Tamil Nadu Shops and Establishments (Amendment) Act, 2025

Key provisions of the amendment include:

Penalties for Contravention

• For first-time contraventions of sections 3, 7-11, 13-23, 25, 26, 29-41, 47, 47-A, and 50-A, a penalty up to INR 5,000 may be imposed.
• For a second or subsequent contravention (defined as the same or similar contravention within three years of the first), the penalty may extend to INR 10,000.
• Employers failing to comply with section 41-A may face a penalty up to INR 50,000. For continuing failures, an additional penalty of up to INR 200 per day may be levied, with a total aggregate penalty not exceeding INR 1 lakh. The adjudicating officer can direct that all or part of this penalty be paid as compensation to the aggrieved employee.
• Any person who willfully obstructs an Inspector or their assistant, or fails to comply with an Inspector's lawful direction, is liable for a penalty up to INR 5,000.

Compounding of Contraventions

• Contraventions under section 45 or related rules can be compounded by an officer authorized by the Commissioner of Labour, either before or after adjudication proceedings but prior to penalty imposition. The compounding amount cannot exceed the maximum penalty for that contravention.
• Once a contravention is compounded, no further proceedings will be initiated or continued for that specific contravention.

Adjudicating Officer

• The State Government will appoint adjudicating officers, not below the rank of Joint Commissioner of Labour, to conduct inquiries and impose penalties. Multiple officers may be appointed.
• The adjudicating officer can summon individuals and documents relevant to an inquiry. Penalties can be imposed if a person is found to have failed in compliance, but a reasonable opportunity of being heard must be provided.

Appeal

• Appeals against an adjudicating officer's order can be made to an Appellate Authority (an officer not below the rank of Additional Commissioner of Labour) within sixty days of receiving the order.
• Appeals may be admitted after sixty days if sufficient cause for delay is shown.
• The Appellate Authority must provide a hearing opportunity to all parties and dispose of the appeal within sixty days from its filing.

Recovery of Penalty Penalties not deposited as prescribed will be recovered as an arrear of land revenue. Finally, section 49 of the principal Act is amended to replace the term "fine" with "penalty" in sub-section (2).