ANDHRA
PRADESH SHOPS AND ESTABLISHMENTS ACT, 1988
STATEMENT OF
OBJECTS AND REASONS
Bill No.21 of 1986
Bill No.21 of 1986
The Andhra Pradesh
Shops and Establishments Act, 1966 was enacted to consolidate and amend the law
relating to the regulation of conditions of work and employment in shops,
commercial establishments and other establishments and for matters connected
therewith. In the implementation of the said Act and in the changed conditions
in labour relations, it is found necessary to provide for some more measures for
safeguarding the interests of the employees. With a view to enlarge the
beneficial provision under the Act and to make provision for some more
facilities and benefits to the employees in shops and establishments to suit
the present needs, there is imminent necessity to make a new in repeal of the
1966 Act. It has been decided to.
(1) make provision
of some more conditions to be complied with by employers in cases of
termination of services of employees;
(2) entrust the
functions of judicial authorities under the Act to the Departmental Officers to
render speedy relief to the employees under the provisions of the Act; and
(3) provide for
more stringent punishment to the offending employers to act as deterrant to
prevent abuse of the various welfare provisions of the enactment.
This Bill seeks to
give effect to the above decision.
ARRANGEMENT OF
SECTIONS
CHAPTER - I
Preliminary
CHAPTER - I
Preliminary
CHAPTER II
Registration of Establishments
Registration of Establishments
- Registration of Establishments
- Renewal of Registration Certificates
- Revocation or Suspension of the Registration Certificate
- Appeal against provocation or suspension of the Registration certificate
CHAPTER III
Shops
Shops
- Opening and closing hours of shops
- Selling outside prohibited before opening and after closing hours of shops
- Daily and weekly hours of work in shops
- Interval for rest
- Spread over periods of work
- Closing of shops and grant of holidays
- Closing of shops in public interest during special occasions
CHAPTER IV
Establishments other than Shops
Establishments other than Shops
- Application of this chapter to establishments other than shops
- Opening and closing hours
- Daily and weekly hours of work
- Interval for rest
- Spread over of periods of work
- Holidays
CHAPTER V
Employment of women, children and young persons
Employment of women, children and young persons
- Children not to work in establishment
- Special provision for young persons
- Daily and weekly hours of work for young persons
- Special provision for women
- Maternity leave
- Maternity benefit
CHAPTER VI
Health and Safety
Health and Safety
- Cleanliness
- Ventilation
- Precautions for the safety of employees in establishments
- Maximum permissible load
CHAPTER VII
Leave and holidays with wages and Insurance Scheme for Employees
Leave and holidays with wages and Insurance Scheme for Employees
- Leave
- Other holidays
- Pay during leave and holidays
- Power to increase the period of leave allowable under Section 30
- Compulsory enrolment of employees to Insurance cum Savings Scheme
CHAPTER VIII
Wages, Conditions for termination of services appeals, Suspension and terminal benefits
Wages, Conditions for termination of services appeals, Suspension and terminal benefits
- Responsibility for payment of wages
- Fixation of wage period
- Wages for overtime work
- Time of payment of wages
- Wages to be paid in current coin or currency notes
- Deductions which may be made from wages
- Fines
- Deductions for absence from duty
- Deductions for damage or loss
- Deductions to services rendered
- Deductions for recovery of advances
- Deductions for payments to Co operative Societies and Insurance Schemes etc.
- Conditions for terminating the services of an employee, payment of service compensation termination, retirement, resignation, disablement, etc., and payment of subsistence allowance for the period of supension
- Appointment of authority to hear and decide appeals arising out of termination of services
- Notice and payment of service compensation to employees in the case of transfer of establishment
CHAPTER IX
Appointment, Powers and Duties etc., of the Authority to hear and decide claims relating to wages etc., of Employees in Establishments
Appointment, Powers and Duties etc., of the Authority to hear and decide claims relating to wages etc., of Employees in Establishments
- Appointment of authority to hear and decide claims relating to wages etc.
- Claims arising out of deductions from wages or delay in payment of wages etc., and penalty for malicious or vexatious claims
- Single application in respect of claims from unpaid group
- Appeal
- Conditional attachment of property of employer
- Power of authority appointed under Section 50 (Central Act 5 of 1908)
- Power of Government to prescribe costs and court fees for proceedings under this Chapter
CHAPTER X
Appointment, powers and duties of the Chief Inspector and Inspectors
Appointment, powers and duties of the Chief Inspector and Inspectors
- Appointment of Chief Inspector and Inspectors
- Powers and duties of Chief Inspector
- Powers and duties of Inspectors
- Chief Inspector and Inspectors to be public servants
CHAPTER XI
Penalties for offences
Penalties for offences
- Penalties
- Power to compound offence
- Penalty for obstructing Inspector etc.
- Procedure in trial of offences
- Bar of suits
- Contracting out
- Offences to be tried by Magistrate of Second Class or above
CHAPTER XII
Miscellaneous
Miscellaneous
- Maintenance of registers and records and display of notices, etc.
