Maharashtra Private Security Guards (Regulation of Employment and Welfare) Act, 1981 & Maharashtra Private Security Guards (Regulation of Employment and Welfare) Scheme, 2002

The Maharashtra Private Security Guards (Regulation of Employment and Welfare) Act, 1981 was enacted by the state government of Maharashtra, India. It is aimed at regulating the employment of Private Security Guards employed in factories and establishments in the State of Maharashtra and for making better provisions for their terms and conditions of employment and welfare through the establishment of a Board, therefore, and for matters connected therewith

Applicability of the Act

The Maharashtra Private Security Guards (Regulation of Employment and Welfare) Act, 1981 extends to the entire state of Maharashtra.
The act came into force only in Greater Bombay and Thane District on June 29, 1981 and will come into force in other areas of the state based on dates appointed by the State Government through a notification in the Official Gazette. Different dates may be appointed for different areas and provisions of the act.
The act applies to individuals working as security guards in factories or establishments.These individuals should not be direct and regular employees of the factory or establishment.

“Board” means a Board established under this Act
“Employer”, in relation to a Security Guard in the direct employment of an agency or agent deployed in a factory or establishment through such agency or agent, means such agency or agent
"Agency or agent," in relation to a Security Guard, refers to an individual, group of individuals, or a corporate entity that employs Security Guards and is responsible for carrying out security work or watch and ward services on a contract basis for any factory or establishment.
“Principal Employer” in relation to Security Guards deployed in a factory or establishment by the employer agency or Board, means the person who has ultimate control over the affairs of the factory of the Establishment and includes any other person to whom the affairs of such factory or establishment are entrusted with

Notwithstanding the provisions of this Act

In Greater Bombay and Thane Districts, starting from June 29, 1981, no principal employer, agency, or agent shall dismiss, discharge, retrench, or terminate the appointment of any Security Guard solely because of the employer's obligation to register under a Scheme established under this section or due to any other liability imposed on them under such Scheme. This restriction also applies to the liability of the Security Guard to register under the Scheme. This protection remains in effect until the entire Scheme is applied to the employer and Security Guard, or for a period of one year from the said date, whichever is earlier.
In any other area of the State, from the date on which this Act or any of its provisions are enforced, no principal employer, agency, or agent shall dismiss, discharge, retrench, or terminate the appointment of any Security Guard for the reasons mentioned in clause, during the period from the said date until the entire Scheme established under this section is applied to the employer and Security Guard.

However, it is important to note that this subsection does not affect the right of principal employers, agencies, or agents to dismiss, discharge, retrench, or terminate the appointment of any Security Guard as a disciplinary penalty imposed on them

THE PRIVATE SECURITY GUARDS (REGULATION OF EMPLOYMENT AND WELFARE)SCHEME, 2002

This is a legislation enacted by the state government of Maharashtra, India, as an amendment to the Maharashtra Private Security Guards (Regulation of Employment and Welfare) Act, 1981 to regulate the employment of Private Security Guards employed in factories and establishments and to make better provisions for their terms and conditions of employment and welfare through the establishment of a board. The act also establishes provisions for the licensing, registration and obligations of principal employers and private security agencies employing security guards in the state

Applicability of Act

The Scheme applies to the registered Security Guards of the Board.
It also applies to Security Guards employed by employer agencies in any factory or establishment.
Employer agencies and registered principal employers are included in the application of the Scheme.
The Scheme is applicable in the specified areas mentioned in the appended Schedule.
The jurisdiction of the Scheme is limited to the State of Maharashtra.

