labour Law Amendments, Raises Work Hour Limits
Maharashtra Govt Approves Labour Law Amendments, Raises Work Hour Limits
Shops and Establishments Act to apply only to units with 20+ workers; daily hours increased in both factories and private establishments
The Maharashtra government has approved major amendments to labour laws, including raising the threshold for applicability of the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017. The law will now cover only establishments employing 20 or more workers, up from the current 10.
The state cabinet, chaired by chief minister Devendra Fadnavis, cleared the changes on Wednesday. The move aligns Maharashtra with states such as Karnataka, Tamil Nadu, Telangana, Uttar Pradesh, and Tripura, which have already implemented similar reforms.
Under the revised rules, daily working hours in factories will increase from nine to 12, with rest breaks after six hours instead of five. The legal overtime ceiling will rise from 115 to 144 hours per quarter, with workers’ written consent. Weekly work hours will also be extended.
For shops and establishments, the daily limit will rise from nine to 10 hours, with overtime capped at 144 hours per quarter, and emergency shifts extended to 12 hours. Units with fewer than 20 workers will be exempt from registration, though they must still notify authorities through a simplified intimation process.
Officials said the reforms are designed to promote ease of doing business, attract investment, and create jobs, while safeguarding worker rights through provisions such as double pay for overtime. The amendments will sharply reduce the number of covered units — from 85 lakh to roughly 56,000.
While the cabinet has also approved amendments to the Maharashtra Factories Act, 1948, these changes will require state legislative approval and presidential assent, as it is a central legislation.
