The Tamilnadu Shop and Establishment Act is a state legislation governing the proper functioning and conduct of businesses, within the state of Tamilnadu. The Labour Department of the State is the department from which shop and establishment act registration is obtained. The shop and establishment act registration in the case of Small Scale Industry (SSI) or Micro, Small, Medium Enterprises (MSME) businesses in the unorganised sector, serve as a proof of existence of business. This is a detailed guide to Tamilnadu Shop and Establishment Act.
Shop and Establishment Act
The Shop and Establishment Act has been enacted by various State Governments to regulate the conditions of work of employees in shops, commercial undertakings, restaurants, etc., All commercial establishments must abide by The Weekly Holiday Act, 1942 enacted by the Central Government which governs the grant of holidays. However, there is no specific Central Government Act which comprehensively governs hours of work, payment of wages, health and safety in commercial establishments. To bridge this gap, state Governments have enacted a Shop and Establishment Act. This is to help regulate the conduct of commercial establishments within their jurisdiction. To know more, read the article on “Shops and Establishment Act in India”.
Tamilnadu Shop and Establishment Act
The Tamilnadu Shop and Establishment Act, 1947 governs the conduct of shops and commercial establishments in Tamilnadu. The Tamilnadu Shop and Establishment Act defines an “establishment” as:
“‘establishment´means a shop. Commercial establishment, restaurant, eating house, theatre or any place of public amusement or entertainment and includes such establishment as the State Government for the purposes of this Act;”
A commercial establishment is defined in Tamilnadu Shop and Establishment Act as:
“‘commercial establishment´means an establishment which is not a shop but which carries on the business of advertising, commission, forwarding or commercial agency, or which is a clerical department of a factory or industrial undertaking or which is an insurance company, joint stock company, bank, broker’s office or exchange and includes such other establishments as the state government by notification may by notification declare to be a commercial establishment for the purposes of this Act.”
A shop is defined in the TN Shop and Establishment Act as:
“‘shop´ means any premises where any trade or business is carried on or where services are rendered to customers and includes offices, store rooms, godowns and warehouses, whether in the same premises or otherwise, used in connection with such business but does not include a restaurant or commercial establishments.”
Tamilnadu Shop and Establishment Act Applicability
The Tamilnadu Shop and Establishment Act applies to all shops and commercial establishments as defined above. However, the following persons or types of establishments will NOT come under the purview of the Tamilnadu Shop and Establishment Act:
- Persons employed in any establishment in a position of management
- Persons whose work involves travelling and persons employed as canvassers and caretakers
- Establishments under the Central and (State) Government, Local Authorities, the Reserve Bank of India, and Cantonment Authorities d) Establishments in mines and oil fields
- The establishments in bazaars in places where fairs or festivals are held temporarily for a period not exceeding fifteen days at a time
- Establishments which, not being factories within the meaning of the Factories Act, 1948 are in respect of matters dealt within this Act, governed by a separate law for the time being in force in the (State).
Further, the regulations relating to opening and closing hours of shops, and grant of holidays will not apply to hospitals, institutions for the treatment or care of the sick, chemists or druggists shops as specified by time to time by the State Government.
Major Aspects of Tamilnadu Shop and Establishment Act
The following are some of the major aspects of the Tamilnadu Shop and Establishment Act:
Child Labour Prevention
As per the Tamilnadu Shop and Establishment Act, no child can work in any establishment. A ‘child´means a person who has not completed fourteen years.
Further, no young person can work in any establishment before 6 a.m. and after 7 p.m. Further, a young person can only work for seven hours in any day and forty- two hours in any week. ‘Young person’ means a person who is not a child and has not completed seventeen years.
Opening and Closing of Shops and Commercial Establishments
As per the Tamilnadu Shop and Establishment Act, no person employed in any shop or commercial establishment shall be required to work for more than eight hours in any day and forty eight hours in any week without overtime wages. Further, every person employed in any shop or commercial establishment should be allowed in each week a day holiday
Health and Safety
As per the Tamilnadu Shop and Establishment Act, the following aspects relating to health and safety must be maintained at all shops and commercial establishments:
- Cleanliness: The premises of every establishment must be kept clean. It should be free from effluvia arising from any drain, privy or other nuisance. It should be cleaned at regular intervals.
- Ventilation: The premises of every establishment must be well ventilated.
- Lighting: The premises of every establishment must be sufficiently lighted during all working hours.
- Precautions against fire: In every establishment, precautions must be taken against fire.
Person employed in any shop or establishment shall be entitled, after twelve months of continuous service with the establishment, to holidays with wages for a period of 12 days in the subsequent period of twelve months.
Payment of Wages
Employers are responsible for the payment of wages to persons employed. All employer are required to fix a period in respect of which wages shall be payable. The wage periods shall exceed one month.