“Board” means the Security Guards Board for Brihan Mumbai and Thane District, constituted under section 6 of the Act
“Employer agency” means an employer agency within the meaning of the term “Employer” which directly employs Security Guards and supplies them to the principal employer for deploying in his factory or establishment and whose security guards are granted an exemption by the Government
“Principal Employer” in relation to Security Guards deployed in a factory or establishment by the employer agency or Board, means the person who has ultimate control over the affairs of the factory or the Establishment and includes any other person to whom the affairs of such factory or establishment are entrusted with

Provisions regarding Registration

Registration of principal employer:
1. Every principal employer who employs registered Security Guards of the Board or Security Guards of employer agencies with an exemption granted by the Government in their establishment must register themselves with the Board. They can do so by submitting an application in the prescribed form devised by the Board
2. The principal employers who are already registered with the Board will continue to be recognised as principal employers. Employer agencies whose Security Guards are granted exemption are strictly prohibited from providing them to these registered principal employers.
3. Principal employers who employed Private Security Guards before the Maharashtra Private Security Guards (Regulation of Employment and Welfare) (Amendment) Scheme, 2005 must register within fifteen days of the scheme's commencement. New establishments should register within one month of commencing their business.
1. Every employer agency that directly employs private Security Guards or specific categories of Security Guards for deployment in various establishments and factories, exempted by the State Government from certain provisions of the Act or Scheme through a notification under section 23 of the Act, must register with the Board. They should submit the registration application, along with the number of Security Guards employed, within 15 days from the publication date of the exemption notification. The application should be made using the form provided by the Board.
1. Recognised sponsored employer agencies, approved by the Directorate General Resettlement, Government of India, Ministry of Defense, based in New Delhi, and employing only ex-servicemen as Security Guards, must register with the Board. They should provide the Police verification certificates for the enrolled Security Guards to be eligible for exemption.
Obligations of registered principal employers:
1. Registered principal employers must comply with the obligations outlined in this Scheme.
2. A registered principal employer cannot employ a Security Guard unless the Secretary of the Board has allotted them in accordance with the provisions of clause 8(e). However, this prohibition does not apply to Security Guards directly employed by registered principal employers.
3. Registered principal employers must provide the Board with all available information regarding their current and future requirements for Security Guards, as per the instructions given by the Board.
4. Registered principal employers, if directed by the Board, must directly disburse wages and other allowances to the Security Guards. They should also submit a statement of such payments to the Board within the specified time and in the prescribed format. Alternatively, if directed by the Board, the registered principal employer should remit the wages and other allowances payable to the Security Guard to the Board within the specified time and manner.
5. Registered principal employers must pay the levy payable under clause 39(1), as well as the gross wages and any other amount due to Security Guards, to the Board as directed by the Board.
6. If a registered principal employer fails to remit the wages of Security Guards within the specified time limit, as required by the Board, they may be required to deposit an amount equal to the monthly average of the wages credited to the Board during the previous twelve months. This deposit should be made within ten days of the Board's order. In case the deposit amount falls short of the average wage for the previous twelve months, the principal employer must make up the deficit amount.
7. A registered principal employer persistently defaulting on the remittance of wages within the specified time limit may be liable to pay a penalty surcharge determined by the Board, not exceeding 10% of the amount to be remitted. The surcharge should be credited to the Board within ten days of the Secretary's order.
8. If a registered principal employer fails to make the payment of any amount due to the Board within the specified time, the Secretary of the Board may serve a notice stating that the supply of Registered Security Guards will be suspended unless the dues are paid within three days from the receipt of the notice. Upon the expiration of the notice period, the Secretary will suspend the supply of registered Security Guards to the defaulting principal employer until all dues are paid.
9. Registered principal employers must maintain the records required by the Board and produce them, along with any other relevant documents, upon reasonable notice by the Board or its designated representatives. They must also provide any information related to registered Security Guards and their employment as specified in notices or directions issued by the Board or its representatives.
Obligations of employer agencies:
1. Every employer agency must comply with the obligations outlined in the Scheme.
2. The employer agency must provide the Board with a list of their registered principal employers and the names and details of the Security Guards employed by them, specifying their respective registered principal employers.
3. If an employer agency desires to claim registration for all or specific classes of Security Guards employed by them and deployed in factories or establishments, they must apply to the Board using the prescribed form. The application should be accompanied by the processing fee, which is Rs. 100 per Security Guard at the time of registration application and renewal of registration after the exemption period expires.
4. The employer agency must deploy Security Guards only in the establishments or factories listed by the principal employer submitted to the Board. They cannot provide Security Guards to other principal employers already registered with the Board.
5. The employer agency must maintain registers and records of the Security Guards in their employment, including details of wages, leave, and other facilities provided under relevant Acts. These records should be produced before the Competent Authorities of the Board when directed to do so by the Board.
6. Every employer agency must conduct police verification of every Security Guard on its payroll within one week from the date of employment.
7. The employer agency is prohibited from prescribing or supplying uniforms to Security Guards that resemble those of the Indian Army, Police Force, or the Board.
8. Every employer agency must comply with the provisions of applicable Acts, including the Minimum Wages Act, 1948; the Payment of Wages Act, 1936; the Payment of Gratuity Act, 1972; the Employee's Provident Fund, Miscellaneous Provisions Act, 1952; the Contract Labour (Regulation and Abolition) Act, 1970; or any other relevant Act.
9. The employer agency must ensure that the payment made to exempted and registered Security Guards deployed by them is not less than the wages, allowances, and benefits provided to registered Security Guards of the Board.
10. The employer agency must submit its Yearly Audit Report to the Government within six months after the end of the financial year.
Obligations of principal employers of employer agencies:
1. Every principal employer of an employer agency must accept the obligations outlined in the scheme.
2. The principal employer of the employer agency must submit all information regarding the employment of Security Guards through the employer agency to the Board. If the employer agency fails to comply with any directions from the Board, the ultimate responsibility to comply with those directions lies with the registered principal employer in whose establishment or factory the Security Guards supplied by the defaulting employer agency are deployed.
Restriction on employment:

