In this post, we will discuss the following topics under labour laws in Maharashtra.
Introduction
The labour laws are also known as the employment laws that regulate the function of the establishment and address the legal rights, restrictions and conditions of labourers and maintain the relationship between the employer and employee and keep equalities.
In this blog, we will see what acts and rules are there to follow and maintain compliance with labour laws in Maharashtra.
Some numerous rules and acts cover the laws, applicability and compliance in Maharashtra, such as the shop and establishment act, payment of wages act, employees state insurance act, employee provident fund act and others.
Below there, you will get the details of labour laws in Maharashtra.
Labour laws, applicability and Compliance in Maharashtra
If you already started a new business or have to start one, then you need to comply with the norms of the labour laws of Maharashtra.
There are the following acts which are classified under certain heads.
Law related to wages –
The Minimum Wages Act, 1948
This act provides the fixation of the rate of minimum wages for employees.
Get to know more details about Minimum wages in India state-wise.
Applicability – It applies to all industries or establishments.
Compliance –
- Submission of annual and Half yearly return
- Maintenance of registers.
This act regulates certain conditions of service of the journalist and others employed in a newspaper establishment.
Payment of Bonus Act, 1965
This act provides the payment of a bonus to the employee employed in the establishment and related matters. For more details click here
Applicability – It applies to all establishments where 20 or more workers are employed on any day during the accounting period.
Compliance –
- Submission of annual return
Payment of Wages Act, 1936
It ensures the regular wage paid to the employee in a particular form without unauthorized deduction by the employer and provides a mechanism for injustice.
Applicability – It applies to all establishments, factories and others.
Compliance –
- Maintenance of registers of fines, deductions and others.
- Regular payment of wages without unnecessary deduction
- Submission of annual return.
Payment and Wages Rules 1937
Equal Remuneration act, 1976
This act provides equal remuneration to female and male employees and prevents the discrimination on ground level, such as sex, discrimination against women and others in matters of employment and other related matters.
Applicability – It is applicable all over India.
Labour laws on Industrial Relations
The Trade Unions Act, 1926
An act provides the registration for trade unions under the law related to trade unions.
Applicability –
- It is extended all over India
- It applies to all unions, workers and associations of employers.
Industrial Employment (Standing Orders) Act, 1946
This act requires employers in industrial employment to define the conditions of employment. And make them known to the workers employed by them.
Applicability – It applies to every industry where 100 or more workers are working in any 12 months.
Industrial Employment (Standing Orders) Act, 1946
Industrial disputes Act, 1947 in Maharashtra
An act maintains the peace and harmony of the industry by providing procedures and machinery for the investigation and settlement of industrial disputes.
Applicability – It is applicable for every industrial establishment carrying business, trade or manufacturer and others.
Compliance –
- Prevention of unfair trade practice
- Payment of compensation to the employees on retrenchment or layoff
- Prior permission to the concerned authority for laying off or closing down the industry.
Labour laws on Equality and Empowerment of Women
Maternity Benefit Act, 1961
This act regulates women’s employment in establishments for a certain period pre and post-birth of the child and provides maternity benefits. Know more about the Maternity benefits act and Special maternity benefit act click here.
Applicability – It is applicable all over India.
Labour laws on Working Hours, Conditions of Service and Employment
Factories act 1948
This act enacted the employment safety, health and welfare of workers at the workplace.
Applicability – It applies to all India Factories and establishments.
Compliance –
- Registration of health
- Accident & dangerous registration
- Leave with wages and compensatory holiday register
- Registration of workers including children and adults
- Within 4 hours of the accident/danger, notice to the inspector or director.
- Under Form 21 the employer needs to file a return half yearly to the chief inspector.
- Under Form 22 annual file return is to be sent to the chief inspector of the area.
Maharashtra Factories Rules, 1963
Compliance –
Form 10 – Registration of workers attending to machinery
Form 17 – Registration of Adult workers
Form 20 – Leave with Wage Register
Form 30 – Register of Accidents & Dangerous
Contract Labour (Regulation and Abolition) Act, 1970
This act regulates contract labour employment in certain establishments and provides for abolition in certain circumstances and other matters related to it.
Compliance –
- Form VIA – Return filing/notice of compilation or commencement by the contractor within 15 days of commencement or completion.
- Form VIB – Return filing/notice of compilation or commencement by the employer within 15 days of commencement or completion.
- Form XXV – 15th February submission of annual return by the employer
- Form XXIV – 30th of January each year submission of half-yearly return by the contractor
Inter-State Migrant Workmen (ISMW) Act, 1979
This act regulates the employment of interstate migrant workers and provides the condition of service and other related matters.
Applicability – It is applicable for each establishment or contractor who employed at least 5 or more inter-state migrant workmen.
Compliance –
- Register of wages, contractor, employed person, inward and outward journey allowance.
- Submission of half-yearly return within 30 days to the licensing officer and annual return 15th of each February.
- Form 1 of state law obtaining the certificate of registration.
Building and Other Construction Workers (BOCW) Act, 1996
An act regulates the condition of employment of BOCW and provides the safety, health and welfare of the worker and other related matters.
Applicability – Establishment, who engaged with the construction workers in any construction work including, any establishment owned by the contractor or hired by the contractor 10 or more workers in the last 12 months in any establishment.
Compliance –
- Form 1 – submission of return with the details of levy and collection of cess to the concerned authority.
- Form V – notice of completion of work and commencement within 30 days
- Form XXV – filing and submission of annual return to the registered authority by the 15th Feb of each year.
The Building & Other Construction Workers Welfare Cess, Rules, 1998
Labour laws on Social Security-2020
Employee Provident Funds & Miscellaneous Provisions Act (EPF), 1952.
