Tamil Nadu Proposes Online Self-Certification for IT Establishments under Shops and Establishments Rules

The Government of Tamil Nadu, through its Labour Welfare and Skill Development Department, has issued a draft amendment to the Tamil Nadu Shops and Establishments Rules, 1948, focusing on streamlining compliance for Information Technology (IT) and Information Technology Enabled Services (ITeS) establishments.

The draft is currently open for public comments and suggestions for a period of two months from the date of publication in the Tamil Nadu Government Gazette.

🔍 Key Highlights of the Draft Amendment

📌 1. Substitution of Rule 16-C: Online Combined Self-Certification

The proposed amendment seeks to substitute the existing Rule 16-C with a new provision that introduces an online self-certification mechanism. As per the draft:

  • All IT and ITeS employers are required to submit a Combined Self-Certification twice a year.
  • The self-certification must confirm that the employer has maintained all statutory registers, records, and notices under the Act.
  • Submission must be done online through the designated Labour Department portal.

Filing Schedule:

Half-Year Period EndingDue Date for Submission
30th JuneBefore 31st July
31st DecemberBefore 31st January (following year)

📌 2. Introduction of Revised Form-O

The amendment also substitutes the existing Form ‘O’ with a new format specifically tailored for IT/ITeS establishments. This form will be used to submit the online self-certification and will be applicable for each half-yearly reporting period.

🗣️ Public Participation Invited

In line with Section 49(3) of the Tamil Nadu Shops and Establishments Act, 1947, the government has invited objections and suggestions from stakeholders and the general public.

  • Feedback should be submitted in duplicate
  • Must be addressed to:
    The Secretary to Government, Labour Welfare and Skill Development Department,
    Secretariat, Chennai-600 009
  • Through:
    The Commissioner of Labour, Chennai-600 006

The government will consider all representations received before the expiry of the two-month period from the date of Gazette publication.

⚙️ Why This Amendment Matters

The move toward online compliance and self-certification is a significant step in:

  • Reducing paperwork and manual inspections for IT/ITeS companies
  • Promoting ease of doing business in Tamil Nadu’s growing tech ecosystem
  • Ensuring better compliance monitoring via digital tools

This amendment reflects the state’s intent to modernize labour governance, particularly in industries with structured work environments and better compliance track records.

What Employers Should Do

  • Review the proposed rule and new Form-O carefully
  • Prepare to comply with the revised half-yearly reporting schedule
  • Submit any objections or suggestions to the Government within the prescribed time

📌 Conclusion

The Draft Amendments to the Tamil Nadu Shops and Establishments Rules, 1948, mark a progressive shift towards simplified and digital labour compliance for IT and ITeS industries. By introducing a streamlined online self-certification system, the state government aims to strike a balance between regulatory oversight and ease of business.

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