The Tamil Nadu Shops and Establishments Act

THE TAMILNADU SHOPS AND ESTABLISHMENTS ACT, 1947 
(ACT XXXVI OF 1947) 
[Received the assent of the Governor General on 2nd February, 1948, first 
published in the Fort St. George Gazette on the 10th February, 1948] 
 
An A ct to provide for the regulation of con ditions of work in shops, 
commercial establishments, restaurants, theatres and other establishments, and 
for certain other purposes.  
 
WHEREAS it is expedient to provide for the regulation of conditions of 
work in shops, commercial establishments and for c ertain other purposes; it is 
hereby enacted as follows:  
 
1. Short title, extent and commencement  
 
(1) This Act may be called the Tamil Nadu Shops and Establishments Act, 
1947  
 
(2) It extends to the whole of the 1[State] of Tamil Nadu.  
 
           2[(3) (a) It shall come into force in the following areas on such date as the 
State Government may, by notification, appoint: 
(i) the City of Madras, 
(ii) all the municipalities constituted under the Madras Dist rict 
Municipalities Act, 1920 (Madras Act V of 1920), and  
iii) all areas within  the jurisdiction of panchayats which, under rule 2  of 
Schedule III to the Madras Village Panchayats Act, 1950 (Madras Act X of 1950), 
should be de emed to be constituted under that A ct, and which immediately 
before the commencement of that Act ,were classified by th e State Government 
as major panchayats and all areas within the jurisdiction of panchayats 
constituted or reconstituted under th at Act which, for the time being, are 
classified by the State Government as Class I Panchayats under section 5 (1) (a) 
of that Act.]  
 
b) The 1[State] Government may, by notification, direct that all or any of 
the provisions of this Act shall come in to force in any other area on such date as 
may be specified in such notification.  
 
 
3[Extending the applicability of the Act to the whole State of Tamil Nadu- 
[G.O. Ms. No. 162, Labour and Employment (K2), dated 14th November 2018] 
No.II(2)/LE/980(a-1)/2018- In exercise of the powers conferred by clause (b) of sub -
section (3) of Section 1 of the  Tamil Nadu Shops and Establishments Act, 19 47 (Tamil 
Nadu XXXVI of 1947), the Governor of Tamil Nadu hereby directs that the said Act shall 
come into force on  14th November 2018  in all the areas in the 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.] 
 
 
1  Subs. for “Province” by the Adaptation Order of 1950  
2 Amended by Sch. To Act XI of 1952 (deemed to have come into force on the 1st April, 1951) 
3 Notified in Tamil Nadu Government Gazette Extraordinary No. 381, Pt. II, S.2, P.1, 14th 
November, 2018 
2 
 
CHAPTER-1  
PRELIMINARY 
2. Definitions- In this Act, unless there is anything repugnant in the subject or 
context-  
(1) ‘child´ means a person who has not completed fourteen years.  
 
(2) ’closed´ means not open for the service of any customer or open to 
any business connected with the establishment.  
 
 
(3) ‘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 inc ludes such other establishments as the State 
Government may by notification declare to be a commercial establishment for 
the purposes of this Act.  
 
(4) ‘day´ means the period of twenty-four hours beginning at midnight: 
 
Provided that in the case of a pers on employed, whose hours  of work 
extend beyond midnight, day means the period of twenty -four hours beginning 
from the time when such employment commences.  
 
(5) ‘employer´ means a person owning or having charge of , the business 
of an establishment and incl udes the manager, agent or other persons acting in 
the general management or control of an establishment;  
 
(6) ‘establishment´ means a shop. commercial establishment, restaurant, 
eating-house, residential hotel,  theatre or any place of public amusement or  
entertainment and includes such establishment as the 1[State] Government may 
by notification declare to be an establishment for the purposes of this Act;  
 
        2[(7) ‘factory´ means any premises which is a factory within the meaning 
of the Factories Act, 1948.]  
 
(8)  ‘inspector´ means an Inspector appointed under section 42;  
 
(9)  ‘notification’ means a notification in the Fort St. George Gazette;  
 
(10) ‘opened´ means opened for the service of any customer.  
 
