Tamil Nadu Issues Draft Amendment Introducing Annual Return Mandate under the Tamil Nadu Shops and Establishments Rules, 1948

The Labour Welfare and Skill Development Department through its notification on March 12, 2025, issued a draft notification proposing a key amendment to the Tamil Nadu Shops and Establishments Rules, 1948. The amendment introduces a new compliance requirement for employers operating under the Act, furthering digitization and streamlining of labour law reporting processes within the State.

Key Provisions of the Draft Amendment:

• Insertion of Rule 16-D – Annual Return Requirement
   – A new rule, Rule 16-D, is proposed to be inserted, mandating every employer of an establishment to furnish a combined annual return under Section 47-A. This return must be submitted electronically through the designated web portal of the Labour Department using Form-ZC, no later than January 31 of the succeeding year.
• Addition of Form-ZC, corresponding to Rule 16-D, a new Form-ZC titled “Combined Annual Return for the Year Ending 31st December 20…” will be introduced to capture establishment-level employment data in a consolidated format.

Stakeholder Participation:

The Government has opened the draft amendment for public comments and objections. Stakeholders may submit their suggestions in writing by May 12, 2025, addressed to the Secretary to Government, Labour Welfare and Skill Development Department, Secretariat, Chennai – 600 009, routed through the Commissioner of Labour, Chennai – 600 006.

This initiative reflects Tamil Nadu’s continued efforts to modernize labour compliance and enhance administrative efficiency. Employers operating in the State are advised to review internal compliance mechanisms and prepare for the transition to the new annual return regime upon formal notification.