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Shops and Establishment

What Is The Purpose of Tamil Nadu Shops and Establishment?

States in India have rolled out certain rules and regulations to govern the business establishments in the state. Such rules differ from state to state. This article explains all about the Tamilnadu Shops and Establishment..

The Purpose of Tamil Nadu Shops and Establishment

The Tamil Nadu Shops and Establishment lays down rules and regulations in 1947, regarding conditions of work in shops, commercial establishments, theatres, restaurants, and other establishments, and certain other purposes. It covers the entire state of Tamil Nadu.

The Tamil Nadu Shops & Establishments monitors the functioning of all the business establishments in Tamil Nadu. As per the term ‘establishment’ refers to a shop, commercial establishment, eating house, retail outlet, restaurant, amusement, and theatre, and any other establishments as the State Government might declare in a notification for the purpose.

The term ‘shop’ means any premises where any business operations are held, or any trade activities are carried out where clients are provided with services. It also includes any storerooms, go-down warehouses, or any offices, be it on the same premises or outside, but excludes commercial establishments or a restaurant.

The purpose is to protect the rights of the employees. It regulates wage payments, maternity leave, and benefits, holidays, maintenance of records, etc.,

Establishments That Are Mandated to Get the Shops & Establishments License

All the shops and establishments existing and operating anywhere in Tamil Nadu, carrying out trade or services must obtain the Shop and Establishment license. Entities eligible for such license include theatres, amusement parks, residential hotels, theme parks, eating houses, shops, or any other establishment as required or declared. 

However, the Tamil Nadu Shops and Establishments (Amendment) 2018, mandates for shops, and other establishments employing ten or more employees to register and obtain a license.

Key Elements of The Tamil Nadu Shops and Establishments 

Some important elements to regulate the establishments and shops in the state. They are as follows:

Child Labour Prevention

The Shops and Establishments prohibits the recruiting of children in any type of establishment whatsoever. It defines a ‘child’ to be a person below the age of 14 years. And ‘youngster’ is an individual who is more than 14 years and less than 17 years of age. This says that youngsters are not allowed to work before 6 AM and after 7 PM. They are not permitted to work more than 7 hours/day or 42 hours/week. 

Timings for the Opening and Closing of the Establishments

It has capped the working timeline for employees in shops and commercial establishments at 8 hours per day, or 48 hours per week. It legally prohibits anything exceeding this limit. The employer must grant a mandatory one-day leave per week to all of its employees. 

The Health and Safety Standards Laid by the SEA

It emphasises the health and safety requirements of all establishments. It ensures the well-being of the employees and a safe working environment. Such environmental and working conditions include ample lighting, insurance against flame, tidiness, proper ventilation, and many other important safety standards.

Wage Settlement

It provides that all the wages be settled promptly. Every employee serving the establishment will have an access to holidays with wages for 12 days, in the subsequent year, after twelve months of continuous service. Provided that such holidays with wages be gathered up to a maximum of 45 days.

The Bottom-line

Obtaining a shops and establishments license is a must for all the eligible establishments. Vakilsearch can help you get the license by applying for your registration with all necessary documents in a hassle-free manner. Vakilsearch will update you on the status of the process, and deliver the license to you.

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