(11) ‘periods of work´ means the time during which a person employed is 
at the disposal of the employer;  
 
 
 
 
1  Subs. for “Province” by the Adaptation Order of 1950  
2 Subs. by Act XIV of 1951, Sec 3(1) and Sch. II  
 
3 
 
(12) ‘person employed’ means— 
 
(i) In the case of a shop, a person wholly or p rincipally employed therein 
in connection with the business of the shop;  
 
(ii) In the case of a factory or an industrial undertaking, a member of the 
clerical staff employed in such a factory or undertaking;  
 
(iii) In the case of a commercial establishme nt other than a clerical  
department of a factory or an industrial undertaking, a person wholly or 
principally employed in connection with the business  of the establishment, and 
includes a peon;  
 
(iv) In the case of a restaurant or eating house, a person  wholly or 
principally employed in the preparation or the serving food or drink or in 
attendance on customers or in cleaning utensils used in the premises or as a 
clerk or cashier;  
 
(v) In the case of a theat re, a person employed as an operator, clerk, 
door-keeper, usher or in such capacity as may be specified by the 1[State] 
Government by general or special order;  
 
(vi) In the case of an establishment not falling under paragraphs (i) to (v) 
above, a person wholly or principally employed in connection with  the business 
of the establishment and includes a peon;  
 
(vii) In the case of all establishments, a person wholly or principally 
employed in cleaning any part of the premises;  
 
but does not include the husband, wife, son, daughter, father, mother, brothe r 
or sister of an employer who lives with and is dependent on such employer; 
 
(13) ‘prescribed´ means prescribed by rules made under this Act;  
 
(14) ‘residential hotel´ means any premises in which business is carried 
on bona fide for the supply of dwelling accommodation and meals on payment of 
a sum of money to a traveller or any member of the public or class of the public;  
 
(15) ‘restaurant´ or ‘eating house´ means any premises in which is 
carried on wholly or principally the business of the supply of re freshments or 
meals to the public or a class of the public for consumption on the premises but 
does not include a restaurant attached to a theatre.  
 
(16) ‘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 , eating-
house or commercial establishment; 
  
 
1  Subs. for “Provincial” by the Adaptation Order of 1950 
4 
 
(17) ‘theatre´ includes any place intended principally or wholly for the 
representation of moving pictures or for dramatic performances; 
 
(18) ‘wage s´ means any remuneration, capable of being expressed in 
terms of money, wh ich would if the terms of the contract of employment, 
express or impl ied, were fulfilled,  be payable, whether conditionally upon the 
regular attendance, good work or conduct or other behavio ur of the person 
employed, or otherwise, to a person employed in r espect of his employment or 
of work done in such employment, and includes any bonus or other additional 
remuneration of the nature aforesaid which would be so payable and any sum 
payable to such person by reason of the termination of his emplo yment, but 
does not include— 
(a) the value of any house-accommodation, supply of light, water, medical 
attendance or other amenity or of any service excluded by general or special 
order of the 1[State] Government ; 
 
(b) a ny contribution paid by the employer to any  pension fund or 
provident fund; 
 
(c) any travelling allowance or the value of any travelling concession; 
 
d) a ny sum paid to the person employed to defray special expenses 
entailed on him by the nature of his employment; or 
 
e) any gratuity payable on discharge;  
 
(19) ‘week´ means a period of seven days beginning at midnight on 
Saturday;  
 
(20) ‘y oung person´ means a person who is not a child and ha s not 
completed seventeen years.  
 
3. References to time of day -- References to time of day in this A ct are 
references to India n Standard T ime which is five and a  half hours ahead of 
Greenwich Mean Time.  
 
4. Exemption: (1) Nothing contained in this Act shall apply to— 
  
(a) persons employed in any establishment in a position of management; 
 
(b) persons whose work in volves travel ling: and persons employed as 
canvassers and caretakers;  
 
(c) establishments under the Central and 1[State] Governments, local 
authorities, the Reserve Bank of India, 2[a railway administration operating any 
railway as defined in clause (20) of article 366 of the Constitution] and 
cantonment authorities;  
 
1  Subs. for “Provincial” by the Adaptation Order of 1950  
2 These words, brackets and figures were substituted by the Adaptation (Amendment) Order, 
1950, for the words “a railway administration operating a Federal Railway” 
5 
 
(d) establishments in mines and oil fields;  
 
(e) establishments in bazaars in places where fairs or festivals are held 
temporarily for a period not exceeding fifteen days at a time; 
  
(f) e stablishments which, not being f actories within the meaning of the 
Factories Act, 1948, are in respect of matters dealt with in this Act, governed by 
a separate law for the time being in force in the 1[State].  
 
(2) Nothing contained in section 7 or section 13, as the case may be, shall 
apply to— 
 
(a) hospitals and other institutions for the treatm ent or care of the sick, 
the infirm, the destitute or the mentally unfit; 
 
(b) such chemists’ or druggists’ shops as the 1[State] Government may, 
by general or special order, specify;  
 
(c) clubs and residential hotels, hostels attached to schools or colleges, 
and establishments maintained in boarding schools in connection with the 
boarding and lodging of pupils and residents masters; 
 
(d) stalls and refreshment rooms at railway stations, docks, wharves or 
ports. 
 
