Shop and Establishment Act in Tamil Nadu (2026): Registration, Working Hours, Leave and Penalties

If you run a shop, showroom, office, restaurant or any other commercial establishment in Tamil Nadu, the Tamil Nadu Shops and Establishments Act, 1947 governs your staff's working hours, holidays, leave and wage payments. Since July 2024 it also requires larger establishments to register online. This guide is for shop owners, small-office employers and HR staff in Tamil Nadu. It explains who must register, how to apply in Form Y on the Labour Department portal and what it costs, the rules on hours, overtime and leave, the 2026 exemption that lets shops open all year, the penalties, and a worked example for a Coimbatore showroom.

Quick answer

Under the amended Tamil Nadu Shops and Establishments Act, 1947, every establishment employing 10 or more workers (including contract workers) must register within six months from the date the business starts by applying in Form Y on labour.tn.gov.in. The fee is ₹100, the certificate (Form Z) is due within 24 hours and there is no renewal. Smaller establishments need not register, but the Act's rules on hours, leave and wages apply to all.

• In force since 2 July 2024; applies across the whole State

• 8 hours a day, 48 a week; overtime at double pay within 10½ hours a day and 57 hours a week

• 12 days each of annual, sick and casual leave a year

• Fine up to ₹5,000 (first offence) and ₹10,000 (repeat)

What the Tamil Nadu Shops and Establishments Act covers

The Act was passed in 1947 to regulate conditions of work in shops, commercial establishments, restaurants, theatres and other establishments. For decades it applied only to the city of Madras, municipalities and larger panchayats. By G.O. Ms. No. 162 of 14 November 2018, it was extended to every remaining area of the State, so today it applies everywhere in Tamil Nadu, rural or urban.

"Establishment" is broad. It includes shops of every kind, offices, banks and financial service outlets, IT and consulting offices that are not factories, restaurants, eating houses, hotels, theatres and places of public amusement. Chapter II deals with shops and Chapter III with other establishments, but the hours and holiday rules are essentially the same for both.

Who is exempt. Section 4 excludes some people and places from the Act altogether:

• persons employed in a position of management;
• persons whose work involves travelling, and canvassers and caretakers;
• establishments of the Central and State Governments, local authorities, the Reserve Bank, railways and cantonment boards;
• establishments in mines and oil fields, and temporary fair or festival bazaars of up to 15 days;
• establishments governed by a separate law on the same matters — for example factories under the factories law.

Hospitals, certain chemists, clubs, residential hotels, hostels and railway-station stalls are exempt only from the opening and closing hour rules, not from the rest of the Act.

How the law changed between 2018 and 2024

For most of its life the Act had no registration requirement at all. The Tamil Nadu Shops and Establishments (Amendment) Act, 2018 introduced registration and renewal, following the Centre's Model Shops and Establishments Bill, 2016. That Act was not brought into force for six years. In 2021 the State amended it again to drop renewal and require the certificate within a day, after the Union Labour Ministry and DPIIT asked States to remove renewals. In 2023 a further amendment added fees, amendment and duplicate certificates, and a second 2023 Act added welfare provisions.

All of it took effect together. By G.O. Ms. No. 54 dated 2 July 2024, the Government appointed 2 July 2024 as the date the 2018 and 2023 amendment Acts came into force. The same day, G.O. Ms. No. 55 amended the 1948 Rules to set up Form Y, the ₹100 fee and online processing. If you read a website that says Tamil Nadu has no shop registration, it was written before July 2024.

Tamil Nadu Shops Act at a glance (2026)

10+

Workers that trigger registration

contract workers count

₹100

Form Y registration fee

one-time, no renewal

24 hours

Certificate deadline

deemed granted after

48 h

Weekly working hours

8 a day; overtime at 2×

Who must register, and who need not

Ten or more workers. Section 3, as it now stands, requires the employer of every establishment employing ten or more workers to apply for registration within six months of starting business and obtain a certificate. Form Y asks for the number of employees "ordinarily to be employed (including contract workers)", split into men, women and young persons. Security guards, housekeeping staff or sales promoters supplied by an agency therefore count towards the ten.

