New law mandates employee service licences for non-tribal staff, introduces appeal mechanism and strengthens compliance checks across the Khasi Hills

Shillong: The Khasi Hills Autonomous District Council (KHADC) has approved a significant overhaul of its decades-old framework regulating non-tribal participation in trade and business, paving the way for stricter oversight of non-tribal workers employed across the region.
Passed during the final day of the Council’s Summer Session, the Khasi Hills Autonomous District (Trading by Non-Tribals) (Amendment) Bill, 2026 updates provisions of the 1954 regulation that governs commercial activities by non-tribals in the Khasi Hills.
A key feature of the amendment is the introduction of a Non-Tribal Employee’s Service Licence, which employers must obtain for every non-tribal employee or agent engaged in business activities. The licence must be secured within 30 days of appointment and will remain valid for one year.
Applicants will be required to submit supporting documents, including voter identification, proof of permanent residence, photographs and a recommendation from the concerned village headman. Authorities have been directed to scrutinise applications within a week and complete the process within 30 days.
Additionally, the legislation establishes a two-tier appeal system, allowing aggrieved applicants to challenge decisions before the Executive Member and subsequently the Executive Committee.
To ensure compliance, authorised KHADC officials will be empowered to inspect business establishments. The amendment also removes overlapping provisions linked to the state government’s Labour Clearance Certificate mechanism.
The Bill will now be forwarded to the Governor for assent before coming into force.
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