5. Power of Government to apply Act to exempted persons or 
establishments-- Notwithstanding anything contained in section 4, the 1[State] 
Government may, by notification apply all or any of the provisions of this Act to 
any class of pers ons or establishment s mentioned in that section, other than 
those mentioned in clause s (c) and (f) of sub -section (1), and modify or cancel 
any such notification. 
  
6. Exemptions-- The 1[State] Government may, by notification, exempt either 
permanently or for any specifie d period, any estab lishment or class of 
establishments,  or person or class of persons, from all or any of the provisions 
of this Act, subject to such conditions as the 1[State] Government deem fit.  
 
CHAPTER II 
SHOPS 
 
7. Opening and closin g hours of shops -- (1) Save as provided by or under 
any other enactment for the time being in force, no shop shall on any da y be 
opened earlier or closed later than suc h hours as may be fixed by the 1[State] 
Government, by a general or special order in that behalf:  
 
Provided that any customer who was being served or was waiting to be 
served in any shop at the hour fixed for its closing may be served during the 
quarter of an hour immediately following such hour. 
  
 
1  Subs. for “Provincial” by the Adaptation Order of 1950 
6 
 
 
(2) Before passing an order under sub -section (1), the 1[State] 
Government shall hold an inquiry in the prescribed manner.  
 
(3) The 1[State] Government may, for the purpose s of this section, fix different 
hours for different shops or different classes of shops or for different areas or for 
different times of the year. 
 
8. Selling outside shops prohibited after closing hour -- Save as provided 
by or under any other enactment for the time being in force, no person shall 
carry on, in or adjace nt 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.  
 
9. Daily and weekly hours of work in shops -- (1) Subject to the provision s 
of this Act, no person employed in any shop shall be required or allowed to work 
therein for more than eight hours in any day and forty eight hours in any week:  
 
Provided that any such person may be allowed to work in such shop 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 hours in any week: 
 
(2) No person employed in any shop shall be required or allowed to work 
therein for more than four hours in any day unless he has had an interval for 
rest of at least one hour.  
 
10. Spread over of periods of work -- 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.  
 
11. Closing of shops and grant of holidays -- (1) Every shop shall remain 
entirely close d on one day of the week which day shall be specified by the 
shopkeeper in a notice permanently exhibited in a conspicuous place in the 
shop; and the day so specified shall not be altered by the shopkeeper more 
often than once in three months.  
 
(2) Every person employed in a shop shall be allowed in each week a 
holiday of one whole day: 
 
 Provided that nothing in this sub-section shall apply to any person whose 
total period of employment in the week, including any  days spent on authorized 
leave, is less than six days, or entitle a person who has been allowed a whole 
holiday on the day on which the shop has remained closed in pursuance of sub -
section (1), to an additional holiday  
 
 
 
1  Subs. for “Provincial” by the Adaptation Order of 1950 
7 
 
(3) (a) The 1[State] Government may, by notification, require in respect 
of shops or any specified class of shops, that they shall, in addition to the day 
provided for by sub -section(1), be closed at such hour in the aft ernoon of one 
week-day in every week at su ch hour as may be fixed by the 1[State] 
Government.  
 
(b) Every person employed in any shop to which a notification under 
clause (a) applies, shall be allowed in each week an additional holiday of one half 
day commencing at the hour in the afternoon fixed for the closing of the shop 
under clause (a).  
 
(4) The 1[State] Government may, for the purpose of sub -section (3), fix 
different hours for different shops or different classes of shops or for different 
areas or for different times of the year.  
 
(5) The weekly day on which a shop is closed in pursuance of requirement 
under sub -section (3) 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) No deduction shall be made from the wage s of any person employed 
in a shop on account of any day or part of a day on which it has remained closed 
or a holiday has been allowed in accordance with this section; and if such person 
is employed on the basis that he would not ordinarily receive wages for such day 
or part of a day, he shall nonetheless be paid for such day or part of a day the 
wages he would have drawn, had the shop not remained closed, or had the 
holiday not been allowed, on that day or part of a day.  
 
CHAPTER III 
ESTABLISHMENTS OTHER THAN SHOPS 
 
12. Application of this chapter to establishments other than shops-- The 
provisions of this Chapter shall apply only to establishments other than shops.  
 