Existing establishments. An establishment that already had ten or more workers on 2 July 2024 had to furnish its details with a self-declaration in Form ZB within one year, that is by 1 July 2025, after which the Inspector issues a certificate. If you missed that window, file Form ZB now through the portal; it is better to regularise than to wait for an inspection.

Fewer than ten workers. The 2018 Bill originally proposed a section 3-A requiring smaller establishments to send an intimation to the Inspector. The 2021 amendment replaced the registration provisions with a new section 3 that covers only establishments with ten or more workers, and the penalty section was amended to match. On our reading of the law as in force, a shop with, say, four employees does not need to register or send an intimation — but the Labour Department has not published a clarification, so confirm with the Inspector for your area before relying on it. Everything else in the Act — weekly holidays, hours, leave, wage payment, notice — still applies to it from the first employee. If your headcount later reaches ten, you must apply within six months of the date the business commenced; in practice, apply as soon as you cross ten.

Other registrations are separate. The Shops Act registration does not replace your trade licence from the corporation, municipality or panchayat, your GST registration or your FSSAI licence. Restaurants, hotels and other catering establishments also register separately under the Tamil Nadu Catering Establishments Act, 1958 on the same portal; the department's timeline for that is seven days.

How to register online on labour.tn.gov.in

Applications are made only online through the Labour Department web portal. There is no paper route.

Shop and establishment registration in Tamil Nadu

1. 1

   Create a user account

   On labour.tn.gov.in click Login, then New User. Enter personal details, address and contact details, verify your mobile number and email by OTP, upload ID proof and Aadhaar, and set a password.

   Open the Labour Department portal
2. 2

   Choose the Act and service

   From the dashboard select the Tamil Nadu Shops and Establishments Act, 1947 and the Registration service (Form Y). Existing establishments choose the intimation in Form ZB.

3. 3

   Fill in the establishment details

   Name and nature of business, address, phone and email, constitution (proprietorship, partnership, company, trust or society), employer's name and residential address, and employees split into men, women and young persons.

4. 4

   Upload documents and the name-board photo

   Upload the employer's address proof and a photograph of the name board showing the establishment's name in Tamil, as rule 15 requires.

   Tip: A board in English only is a common reason for an application to be returned.

5. 5

   Pay the fee

   Click Pay Online and pay ₹100. Keep the payment reference.

6. 6

   Download the certificate

   When the status shows Approved, download the Form Z certificate. If it shows Returned, correct the defect and resubmit. If no certificate is issued within 24 hours, the law treats it as granted.

The certificate. Form Z carries a registration number in the format TN-district code-office code-four digits, and states the maximum number of employees the employer may engage, including contract workers. Display it prominently at the premises. If you later employ more people than the certificate shows, file an amendment.

Changes and closure. Any change in the particulars in Form Y — address, ownership, nature of business, number of employees — must be reported online within 30 days, and the Inspector issues a fresh Form Z. When you close, intimate the closure within 30 days so the certificate is cancelled. A lost or damaged certificate can be replaced with a duplicate on application.

Documents to keep ready

The portal asks for few uploads, but the details must match your other records.

Before you apply in Form Y

0/7

• Employer's ID proof (PAN, ration card, voter ID or driving licence) and Aadhaar for the portal account
• Residential address proof of the employer (Aadhaar, driving licence, ration card, voter ID or passport)
• Constitution document: partnership deed, certificate of incorporation, trust or society registration
• Establishment address and nature of business as in your GST or trade licence
• Headcount split into men, women and young persons, including contract workers
• Photograph of the name board with the name in Tamil
• Mobile number and email ID that you will use for all Labour Department correspondence

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Working hours, rest intervals and weekly holidays

These rules apply to every employee covered by the Act, whether or not the establishment has registered.

Daily and weekly limits. No person may be required or allowed to work more than 8 hours in a day and 48 hours in a week (sections 9 and 14). Overtime is permitted, but the total period of work including overtime cannot exceed 10½ hours a day and 57 hours a week; the 2018 amendment raised these caps from 10 hours and 54 hours.