- Restriction on double employment on a holiday or during leave
- Delegation of Powers
- Power to make rules
- Right and privileges under other laws etc., not affected
- Exemption
- Application of the Workmen s Compensation Act, 1923
- Protection of persons acting in good faith
- Power of Government to suspend provisions of the Act to during fairs and festivals
- Application of this Act to Co operative Societies
- Repeal and Saving
The following Act
of the Andhra Pradesh Legislature which was re served by the Governor on 19th
August, 1986 for the consideration and assent of the President, received the
assent of the President on the 18th July, 1988 and the said assent is hereby
first published 26th July, 1988 in the Andhra Pradesh Gazette for the general
information :
Act No. 20 of
1988
An Act to consolidate
and amend the Law relating to the regulation of conditions of work and
Employment in Shops, Commercial Establishments, Restaurants, Theatres and other
establishments and for matters connected therewith.
Be it enacted by
the Legislative Assembly of the State of Andhra Pradesh
in the Thirty Ninth Year of the Republic
of India as follows :
CHAPTER - I
Preliminary
Preliminary
(1) This Act may
be called Andhra Pradesh Shops and Establishments Act, 1988.
(2) It extends to
the whole of the State of Andhra
Pradesh .
(3) It shall come
into force on such date as the Government may, by notification, appoint.
(4) It shall apply
(i) in the first
instance to all areas in which the Andhra Pradesh Shops and Establishments Act,
1966 was in force immediately before the commencement of this Act;
(ii) to such other
areas in the State on such date as the Government may, by notification,
specify.
2.
Definitions :- In this Act, unless the context
otherwise requires
(1) apprentice
means a person who is employed whether on payment of wages or not, for the
purpose of being trained in any trade, craft or employment in any
establishment;
(2) Chief
Inspector means the Chief Inspector appointed under Section 57;
(3) Child means a
person who has not completed fourteen years of age;
(4) Closed means
not open for the service of any customer, or for any trade or business or for
any other purpose connected with the establishment except loading, unloading
and annual stock taking;
(5) commercial
establishment means an establishment which carries on any trade, business,
profession or any work in connection with or incidental or ancilliary to any
such trade, business or profession or which is a clerical department of a
factory or an industrial undertaking or which is a commercial or trading or
banking or insurance establishment and includes an establishment under the
management and control of a co operative society, an establishment of a factory
or an industrial undertaking which falls outside the scope of the Factories
Act, 1948, (Central Act 63 of 1948), and such other establishment as the
Government may, by notification declare to be a commercial establishment for
the purposes of this Act but does not include a shop;
(6) day means the
period of twenty four hours beginning at mid night:
Provided that, in
the case of an employee, whose hours of work extend beyond mid night, day means
the period of twenty four hours beginning from the time when such employment
commences.
(7) dependant
means in relation to a deceased employee, his nominee or in the absence of such
nominee, the heir or legal representative;
(8) employee means
a person wholly or principally employed in, and in connection with, any
establishment and includes an apprentice and any clerical or other staff of a
factory or industrial establishment who fall outside the scope of the Factories
Act, 1948; (Central Act, 63 of 1948) but does not include the husband, wife,
son, daughter, father, mother, brother or sister of an employer or his partner,
who is living with and depending upon such employer or partner and is not in
receipt of any wages;
(9) employer means
a person having charge of or owning or having ultimate control over the affairs
of an establishment and includes the Manager, agent or other person acting in
the general management or control of an establishment;
(10) establishment
means a shop, restaurant, eating house, residential hotel, lodging house,
theatre or any place of public amusement or entertainment and includes a
commercial establishment and such other establishment as the Government may, by
notification, declare to be an establishment for the purpose of this Act;
(11) factory means
a factory within the meaning of the Factories Act, 1948, (Central Act 63 of
1948);
(12) Government
means the State Government;
(13) Inspector
means an Inspector appointed under Section 50;
(14) notification
means a notification published in the Andhra Pradesh Gazette and the word
notified , shall be construed accordingly;
(15) opened means
opened for the service of any customer or for any trade or business connected
with the establishment;
(16) periods of
work means the time during which an employee is at the disposal of the
employer;
(17) prescribed
means prescribed by rules made by the Government under this Act;
(18) register of
establishment means a register maintained for the registration of establishment
under this Act;
(19) registration
certificate means a certificate issued under this Act;
(20) service
compensation means the service compensation payable under Section 40;
(21) shop means
any premises where any trade or business is carried on or where services are
rendered to customers and includes a shop run by a Co operative Society, an
office, a store room, godown, warehouse or work place, whether in the same
premises or otherwise, used in connection with such trade or business and such
other establishments as the Government may, by notification, declare to be a
shop for the purposes of this Act, but does not include a commercial
establishment;
(22) theatre
includes any premises intended principally or wholly for the exhibition of
pictures or other optical effects by means of a cinematograph or other suitable
apparatus or for dramatic or circus performances or for any other public
amusement or entertainment;
(23) Wages means
every remuneration, whether by way of salary, allowance, or otherwise expressed
in terms of money or capable of being so expressed which would, if the terms of
employment, express or implied were fulfilled, be payable to an employee in
respect of his employment or of work done in such employment, and includes
(a) any
remuneration payable under any settlement, between the parties or order of a
tribunal or court;
(b) any
remuneration to which the employee is entitled in respect of overtime work or
holidays or any leave period;
(c) any additional
remuneration payable under the terms of employment, whether called a bonus or
by any other name;
(d) any sum which
by reason of the termination of employment of the employee is payable under any
law, contract or instrument which provides for the payment of such sum, whether
with or without deductions, but does not provide for the time within which the
payment is to be made;
(e) any sum to
which the employee is entitled under any scheme framed under any law for the
time being in force; but does not include
(i) any bonus,
whether under a scheme of profit sharing or otherwise, which does not form part
of the remuneration payable under the terms of employment or which is not
payable under any award or settlement between the parties or order of court;
(ii) the value of
any house accommodation, or of the supply of light, water, medical attendance
or other amenity or of any service excluded from the computation of wages by a
general or special order of the Government;
(iii) any
contribution paid by the employer to any person or provident fund, and the
interest which may have accrued thereon;
(iv) any
travelling allowance or the value of any travelling concession;
(v) any sum paid
to the employee to defray special expenses entailed on him by the nature of his
employment;
(vi) any service
compensation payable on the termination of employment in cases other than those
specified in sub clause (d);
(vii) the subscription
paid by the employee to life insurance and contribution paid by the employer to
the life insurance of the employee under the provisions of this Act and the
bonus which may have accrued thereon; or
(viii) house rent
allowance payable by the employer;
(24) week means a
period of seven days beginning at mid night on Saturday;
(25) young person
means a person who is not a child and has not completed eighteen years of age.
