Did you know that every state in India has a specific shop and commercial establishments act? The Maharashtra shops commercial establishments act 2017 came into force on December 20, 2017, and successfully replaced the 1948 Maharashtra Shops and Establishment Act. The federal government made certain amendments to the regulatory standards governing the operation of commercial facilities in India for the welfare of the workers.
An interesting fact is that Maharashtra is the first state in India to draft a new law on shops and commercial establishments. Several states have introduced legislation to implement new regulations in their respective jurisdictions following Maharashtra. Here's what the article brings you:
- About the Maharashtra shops commercial establishments act
- Recent Developments in the 2017 Maharashtra shops commercial establishments act
- Registration under Maharashtra shops commercial establishments act
- Highlights of Maharashtra shops commercial establishments act
- Maintaining compliance under the Maharashtra shops commercial establishments act
- Conclusion
- Key Takeaways
About the Maharashtra shops commercial establishments act
The Maharashtra shops commercial establishments act (Regulation of Employment and Service Conditions) Act, 2017 and Regulations, 2018 (“S & E Act”) applies to all shops and commercial facilities throughout Maharastra. This law aims to protect workers' rights and regulate the operation of shops and commercial facilities.
The Maharashtra shops commercial establishments act was introduced to regulate working hours, wages, annual leave with wages and compensation, employment of women and children, and other aspects of shops or commercial facilities.
Definition
The Maharashtra shops commercial establishments act defines a "shop" as a place where customers are dealt with, and goods/services are sold, either wholesale or retail. A shop must include a store/warehouse or a godown but cannot be a factory, commercial facility, hotel, restaurant, cafeteria, theater, or any other public place.
The Maharashtra shops commercial establishments act defines a "commercial establishment" as a place of business engaged in, trade or profession, or as a side business, secondary employment and includes the establishment of doctors, architects, engineers, accountants, or other technical or professional advisors, registered under the Societies Registration Act of 1866 (XXI of 1860). Includes charities or other foundations, or work related to or related to them, but does not include factories, shops, residential hotels, restaurants, theaters, or other public entertainment locations
Recent Developments in the 2017 Maharashtra shops commercial establishments act
This Maharashtra shops commercial establishments act applies to all commercial facilities in the state (not covered by the Factory Act) that employ ten or more workers. Registration of shop or establishment needs to complete within 60 days as per the new law or after the current corporate license expires. Registration can be done online, and all records should be submitted and maintained electronically. In addition, the trading entity can determine the validity period of the registration, which cannot exceed ten years as per the Maharashtra shops commercial establishments act. Companies that employ less than ten workers must register under the law but do not require a license.
Registration under Maharashtra shops commercial establishments act
Here are some key points regarding registrations of shops and establishments under the Maharashtra shops commercial establishments act
- Each owner must submit an “A” form application to register the facility within 60 days of starting the business.
- The registration certificate should be displayed in a prominent place in the office. The registration certificate is valid for 10 years. The shops and commercial establishments should apply for an extension of the next period before the deadline.
- Changes to the registration certificate must be notified online to the facilitator on Form "I" within 30 days of change date. The law also becomes part of the "D" in the schedule.
- After the facility is no longer in operation, the owner must submit a registration certificate to the registration office. Benefits of Registration
- The facility has legal permission to do business with the area.
- The facility can claim profits under various government schemes and maintain a commercial bank account.
Highlights of Maharashtra shops commercial establishments act
Below are the key highlights of the Maharashtra shops commercial establishments act
1. Opening and closing times of shops and facilities under the Maharashtra shops commercial establishments act
- According to the Maharashtra shops commercial establishments act regarding shops and commercial facilities, shops can only be open from 7 am to 8:30 pm. However, shops that sell products such as milk, vegetables, fruits, fish, meat, and bread may open before 7 am.
- Also, shops that mainly sell cigarettes, matches, and other supplies may be open until 11:00 pm.
- Commercial facilities in Maharashtra can only be opened after 8:30 am daily and must be closed by 9:30 pm.
- Please note that the state government has the right to accelerate the opening hours of different classes of shops in other regions.
2. Working hours at shops and facilities under Maharashtra shops commercial establishments act
Under the Maharashtra shops commercial establishments act, employees may not work in a store or commercial facility for more than 9 hours a day, 48 hours a week. Also, the daily working hours of workers in shops and commercial facilities should not exceed 5 hours of uninterrupted working hours, and workers do not have to work more than 5 hours without taking a break of a minimum of one hour.
3. Employment of children, young people, or women under Maharashtra shops commercial establishments act
Children are not allowed to work at any facility in Maharashtra. The opening and closing times for young people and women are also different. Young people should not be required or permitted to work in the facility after 7 pm, and women should not be required or permitted to work in the facility after 9:30 pm. The Maharashtra shops commercial establishments act defines a "child" as a person under 15.