13. Opening and closing hours-- (1) Save as provided by or under any other 
enactment for the time being in force ,no establishment shall  on any day be 
opened earlier or closed later than such hour as may be fixed by the 1[State] 
Government, by general or special order in that behalf:  
 
Provided that in the case of a restaurant or eating house, any customer 
who was being served or was waiting to be served therein at the hour fixed for 
the closing may be served during the quarter of an hour immediat ely following 
such hour.  
(2) Before passing an order under sub - section (1), the 1[State] 
Government shall make an inquiry in the prescribed manner. 
  
(3) The 1[State] Government may, for the purposes of this section, fix 
different hours for different establishments or different classes of establishments 
or for different areas or for different times of the year. 
 
1  Subs. for “Provincial” by the Adaptation Order of 1950 
8 
 
14. Daily and weekly hours of work -- (1) Subject to the provisions of this 
Act, no pers on employed in any establishment shall be required or allowed to 
work for more than eight hours in any day and forty- eight hours in any week:  
 
 Provided that any such person may be allowed to work in such 
establishment for any period in excess of the lim it 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 
hours in any week.   
 
(2) No person employed in any establishment shall be required or allowed 
to work in such establishment for more than four hours in any day unless he has 
had an interval for rest of at least one hour.  
 
15. Spread over of periods of work -- The periods of work of a person 
employed in an establishment s hall be so arranged that along with his intervals 
for rest, they shall not spread over more than twelve hours in any day.  
 
16. Holidays-- (1) Every person employed in an establishment shall be allowed 
in each week a holiday of one whole day:  
 
Provided that nothing in this sub -section shall apply to any person whose 
total period of employment in the week, including any days spent on authorized 
leave, is less than six days.  
 
(2) The 1[State] Government may, by notification, require in respect of 
any establishment or any specified class of establishments, that every person 
employed 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 1[State] 
Government.  
 
(3) The 1[State] Government may, for the purposes of sub-section (2), fix 
different hours for different establishments or different classes of establishments 
or for different areas or for different times of the year.  
 
(4) No deduction shall be made from the wages of any person employed 
in an establishment on account of any day or part of a day on which a holiday 
has been allowed in accordance with this section; and if such person is employed 
on the basis that he would not ordinarily receive wages for such day  or part of a 
day, he shall non etheless be paid for such day or part of a day the wages he 
would have drawn, had the holiday not been allowed on that day or part of a 
day.  
 
 
 
 
 
 
 
1  Subs. for “Provincial” by the Adaptation Order of 1950 
 
9 
 
 
CHAPTER IV 
 
EMPLOYMENT OF CHILDREN AND YOUNG PERSONS 
 
17. Children not to work in establishments -- No child shall be required or 
allowed to work in any establishment.  
 
18. Young persons to work  only between 6 a.m. and 7 p.m. -- No young 
person shall be required to work in any establis hment before 6a.m. and after      
7 p.m.  
 
19. Daily and weekly hours of work for young persons -- Notwithstanding 
anything contained in this Act, no young person shall be required or allowed to 
work in any establishment for more than seven hours in any day  and forty- two 
hours in any week nor shall such person be allowed to work overtime.  
 
 
 
CHAPTER V 
 
HEALTH AND SAFETY 
 
20. Cleanliness-- 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, colo ur washing, painting, varni shing, 
disinfecting and deodorising.  
 
21. Ventilation -- The premises of every establishment shall be ventilated in 
accordance with such standards and by such methods as may be prescribed.  
 
22. Lighting-- (1) The premises of every establishment shall be sufficiently 
lighted during all working hours.  
 
(2) If it appears to an Inspector that the pr emises of any establishment 
within his jurisdiction is not sufficiently lighted or ventilated, he may serve on 
the employer an order in writing specifying the measures which, in his opinion, 
should be adopted and requiring them to be carried out before a specified date.  
 
23. Precautions against fire -- In every establishment, such precautions 
against fire shall be taken as may be prescribed.  
 
24. Appeal-- Against any order of the Inspector under this Chapter, an appeal 
shall lie to such authority and withi n such time as may be prescribed; and the 
decision of the appellate authority shall be final.  
 
 
 
 
 
10 
 
 
CHAPTER VI 
HOLIDAYS WITH WAGES 
 
25. Holidays and sick leave -- (1) 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:  
Provided that such holidays with wages may be accumulated up to a 
maximum of 1[forty- five days].  
 
Explanation— For the purposes of this sub -section any continuous period 
of service preceding the date on which this Act applies to any establishment shall 
also count, subject to a maximum period of twelve months. 
 
