Navigating the New Maharashtra Shops Act: A Guide for Employers 2025
Running a business in Maharashtra isn’t just about profits, marketing, or customers — it’s also about staying compliant with the law. Every business owner, whether running a retail shop in Pune or a start-up office in Mumbai, must follow certain rules that protect both employers and employees. One such important law is the Maharashtra Shops and Establishment Act.
The state government recently updated this Act to make it more modern, digital, and business-friendly. The new version — known as the Maharashtra Shops and Establishment Act 2025 — introduces several changes that employers should be aware of. In this guide, My Finance Gyan breaks down everything you need to know about the new law — from registration and working hours to employee safety and compliance tips. Whether you’re setting up your first shop or managing a large team, this blog will help you navigate the rules with ease and confidence.
Overview of the New Maharashtra Shops Act:
The Maharashtra Shops and Establishment Act governs how commercial establishments, offices, and shops operate in the state. It covers everything — working hours, holidays, employee welfare, safety standards, and record-keeping.
The updated Maharashtra Shops and Establishment Act 2025 aims to simplify compliance through online registration and digital documentation. It also gives more flexibility to businesses in terms of working hours and 24×7 operations.
Who Needs to Register Under This Act?
Every business operating in Maharashtra — whether it’s a shop, restaurant, consultancy, or tech startup — must register under this law. That includes:
- Retail and wholesale shops
- Small offices or co-working spaces
- Restaurants and cafés
- IT companies
- Online and e-commerce units
If your business employs even one person, you need to register under the Shop and Establishment Act Maharashtra.
Registration Requirements for Employers:
Getting registered under the Shop and Establishment Act Mumbai is now a completely online process. The state has made it easier for business owners to obtain and renew their licenses without visiting government offices.
How to Register?
- Visit the official Maharashtra Shops and Establishments portal.
- Fill in details such as the business name, address, category, and number of employees.
- Upload basic documents — PAN card, Aadhaar card, and address proof.
- Pay the registration fee online.
- Download your Shop and Establishment License Maharashtra once approved.
Documents You'll Need:
- PAN Card (business or proprietor)
- Proof of business address (rent agreement or electricity bill)
- Aadhaar card of the owner/partners
- Employee details (if applicable)
The Shop and Establishment License Maharashtra acts as legal proof that your business is registered under state labour laws. Not having this license can lead to fines and legal complications.
At My Finance Gyan, we always advise business owners — especially startups — to register early. It not only builds trust with clients but also ensures smooth operations.
Working Hours and Spread-Over Provisions?
The Maharashtra Shops and Establishment Act 2025 has introduced clear rules around working hours to balance productivity and employee welfare.
Standard Working Hours:
- A maximum of 9 to 10 hours and 48 hours per week.
- The total workday, including breaks, cannot exceed 10hours.
Rest and Breaks:
Employees must be given at least a 30-minute break after 5 hours of continuous work.
Weekly Holidays:
Every employee should get one full day off each week, usually on Sunday. However, employers can choose another day off as long as it’s communicated in advance. If you’re operating in Mumbai, note that the Shop & Establishment Act Mumbai is quite strict about maintaining proper work schedules and displaying them at your business premises.
Overtime Rules and Employee Compensation:
Sometimes, business demands extra hours of work — but the Shops and Establishments Act Mumbai ensures employees are fairly compensated for it.
Overtime Rules:
- Overtime is limited to from 125 to 144 hours per quarter.
- Employers must pay double the normal hourly rate for overtime.
- Every instance of overtime must be recorded in a register.
For example, if an employee’s hourly wage is ₹100, overtime pay should be ₹200 per hour. Properly maintaining these records is critical because during inspections, labour officers often check overtime registers.
At My Finance Gyan, we suggest automating attendance and payroll using reliable software to avoid calculation errors and ensure compliance.
Employee Welfare and Safety Measures:
A happy, safe, and healthy employee is an asset to any organisation. The Shop and Establishment Act Maharashtra places strong emphasis on employee welfare and workplace safety.
Welfare Requirements:
- Proper ventilation and lighting at the workplace.
- Clean drinking water facilities.