CHAPTER II
Registration of Establishments
Registration of Establishments
3. Registration
of establishments :- (1) Every employer of an establishment shall,
(i) in the case of
an establishment existing on the date of commencement of this Act, within
thirty days from that date; and
(ii) in the case
of a new establishment, within thirty days from the date on which the
establishment commences its work, send to the Inspector concerned a statement
containing such particulars, together with such fees, as may be prescribed.
(2) On receipt of
such statement, the Inspector shall register the establishment in the register
of establishments in such manner as may be prescribed and shall issue in the
prescribed form a registration certificate to the employer who shall display it
at a prominent place of the establishment.
(3) Every
registration certificate issued under sub section (2), shall be valid with
effect from the date on which it is issued upto the 31st day of December
following.
(4) Every employer
shall give intimation to the Inspector, in the prescribed form, any change in
any of the particulars in the statement made under sub section (1) within
fifteen days after the change has taken place. The Inspector shall, on receipt
of such intimation and the fees prescribed therefor make the change in the
register of establishments in accordance with such intimation and shall amend
the registration certificate or issue a fresh registration certificate, if
necessary.
(5) The employer
shall, within fifteen days of the closure of the establishment, give intimation
thereof in writing to the Inspector, who shall, on receipt of such intimation,
remove the name of the establishment from the register of establishments and
cancel the registration certificate:
Provided that,
where the Inspector is satisfied otherwise than on receipt of such intimation,
that the establishment has been closed, he shall remove the name of such
establishment from the register and cancel the registration certificate.
4.
Renewal of registration certificates :- (1) The
Inspector may, on an application made by the employer accompanied by the fees
prescribed therefor, renew the registration certificate for a period of one
year or for such number of years as may be prescribed, commencing from the date
of its expiry.
(2) Every
application for the renewal of the registration certificate shall be made in
such form and in such manner as may be prescribed so as to reach the Inspector
not later than thirty days before the date of its expiry:
Provided that, an
application for the renewal of a registration certificate received not later
than thirty days after its expiry may be entertained by the Inspector on the
applicant paying such penalty as may be prescribed, by the Government from time
to time.
(3) An applicant
for the renewal of a registration certificate under sub section (2) shall,
until communication of orders on his application, be entitled to act as if the
registration certificate had been renewed.
5.
Revocation or suspension of the Registration certificate :- If the Inspector is satisfied, either on a reference made to him in
this behalf or otherwise, that
(a) The
Registration Certificate granted under Section 3 or renewed under Section 4 has
been obtained by mis representation, fraud or suppression of any material fact;
or
(b) the employer
has wilfully contravened any of the provisions of this Act or the Rules made
thereunder. the Inspector may without prejudice to any other penalty to which
the employer may be liable under this Act, revoke or suspend the Registration
Certificate, after giving the employer an opportunity of showing cause.
6. Appeal
against revocation or suspension of the Registration certificate :- (1) Any person aggrieved by an
order made under Section 5 may, within thirty days from the date on which the
order is communicated to him, prefer an appeal to such authority as may be
prescribed:
Provided that the
appellate authority may entertain the appeal after the expiry of the said
period of thirty days if he is satisfied that the appellant was prevented by
sufficient cause from the filing the appeal in time.
(2) On receipt of
an appeal under sub section (1), the appellate authority shall, after giving
the appellant an opportunity of being heard, dispose of the appeal within two
months.
CHAPTER III
Shops
Shops
7. Opening
and closing hours of shops :- (1) No shop shall on any day be opened earlier or closed later than
such hour as may, after previous publication, be fixed by the Government by a
general or special order in that behalf:
Provided that, any
customer who was being served or was waiting to be served in any shop at the
hour fixed for its closing may be served during the quarter of an hour
immediately following such hour.
(2) The Government
may, for the purposes of this section, fix different hours for different
classes of shops or for different areas or for different time of the year.
8.
Selling outside prohibited before opening and after closing hours of shops :- No person shall carry on, in or adjacent to, a street or public
place, the sale of any goods, before the opening and after the closing hours
fixed under Section 7 for the shops dealing in any kind of goods in the
locality in which such street or public place is situated:
Provided that,
nothing in this section shall apply to the sale of
(i) Newspapers;
(ii) Flowers;
(iii) pan
(iv) vegetables
and fruits; and
(v) such other
goods as the Government may, by notification, specify from time to time.
9.