(2) Every person employed in any establishment shall also be entitled 
during his first twelve months of continuous service after the commencement of 
this Act, and during every subsequen t twelve months of such service, (a) to 
leave with wages for a period not exceeding 12 days, on the ground of any 
sickness incurred or accident sustained by him an d (b) to casual leave with 
wages for a period not exceeding 12 days on any reasonable ground.  
 
(3) If a person entitled to any holidays under sub-section (1) is discharged 
by his employer before he has been allowed the holidays, or if having applied for 
and been refused the holidays, he quits his employment before he has been 
allowed the holidays, the employer shall pay him the amount payable, under this 
Act in respect of the holidays.  
 
(4) If a person entitled to any leave under sub - section (2) is disch arged 
by his employer when he is sick or  suffering from the result of an accident, the 
employer shall pay him the amount payable under this Act in respect of the 
period of the leave to which he was entitled at the time of his discharge, in 
addition to the amount, if any payable to him under sub-section (3).  
 
(5) A person employed shall be deemed to have completed a period of 
twelve months ’ continuous service within the meaning of this section, not 
withstanding any interruption in service during those twelv e months brought 
about (i) by  sickness, accident, or authoris ed leave (including authorised 
holidays) not exceeding ninety days in the aggregate for all three; or  (ii) by a 
lock-out; (iii) by a strike which is not an illegal strike ; or  (iv) by intermittent  
periods of involuntary unemployment not exceeding thirty days in the aggregate 
and authorized leave shall be deemed not to include any weekly holiday or half-
holiday allowed under this A ct which occurs at the beginning or end of an 
interruption brought about by the leave.  
 
 
 
 
Subs. vide G.O. Ms. No. 162, Labour and Employment (K2), dated 14th November, 2018  
 
11 
 
(6) A person employed in a hostel attached to a school or college or in an 
establishment maintained in a boarding school in connection with the boar ding 
and lodging of pupils and resident masters shall be allowed the privileges 
referred to in sub - sections (1) to (5), reduced however proportionately to the 
period for which he was employed continuously in the previous year or to the 
period for which he  will be employed continuously in the current year, as the 
case may be; and all references to periods of holidays or of leave in sub-sections 
(1) and (2) shall be construed accordingly, fractions of less than one day being 
disregarded. 
 
(7) The 1[State] Government shall have power to issue directions as to 
the manner in which the provisions of sub-section (6) shall be carried into effect 
in all or any class of cases or in any particular case.  
 
26. Pay during annual holidays -- Every person employed shall, f or 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.  
 
27. Power to increase the number of holidays -- Notwithstanding anything 
contained in Section 25, the 1[State] Government may, by notification, increase 
the total number of annual holidays and the maximum number of days up to 
which such holidays may be accumulated in respect of any establishment or 
class of establishments.  
 
28. Power of Inspector to act for person employed -- Any Inspector may 
institute proceedings on behalf of any person employed to recover any sum 
required to be paid under this Chapter by an employer which he has not paid.  
 
CHAPTER VII 
WAGES 
 
29. Responsibility for payment of wages -- Every employer shall be 
responsible for the payment to persons employed by him of all wages and sums 
required to be paid under this act.  
 
30. Fixation of wage period -- 1) Every employer shall fix periods (in this Act 
referred to as wage periods) in respect of which such wages shall be payable.  
 
2) No wage period shall exceed one month. 
 
31. Wages for overtime work -- Where any person employed in any 
establishment is required to work overtime, he shall be entitled, in respect of 
such overtime work, to wages at twice the ordinary rate of wages.  
 
 Explanation—For the purpose of this section, the expression “ordinary rate 
of wages” shall mean such rate of wages as may be calculated in the manner 
prescribed. 
 
1  Subs. for “Provincial” by the Adaptation Order of 1950 
12 
 
32. Time of payment of wages -- 1) The wages of every person employed 
shall be paid before the expiry of the fifth day after th e last day of the wage 
period in respect of which the wages are payable.   
 
2) Where the employment of any person is terminated by or on behalf of 
the employer, the wages earned by such person shall be paid before the expiry 
of the second working day from the day on which his employment is terminated. 
 
3) The 1[State] Government may, by general or special order, exempt an 
employer from the operation of this section in respect of the wages of any 
person employed or class of persons employed, to such extent a nd subject to 
such conditions as may be specified in the order. 
 
4) All payments of wages shall be made on a working day. 
 
33. Wages to be paid in current coin or currency notes-- All wages shall be 
paid in current coin or currency notes or in both. 
 
34. Deductions which may be made from wages-- 1) The wages of a person 
employed shall be paid to him without deductions o f any kind except those 
authorised by or under this Act.  
Explanation—Every payment made by a person employed to the employer 
shall, for the purpose of this Act, be deemed to be a deduction from wages.  
 
