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The Tamil Nadu Shops and Establishments Act, 1947 and its accompanying Rules, 1948 apply to shops and commercial establishments in areas designated by the Tamil Nadu Government initially. Later on, w.e.f. 14 November 2018, the applicability of the Act was extended to the entire State of Tamil Nadu, where the provisions of the said Act have not been brought into force so far by invoking clauses (a) and (b) of sub-section (3) of Section 1 of the said Act vide [G.O. Ms. No. 162, Labour and Employment (K2), dated 14th November 2018. The Act applies to all establishment in the State of Tamil Nadu employing 10 or more workers.
This law is further aimed at safeguarding the rights of employees who work in these establishments. It lays down various rules regarding how employees should be treated and what their working conditions should be like payment of wages, terms of services, work hours, rest intervals, overtime work, opening and closing hours, closed days, holidays, leaves, maternity leave and benefits, work conditions, rules for employment of children, records maintenance, etc.
Various compliances required under Tamil Nadu Shops & Establishments Act, 1947 read with Tamil Nadu Shops and Establishments Rules, 1948 are as under:
1. Shops and Establishment Registration Certificate (Section 3): Employer of every establishment employing ten or more workers shall, within a period of six months from the date of commencement of his business, apply for registration and obtain a registration certificate.
2. Intimation of closure of establishment (Section 3 (7)): The employer shall, within a period of thirty days of the closure of the establishment, give intimation of such closure to the Inspector and on receipt of such intimation, he shall cancel the registration certificate
3. Selling outside shops prohibited after closing hour (Section-8): As per these rules or any other enactment for the time being in force, no person shall carry on, in or adjacent to a street or public place, the sale of any goods after the hour fixed under section 7 for the closing of shops dealing in the same class of goods in the locality in which such street or public place is situated. Provided that nothing in this section shall apply to the sale of newspapers.
4. Spread over of periods of work (Section-10): The periods of work of a person employed in a shop shall be so arranged that, along with his intervals for rest, they shall not spread over more than twelve hours in any day.
5. Notice of Weekly Holiday (Section-11(5), (6)): The weekly day on which a shop is closed shall be specified by the shop-keeper in a notice permanently exhibited in a conspicuous place in the shop, and shall not be altered by the shopkeeper more often than once in three months.
6. Daily and weekly hours of work (Section-14): No person employed in any establishment shall be required or allowed to work for more than ten and a half hours in any day and fifty-seven hours in any week. Any such person may be allowed to work in such establishment for any period in excess of the limit fixed under this sub- section subject to payment of overtime wages, if the period of work, including overtime work, does not exceed ten hours in any day and in the aggregate fifty- four-hour in any week.
7. Holidays (Section-16): Every employee in any establishment shall be allowed in each week a holiday of one whole day. Not applicable for employees whose total period of employment in the week is less than 6 days. The Government may, by notification, require in respect of any specified class of establishments that every employee therein shall be allowed in each week an additional holiday of one half-day commencing at such hour in the afternoon as may be fixed by the Government. No deduction shall be made from the wages of any employee in an establishment on account of any day or part of a day on which a holiday has been allowed. Employer shall not call the employee for work on a day which is a holiday.
8. Working hours for young persons (Section-18): No young person shall be required to work in any establishment before 6a.m. and after 7 p.m.
9. Children not to work in establishments (Section 17): No child shall be required or allowed to work in any establishment.
10. Cleanliness of Establishment (Section-20, Rule-5): The premises of every establishment shall be kept clean and free from effluvia arising from any drain or privy or other nuisance and shall be cleansed at such times and by such methods as may be prescribed; and these methods may include lime washing, colour washing, painting, varnishing, disinfecting and deodorizing.(a) In every establishment all the inside walls of the rooms and all the ceilings of such rooms whether such walls or ceilings be plastered or not and all the passages and staircases shall be lime-washed or colour-washed at intervals of not more than twelve months dating from the time when they were last lime-washed or Clearwater and shall be maintained in a clean state.(b) All beams, rafters, doors, window-frames and other wood-work with the exception of floors shall be either lime-washed or colour-washed at intervals of not more than twelve months dating from the time when they were last lime-washed or Clearwater or shall be painted or varnished at intervals of not more than seven years dating from the time when they were last painted or varnished and shall be maintained in a clean state.
11. Lighting (Section-22): The premises of every establishment shall be sufficiently lighted during all working hours.
12. Entitlement to holiday with wages (Section 25(1), (3)): Every person employed in any establishment shall be entitled, after twelve months’ continuous service, to holidays with wages for a period of 12 days, in the subsequent period of twelve months. Such holidays with wages may be accumulated up to a maximum of forty- five days.
