By way of the Maharashtra Shops and Establishments Act, 2017, the state of Maharashtra has adopted the Central Government’s model legislation intended to increase the ease of doing business and boosting employment opportunities for women. The Act represents significant reform of the prevailing legislation and employers should take note of the changes to ensure compliance and to best utilise the flexibility afforded by the new regime.
Background
In 2016, the Central Government in India passed the Model Shops and Establishments (Regulation of Employment and Conditions of Service) Bill to pursue twin objectives of increasing the ease of doing business on the one hand and boosting employment opportunities for women by requiring a women-friendly work environment on the other. The Central Government chose the path of suggestive model legislation so that states could adopt the legislation in line with regional and local requirements.
Maharashtra became the first state to adopt this Model Bill by passing the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 (the “Act”) which received the governor’s assent on 7 September 2017 and entered into force on 19 December 2017. On 2 February 2018, the Government of Maharashtra also notified draft Rules (subsidiary legislation) to assist the implementation of the Act. These draft Rules are expected to come into force following a period of consultation.
Source: Lexology