Daily and weekly hours of work in shops :- (1)
Subject to other provisions of this Act, no employee in any shop shall be
required or allowed to work therein for more than eight hours in any day and
forty eight hours in any week.
(2) Any employee
may be required or allowed to work in a shop for any period in excess of the
limit fixed under sub section (1), on payment of overtime wages, subject to a
maximum period of six hours in a week.
(3) For the
purpose of stock taking and preparation of accounts, an employer may, with the
previous intimation to the Inspector, require or allow any employee to work in
a shop for not more than any six days in a year in excess of the period fixed
in sub section (1), on payment of overtime wages; so however, that the excess
period shall not in aggregate exceed twenty four hours.
10.
Interval for rest :- No employee in any shop
shall be required or allowed to work therein for more than five hours in any
day unless he has had an interval for rest of at least one hour:
Provided that, an
employee who was serving a customer at the commencement of the interval may be
required to serve him during the quarter of an hour immediately following such
commencement.
11.
Spread over periods of work :- The periods of
work of an employee in a shop shall be so arranged that along with his
intervals for rest, they shall not spread over for more than twelve hours in
any day:
Provided that,
where an employee works on any day for the purpose of stock taking and
preparation of accounts, the spread over shall not exceed fourteen hours in any
such day on payment of overtime wages.
12. Closing of shops and grant of holidays :- (1) Every shop, whether with
or without employees, shall remain closed on every Sunday which shall be a
holiday for every employee in the shop:
Provided that the
Chief Inspector may, by notification, specify in respect of any shop or class
of shops or in respect of shops or class of shops in any area any day in the
week instead of Sunday on which day such shop or class of shops shall remain
closed.
(2) (a) The Chief
Inspector may, by notification, require in respect of any specified class of
shops that they shall in addition to the weekly holiday mentioned in sub
section (1), be closed for one half day in a week, as may be fixed by the
Government;
(b) Every employee
in any shop to which a notification under Clause (a) applies, shall be allowed
in each week an additional holiday of one half day fixed for the closing of the
shop under Clause (a).
(3) The Chief
Inspector may, for the purposes of sub section (2), fix different hours for
different classes of shops or for different areas or for different times of the
year.
(4) The weekly day
on which a shop is closed in pursuance of a requirement under sub section (2)
shall be specified by the employer in a notice prominently exhibited in a
conspicuous place in the shop.
(5) It shall not
be lawful for the employer to call an employee at or for the employee to go to
his shop or any place for any work in connection with the business of his shop
on any day or part of the day on which it has remained closed.
(6) No deduction
shall be made from the wages of any employee in a shop on account of any day or
part of a day on which it has remained closed; and if such employee is employed
on the basis that he would not ordinarily receive wages for such day or part of
a day he shall nonetheless be paid for such day or part of a day the wages he
would have drawn had the shop not remained closed, or had the holiday not been
allowed, on that day or part of a day.
13.
Closing of shops in public interest during special occasions :- I n addition to the holidays mentioned in Section 12, the Chief
Inspector may, by notification, and with the previous approval of the
Government, require in respect of any specified class of shops that they shall
be closed on any specified day or days in the public interest.
CHAPTER IV
Establishments other than Shops
Establishments other than Shops
14.
Application of this Chapter to establishments other than shops :- The provisions of this Chapter shall apply only to establishments
other than shops.
15.
Opening and closing hours :- (1) No
establishment shall on any day be opened earlier, or closed later, than such
hour as may, after previous publication, be fixed by the Government by general
or special order in that behalf:
Provided that, in
the case of a restaurant or eating house, any customer who was being served or
was waiting to be served therein at the hour fixed for its closing may be
served during the quarter of an hour immediately following such hour.
(2) The Government
may, for the purpose of this section, fix different hours for different classes
of establishments or for different areas or for different times of the year.
16.
Daily and weekly hours of work :- (1) Subject
to the provisions of this Act, no employee in any establishment shall be
required or allowed to work therein for more than eight hours in any day and
forty eight hours in any week.
(2) Any employee
may required or allowed to work in an establishment for any period in excess of
the limit fixed under sub section (1), on payment of over time wages, subject
to a maximum period of six hours in any week.
(3) For the
purposes of stock taking and preparation of accounts, an employer may, with the
previous intimation to the Inspector, require or allow any employee to work in
an establishment for not more than any six days in a year in excess of the
period fixed in sub section (1) on payment of overtime wages; so however, that
the excess period shall not, in the aggregate, exceed twenty four hours.
17.
Interval for rest :- No employee in any
establishment shall be required or allowed to work in such establishment for
more than five hours in any day unless he has had an interval for rest of at
least one hour.
Provided that the
Chief Inspector may, in the case of an establishment whose daily hours of work
are less than eight hours, reduce interval for rest to half an hour on an
application made by the employer, with the consent of the employees.
18.
Spread over of periods of work :- The periods
of work of an employee in an establishment shall be so arranged that, along
with his interval for rest, they shall not spread over for more than twelve
hours on any day:
Provided that,
where an employee works on any day for the purpose of stock taking and
preparation of accounts the spread over shall not exceed fourteen hours on any
such day on payment of over time wage.
19.
Holidays :- (1) Every employee in any establishment
shall be allowed in each week a holiday of one whole day:
Provided that,
nothing in this sub section shall apply to any employee whose total period of
employment in the week, including any days spent on authorised leave is less
than six days.
(2) The Government
may, by notification, require in respect of any specified class of
establishments that every employee therein shall be allowed in each week an
additional holiday of one half day commencing at such hour in the after noon as
may be fixed by the Government.