Rest interval and spread-over. No one may work more than four hours at a stretch without an interval of at least one hour. The working periods plus rest intervals cannot spread over more than 12 hours in a day. A shop open from 9 am to 9 pm therefore needs two shifts or staggered timings; it cannot run one employee across the full 12 hours plus overtime.

Weekly holiday. Every employee gets one whole day's holiday each week, and no wages may be deducted for it. The Act also requires shops to close on one day of the week, but this is the provision the 2026 exemption relaxes, as explained below.

Young persons and children. No child may work in any establishment. A young person (an adolescent above the child-labour age) may work no more than 7 hours a day and 42 hours a week, cannot work overtime, and cannot work before 6 am or after 7 pm.

Hours and rest rules at a glance

Rule	Adults	Young persons
Normal hours	8 a day, 48 a week	7 a day, 42 a week
Overtime	Allowed at 2× pay, total within 10½ hours a day and 57 hours a week	Not allowed
Rest interval	1 hour after 4 hours' work	1 hour after 4 hours' work
Spread-over	Max 12 hours a day	Max 12 hours a day
Time of day	Women 8 pm–6 am only with consent and safeguards (2026 order)	Only between 6 am and 7 pm
Weekly holiday	One whole day	One whole day

Normal hours

Adults

8 a day, 48 a week

Young persons

7 a day, 42 a week

Overtime

Adults

Allowed at 2× pay, total within 10½ hours a day and 57 hours a week

Young persons

Not allowed

Rest interval

Adults

1 hour after 4 hours' work

Young persons

1 hour after 4 hours' work

Spread-over

Adults

Max 12 hours a day

Young persons

Max 12 hours a day

Time of day

Adults

Women 8 pm–6 am only with consent and safeguards (2026 order)

Young persons

Only between 6 am and 7 pm

Weekly holiday

Adults

One whole day

Young persons

One whole day

The 365-day and late-hours exemption

Since 2019 the State has repeatedly used its power under section 6 to let establishments open on all days. According to the Labour Department's notification of 24 August 2026, as summarised by TeamLease RegTech, all establishments are exempted from the weekly closure rule in section 11(1) for three years from 24 August 2026 (unless revoked). The conditions matter more than the permission:

• each employee still gets one weekly holiday, on a rotation, and the holiday and leave details must be displayed;
• wages and overtime must be paid through bank accounts;
• working hours stay at 8 a day and 48 a week, with overtime within 10½ hours a day and 57 hours a week;
• women employees should not work after 8 pm, and may work between 8 pm and 6 am only with written consent and adequate safety arrangements, including transport;
• an Internal Committee under the POSH Act must be functioning.

Breaking any condition can lead to action against the employer or manager. Keep a copy of the current notification at the premises, and check the Labour Department site for the latest order before relying on it.

Leave, wages, overtime pay and notice

Annual leave. After 12 months' continuous service, an employee is entitled to 12 days of holidays with wages in the following 12 months, which can be accumulated up to 45 days (section 25). Short breaks caused by sickness, authorised leave, a lock-out or a legal strike do not break continuity, within the limits in the section.

Sick and casual leave. Separately, every year an employee is entitled to up to 12 days of sick leave with wages and up to 12 days of casual leave with wages for any reasonable ground. Leave pay is the daily average of wages actually earned in the previous three months, excluding overtime (section 26). If an employee leaves or is discharged before taking earned holidays, they must be paid for them.

Wage period and payment. Wage periods cannot exceed one month, and wages must be paid before the end of the fifth day after the wage period ends. When employment is terminated, wages earned must be paid by the second working day. Deductions are limited to those the Act permits, such as fines within limits, absence, damage or loss, and recovery of advances.

Overtime pay. Section 31 says overtime is paid at twice the ordinary rate of wages. The minimum wage notifications for shops set the floor for the ordinary rate; see our Tamil Nadu minimum wages guide for the current zone-wise rates.

Notice of dismissal. An employee with at least six months' continuous service cannot be dismissed without a reasonable cause and one month's notice or wages in lieu, except for proven misconduct after an enquiry. The employee can appeal to the prescribed authority.

Welfare and equality. The 2023 amendment requires drinking water, washrooms, a rest room, a lunch room and first aid; rule 6A requires at least one first-aid box for every 150 persons employed. Section 50-A, added in 2018, prohibits discrimination against women in recruitment, training, transfers, promotions or wages.