- Hygienic restrooms and first-aid boxes.
- Seating arrangements for employees (especially for those who stand long hours).
- Leave entitlements – including annual, sick, and casual leave.
- Maternity benefits for women employees.
Workplace Safety:
The new Maharashtra Shops and Establishment Act 2025 also stresses gender equality and safety. If your company employs women, you must have an Internal Complaints Committee (ICC) as per the POSH Act to handle any cases of harassment. Businesses that care for employee well-being not only meet legal standards but also improve retention and workplace morale.
24x7 Business Operations:
One of the most progressive reforms in the Maharashtra Shops and Establishment Act 2025 is allowing certain businesses to operate 24 hours a day, 7 days a week. This move was made to boost Maharashtra’s economy, attract global investors, and promote ease of doing business — especially for sectors like IT, e-commerce, and hospitality.
Conditions for 24×7 Operations:
- Employers must ensure adequate security arrangements, particularly for night shifts.
- Women can work night shifts only with their written consent and safe transport provided by the employer.
- CCTV cameras and security guards must be available on the premises.
Cities like Mumbai, Pune, and Nagpur are already seeing growth in late-night cafés, delivery hubs, and tech support operations thanks to this policy. But remember, even if your business runs 24×7, it must still comply with all labour and safety provisions under the Shop & Establishment Act, Mumbai.
Record Keeping and Compliance Checklist:
Keeping accurate records is mandatory under the Maharashtra Shops and Establishment Act. Employers must maintain registers and documents for inspection at any time.
- Important Records to Maintain:
- Employee attendance register
- Salary and wage register
- Overtime and leave records
- Employee details and contracts
- Safety and inspection reports
- Display Requirements:
Businesses must display:
- Name of the employer and establishment
- Working hours and weekly offs
- Copy of the registration certificate
My Finance Gyan strongly recommends using digital HR tools or cloud-based systems to maintain these records. It reduces paperwork and keeps you ready for surprise inspections.
Common Challenges for Employers:
Even though registration and compliance are now online, many employers still face difficulties in understanding or implementing the law.
Here are a few common challenges under the Shops and Establishments Act Mumbai:
- Delays in getting or renewing the Shop and Establishment License Maharashtra.
- Not maintaining correct employee attendance and wage records.
- Missing updates about new amendments and notifications.
- Non-compliance with overtime and leave rules.
- Ignoring safety and welfare provisions in small offices.
These mistakes can result in fines or penalties from labour authorities. That’s why staying informed through reliable sources like My Finance Gyan is essential for every business owner.
Tips for Smooth Implementation:
Following the Maharashtra Shops and Establishment Act 2025 doesn’t have to be complicated. Here are a few practical tips for employers:
- Register Early: Apply for your shop and establishment license within 30 days of starting your business.
- Go Digital: Use the government’s online portal for all applications and renewals.
- Stay Updated: Follow platforms like My Finance Gyan for the latest government notifications and policy changes.
- Train Your HR Team: Make sure your staff understands the basic provisions of the Shop & Establishment Act Mumbai.
- Regular Audits: Conduct internal compliance checks every few months to avoid surprises during official inspections.
- Prioritise Safety: Install proper lighting, cameras, and emergency exits if you’re running a 24×7 setup.
Small steps in compliance can prevent large penalties later and help you run your business with peace of mind.
Conclusion:
The new Maharashtra Shops and Establishment Act 2025 reflects India’s growing shift towards ease of doing business, digitisation, and employee rights. It encourages flexibility for employers while ensuring that workers are protected and treated fairly. If you’re an employer in Mumbai or anywhere in Maharashtra, compliance with the Shop and Establishment Act Maharashtra is not optional — it’s a legal necessity. Understanding the law, keeping records, and ensuring employee welfare can safeguard your business from penalties and disputes.
At My Finance Gyan, we believe that compliance doesn’t have to be complicated. We bring you the latest updates, guides, and insights to help your business stay compliant and future-ready. If you need professional assistance in registering under the Shops and Establishments Act Mumbai or managing your legal documentation, choose Startup Portal — your trusted partner for business registration and legal support in India.