4. Leave rules under Maharashtra shops commercial establishments act
Employees are entitled to a certain number of leave days per year, excluding holidays. There are four types of leaves listed in the Maharashtra shops commercial establishments act.
- Privilege leave
- Sick leave
- Casual leave
- Maternity leave
This varies from state to state. The number of days of leave granted to an employee depends on the company's state, and statutory leave rules differ from state to state.
Maintaining compliance under the Maharashtra shops commercial establishments act
Here is a list of important forms that hold relevance under the Maharashtra shops commercial establishments act and need to be duly filled:
Form B - Application for Renewal of Business and Facility
Each employer must apply for renewal of the registration certificate within 15 days of the expiration of the existing registration certificate.
Form A - Registration Application
Employers of establishments that employ ten or more workers submit an online application on Form "A" and the establishment under Article 6 of the Maharashtra shops commercial establishments act, designated in Part A of the schedule. You need to register with the required documents.
Form C - Register of Establishment Rules 5: Manner of registration of establishment
The online application form for branch registration form "A" can be assigned to one of the facilitators of the local office. They will review the application and the uploaded documents, and the information specified by the application. If your application is complete in all respects and supported by all required documents, you will need to sign your registration certificate digitally. The registration certificate must be submitted on Form "B" within 7 business days of the date the application is displayed on the intermediary's dashboard. The applicant can download the digitally signed certificate. The registered company will be entered into the company register and stored in Form C.
Suppose the request is incomplete or not supported by the required documentation outlined in these rules. In that case, the moderator will have reason to reject the application within seven business days from when the request appears on the moderator's dashboard under the maharashtra shops commercial establishments act.
Form II - Muster Roll cum Wage Register
Employers must maintain a ledger in the specified format showing attendance and wage data for all employees.
Form N - Leave Card
The employer must keep a record of the individual employee's leave in the specified format.
Form M - Register of Leave
Employers retain the leave registration for all employees in the specified format.
Form D - Application for Renewal of Registration Certificate Rule 6
Renewal Requests for renewal of registration must be submitted online on Form "D", along with the required documents specified in Part B of the Appendix.
Form E - Renewed Certificate of Registration Rule 7: Issue of the renewed certificate
The facilitator will review the registration renewal request and the uploaded document. If the application is completed in all respects and supported by all required documents, the registration certificate will be renewed on Form "E" within 7 business days from the date the application was displayed on the moderator's dashboard. The application must be digitally signed and the certificate can be downloaded by the applicant.
Form J - Register of Employment
If the opening, closing, and interval times are inconsistent for each establishment or commercial facility, the employer must maintain the employment registration in the specified format.
Form F - Application for Intimation Rule 8:
Form for starting a business by such an employer with less than 10 workers. Employers of each branch that employs less than 10 workers are required to submit an online notification of the start of business on Form "F" along with the required documents specified in Part "C" of the schedule which are:
- Employer's Aadhar card (for legal status such as a company)
- A copy of the responsible person’s Aadhar card following each law.
- Recent photos of the facility's interior design and the facility name board (in Marathi) where it is installed.
Form G - Intimation Receipt Rule 9
Upon receiving the request on Form "F" with all documents, the applicant will be issued an online receipt for such request on Form "G", the details of which will be maintained on Form "H" for this purpose.
Form H - Register of Establishment who have given intimation Rule 9
Upon receiving the request on Form "F" with all documents, the applicant will be issued an online receipt for such request on Form "G", the details of which will be maintained on Form "H" for this purpose.
Form I - Notice of Change Rule 10: Notice to make changes in the registration certificate
Notification of change in registration certificate should be done online to the facilitator within 30 days from the date of the change, following Article 9 of the Maharashtra shops commercial establishments act, along with the required information and documentation. It will be uploaded as specified in Part "D" of the application and annex.
Form J - Closure Notice Rule 11: Business Closure
All employers of businesses that employ 10 or more workers must use Form "J" to notify the facilitator of a permanent business closure.
Form K Closure Notice (less than 10 workers) Rule 11: Business Closure
All employers of a company that permanently employs less than 10 employees at the end of the business must notify the facilitator on Form "K".
Form L - Consent of Women workers to work on night shift Rule 13
General female employment conditions and night shifts should be recorded in this form regardless of the number of employed workers. The general female worker employment conditions at each facility and conditions regarding the employment of female workers on night shifts should be well recorded in this form, to be maintained by the employers
Form M - Notice of Work Hours, Rest Intervals, Holidays Rule 14: Notice of hours of work, rest interval, weekly holiday
All employers must post their working hours, breaks, and weekly holidays in the form of an "M" on the website and a prominent place on the bulletin board on the company premises.
