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The Maharashtra cabinet has approved amendments to the Factories Act, 1948, and the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017. The move will impact private sector employees, increasing daily work hours from 9 to 10. The cap on overtime will also rise from 125 hours to 144 hours per quarter. On days when urgent work is required, the state labour department has proposed removing the 12-hour cap on daily work hours. At the same time, if an employee completes the 60-hour weekly quota, they will be eligible for two days of paid leave. The rules will apply to establishments with 20 or more workers. However, organisations with fewer than 20 employees will be exempt from these amendments. Such firms will no longer require a registration certificate (known as a Gumasta Licence) from the state labour department but must notify the authorities when starting business.
In factories, daily working hours will rise to 12, with rest breaks allowed after six hours instead of nine. The overtime limit will increase from 115 to 144 hours per quarter, subject to workers’ consent. Employees will continue to receive double pay for overtime.
According to the state government, the move is aimed at boosting ease of doing business, attracting investments, generating employment, and safeguarding workers’ rights.
With this, Maharashtra joins Karnataka, Tamil Nadu, Telangana, Uttar Pradesh, and Tripura in amending labour laws.
However, experts warn that since effective productivity peaks at 4–5 hours per day, the change could have severe consequences for employees’ health. Extended working hours, they caution, will only increase non-productive time—the period when employees’ cognitive capacity and output decline.
The burden could be especially heavy in Mumbai, where long commutes already stretch working days.
“Employees would be physically present but cognitively exhausted, likely spending more time on non-productive tasks. Office hours of 10–12 in a city like Mumbai, which already struggles with high living costs and lengthy commutes, could push employees into 15–16 hours of being in ‘work mode’,” said Kamal Karanth, Co-founder of Xpheno, a specialist staffing firm.
The leaders highlighted how AI is emerging as a critical enabler in this shift from marketing’s traditional focus on new customers to a more sustainable model of driving growth from existing accounts.
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