- Maharashtra amended its Act by ordinance from 1 October 2025, raising the registration threshold from 10 to 20 workers.
- Establishments with fewer than 20 workers now file an intimation instead of registering.
- The amendment allows a 10-hour working day, still capped at 48 hours a week.
- Overtime can now run to 144 hours a quarter, up from 125.
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What does the Maharashtra Shops and Establishments Act require now?
Registration at 20 workers, longer permitted days and a fixed leave floor. Khaitan & Co’s note on the 2025 ordinance sets out the changes.
| Rule | Before 1 October 2025 | From 1 October 2025 |
|---|---|---|
| Registration threshold | 10 workers | 20 workers (intimation below 20) |
| Daily hours | 9 | 10 |
| Weekly hours | 48 | 48 |
| Work before a rest break | 5 hours | 6 hours |
| Spread-over | 10.5 hours | 12 hours |
| Overtime cap | 125 hours a quarter | 144 hours a quarter |
A Bill to replace the ordinance followed on 8 December 2025. PRS publishes the Bill text, deemed effective from the same 1 October date.
Leave did not change. Workers get 8 days of casual leave a year, credited quarterly, and earned leave at one day per 20 days worked once they cross 240 days in the previous year.
Earned leave can build up to 45 days. Holidays are fixed too: 8 paid festival holidays a year, four of them set by law on 26 January, 1 May, 15 August and 2 October.
What is a shop act license, and when do you need one?
“Shop act license” is the everyday name for the registration certificate under your state’s Act. In Maharashtra you need it at 20 workers.
Below that, an intimation is enough. Count carefully, though.
The Maharashtra Act’s “worker” leaves out people in managerial, supervisory or confidential roles. So a 24-person Pune office with six team leads may sit below the line.
Here is the usual slip. Foreign companies assume the Labour Codes replaced state shops laws and write leave policy against the OSH Code alone, which offers annual leave after 180 days.
Both laws apply. Maharashtra’s earned leave starts after 240 days but accumulates to 45, so the safe course is to meet whichever rule is more generous on each point.
Our piece on holiday policies in India shows how state calendars differ.
How does the shops law apply under an EOR?
The EOR, as employer, handles registration or intimation and builds a leave and holiday calendar that meets the Act in each state where your people work. Pune and Bengaluru staff can end up on different holiday lists.
That is expected. Our guide to simplifying leave policies covers how to keep one policy fair across states.
How does Remunance manage Shops and Establishments compliance for you?
Remunance employs through its own entity in Kothrud, Pune, and handles Shops and Establishments registration and leave administration for the teams it hires across 34 Indian cities. If you already run your own Indian entity, our compliance management service keeps registrations and state calendars current. To confirm where your office stands, check your shop act position with our Pune team.
What else do people ask about the shop act in India?
Did the Labour Codes replace the Shops and Establishments Act?
No. State shops laws continue alongside the Codes, so hours, leave and holidays still follow your state’s Act as part of labour law compliance.
How many festival holidays are mandatory in Maharashtra?
Eight paid festival holidays a year. Four are fixed by the Act, and the other four are agreed between you and your workers before the year begins.
Can women work night shifts under the Maharashtra Act?
Yes, between 9:30 p.m. and 7 a.m., with their consent. You must also provide safety, protection from sexual harassment and transport home.
Planning a hire in India?
Our founding team has run payroll and hiring in India for 22+ years, first as Remunance Systems, which was later acquired by ADP.