The Government of Maharashtra recently enacted the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Amendment Ordinance, 2025, bringing significant updates to the 2017 Act. Effective October 1, 2025, these changes streamline regulations and modify employment condition requirements for establishments across the state.
Here is a breakdown of the key amendments introduced by the new ordinance:
Updated Working Hour and Overtime Rules
- Extended Daily Spread-over: The maximum daily spread-over of work has been extended from 10.5 hours to a maximum of 12 hours.
- Increased Continuous Work Period: The maximum period of continuous work without a mandatory break is increased from 5 hours to 6 hours.
- Revised Overtime Limits: The quarterly limit for overtime hours has been raised from 125 hours to 144 hours. All overtime work continues to mandate payment at double the standard wage rate.
Revised Registration Thresholds and Compliance Approach
- Higher Registration Requirement: The threshold for mandatory registration in the private sector has been increased. Establishments now require 20 or more employees to be subject to full registration requirements.
- Simplified Notification Process: Establishments with fewer than 20 employees are no longer required to register formally; they only need to submit a simple online notification to the authorities.
- Shift from Inspection to Facilitation: The traditional role of "Inspectors" has been redefined and replaced by "Facilitators." Facilitators focus on advising businesses on compliance rather than punitive measures. Furthermore, physical inspections are now conducted via a transparent, random web-based allocation system.
These updates aim to balance employee welfare with increased operational flexibility for businesses in Maharashtra. SGC Services is monitoring these regulatory changes closely to help clients navigate compliance efficiently.
Thank you for reading. We hope the information was helpful to you!
Team SGC Services
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