(3) The Government
may, for the purposes of sub section (2) fix different hours for different
classes of establishments or for different areas or for different times of the
year.
(4) No deduction
shall be made from the wages of any employee in an establishment on account of
any day or part of a day on which a holiday has been allowed in accordance with
this section and if such employee is employed on the basis that he would not
ordinarily receive wages for such day or part of a day, he shall nonetheless be
paid for such day or part of a day the wages he would have drawn, had the
holiday not been allowed on that day or part of a day.
(5) It shall not
be lawful for the employer to call an employee at or for the employee to go to,
his establishment or any other place for any work in connection with the
business of his establishment on any day or part of a day on which a holiday
has been allowed in accordance with this section.
CHAPTER V
Employment of Women, Children and Young persons
Employment of Women, Children and Young persons
20.
Children not to work in establishment :- No
child shall be required or allowed to work in any establishment.
21.
Special provision for young persons :- No young
person shall be required or allowed to work in establishment before 6 a.m. and
after 7 p.m.
22.
Daily and weekly hours of work for young persons :- Notwithstanding anything in this Act, no young person shall be
required or allowed to work in any establishment for more than 7 hours in any
day and forty two hours in any week nor shall such person be allowed to work
overtime.
23.
Special provision for women :- No Woman
employee shall be required or allowed to work in any establishment before 6 00
a.m. and after 8 30 p.m.
24.
Maternity leave :- The periods of absence from
duty in respect of which a woman employee is entitled to maternity benefit
under Section 25, shall be treated as authorised absence from duty, and the
woman employee shall be entitled to maternity benefit, but not to any wages for
any of those periods.
25.
Maternity Benefit :- Every woman who has been
for a period of not less than six months preceding the date of her delivery in
continuous employment of the same employer whether in the same or different
shops or commercial establishments, shall be entitled to receive from her
employer for he period of
(a) six weeks
immediately preceding the day of delivery; and
(b) six weeks
following the day of delivery; such maternity benefit and in such manner as may
be prescribed:
Provided that, no
woman employee shall be entitled to receive such benefit for any day during any
of the aforesaid periods, on which she attends work and receive wages therefor.
CHAPTER VI
Health and Safety
Health and Safety
26.
Cleanliness :- The premises of every
establishment shall be kept clean and free from effluvia arising from any drain
or privy or other nuisance and shall be cleaned at such times and by such
methods as may be prescribed.
27.
Ventilation :- The premises of every
establishment shall be ventilated as provided for in the laws relating to the
municipalities, Gram Panchayats or other local authorities for the time being
in force.
28.
Precautions for the safety of employees in establishments :- (1) In every establishment other than such establishment or class
of establishments as the Governments may, by notification, specify, such
precautions against fire shall be taken as may be prescribed.
(2) If power
driven machinery is used, or any process which, in the opinion of the
Government, is likely to expose any employee to a serious risk of bodily injury
is carried on in any establishment, such precautions including the keeping of
first aid box shall be taken by the employer for the safety of the employees
therein, as may be prescribed.
29.
Maximum permissible load :- (1) No employee in
any establishment shall be required or allowed to engage in the manual
transport of a load therein which by reason of its weight is likely to
jeopardise his health or safety.
(2) The Government
may, for the purposes of this section prescribe different maximum limits of
weight, for different classes of employees in any establishment.
Explanation :- For the purposes of this section, the term manual transport of a
load means any transport in which the weight of the load is wholly borne by one
employee, inclusive of the lifting and putting down of load.
CHAPTER VII
Leave and holidays with wages and Insurance Scheme for Employees
Leave and holidays with wages and Insurance Scheme for Employees
30.
Leave :- (1) Every employee who has served for
a period of two hundred and forty days or more during a continuous period of
twelve months in any establishment shall be entitled during the subsequent
period of twelve months, to leave with wages for period of fifteen days,
provided that such leave with wages may be accumulated upto a maximum period of
sixty days:
Provided that any
continuous period of service in an establishment preceding the date on which
this Act, applies to that establishment shall also count:
Provided further
that any leave accumulated by an employee in an establishment under the law
applicable to that establishment preceding the date on which this Act applies
to it, shall not be affected;
Provided also that
every employee in any shop or establishment shall be entitled for encashment of
the leave with wages for a period of eight days in every year.
(2) An employee
may apply in writing to the employer, not less than seven full working days
before the date of availing himself of his leave, to allow all the leave or any
portion thereof, to which he is entitled under sub section (1):
Provided that the
number of instalments for taking leave shall not exceed three during a period
of twelve months.
(3) An employee
who has been allowed leave for not less than five days under sub section (2)
shall, before his leave begins, be paid the wages due for the period of the
leave allowed if he makes a request therefor.
(4) Every employee
who has served for a period of not less than two hundred and forty days during
a continuous period of twelve months in any establishment shall be entitled for
encashment of eight days of leave with wages that has accrued to him under sub
section (1) during the subsequent period of twelve months. The employer shall
pay to the employee the wages for the leave so encashed by the employee within
a week of receipt of the application for such encashment from the employee.
(5) Every employee
in any establishment shall also be entitled during his first twelve months of
continuous service and during every subsequent twelve months of service (a) to
leave with wages for a period not exceeding twelve days on the ground of any
sickness or accident and (b) to casual leave with wages for a period not
exceeding twelve days on any reasonable ground.
