Government of Telangana exempts all Shops & Establishments employing upto 10 employees from the applicability of the Shops Act
Telangana • Shops & Establishments
Telangana Exempts Shops & Establishments up to 10 Employees from the Shops Act
In a move to ease doing business, the Government of Telangana has notified exemptions under
the Telangana Shops & Establishments Act, 1988 for units employing up to 10 employees,
while retaining key worker-protection provisions.
Effective: From the date of publication in the Telangana Gazette (Notification under Section 73(4) issued on 23 September 2025).
Scope: All Shops & Establishments with ≤ 10 employees exempted from most provisions, except the specified sections listed below.
Policy Context & Rationale
Aligning with the Government of India’s deregulation and compliance-reduction agenda, Telangana has revisited threshold limits under the Shops Act to encourage MSMEs, reduce administrative burden, and drive formalisation.
This reform is part of the State’s broader EoDB push and priority-area reforms for small enterprises.
Provisions Still Applicable (Key Sections)
- Sec 3–6: Registration, renewal, revocation/suspension & appeal
- Sec 9, 11–12: Daily/weekly hours, spread-over, closing & holidays (shops)
- Sec 16–19: Hours, intervals, spread-over & holidays (estab.)
- Sec 24: Maternity Leave
- Sec 30–31: Leave & other holidays
- Sec 37–38: Overtime wages; time of wage payment
- Sec 47–49: Termination conditions, appeals, transfer of establishment
- Sec 50–56: Wage claims, appeals, attachment, powers & fees
Note: The above list is a précis of the sections cited in the notification for continued applicability.
Related Telangana Labour Updates
- June/July 2025: Commercial establishments (excluding shops) permitted 10-hour workday with weekly cap of 48 hours; rest interval ≥ 30 minutes after ≤ 6 hours; daily spread-over ≤ 12 hours; OT beyond 48 hours/week at prescribed rates; quarterly OT cap 144 hours.
- May 30, 2024: Exemptions for IT/ITES establishments extended for four years from certain provisions of the Act.
Parallel Reforms in Other States (Example: Maharashtra)
- Cabinet cleared higher unit-size thresholds (e.g., 20+ employees) for applicability in select laws; social-security laws (Minimum Wages, Maternity Benefit, etc.) continue to apply to smaller units.
- Recent circular clarifies shops can operate 24×7 under the 2017 Act, with worker-welfare safeguards.
Why This Matters for MSMEs & Startups
Lower Compliance Load
Exemptions up to 10 employees reduce initial friction and cost of compliance.
Worker Safeguards Retained
Core protections on hours, rest, leave, maternity, wages and termination remain.
Operational Flexibility
Combined with recent relaxations, firms can structure shifts within lawful limits.
Nationwide Reform Trajectory
India’s labour landscape (2025–26) is moving towards consolidation into four labour codes—Wages, Social Security, Industrial Relations, and OSH & WC. Timelines and state rules are evolving, with stakeholder consultations continuing.
Enterprises should watch state notifications and rules for phased implementation details.
Karma Global – Shops & Establishments Compliance (Pan-India)
We manage regulatory obligations across states, keeping you inspection-ready and people-first.
- Registration & renewal; change intimations; surrender on closure
- Roster design for daily/weekly hours, intervals & spread-over
- Leave, holidays & maternity compliance (policy + records)
- Wage registers, OT compliance & on-time wage payments
- Women-in-night-shift consent & safe transport protocols
- Inspection preparedness; notices & replies
- Statutory displays (abstracts/nameboards) & ID cards
- Advisory on state notifications, exemptions & IT/ITES relaxations
Contact: marketing@karmamgmt.com
© Karma Management Global Consulting Solutions Pvt. Ltd.
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