13. Pay during annual holidays (Section-26): Every person employed shall, for the holidays or the period of leave allowed under sub- section (1) or (2) of section 25, be paid at a rate equivalent to the daily average of his wages for the days on which he actually worked during the preceding three months exclusive of any earnings in respect of overtime.
14. Fixation of wage period (Section-30)): Every employer shall fix periods in respect of which wages shall be payable. No wage period shall exceed one month.
15. Time of payment of wages (Section-32): The wages of every person employed shall be paid before the expiry of the fifth day after the last day of the wage period in respect of which the wages are payable.
16. Deductions from wages (Section 34): The wages of a person employed shall be paid to him without deductions of any kind except those authorized by or under Section 34(2) of the Tamil Nadu Shops and Establishment Act, 1947.
17. Display of Notice specifying acts or omissions (Section 35(2), Rule 11(1) (d)): The employer shall display at or near the main entrance of the establishment a copy in English, together with a correct translation thereof, in the language of the majority of the persons employed therein of the list of approved acts or omissions.
18. Total amount of fine which can be imposed during a wage period (Section 35(3)): The total amount of fine which may be imposed in any one wage period on any person employed shall not exceed an amount equal to half an Anna in the rupee of the wages payable to him in respect of that wage period.
19. Payment of full wages to person employed pending proceedings in Higher Courts (Section-41(A)): Where in any case, the appellate authority, by its decision of notice of dismissal, directs reinstatement of any person employed and the employer prefers any proceeding against such decision in a High Court or the Supreme Court, the employer shall be liable to pay such person employed, during the period of pendency of such proceedings in the High Court or the Supreme Court, full wages last drawn by him, inclusive of any maintenance allowance admissible to him under any rule if the person employed had not been employed in any establishment during such period and an affidavit by such person employed had been filed to that effect in such Court.
20. Wage Slips (Section-47, Rule 11(6)): Wages Slip in Form T shall be issued by every employer, to every person employed, every month, a day prior to the disbursement of wages or at least on the date of disbursement or if the wages are paid daily, along with the wages, duly signed by him or any other authorized person and also the signature of the concerned person employed shall be obtained. The copies of wage slip issued shall be maintained by the employer and produced to the inspector on demand.
21. Name board of the establishments (Rule 15):
(a) The name board of every establishment shall be in Tamil and wherever other languages are also used, the version in English shall be in the second place followed by the versions in other languages, if any.
(b) The Tamil version shall be written predominantly in the name board by providing more space than for other languages.
(c) The Tamil letters in the name board shall be in the reformed script.
22. Notice showing the names of the persons employed, daily periods of work, etc (Section-47, Rule 16(4)): Every employer shall exhibit in his establishment in a conspicuous place, a notice in [Form S] showing the names of the persons employed, daily periods of work, rest interval and weekly holiday and send a copy of the same to the Assistant Inspector of Labour having jurisdiction over the area before commencement of work by the persons employed therein.
23. Exhibition of Notices (Section-47, Rule 16(6), (10)): Any notice required to be exhibited under these rules shall be exhibited in such manner that can be readily seen and read by any person whom it affects and shall be renewed whenever it becomes defaced or otherwise ceases to be clearly legible. All registers, records and notices required to be maintained, exhibited or given under this rule shall be either in English or in the language of the majority of the persons employed in the establishment.
24. Annual Return (Section 47-A): Every employer of an establishment shall furnish an annual return, in such form and manner to such authority as may be prescribed
25. Prohibition of discrimination against women employee (Section 50-A): No woman employee shall be discriminated in matters of recruitment, training, transfers, promotions or wages
26. Seating facilities (Section 22-A): The premises of every establishment shall have suitable seating arrangements for all employees so that they may take advantage of any opportunity to sit which may occur in the course of their work and thereby avoid ‘on their toes’ situation throughout the working hour
27. Provision of drinking water (Section 22-B): Every employer shall make effective arrangement to provide and maintain at suitable points conveniently situated for all persons employed in the shop or establishment, sufficient supply of wholesome drinking water
28. Provision of latrines and urinals (Section 22-C): Every employer shall provide sufficient number of latrine and urinal accommodation as may be prescribed which shall be so conveniently situated as may be accessible for the persons employed, at all times during the working hours.
29. Provision of rest room and lunch room (Section 22-D): (1) Every employer shall provide adequate and suitable rest room and lunch room with provision for drinking water, for the persons employed. (2) The rest room and lunch room shall be sufficiently ventilated and lighted and shall be maintained in a clean and tidy condition. (3) The rest room and lunch room shall be adequately furnished with chairs or benches with back-rests.
30. First -aid facilities (Section 22-E): Every employer shall provide at the place of work, first aid facilities, as may be prescribed
31. Display of Shops & Establishment Registration Certificate (Section 3(5)): The registration certificate shall be prominently displayed in the establishment by the employer.
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