Other BriefingsTamil Nadu Permits 24×7 Business Operations: What Employers Must Know
Tamil Nadu now permits shops and establishments with 10 or more employees to operate 24×7 for three years starting June 2025. The policy includes rules on working hours, employee leave, wage payments, safety provisions for women, and mandatory workplace facilities.
India’s southern state of Tamil Nadu now allows specific shops and establishments to operate 24 hours a day, seven days a week throughout the year. In an order released on May 8, 2025, the permission is valid for businesses for three years starting June 5, 2025, unless revoked earlier. The order was issued under Section 6 of the Tamil Nadu Shops and Establishments Act, 1947, which empowers the state to grant exemptions in the public interest.
The policy is aligned with the Model Shops and Establishments Bill, 2016, a central framework in India designed to improve ease of doing business. The policy gives businesses greater flexibility in operations and carries strict conditions to protect employee rights and welfare.
Tamil Nadu’s latest move builds on a similar notification issued by the state government in June 2022, which first allowed extended business hours under specific conditions. Both notifications reflect the state’s ongoing effort to modernize its labor regulations and support business growth while maintaining regulatory oversight.
Legal basis and exemptions granted to businesses
The relaxation has been granted under Section 6 of the Tamil Nadu Shops and Establishments Act, 1947, and exempts businesses from the following key provisions:
- Section 7(1): Restrictions on daily operating hours (Chapter II—Shops): Previously, shops were required to open and close only within hours fixed by the State Government. The provision also allowed a grace period of 15 minutes post-closing for serving existing customers. The 2025 notification waives this requirement, permitting continuous operations.
- Section 13(1): Mandatory weekly closure (Chapter III—Establishments other than shops): This section had mandated specific opening and closing hours for establishments, with similar grace for eateries serving customers past the fixed closing time. The exemption removes the requirement for a designated weekly closure.
This operational flexibility is in effect for a period of three years starting June 5, 2025, unless the state government decides to extend or withdraw it. To continue operating under this exemption, businesses must ensure strict adherence to the following compliance measures:
- Display of workforce records: Key employee-related documents—such as leave registers, weekly holiday schedules, and other statutory records—must be clearly displayed in a prominent location within the premises.
- Availability of Form S: Employers are also required to maintain Form S, as prescribed by the state government.
Form S records the employee details of a company. The Tamil Nadu Shops and Establishment Act mandates to maintain a record of the daily hours of work done by your employees.
ALSO READ: A Guide to Minimum Wage in India in 2025
Regulatory conditions for business operations in Tamil Nadu
Businesses operating under the 24×7 exemption must follow strict regulatory conditions to protect employee rights and ensure fair labor practices.
Under Tamil Nadu’s business operations guidelines, employees in the state can work up to eight hours per day and 48 hours per week under regular conditions. Any work beyond these limits is considered overtime, which must not exceed 10.5 hours per day or 57 hours per week. Employers who violate these limits may face penalties under the state’s Shops and Establishments Act and Rules.
Additionally, every employee is entitled to one weekly day off, which must be scheduled on a rotation basis. A business establishment must also have a daily list of employees on leave or holiday, which must be displayed in a visible area within the establishment.
All wages, including overtime payments, must be credited directly to the employees’ savings bank accounts. This ensures transparency, traceability, and compliance with wage protection norms. These operational conditions are mandatory and aim to balance commercial flexibility with labor welfare
Safeguards for women employees
The notification also includes specific provisions to ensure the safety and dignity of women employees, specifically for those working late hours.
Work hours limitations
Women employees are not allowed to work beyond 8:00 PM unless they have provided written consent to their employer. Even with consent, employers must take appropriate measures to safeguard their well-being during night shifts.
Safety and transport arrangements
Employers are required to arrange safe transport for women working between 8:00 PM and 6:00 AM. A notice indicating the availability of transport must be clearly displayed at the main entrance of the establishment.
Internal Complaints Committee (ICC)
All establishments that employ women must constitute an ICC in accordance with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. The committee must remain active and accessible to address any grievances related to workplace harassment.
These safeguards reflect Tamil Nadu’s focus on enabling gender-inclusive workplaces while upholding safety and legal compliance
Enforcement and legal consequences
To support smooth 24×7 operations, companies and employers are advised to ensure that basic facilities are available at the workplace. This includes providing restrooms, washrooms, safety lockers, and other essential amenities to maintain a safe and comfortable environment for all employees.
The notification also outlines clear compliance responsibilities. Employers who adopt extended working hours must follow both the conditions in the notification and the broader provisions under the Tamil Nadu Shops and Establishments Act, 1947, and its Rules. If any of these requirements are overlooked—such as failing to maintain leave records, pay wages on time, or comply with overtime limits—penalties may apply.
To help uphold these standards, labor inspectors are authorized to visit establishments and offer guidance or take appropriate action when necessary. These measures are designed not just to enforce rules but to ensure that workplaces remain respectful, fair, and supportive—especially as businesses expand to round-the-clock operations.
Key takeaway
As of July 9, 2025, Tamil Nadu and Karnataka are the only Indian states permitting 24×7 operations for shops and commercial establishments with 10 or more employees. These measures aim to boost economic activity and improve consumer access, especially in the retail and hospitality sectors. On September 27, 2024, Karnataka issued a directive, building on a 2021 policy, that allows eligible establishments to operate round-the-clock for three years, subject to specific conditions—particularly in support of the state’s growing IT and IT-enabled services industry.
(With inputs from Archana Rao.)
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