Maharashtra Extends Private Sector Working Hours to Boost Investment and Employment
Maharashtra cabinet approves labor law amendments, increasing maximum daily working hours from 9 to 10 for private sector employees. The Factories Act and Maharashtra Shops and Establishments Act are modified, allowing industries to operate for 12 hours daily with mandatory rest breaks after 6 hours. Overtime limits are expanded to 144 hours per quarter. Shops and establishments with 20+ workers can now have 10-hour workdays. Smaller establishments are exempted from registration requirements. The government ensures proper overtime compensation and aims to attract investments, generate employment, and align with other states' reforms.
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The Maharashtra cabinet has approved significant amendments to labor laws, extending the maximum daily working hours for private sector employees from nine to ten hours. This move aims to attract investments, generate employment, and align Maharashtra with other states that have implemented similar reforms.
Key Changes in Labor Laws
The amendments will modify two crucial acts:
- The Factories Act, 1948
- The Maharashtra Shops and Establishments Act, 2017
Changes for Industries
- Daily operating hours increased to 12 hours, up from the previous limit
- Mandatory rest breaks now required after six hours of work, instead of five
- Overtime limits expanded from 115 to 144 hours per quarter
- Worker consent mandatory for overtime
Changes for Shops and Establishments
For businesses with 20 or more workers:
- Daily working hours increased from nine to ten
- Overtime limits expanded from 125 to 144 hours
For establishments with fewer than 20 workers:
- Registration certificates no longer required
- Must notify authorities of their operations
Compensation and Alignment with Other States
The government has emphasized that proper overtime compensation will be ensured, with workers receiving double pay rates for extra hours worked. This move aligns Maharashtra with states such as Karnataka, Tamil Nadu, Telangana, Uttar Pradesh, and Tripura, which have already implemented similar labor reforms.
Objectives of the Amendments
The Maharashtra government stated that these changes are aimed at:
- Attracting new investments to the state
- Generating additional employment opportunities
- Ensuring fair compensation for overtime work
- Streamlining business operations for smaller establishments
While the amendments promise increased flexibility for businesses, they also raise questions about work-life balance and employee welfare. As these changes take effect, it will be crucial to monitor their impact on both the state's economy and the wellbeing of its workforce.
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