Worked example: a Coimbatore textile showroom

Selvi Silks opens a showroom in Coimbatore city (a municipal corporation, so Zone A for minimum wages) on 1 August with 12 staff of its own and two security guards supplied by an agency. Headcount for the Act is 14, so it must register.

Registration. The owner creates a portal account, files Form Y showing 14 employees (9 women, 5 men, no young persons), uploads her address proof and a photo of the Tamil-English name board, and pays ₹100. The deadline is six months from 1 August, but she applies in the first week; the Form Z certificate is downloaded within a day and framed near the cash counter.

Rostering. The showroom is open 10 am to 9 pm, seven days a week, under the 365-day exemption. Staff work two overlapping shifts of 8 hours with a one-hour lunch break after four hours, so no one's day spreads beyond 12 hours. Each employee gets a rotating weekly off, recorded on the notice board.

Overtime. During the Deepavali season a sales assistant on the Zone A shops minimum of ₹14,044 a month works 6 extra hours in a week, taking her to 54 hours, within the 57-hour cap. Her daily minimum is ₹540.15 (monthly ÷ 26), so the hourly rate is about ₹67.52 and overtime at double is about ₹135 an hour — roughly ₹810 for the week, paid with her wages by bank transfer. Women staff leave by 8 pm unless they have given written consent and the showroom provides transport.

Other compliance. With 12 direct employees the showroom also registers for ESIC, since that threshold is 10, deducts professional tax (see the Tamil Nadu professional tax guide), and keeps attendance, wage and leave registers. It will need EPF registration only if headcount reaches 20.

Penalties, inspections and the Labour Codes

Fines. Under section 45, contravening section 3 (registration) or any of the provisions on hours, holidays, leave, wages and notice is punishable with a fine of up to ₹5,000 for a first offence and up to ₹10,000 for a second or later offence. Breach of the Rules, such as not keeping registers or displaying notices, can attract up to ₹2,000, raised from ₹50 in July 2024. Obstructing an Inspector is a separate offence.

Compounding. Section 46-A lets the Commissioner of Labour, or an officer authorised by them, compound most offences on payment of an amount no higher than the maximum fine. Compounding is not available for the same or a similar offence within three years of an earlier compounding.

Inspections. Inspectors of the Labour Department can enter premises at reasonable times, inspect registers and records, and question staff. The commonest findings in shops are missing weekly-off records, overtime paid in cash or not at all, no leave records, and a missing or outdated registration certificate.

The Labour Codes. The four Labour Codes came into force on 21 November 2025. The Occupational Safety, Health and Working Conditions Code applies to establishments with 10 or more workers and has its own registration requirement. The Tamil Nadu Shops Act is a State law that continues alongside the Codes, and the Labour Department's portal still registers establishments under it. Watch for the State's rules under the OSH Code; until they settle the overlap, comply with both and keep your Form Z current.

Common mistakes and how to fix them

Leaving out contract workers. Agency-supplied guards, cleaners and promoters count towards the ten-worker threshold and must be included in Form Y. Undercounting is easy to spot during an inspection.

English-only name boards. The application asks for a photo of the Tamil name board. Put up a compliant board before you apply.

Not updating the certificate. Moving premises, changing ownership or growing beyond the headcount on Form Z without filing an amendment within 30 days is a breach. Amendments are online and quick.

Assuming the 365-day exemption removes weekly offs. It allows the shop to stay open; it does not let any individual employee work seven days a week.

Missing the Form ZB window. Establishments that existed with ten or more workers on 2 July 2024 were expected to file Form ZB within a year. If you have not, file now and keep proof.