(6) Every employee
in an establishment after he has put in not less than two years of service
under the same employer, shall also be entitled for special casual leave not
exceeding six days only once during his entire service, if he has undergone
vasectomy or tubectomy operation, subject to the production of a certificate
therefor from an authorised medical practitioner under whom he has undergone
the operation.
(7) If any
employee entitled to any leave under sub section (1) is discharged by his
employer before he has been allowed such leave, or if the leave applied for by
such employee has been refused and if he quits his employment before he has
been allowed the leave, the employer shall pay him the amount, payable under
this Act, in respect of the period of leave.
(8) If an employee
is lawfully discharged by his employer when he is sick or suffering from the
result of an accident the employer shall pay him the amount payable under this
Act in respect of the period of leave to which he was entitled at the time of
his discharge in addition to the amount, if any, payable to him under sub
section (3).
(9) An employee in
a hostel attached to a school or college or in an establishment maintained in
connection with the boarding and lodging of pupils and resident masters, shall
be allowed the privileges referred to in sub sections (1) to (8), reduced
however proportionately to the period for which he was employed continuously in
the previous year or to the period for which he will be employed continuously
in the current year, as the case may be; and all references to the periods of
leave in sub sections (1) and (5) shall be construed accordingly, fractions of less
than half a day being disregarded.
31.
Other holidays :- (1) Every employee in any
establishment shall also be entitled to nine holidays in a year with wages on
the days to be specified by notification from time to time, by the Government
which shall include the 26th January (Republic day), 1st May, (May Day), 15th
August (Independence Day) 2nd October (Gandhi Jayanthi), and 1st November
(Andhra Pradesh Formation Day) and on every such holiday, all the
establishments, either with or without employees, shall remain closed.
(2)
Notwithstanding anything contained in sub section (1) the Chief Inspector may,
having due regard to any emergency or special circumstances prevailing in the
State or any part thereof, notify any other day or days as holidays with wages
to employees or class of employees as he may deem fit. The holidays so notified
shall be deemed to be additional holidays:
Provided that, any
such employee in any residential hostel, restaurant, eating house, theatre, or
any place of public amusement or entertainment may be required to work in such
establishment on any such holiday declared under sub section (1) or sub section
(2), subject to the condition that in lieu thereof, a compensatory holiday with
wages shall be allowed to such person within thirty days from the date of such
holiday:
Provided further
that, such compensatory holidays shall not exceed seven in a year and where any
such employee in any such establishment is required to work on any such
compensatory holiday, he shall be paid additional wages at the ordinary rate of
wages in lieu of such holiday.
(3) Nothing in sub
section (1) shall apply in respect of any establishment where the number of
holidays with wages allowed by the employer is more than the holidays notified
by the Government under that sub section:
Provided that,
every such employer shall send a list of holidays with wages allowed by him,
which shall include the five holidays specified in sub section (1), to the
Inspector and to the Chief Inspector and shall also display the list at a
prominent place of the establishment.
32.
Pay during leave and holidays :- Every employee
shall, for the period of the leave allowed under sub sections (1) (5) of
Section 30 or the holidays allowed under Section 31, be paid at a rate equivalent
to the daily average of his wages for the days on which he actually worked
during the preceding month exclusive of any earning in respect of overtime.
33.
Power to increase the period of leave allowable under Section 30 :- Notwithstanding anything in Section 30, the Government may, by
notification, increase the total number of days of leave allowable under sub
section (1) of that section and the maximum number of days upto which such
leave may be accumulated in respect of any establishment or class of establishments.
34.
Compulsory enrolment of employees to Insurance cum savings scheme :- (1) Every employee who has served in an establishment for a period
of not less than one year shall subscribe to the insurance scheme or Insurance
cum Savings scheme as may be notified by the Government to be applicable to the
establishment in which the employee is working, at the rates, stipulated by the
Government in the notification either in lumpsum every year or in monthly
instalments as may be prescribed by the Government in the notification. For
this purpose the employer shall make the payment to the authority notified by
the Government on behalf of the employee on or before the stipulated date and
recover the same from the wages payable to the employee.
(2) In addition to
the subscription of the employee mentioned in sub section (1), every employer
of the establishment to which the scheme of insurance or Insurance cum Savings
is made applicable by the Government, shall also pay such percentage of annual
wages of employee as may be notified by the Government, from time to time, to
the authority notified for the purpose as employer s contribution on or before
the specified date every year.
CHAPTER VIII
Wages, Conditions for termination of services appeals, suspension and terminal benefits
Wages, Conditions for termination of services appeals, suspension and terminal benefits
35.
Responsibility for payment of wages :- Every
employer shall be responsible for the payment by him to employees of all wages
and sums, required to be paid under this Act.
36.
Fixation of wage period :- (1) Every employer
shall fix periods (hereinafter referred to as wage periods) in respect of which
such wages shall be payable.
(2) No wage period
shall exceed one month.
37. Wages for overtime work :- Where any employee in any
establishment is required to work over time he shall be entitled, in respect of
such over time work, to wages at twice the ordinary rate of wages:
Provided that,
where the normal hours of work in an establishment are ordinarily less than
eight hours a day and 48 hours a week, he shall be entitled in respect of work
in excess of such normal hours upto eight hours a day and forty eight hours a
week to wages at the ordinary rate of wages in respect of work in excess of
eight hours a day and forty eight hours a week at twice the ordinary rate
wages, in addition to the wages for the normal hours of work.
