In Maharashtra’s rapidly evolving business environment, employers must stay on top of labour laws to ensure smooth operations and avoid costly legal issues. Two areas that require particular attention are the overtime rules in Maharashtra and Section 25F of Industrial Dispute Act. Understanding these legal obligations helps businesses safeguard against violations, maintain workforce satisfaction, and strengthen their compliance posture.
Overtime Rules in Maharashtra: Know the Limits and Liabilities
Employers operating under the Maharashtra Shops and Establishments Act, 2017, and the Factories Act, 1948 must adhere strictly to state overtime regulations. The law stipulates that no employee should work more than 9 hours a day or 48 hours a week. Any time beyond this threshold is considered overtime and must be compensated accordingly.
Importantly, overtime pay must be calculated at twice the ordinary rate of wages, including basic salary and dearness allowance. Bonuses and non-recurring incentives are excluded. Employers are also responsible for maintaining accurate records of attendance and overtime hours. Non-compliance may lead to penalties ranging from ₹2,000 to ₹100,000 or even imprisonment, depending on the severity of the violation. Staying audit-ready with clean documentation is key to avoiding such risks.
Section 25F of Industrial Dispute Act: Retrenchment Protocols Explained
When it comes to workforce reduction, employers must comply with Section 25F of the Industrial Dispute Act, especially when retrenching employees who have completed at least one year of continuous service.
As per the law:
- One month’s notice (or payment in lieu) must be given to the employee.
- Retrenchment compensation equal to 15 days’ average pay for each completed year of service must be paid.
- A notice must be submitted to the appropriate government authority before proceeding.
Failure to comply with these conditions can result in legal orders for reinstatement, back wages, or penalties. For HR professionals and business owners, ensuring legal due process during retrenchment protects the company’s reputation and shields it from prolonged disputes.
Conclusion
Mastering the overtime rules in Maharashtra and properly implementing Section 25F of Industrial Dispute Act isn’t just about staying legally safe, it’s about building a responsible and resilient business. Employers who take a proactive approach to compliance are better equipped to scale, retain talent, and build lasting trust with both employees and regulators.