Form N - Shift Notifications, Schedules, Weekly Leaves Rule 16: Weekly Leaves for Workers Employed in Shift Notifications, Schedules, Shifts
For companies that work in shifts, the employer and a weekly leave should show the names and titles of everyone working in this shift, so that each employee can know their weekly leave. The employers need to post the shift plan promptly and the weekly vacation shifts where he has to work. Such notices should be completed on Form "N" and stored at each facility so that the facilitator can inspect them upon request. Notices shall be posted on the website and bulletin boards in prominent locations within the facility premises. This copy must be sent electronically or otherwise to the facilitator. If an employee transfers from day shift to night shift and from night shift to day shift, there must be at least 12 consecutive breaks or breaks between the last and night shifts.
Form O - Leave book Rule 19: Leave book
All employers must provide all employees with a "Leave Book" book in the form of an "O". A copy of this remains with the employer. All entries for earned leave approved under section 18 will appear in the leave book. The required vacations that have been applied for and rejected should also be recorded in the vacation log.
The employer or agent's initials are in the appropriate column of the vacation book. If an employee loses a holiday book, the employer or supervisor must provide a copy of the same. However, each employer can keep the holiday log in a format deemed appropriate to provide information that matches the "O" format.
Form P - Maximum Cumulative Leave Notification Rule 20: Cumulative Leave Notification from Employer or Supervisor
The employer or supervisor must notify the employee concerned of the leave and which leave on form "P". It should be carried forward and reach the permitted limit as allowed in Section 18 (5) in the first quarter of each calendar year. The notice must state that no further leave can be carried forward.
Form Q - Sample Payroll Registration Rule 26: Registration and Keeping Records
The employer must maintain the model role and wage ledger on Form "Q a per Rule 27 Subrule (1) of the Maharastra Minimum Wage Rule 1963. Keeping the Ledger Under the Minimum Wage Act of 1948 (XI of 1948), it is not necessary to keep the Muster Roll-cum-Wages Register as per the provisions of this subrule(1).
Form R - Annual Declaration Rule 27: Annual Declaration
Each employer, under the Maharashtra shops commercial establishments act, has two months to upload the financial statements of Form "R" online to the website for the year ended December 31st. These printed copies can be provided at the request of the facilitator.
Form S - Application For Compounding Offence by employer Rule: 31: Application for Compounding of Offence
Requests for exacerbation of violations must be made on Form "S". The formulator must retain the proper Rojnama for all the cases heard. A formulator appointed under Article 33 (1) of the Maharashtra shops commercial establishments act shall hold regular meetings in each district or near it, which may be required by the amount of work or matters assigned to him.
Form T for the person exercising the management function Rule 33: Notification to the person exercising the management function
Employers registered under Section 6 must provide the facilitator with a name and designation on the form "T" specifying the conciseness of the task of the person performing the administrative task. Information on Form "T" must be submitted annually and whenever there is a change during the year.
Form U - Information Rule 34 for Persons Holding the Status of a Confidential Person: Report of Person Performing Confidential Work
As per the Maharashtra shops commercial establishments act, each employer must fill out the U form with the name of the person holding the secret status at the facility. However, the number of these people should not exceed 1 percent. The total number of employees in the company is up to 50. Information on Form "U" must be submitted annually and whenever there is a change.
Conclusion
The Maharashtra shops commercial establishments act includes wage payments, working conditions, working hours, breaks, overtime, opening and closing hours, holidays, vacations, maternity leave and welfare, working conditions, rules regarding the employment of children, record keeping, etc. A fine of US $ 1,535 (Rs 100,000) will be levied on shops and establishments that deviate from the standards and norms outlined in the established Maharashtra shops commercial establishments act.
However, keep in mind that the Maharashtra shops commercial establishments act provides significant compliance relief for small and medium-sized enterprises (MSMEs) by not regulating the working conditions of companies with less than 10 employees. Finally, in response to the Maharashtra shops commercial establishments act the Maharashtra state government proposed different working hours for each business category. Shopping malls, restaurants, cinemas, and other recreation centers could benefit most from this move.
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Key Takeaways
- This Maharashtra shops commercial establishments act is established among all the commercial facilities in the state with more than 10 employees working under them (not covered by the Factory Act)
- Companies that employ less than 10 workers must also register under the law, without needing a license for it.
- The Maharashtra shops commercial establishments act introduces fundamental reforms for the employment conditions for workers
- The major areas covered under the Maharashtra shops commercial establishments act are hours of operation, working hours for women, protection of women, overtime, holidays and leave, the welfare of workers, etc
- Various compliance forms need to be recorded and maintained by the registered facility for compliance and welfare of the employees
- The Maharashtra shops commercial establishments act appoints an arbitrator to enforce each provision. The facilitator will inspect the site of the registered facility, review the documentation and advise the facility on compliance with the standards
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