In a major step toward improving the business environment and operational flexibility in the State, the Government of Maharashtra has issued an Ordinance amending the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017.
This amendment, promulgated as Maharashtra Ordinance No. VIII of 2025, aims to reduce compliance burdens for small businesses, improve working-hour flexibility, and align labour regulations with the State’s Ease of Doing Business (EoDB) and Ease of Living agendas.This Ordinance may be called the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service)(Amendment) Ordinance, 2025.
🔹 Why an Ordinance?
The Ordinance was promulgated by the Governor of Maharashtra under Article 213(1) of the Constitution since both Houses of the Legislature are not in session. The government stated that urgent circumstances warranted immediate changes to the labour law framework.
🔍 Key Amendments at a Glance
1. Threshold for Applicability Raised
- The Act will now apply to establishments with 20 or more employees, up from the earlier limit of 10.
- Establishments with fewer than 20 employees:
- No longer need registration from a Labour Facilitator.
- Only need to submit a business intimation.
- Worker protections under the Act will still apply.
👉 Impact: Reduces registration and compliance burden for small businesses and start-ups.
2. Increase in Daily Working Hours
- Maximum daily working hours increased from 9 hours to 10 hours, including rest intervals.
- Weekly limit of 48 hours remains unchanged.
👉 Impact: Offers businesses more flexibility to manage peak workload or staff shortages.
3. Increase in Spread-Over Time
- The total daily spread-over (i.e., the span from start to end of duty, including breaks) is extended from 10.5 hours to 12 hours.
👉 Impact: Helps employers stagger shifts and breaks more effectively.
4. Rest Interval Modification
- Continuous working without a break can now go up to 6 hours, up from the previous 5 hours.
👉 Impact: Simplifies shift scheduling and allows smoother workflow without breaching labour norms.
5. Increase in Overtime Limit
- Overtime cap raised from 125 hours to 144 hours per quarter.
- Overtime remains non-mandatory for workers and must be recorded and compensated.
👉 Impact: Gives employers a buffer during peak demand periods while ensuring workers are compensated fairly.
📌 Summary of Amended Sections:
| Section | Amendment |
| 1(3)(a) & (b) | Threshold raised from 10 to 20 employees |
| 6(1) | 10 replaced with 20 for applicability |
| 7(1) & (2) | 10 replaced with 20; registration clauses updated |
| 12 | Daily work limit raised from 9 to 10 hours; rest period from 5 to 6 hours |
| 14 | Spread-over extended to 12 hours |
| 15 | Overtime raised from 125 to 144 hours per quarter |
🧭 Objective Behind the Ordinance
The Maharashtra government emphasized that these changes are in line with:
- National reforms under Business Reform Action Plan (BRAP).
- The need to encourage entrepreneurship, boost employment, and reduce bureaucratic hurdles.
- Ensuring that worker protection remains intact, even as businesses get more operational freedom.
📢 Government Statement
“Maharashtra is India’s most economically dynamic State. This Ordinance reflects our intent to create a more enabling environment for businesses while safeguarding workers’ rights,” — Statement from the Industries, Energy, Labour and Mining Department
✅ Benefits for Stakeholders
For Employers:
- Simplified compliance
- More flexible scheduling
- Reduced paperwork for small units
- Extended overtime window
For Workers:
- Continued protection under labour laws
- Mandatory compensation for overtime
- No forced overtime
- Better shift planning