2) Deduction from the wages of a person employed shall be made only in 
accordance with the provisions of this Act, and may be of the following kinds 
only, namely:    
(a) fines; 
 
(b) deductions for absence from duty;  
 
(c) deductions for damage to, or loss of, goods expressly entrusted to the 
employed person for custody, or for  loss of money for which he is required to 
account, where such damage or loss is directly attributable to his negl ect or  
default;  
 
(d) deductions for house accommodation supplied by the employer;  
 
(e) deductions for such amenities and services supplied by the employer 
as the 1[State] Government may, by general or special order, authorise;  
 
(f) deductions for recovery of advances or for adju stment of 
overpayments of wages;  
 
(g) deductions of income-tax payable by the employed person;  
 
(h) deductions required to be made by order of a C ourt or other authority 
competent to make such order;  
 
1  Subs. for “Provincial” by the Adaptation Order of 1950 
13 
 
(i) deductions for subscription to, and for repayment of  advances from, 
any provident fund to which the Provident Funds A ct, 1952 applies or any 
recognized provident fund as defined in section 58A of the Indian Income Tax 
Act 1922 , or any provident fund approved in this behalf by the 1[State] 
Government during the continuance of such approval;  
 
(j) deductions for payments to co -operative societies approved in this 
behalf by the 1[State] Government or to a scheme of insurance maint ained by 
the Indian P ost Office or by any insurance company approved in this behalf by 
the 1[State] Government;  
 
(k) deductions made with the written authorisation of the employed 
person in furtherance of any savings scheme approved by the 1[State] 
Government for the  purchase of securities of the Central or 1[State] 
Government.   
 
35. Fines—(1) No fine shall be imposed on any person employed save in 
respect of such acts and omission s on his part as the employer, with the 
previous approval of the 1[State] Government or of the prescribed authority, 
may have specified by notice under sub-section (2).  
 
(2) A notice specifying such act s and omissions shall be exhibited in the 
prescribed manner on the premises in which the employment is carried on.  
 
(3) No fine  shall be imposed on any person employed until he has been 
given an opportunity of showing cause against the fine, or otherwise than in 
accordance with such procedure as may be prescribed for the imposition of fines.  
 
(4) The total amount of fine which ma y 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.  
 
(5) No fine shall be imposed on any person employed who has not 
completed fifteenth year.   
 
(6) No fine imposed on any person employed shall be recovered from him  
after the expiry of sixty days from the day on which it was imposed.  
 
(7) Every fine shall be deemed to have been imposed on the day of the 
act or omission in respect of which it was imposed.  
 
(8) All fines and realizations thereof shall be recorded in a register to be 
kept by the employer in such form as may be prescribed; and all such realization 
shall be applied only to such purposes beneficial to the persons emp loyed in the 
establishment as are approved by the prescribed authority.  
 Explanation—When the persons employed are part only of a staff 
employed under the same management, all such realizations may be credited to 
a common fund maintained for the staff as a whole, provided that the fund shall 
be applied only to such purposes as are approved by the prescribed authority. 
 
1  Subs. for “Provincial” by the Adaptation Order of 1950 
14 
 
 
36. Deductions for absence from duty —(1) Deductions may be under clause 
(b) of s ub-section (2) of section 34 only on account of the absence of an 
employed person from the place or places where, by the terms of his 
employment, he is required to work, such absence being for the whole or any 
part of the period during which he is so required to work.  
 
(2) The amount of such deduction shall in no case bear to the wages 
payable to the employed person in respect of the wage period for which the 
deduction is made, a larger proportion than the period for which he was absent 
bears to the total period, within such wage period during which by the terms of  
his employment, he was required to work:  
  
Provided that, subject to any r ules made in this behalf by the 1[State] 
Government, if ten or more employed persons acting in concert absent 
themselves without due notice (that is to say, without giving the notice which is 
required under the terms of their contract of employment) and without 
reasonable cause such deduction from any such person may include such 
amount not exceeding his wages for eight days as may by any such terms be 
due to the employer in lieu of due notice.  
 
 Explanation—For the purposes of this section, an employed person shall 
be deemed to be absent from the place where he is required to work, if , 
although present in such place, he refuses, in pursuance of a stay-in-strike or for 
any other cause which is not reasonable in the circumstances, to carry out his 
work. 
 
37. Deductions for damage or loss – (1) A deduction under clause (c) of sub- 
section (2) of section 34 shall not exceed the  amount of the damage or loss 
caused to the employer by the neglect or default of the person employed and 
shall not be made until the person employed has been given an opportunity of 
showing cause against the deduction, or otherwise than in accordance with  such 
procedure as may be prescribed for the making of such deductions.   
 
