For every employer in Maharashtra, staying compliant with legal obligations is critical. Two important labour regulations to be aware of are the overtime rules in Maharashtra and Section 25F of Industrial Dispute Act. Employers and top management must stay aligned with these rules to build compliant and efficient workplaces.
What Employers Should Know About Overtime Rules in Maharashtra
According to the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017, an employee should not work for more than 9 hours a day and 48 hours a week. If they do, the extra hours are considered overtime. Employers must pay twice the ordinary rate of wages for any overtime work.
However, an employee cannot work overtime for more than 125 hours in 3 months without prior approval from the Labour Commissioner. Employers must also maintain detailed records of overtime hours and payments.
Section 25F of Industrial Dispute Act: What It Means for Employers
Section 25F of Industrial Dispute Act, 1947, lays down the legal process for retrenching a workman who has been in continuous service for at least one year. Before retrenchment, an employer must:
- Give one month’s notice in writing or wages in lieu of such notice.
- Pay retrenchment compensation equal to 15 days’ average pay for every completed year of service.
- Inform the appropriate government authority.
If these steps are skipped, the retrenchment will be considered illegal, and the worker can claim reinstatement. Employers must take proper legal advice and document the entire process to ensure compliance. Ignorance or negligence in following Section 25F can lead to prolonged litigation and significant reputational risk.
Why Compliance Matters for Top Management
For employers and HR leaders, understanding these laws isn’t just about avoiding fines — it’s about running a smooth, dispute-free operation. Labour law compliance builds a foundation of trust with regulatory bodies and ensures long-term business stability. Legal violations related to overtime or retrenchment can lead to lawsuits, audits, and even license suspension in extreme cases.
Conclusion
In today’s regulatory environment, legal awareness is not optional for employers. Adhering to overtime rules in Maharashtra and following Section 25F of Industrial Dispute Act are essential to maintain lawful operations and protect the business from unnecessary risks. Prioritising compliance and consulting with labour law professionals can help businesses maintain integrity, productivity, and peace of mind in their workforce management strategies.
