Amendments to the Maharashtra Shops & Establishments Rules, 2018

The Government of Maharashtra recently issued amendments to the Maharashtra Shops & Establishments (Regulation of Employment and Conditions of Service) Rules, 2018 (“Rules”) with the aim to enhance the regulatory framework in the state pertaining to insurance.

The primary objective of these amendments is to ensure that establishments operating within the state are adequately insured and provide for a mandate on the establishments to maintain an insurance certificate. This not only ensures security and welfare of the employees, but also creates a more secure and resilient business environment.

With this amendment, an additional entry has been included in (i) Form A, for the establishments to now include an insurance certificate; (ii) Form D, requiring the insurance certificate for compliance; (iii) Form F, to ensure that insurance certificates comply with the regulatory requirements; and (iv) Form R, for the specifics of the insurance policy and its related details.

Furthermore, amendments are introduced to the Schedule requiring establishments to submit a copy of their detailed insurance certificates and maintain a valid insurance certificate for compliance with regulatory requirements.

Prior to these amendments, the Rules did not explicitly mandate the submission or inclusion of an insurance certificate for establishments which consequently left a gap in ensuring that establishments maintain a valid insurance coverage. With these amendments, the inclusion of an insurance certificate, along with the necessary details has become a compulsory requirement, ensuring that establishments are covered for liabilities and other risks.

The amendment is a considerable step towards strengthening the regulations for shops and establishments in Maharashtra. This ensures that establishments are financially prepared to handle unforeseen incidents. It also promotes a safer working environment, as establishments are now mandated to have insurance coverage.