Maharashtra Govt. Introduces New Labour Law For State

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Maharashtra Govt. Introduces New Labour Law For State
Maharashtra Govt. Introduces New Labour Law For State

Maharashtra has become the first state in India to overhaul labour laws governing its shops and establishments.

A new law Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 (MSEA 2017) has come into effect from December 19, 2017 and replaces the 70-year-old Maharashtra Shops and Establishments Act, 1948.

Based On Model Laws Framed By Central Government

Every state in India has implemented its own law covering employment and working conditions for shops and commercial establishments operating within its borders.

In order to introduce more contemporary shops and establishments laws and to make them uniform across the country, the Central Government issued in July 2016 the Model Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2016. It was also seen as a step towards increasing the ease of doing business in India.

States could voluntarily choose to adopt it and make necessary modifications depending on specific state level requirements.

The MSEA 2017 is largely based on the model laws provided.

Provisions Enhanced And Expanded

Maharashtra has several leading commercial hubs including the commercial capital of India Mumbai, Pune and Nagpur.

The MSEA 2017 will be applicable to establishments that are employing a minimum of 10 workers. Smaller establishments will have limited reporting requirements.

The new law has replaced the definition of “employee” with “worker”.  Those who are being engaged via agencies as well as people employed in roles of confidential, managerial or supervisory nature, are excluded from its provisions.

 

Provisions related to a number of areas including leaves, holidays and overtime have been overhauled under the new rules. Additionally, provisions have been introduced covering new aspects like canteen and crèche facilities.

 

The legislation has also enhanced the penalties for non-compliance and contraventions.

 

Specific rules for MSEA 2017 are yet to be published .

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