(2) All such deductions and all realizations there of shall be recorded in a 
register to be kept by the employer in such form as may be prescribed.   
 
38. Deductions for services re ndered— A deduction under clause (d) or 
clause (e) of sub section (2) of section 34 shall not be made from the wages of a 
person employed unless the house accommodation, amenity or service has been 
accepted by him, as a term of employment or otherwise, and  such deduction 
shall not exceed an amount equivalent to the value of the house 
accommodation, amenity or service supplied and in the case of deduction under 
the said clause (e) shall be subject to such condition s as the 1[State] 
Government may impose.  
 
 
1  Subs. for “Provincial” by the Adaptation Order of 1950 
 
 
15 
 
39. Deductions for recovery of advances  -- Deductions under clause (f) of 
subsection (2) of section 34 shall be subject to the following conditions , 
namely:-  
(a) recovery of an advance of money g iven before employment began 
shall be made from the first payment of wages in respect of a complete wage 
period, but no recovery shall be made of such advances given for trave lling 
expenses; 
 
b) recovery of advances of wages not already earned shall be sub ject to 
any rules made by the 1[State] Government regulating the extent to which such 
advances maybe given and the instalments by which they may be recovered. 
 
40. Deductions for payments to co -operative societies and  insurance 
schemes -- Deductions under clauses (j) and (k) of sub-section (2) of section 
34 shall be subject to such conditions as the 1[State] Government may impose.  
 
 
41. Notice of dismissal—(1) No employer shall dispense with the services of a 
person employed continuously for a period of no t less than six months, except 
for a reasonable cause and without giving such person at least one months 
notice or wages in lieu of such notice,  provided however, that such notice shall 
not be necessary where the services of such person are dispensed with on a 
charge of misconduct supported by satisfactory evidence recorded at an enquiry 
held for the purpose.  
 
(2) The person employed shall have a right to appeal to such authority 
and within such time as may be prescribed either on the ground that there was  
no reasonable cause for dispensing with  his services or on the ground that he 
had not been guilty of misconduct as held by the employer. 
 
     
     2[(2-A) The appellate authority may, if it considers that any document or the 
testimony of any person is re levant or necessary for the discharge of its duties 
under this Act as appellate authority, call for and inspect such document or 
summon and examine such person.  For the aforesaid purposes, it shall have the 
same powers as are vested in a civil court while  trying a suit under the Code of 
Civil Procedure, 1908 (Central Act V of 1908), in respect of the following 
matters, namely:- 
 
(i) summoning and enforcing the attendance of any person and 
examining him on oath; 
(ii) compelling the production of documents; 
(iii) issuing commissions for the examination of witnesses 
 
 
 
 
 
1  Subs. for “Provincial” by the Adaptation Order of 1950 
2 Ins. by Tamil Nadu Act 9 of 2017, S.2 (with effect from 01.04.2017) 
 
16 
 
(2-B) The appellate authority, may, after giving notice in the prescribed 
manner to the employer and the person employed, dismiss the appeal or direct 
the reinstatement of the person employed, with or without wages for the period 
he was kept out of employment or direct payment of compensation without 
reinstatement or grant such othe r relief as it deems fit in the circumstances of 
the case.] 
 
3) The decision of the appellate authority shall be final and binding on 
both the employer and the person employed.  
 
 
 
1[41.A. Payment of full wages to person employed pending  proceedings 
in Higher Courts -- Where in any case, the appellate au thority, by its decision 
under S ection 41, 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:  
 
Provided that where it is proved to the satisfaction of the High Court or 
the Supreme Court that such person  employed had been employed and had 
been receiving adequate remuneration during any such period or part thereof, 
the Court shall order that no wages shall be payable under this section for such 
period or part, as the case may be.]  
 
 
CHAPTER VIII 
APPOINTMENT, POWERS AND DUTIES OF INSPECTORS 
 
42. Appointment of Inspectors -- The 2[State] Government may, by 
notification, appoint such officers of the 2[State] Government or of any local 
authority as they think fit to be Inspectors for the purposes of this Act, w ithin 
such local limits as the 2[State] Government may assign to them.  
 
43. Powers and duties of Inspectors -- Any inspector may at all reasonable 
hours enter into any premises, which is, or which he has reason to believe is, an 
establishment, with such assistants and make such examination of the premises 
and of the prescribed registers, records or notices as may be prescribed.  
 
44. Inspectors to be public servants  -- Every Inspector shall be deemed to 
be a public servant within the meaning of Section 21of the Indian Penal Code.  
 