Official links

• Labour Department portal — login and new userForm Y registration, Form ZB, amendments, closure
• Application status and certificate verificationTrack your application
• Registration manual (PDF)Step-by-step portal guide
• Tamil Nadu Shops and Establishments Act, 1947 (India Code)Full text with 2017–2018 amendments
• G.O. Ms. No. 55 (2 July 2024) — amended Rules with Forms Y, Z, ZA, ZBFee, timelines and forms
• G.O. Ms. No. 54 (2 July 2024) — commencement notificationAmendment Acts in force

What to do next

Count your workers, including agency staff. If you have ten or more, register in Form Y today — it costs ₹100 and takes a day. Whatever your size, set up a weekly-off roster, an overtime register and leave records, and check your pay against the Tamil Nadu minimum wages. Our salary slip generator helps you show overtime and deductions clearly, and the hourly rate calculator helps you price overtime.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

Is shop and establishment registration mandatory in Tamil Nadu?

Yes, for establishments employing 10 or more workers (including contract workers). Since 2 July 2024, their employer must apply within six months from the date the business starts through the Labour Department portal in Form Y. On our reading of the amended Act, shops and offices with fewer than ten workers do not need this registration (confirm with your local Labour Inspector, as the department has not published guidance on it), but the Act's rules on hours, holidays, leave and wages still apply to them.

What is the fee for shop and establishment registration in Tamil Nadu?

The fee for a new registration in Form Y is ₹100, paid online on labour.tn.gov.in. There is no renewal fee: Tamil Nadu dropped renewal of the certificate in 2021, so a registration lasts as long as the establishment runs, as long as you report changes within 30 days.

How long does it take to get the Tamil Nadu shop registration certificate?

The Act requires the Inspector to issue the certificate in Form Z within 24 hours of the application. If it is not issued within that time, the registration is deemed to have been granted. The certificate is downloaded from the portal and must be displayed prominently at the establishment.

What are the working hours under the Tamil Nadu Shops Act?

No employee may work more than 8 hours a day or 48 hours a week. Overtime is allowed only if the total, including overtime, stays within 10½ hours a day and 57 hours a week, and it is paid at twice the ordinary rate. After 4 hours of work there must be a rest interval of at least one hour, and the working day including breaks cannot spread over more than 12 hours.

How much leave do shop employees get in Tamil Nadu?

After 12 months' continuous service, 12 days of annual leave with wages, which can accumulate up to 45 days. In addition, every year an employee is entitled to up to 12 days of sick leave and 12 days of casual leave with wages. Each employee also gets one whole day's weekly holiday.

What is the penalty for not registering a shop in Tamil Nadu?

Contravening section 3 or the other listed provisions is punishable with a fine of up to ₹5,000 for a first offence and up to ₹10,000 for a repeat offence. Breaking the rules made under the Act can attract a fine of up to ₹2,000. Most offences can be compounded by the Commissioner of Labour.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 9 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.Tamil Nadu Shops and Establishments Act, 1947 — India Code (Legislative Department) · accessed 9 October 2026
2. 2.G.O. Ms. No. 54 — commencement of the TN Shops and Establishments (Amendment) Acts, 2018 and 2023 — Government of Tamil Nadu (Gazette Extraordinary No. 216, 2 July 2024) · accessed 9 October 2026
3. 3.G.O. Ms. No. 55 — amendments to the Tamil Nadu Shops and Establishments Rules, 1948 — Government of Tamil Nadu (Gazette Extraordinary No. 217, 2 July 2024) · accessed 9 October 2026
4. 4.L.A. Bill No. 27 of 2018 — Tamil Nadu Shops and Establishments (Amendment) Act, 2018 — Government of Tamil Nadu (via PRS Legislative Research) · accessed 9 October 2026
5. 5.L.A. Bill No. 30 of 2021 — Shops and Establishments (Amendment) Amendment Act, 2021 — Government of Tamil Nadu (via PRS Legislative Research) · accessed 9 October 2026
6. 6.L.A. Bill No. 16 of 2023 — Shops and Establishments (Amendment) Amendment Act, 2023 — Government of Tamil Nadu (via PRS Legislative Research) · accessed 9 October 2026
7. 7.Registration manual and services timeline — Labour Department web portal — Labour Department, Government of Tamil Nadu · accessed 9 October 2026
8. 8.Tamil Nadu implements shops and establishments registration requirement for employers — Khaitan & Co (via Mondaq) · accessed 9 October 2026
9. 9.Tamil Nadu permits all shops and establishments to keep open on all 365 days for a further three years — TeamLease RegTech · accessed 9 October 2026