The Tamil Nadu Shops and Establishments (Amendment) Act, 2025

The Government of Tamil Nadu has issued a notification regarding the amendment of the Tamil Nadu Shops and Establishments Act, 1947. The amendment has introduced a revised ‘Chapter IX’, which is concerned with penalties and the adjudication mechanism under the Act.

As per the amendment, whoever contravenes any of the provisions of sections 3, 7 to 11, 13 to 23, 25, 26, 29 to 41, 47, 47-A, and 50-A shall, for a first contravention, be liable for penalty which may extend to five thousand rupees, and for a second or subsequent contravention, be liable for penalty which may extend to ten thousand rupees.

An explanation for the term “second or subsequent contravention” has been newly introduced, which reads as follows:
“Second or subsequent contravention” means the same or similar contravention committed by an employer within a period of three years from the date on which the first contravention was committed.”

Non-compliance of section 41-A (Payment of full wages to person employed pending proceedings in Higher Courts) has been decriminalised and carries a penalty of fifty thousand rupees. For continuing violation, a further penalty of up to two hundred rupees for every day during which such violation continues shall be levied. However, the penalty shall not exceed one lakh rupees in aggregate.

Penalty for obstructing an inspector has been increased to five thousand rupeesfrom two hundred fifty rupees.

For compounding of offence, the limitation period of three years has been removed.

The State Government, for the purposes of determining the penalties, may, by notification, appoint an officer not below the rank of Joint Commissioner of Labour, to be the adjudicating officer, to hold an inquiry and impose a penalty in such manner as may be prescribed.