The legislation, called the Maharashtra Essential Services Maintenance Act, has got the Presidential consent, additional chief secretary P S Meena told PTI.
It was passed by the Legislative Assembly last year and by the Legislative Council this year.
The Act gives the state government the power to prohibit lockouts, layoffs and strikes in establishments. Employees resorting to "illegal " strikes could face a six-month jail term and a fine of Rs 2,000.
The new provisions also permit the state to prosecute those lending financial support to such strikes. People instigating employees to go on a strike could face a one-year jail term or a fine of Rs 2,000.
Under the Act, the government can take action against employees in any service, type of employment or class if they strike work and it affects maintenance of services essential to the community.
The earlier version of the Act, which expired in 2010, covered government or semi-government staffers as well as employees of public transport services, power and gas utilities and public health and sanitation entities. These services were identified as "essential" and employees engaged in them were not permitted to strike work.