 
 
1 Ins. By Tamil Nadu Act 44 of 2008, S.2 (with effect from 19th June, 2008) 
2 Subs. for “Provincial” by the Adaptation Order of 1950 
 
17 
 
CHAPTER IX 
PENALTIES FOR OFFENCES 
 
45. Penalties – 1[Whoever contravenes any of the provisions  of Section 7 to 
11, 13 to23, 25, 26, 29 to 41 and 47 shall be punishable for a first offence, with 
fine which may extend to five thousand rupees and for a second or subsequent 
offence, with fine which may extend to ten thousand rupees.] 
 
 
2[45A. Penalty for failure to comply with the provisions of section 41-A-- 
Any employer who fails to comply with the provisions of Section 41 -A shall be 
punishable with imprisonment for a term which may extend to six months, or 
with fine, or with both and where such failu re is a continuing one, with a further 
fine which may extend to two hundred rupees for every day during which such 
failure continues after the conviction for the first and the cou rt trying the 
offence, if it fines the offender, may direct that the whol e or any part of the fine 
realised from him shall be paid, by way of compensation, to any person who, in 
its opinion has been injured by such failure.] 
  
46. Penalty for obstructing Inspector , etc. -- Any person who wil fully 
obstructs an Inspector in the exerci se of any power conferred on him under this 
Act or any person lawfully assisting an Inspector in the exercise of such power, 
or who fails to comply with any lawful direction made by an Inspector, shall be 
punishable with fine which may extend to two hundred and fifty rupees.  
 
3[46-A. Compounding of Offences – (1) Any offence punishable under section 
45 or any rule made under section49 may, either before or after the institution 
of the prosecution, be compounded by the Commissioner of Labour or such other 
officer as may be authoris ed in this behalf by the Commissioner of Labour, on 
payment, for credit to the State Government, of such sum as the Commissioner 
of Labour or such other officer may specify:  
Provided that such sum shall not, in any case, exceed th e maximum 
amount of the fine which may be imposed under this Act for the offence so 
compounded. 
 
(2) Nothing contained in sub -section (1) shall apply to a person who 
commits the same or similar offence within a period of three years from the date 
on which the first offence, committed by him, was compounded. 
 
Explanation—For the purpose of this sub -section, any second or 
subsequent offence committed after the expiry of a period of three years from 
the date on which the offence was previously compounded, shal l be deemed to 
be a first offence. 
 
 
 
 
1 Subs. by Tamil Nadu Act 9 of 2017, S.2 (with effect from 01.04.2017) 
2 Ins. By Tamil Nadu Act 44 of 2008, S.3 (with effect from 19th June, 2008) 
3 Ins. By Tamil Nadu Act 18 of 1999, S.2 (with effect from 10th August, 1999) 
 
18 
 
(3) Where an offence has been compounded under sub -section (1), no 
proceeding or further proceeding, as the case may be, shall be taken against the 
offender, in respect of the offence so compounded and the offender, if in 
custody, shall be discharged forthwith. 
 
(4) No offence punishable under this Act shall be compounded except as 
provided by this section.]   
 
CHAPTER X 
MISCELLANEOUS 
 
47. Maintenance of registers and records and display of notices-- Subject 
to the ge neral or special orders of the 1[State] Government, an employer shall 
maintain such register and records and display such notices as may be 
prescribed.  
 
48. Delegation of powers—(1) The 1[State] Government may, by notification, 
authorize any officer or authority subordinate to them, to  exercise any one or 
more of the powers vested in them by or under this Act, except the power 
mentioned in section 49, subject to such restrictions and conditions, if any, as 
may be specified in the notification. 
 
(2) The exercise of the powers delegated u nder sub-section (1) shall be 
subject to control and revision by the 1[State] Government or by such persons 
as may be  empowered by them in that behalf. The 1[State] Government shall 
also have power to control and revise the acts or proceedings of any perso n so 
empowered. 
 
49. Power to make rules  – (1) The 1[State] Government may make rules to 
carry out the purposes of this Act.  
 
(2) In making a rule under sub-section (1), the 1[State] Government may 
provide that a contravention thereof shall be punishable with fine which may 
extend to fifty rupees. 
 
(3) The power to make rules conferred by this section shall be subject to 
the condition of the rules being made after previous publication.  
 
4) All rules made under this section shall be published in the Fort S t. 
George Gazette and on such publication shall have effect as if enacted in this 
Act. 
 
50. Rights and privileges under other law, etc., not affected  -- Nothing 
contained in this Act shall affect any rights or privileges which any person 
employed

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