Registered principal employers have the option to employ either Security Guards registered with the Board or Security Guards from employer agencies registered with the Board. They may also directly employ individuals who are their own employees.

However, the following exceptions apply:
1. In cases of urgent and necessary work where it is impractical to hire registered Security Guards from the Board, the Secretary, with the Board's limitations, may allow the employment of non-registered Security Guards. The Chairman's approval should be sought whenever possible, and if not possible, the circumstances of such employment must be reported to the Chairman within 24 hours. The Board and State Advisory Committee must be informed of such employment in their next meeting.
2. The Board may permit the employment of non-registered Security Guards on holidays when registered Security Guards are not available for work, subject to specified conditions.
3. In cases mentioned in (a) and (b), individuals employed by registered principal employers who are not registered Security Guards of the Board will be treated, for the purposes of clauses 25(4), 25(5), 25(6), and 30, as if they were registered Security Guards of the Board in relation to that specific work.
Disbursement of wages by employers
1. Registered principal employers must remit the monthly wages and allowances of registered Security Guards to the Secretary of the Board by cheque within a specified time after the end of the month.
2. The Secretary will then arrange for the disbursement of wages and other dues to registered Security Guards on designated days every month, after deducting any authorised amounts under the Scheme.
3. The Board may allow registered principal employers to directly pay wages and allowances to Security Guards, subject to conditions and authorised deductions specified by the Board, within a specified time and manner
Appeals by registered principal employers:
- A registered principal employer can appeal to the Chairman of the Board if they are dissatisfied with an order issued by the Personnel Officer under clause 32.
- The appeal must be made in writing within fourteen days from the receipt of the order being appealed
1. Individuals who violate the provisions of clause 13, 24(7), 25, 26, 27, or 28 may face the following penalties upon conviction:
  1. For a first contravention: Imprisonment for up to three months or a fine of up to rupees five hundred, or both.
  2. For any subsequent contravention: Imprisonment for up to six months or a fine of up to rupees one thousand, or both.
  3. If the contravention continues after conviction, an additional fine of up to one hundred rupees may be imposed for each day of continued contravention.