25 January, 2016
The Factories (Maharashtra Amendment) Act, 2015
On November 30, 2015, the President of India gave his assent to the landmark Factories (Maharashtra Amendment) Act, 2015 (‘Factories Amendment Act’), which amends the Factories Act, 1948 (‘Principal Act’) as it applies to the State of Maharashtra. The Factories Amend- ment Act was published in the Maharashtra Gazette on December 2, 2015 and will come into force on such date as the State Government may, by notification in the Official Gazette, appoint.
Some important features of the Factories Amendment Act are:
- The Factories Amendment Act increases the maximum overtime work hours in any quarter from 75 to 115 hours, as one of the conditions precedent to the grant of exemptions from any or all provisions of the Principal Act pertaining to weekly hours, weekly holidays, daily hours and spread over.
- Under the Factories Amendment Act, women workers may be required or allowed to work between the hours of 7:00 P.M and 6:00 A.M in any factory that provides adequate safety and security measures or safeguards as may be prescribed.
- The Factories Amendment Act provides that every worker who has worked for a period of 90 days or more (as against the earlier requirement of 240 days or more) in a factory during a calendar year, will be allowed leave with wages at the rate pro- vided under the Principal Act during the subsequent year.
The Payment of Bonus (Amendment) Act, 2015
The Payment of Bonus (Amendment) Act, 2015 (‘Bonus Act’) received Presidential assent on December 31, 2015. The Bonus Act raises the eligibility threshold for payment of statutory bonus from ¤10,000 (approximately US$150) to ¤21,000 (approximately US$300) per month.
The Bonus Act also increases the wage ceiling for computation of bonus from ¤3,500 (approxi- mately US$ 50) per month to ¤7,000 (approximately US$ 100) per month or the minimum wage notified for the employment under the Minimum Wages Act, 1948, whichever is higher. The Bonus Act has a retrospective effect and is deemed to come into force from April 1, 2014.
For further information, please contact:
Zia Mody, Partner, AZB & Partners
zia.mody@azbpartners.com
