international employment law firm alliance L&E Global

India: Tamil Nadu Government permits Shops and Establishments to Remain Open throughout the Day

Authors: Avik Biswas and Ivana Chatterjee

The State Government of Tamil Nadu has exempted all shops and establishments employing 10 or more persons from the provisions of the Tamil Nadu Shops and Establishments Act, 1947 that deal with opening and closing hours of shops and establishments.

The Government of Tamil Nadu, vide a notification dated 2 June 2022, has extended its previous order to permit shops and establishments employing 10 or more persons to remain open throughout the day on all days of the year, subject to the following conditions:

  • Employee shall be given one day holiday in a week on rotation basis and the details shall be exhibited by the employer in a conspicuous place in the establishments.
  • Employer shall exhibit the details of employees who are on holiday/leave on a daily basis at a conspicuous place in the establishment.
  • Wages (including overtime) shall be credited to the employees’ savings bank account.
  • Employers shall not require any person to work for more than 8 hours in any day and 48 hours in a week. The period including overtime shall not exceed 10 and 1/2 hours in a day and 57 hours in a week.
  • Penal actions (laid down under the Tamil Nadu Shops and Establishments Act, 1947 and the Tamil Nadu Shops and Establishments Rules, 1948 (“TN Shops Law“)) will be initiated against employers if employees are found working on any holiday or after normal duty hours without proper indent of overtime hours.
  • In normal circumstances, female employees shall not work beyond 8 PM. Upon obtaining written consent of the women employee, they shall be allowed to work between 8 PM and 6 AM. The female employees shall be provided with adequate protection of their dignity, honour and safety. Transport arrangements shall also be provided. A notice indicating availability of transport shall be exhibited at the main entrance.
  • Employees shall be provided with restroom, washroom, safety lockers and other basic amenities.
  • Employer employing women employees shall constitute an Internal Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the committee should be operative.
  • Penal actions under the TN Shops Law will be attracted in case of violation of the terms of this notification.

This notification would be in effect for 3 years from 5 June 2022.

Key Action Points for Human Resources and In-house Counsel

Please note that this exemption was allowed previously as well, with the same conditions (the last set of notification was issued on 5 June 2019). Therefore, employers can continue with their current compliances. Furthermore, it is advisable that the employer conducts a periodic due diligence to ensure that they are complying with the conditions set out above.