Explanation :- For the purpose of this section; the expression ordinary rates of
wages shall mean such rate of wages as may be calculated in the manner
prescribed.
38.
Time of payment of wages :- (1) The wages of
every employee shall be paid before the expiry of the fifth day after the last
day of the wage period in respect of which the wages are payable.
(2) Where the
service of any employee is terminated by or on behalf of the employer the wages
earned by such employee shall be paid before the expiration of the second
working day from the day on which his employment is terminated.
(3) The Government
may, by general or special order and for reasons stated therein exempt an
employer from the operation of this section in respect of the wages of any
employee or class of employees to such extent and subject to such conditions as
may be specified in the order.
(4) All payments
of wages shall be made on a working day.
39.
Wages to be paid in current coin or currency notes :- All wages shall be paid in current coin or currency notes or in
both.
40.
Deductions which may be made from wages :- (1)
The wages of an employee shall be paid to him without deduction of any kind
except those authorised by or under this Act.
Explanation :- Every payment made by an employee to the employer shall, for the
purpose of this Act, be deemed to be a deduction from wages.
(2) Deductions
from the wages of an employee shall be made only in accordance with the
provisions of this Act and may be of the following kinds only, namely :
(a) fines and
other penalties lawfully imposed;
(b) deductions for
absence from duty;
(c) deductions for
damages to, or loss of goods expressly entrusted to the employee for custody or
for loss of money for which he is required to account, where such damage or
loss is directly attributable to his neglect or default;
(d) deductions for
house accommodation provided by the employer;
(e) deductions for
such amenities and services supplied by the employer as the Government may, by
general or special order, authorise;
(f) deductions for
recovery of advances or for adjustment of over payments of wages;
(g) deductions of
income tax or profession tax payable by the employee;
(h) deductions
required to be made by order of a Court or other authority competent to make
such order;
(i) deductions for
subscriptions to, and for repayment of advances from, any provident fund to
which the Provident Funds Act, 1925 (Central Act 19 of 1925) applies or any
recognised provident fund as defined in Section 2(38) of the Income Tax Act,
1961, (Central Act 43 of 1961), or any provident fund approved in this behalf
by the Government during the continuance of such approval;
(j) deductions for
payments to co-operative societies approved in this behalf by the Government or
any officer authorised by them in this behalf or to a scheme of insurance
maintained by the Indian Post Office or the Life Insurance Corporation of India
established under Life Insurance Corporation Act, 1956, (Central Act 31 of
1956).
(k) deductions
made with the written authorisation of the employee in furtherance of any
savings scheme approved by the Government or the purchase of securities of the
Central or State Government.
41.
Fines :- (1) No fine shall be imposed on any
employee save in respect of such acts and omissions on his part as the
employer, with previous approval of the Government or of the prescribed
authority may have specified by notice under sub section (2).
(2) A notice
specifying such acts and omissions shall be exhibited in the prescribed manner
on the premises in which the employment is carried on.
(3) No fine shall
be imposed on any employee until he has been given an opportunity of showing
cause against the fine or otherwise than in accordance with such procedure as
may be prescribed for the imposition of fines.
(4) The total
amount of fine which may be imposed in any one wage period on any employee
shall not exceed an amount equal to three paise in the rupee of the wages
payable to him in respect of that wage period.
(5) No fine shall
be imposed on any employee who has not completed the age of fifteen years.
(6) No fine
imposed on any employee shall be recovered from him after the expiration of sixty
days from the day on which it was imposed.
(7) Every fine
shall be deemed to have been imposed on the day of the act or omission in
respect of which it was imposed.
(8) All fines and
all realisations thereof shall be recorded in a register to be kept by the
employer in such form as may be prescribed; and all such realisation shall be
applied only to such purposes beneficial to the employees in the establishment
as are approved by the prescribed authority.
Explanation :- When the employees are only part of a staff employed under the same
management, all such realisations may be credited to a common fund maintained
for the staff as a whole, provided that the fund shall be applied only to such
purposes as are approved by the prescribed authority.
42.
Deductions for absence from duty :- (1)
Deductions may be made under Clause (b) of sub section (2) of Section 40 only
on account of the absence of an employee from the place or places where, by the
terms of his employment, he is required to work, such absence being for the
whole or any part of the period during which he is so required to work.
(2) The amount of
such deduction shall in no case bear to the wages payable to the employee in
respect of the wage period for which the deduction is made, a larger proportion
than the period for which he was absent bears to the total period, within such
wage period during which by the terms of his employment, he was required to
work:
Provided that,
subject to any rules made in this behalf by the Government, if ten or more
employees acting in concert absent themselves without due notice, that is to
say, without giving the notice which is required under the terms of their
contract of employment and without reasonable cause, such deduction from any
such employee may include such amount not exceeding his wages for four days as
may by any such terms be due to the employer in lieu of due notice.
Explanation :- For the purpose of this section, an employee shall be deemed to be
absent from the place where he is required to work, if, although present in
such place he refuses, in pursuance of a stay in strike or for any other cause
which is not reasonable in the circumstances, to carry out his work.
43.
Deductions for damage or loss :- (1) A
deduction under Clause (c) of sub section (2) of Section 40 shall not exceed in
respect of the damage of goods, one half of the amount of such damage and in
respect of loss of goods or money, the amount of such loss caused to the
employer by negligence or default of the employee and shall not be made until
the employee has been given an opportunity of showing cause against the
deduction, or otherwise than in accordance with such procedure as may be
prescribed for the making of such deductions.
