The Government of Tamil Nadu, vide Notification No. II(2)/LWSD/652(a)/2026 dated 24 August 2026, has granted an exemption to all establishments from the operation of Section 11(1) of the Tamil Nadu Shops and Establishments Act, 1947.
Accordingly, establishments covered under the Act are permitted to remain open on all 365 days of the year for a further period of three years with effect from 24 August 2026, unless the exemption is withdrawn earlier by the Government.
The exemption is, however, subject to strict compliance with the conditions prescribed in the notification.
Key Conditions
Every employee must be provided with one weekly holiday on a rotational basis. Employers are required to maintain appropriate records and prominently display the details of weekly holidays and leave arrangements applicable to employees.
Payment of wages, including overtime wages wherever applicable, must be made through the employees’ bank accounts in accordance with the prescribed requirements.
The normal working hours of an employee must not exceed:
8 hours in a day
48 hours in a week
Further, the total period of work, including overtime, must not exceed:
10.5 hours in a day
57 hours in a week
Employers must ensure that employees are not required or permitted to work beyond these statutory limits.
Special Conditions for Women Employees
Women employees should ordinarily not be required to work beyond 8:00 PM.
However, women may be employed between 8:00 PM and 6:00 AM subject to their written consent and compliance with the safety and welfare conditions prescribed by the Government.
Where women employees are engaged during night shifts, the employer must provide adequate safety arrangements, including appropriate transport facilities, necessary security measures and basic workplace amenities.
The establishment must also have a duly constituted and functional Internal Complaints Committee (ICC) in accordance with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
Compliance Impact
The notification provides greater operational flexibility to shops and commercial establishments in Tamil Nadu by allowing them to operate throughout the year. However, the exemption does not dilute the employer’s obligations relating to weekly rest, working hours, overtime, wage payments, employee welfare and women’s safety.
Any violation of the conditions attached to the exemption, or of the applicable provisions of the Tamil Nadu Shops and Establishments Act and other labour laws, may invite penal action against the employer or manager.
Employers availing themselves of the 365-day operating facility should therefore review their shift schedules, weekly-off rosters, overtime controls, wage-payment systems, women’s night-shift arrangements and POSH compliance to ensure continued adherence to the prescribed conditions.
Notification: II(2)/LWSD/652(a)/2026
Date: 24 August 2026
Effective period: Three years from 24 August 2026, unless revoked earlier