This act provides for the institutions of provident funds and pension funds to the employees in the establishment and factories.
Applicability – It applies to all factories and establishments, where 20 or more employees are employed in the organisation.
Compliance –
- Under Form 6 and Form 3A Filing the annual return with the details of the contribution of employer and employee towards PF and consolidated annual refund.
- Under this act Reporting of cases has been initiated against directors for recovery of dues.
Employees State Insurance Act (ESI) Act, 1948
This act provides certain benefits to the employees and their families in case of skinless, injury and other matters related thereto.
Applicability – It applies to all factories and industries sectors of employment, such as private and government sectors, where 10 or more workers are working and carrying on a manufacturing process with the aid of power. And 20 or more workers are working without the aid of power and earning wages 21,000 or less. Click here, get to know more details.
Compliance –
- Maintain the records and registers for inspection purposes
- Registers for payment of contributions made by the employer
- Register for wages and attendance of employees
- Under Form 5 submission of half-yearly returns is to be sent to the concerned branch office.
Shop & Establishment act 1954
This act ensures the functioning and conduct of shops & establishments registered under this act. And regulates the safety of workers and terms of working hours, conditions, leave, breaks, overtime, rules of employment of children and others.
Applicability – It applies to the entire state of Maharashtra.
Compliance –
- Maintain the registers of deduction, fines, notices of business entities and others that are registered under this act.
- Registered under this act strictly adhere to the health and safety of work premises.
- Under this act, mandatory registration for shops and establishments within 90 days from the commencement of business.
Leave Entitlement
| Leaves | Entitlement | Max Carry Forward Days |
| Casual Leave (CL) | 8 Days | NA |
| Sick Leave (SL) | No provision | NA |
| Earned (EL) / Privilege Leave | 5 Days for every 60 days worked | 18 Days for every 240 days worked 45 Days of leave |
Working Hours
Normal hours
9 hours a day and 48 hours a week
Break time
After 5 hours of work at least half an hour of break
Max Overtime
125 hours in 3 months
Spread over Hours
Ten and half hours in a day
Rate of overtime (OT Wages)
Twice the ordinary rate of wages
Maharashtra Labour Welfare Act & Rule, 1953
It is a statutory contribution which is managed by states authority that helps labourers to improve their working condition, provide social security and increased their standard of living.
Applicability – It applies to any employer or establishment employer 5 or more employees.
| Category | Employee Contribution | Employer Contribution | Total Contribution | Date of deduction | Last date of submission |
| All employees except those working in the managerial or supervisory capacity and drawing wages upto Rs. 3000 pm. | 6.00 | 18.00 | 24.00 | 30th June | 15th July |
| All employees except those working in the managerial or supervisory capacity and drawing wages upto Rs. 3000 pm | 6.00 | 18.00 | 24.00 | 31st Dec | 15th Jan |
| All employees except those working in the managerial or supervisory capacity and drawing wages exceeding upto Rs. 3000 pm | 12.00 | 36.00 | 48.00 | 30th June | 15th July |
| All employees except those working in the managerial or supervisory capacity and drawing wages exceeding upto Rs. 3000 pm | 12.00 | 36.00 | 48.00 | 31st Dec | 15th Jan |
Maharashtra Shop & Establishment (Regulation of Employment Service condition) Rule, 2018
Payment of Gratuity Act, 1972
This act provides the payment of gratuity to employees who are engaged in factories, industries or any other establishment.
Applicability – It is applicable for all employees who continuously serve 5 years or more work in the establishment.
Click here, to know more details about the Payment of Gratuity act, 1972.
Apprentices Act, 1961
This act provides practical training to technically empower the workers in trade sectors. The main objective is to promote the new skilled labourer, also it is extended to engineers and diploma holders.
Applicability – it applies to all areas and industries which are notified by the central government.
Compliances –
- Under this act, a contract needs to be registered by the apprenticeship adviser on being agreed that the person is described as an apprentice.
- As per Rule 6, the employer should send the contract to the apprenticeship adviser for registration within the 3 months from the date of signing.
- Under section 4(4) registration of the contract of apprenticeships is not mandatory to define the apprentice.
Workmen’s Compensation Act, 1923
An act aims to provide workers relief or compensation by the employer in the course of employment, in the case of an accident, death, disablement of workers or any injury.
Applicability – It is extended to the whole of India.
Professional Tax
Professional Tax (PT) is levied on every salaried employed person and self-employed person in every state.
Click here, to know more details about Professional Tax
Compliance –
- Under this act, mandatory registration for employers and self-employed persons within 30 days from the date of practice.
- Form V monthly return with the details of wages paid and tax deductions.
- If 20 or more employees are employed in an organisation, then the employer will be liable to deduct and submit the taxes within 15 days from the end of every month.
- If less than 20 employees are employees in an organisation, then the employer will be liable to deduct and submit the taxes on the 15th of each month quarterly.
An act provides the exemption of employers of establishments employing a small number of workers from furnishing and maintaining the registers under certain laws.
Child labour (Prohibition & Regulation) Act, 1986
This act prohibits the engagement of child labour in employment and regulates the conditions of children working in other employment.
There are some other acts are applicable in the state of Maharashtra –
- The Beedi and Cigar Workers (Conditions of Employment) Act, 1966
- Sales Promotion Employees (Condition & Service) Act, 1976
- Sales Promotion Employees (Condition & Service) Rules, 1976
- Motor Transport Workers Act, 1961
- Plantation Labour Act, 1951
- Maharashtra Labour Welfare Act, 1953
This is the end of our discussion on Labour laws in Maharashtra. Let’s know your other questions and opinions on this topic. Mention below the comment box.
Also, you can read the other states of labour laws.