(2) All such
deductions and all realisations thereof shall be recorded in a register to be
kept by the employer in such form as may be prescribed.
44.
Deductions for services rendered :- A deduction
under Clause (d) or Clause (e) of sub section (2) of Section 40 shall not be
made from the wages of an employee unless the house accommodation, amenity or
service has been accepted by him as a term of employment or otherwise, and such
deduction shall not exceed an amount equivalent to the value of the house
accommodation, amenity or service supplied and in the case of a deduction under
the said Clause (e), it shall be subject to such conditions, as the Government
may impose.
45.
Deductions for recovery of advances :-
Deductions under Clause (f) of sub section (2) of Section 40 shall be subject
to the following conditions namely :
(a) recovery of an
advance of money given before employment began shall be made from the first
payment of wages in respect of a complete wage period, but no recovery shall be
made of such advance given for travelling expenses;
(b) recovery of
advances of wages not already earned shall be subject to any rules made by the
Government regulating the extent to which such advances may be given and the
instalments by which they may be recovered.
46.
Deductions for payments to Co operative Societies and Insurance Schemes, etc.:- Deductions under Clause (j) and Clause (k) of sub section (2) of
Section 40 shall be subject to such conditions as the Government may impose.
47. Conditions for terminating the services of an employee, payment of
service compensation for termination, retirement, resignation, disablement,
etc., and payment of subsistence allowance for the period of suspension :- (1) No employer shall,
without a reasonable cause terminate the service of an employee who has been in
his employment continuously for a period of not less than six months without
giving such employee atleast one month s notice in writing or wages in lieu
thereof and in respect of an employee who has been in his employment
continuously for a period of not less than one year, a service compensation
amounting to fifteen days average wages for each year of continuous employment:
Provided that
every termination shall be made by the employer in writing and a copy of such
termination order shall be furnished to the Inspector having jurisdiction over
the area within three days of such termination.
(2) The services
of an employee shall not be terminated by the employer when such employee made
a complaint to the Inspector regarding the denial of any benefit accruing to him
under any labour welfare enactment applicable to the establishment and during
the pendency of such complaint before the Inspector. The services of an
employee shall not also be terminated for misconduct except for such acts or
omission and in such manner as may be prescribed.
(3) Every employee
who has put in a continuous service of not less than one year shall be eligible
for service compensation amounting to fifteen days average wages for each year
of continuous employment, (i) on voluntary cessation of his work after
completion of 60 years of age, (ii) on his resignation, or (iii) on physical or
mental infirmity duly certified by Registered Medical Practitioner, or (iv) on
his death or disablement due to accident or disease:
Provided that the
completion of continuous service of one year shall not be necessary where the
termination of the employment of an employee is due to death or disablement:
Provided further
that in a case of death of an employee service compensation payable to him
shall be paid to his nominee or if no nomination has been made to his legal
heir.
(4) Where a
service compensation is payable under this section to an employee, he shall be
entitled to receive his wages from the date of termination or cessation of his
services until the date on which the service compensation so payable is
actually paid.
(5) The payment of
service compensation under this section shall not apply in cases where the
employee is entitled to gratuity under the Payment of Gratuity Act, 1972
(Central Act 39 of 1972) and gratuity has been paid accordingly consequent on
the termination or cessation of service.
(6) Where an
employee is placed under suspension pending enquiry into grave misconduct the
employer shall pay a subsistance allowance equivalent to fifty per cent of the
last drawn wage for the first six months and at seventy five per cent of the
last drawn wage beyond six months during the period of suspension. The total
period of suspension shall not however exceed one year in any case. If the
misconduct is not established or the total period of suspension exceeds one
year, the employee shall be entitled to full wages during suspension period and
the period of suspension shall be treated as on duty.
Explanation :- (1) For the purpose of this section :
(a) the term
employee shall include part time employee also;
(b) the expression
average wages means the daily average of wages for the days an employee
actually worked during the thirty days immediately preceding the date of
termination or cessation of service;
(c) the expression
wages does not include over time wages;
(d) an employee in
an establishment shall be deemed to have been in continuous employment for a
period of not less than six months if he has worked for not less than one
hundred and twenty days in that establishment within a period of six months
immediately preceding the date of termination or cessation of the service of
that employee.
(e) where the
total continuous employment is for a fraction of a year or extends over a
fraction of a year in addition to one or more completed years of continuous
employment, such fraction, if it is not less than a half year shall be counted
as a year of continuous employment in calculating the total number of years for
which the service compensation is to be given;
(f) the service
compensation of an employee whose services have been terminated for any act,
wilful omission or negligence causing any damage or loss to, or destruction of
property belonging to the employer, shall be forfeited to the extent of the damage
or loss caused;
(g) disablement
means such disablement which incapacitates an employee for the work which he
was capable of performing before the accident or disease resulting in such
disablement.
(2) An employee
who has completed the age of sixty years or who is physically or mentally unfit
having been so declared by a Registered Medical Practitioner or who wants to
retire on medical grounds or to resign his service may give up his employment
after giving to his employer notice of atleast fifteen days and where no such
notice is given, the service compensation payable to him shall be forfeited to
the extent of fifteen days in lieu of the notice.
48. Appointment of authority to hear and decide appeals arising out of
termination of services :- (1)(a) The Chief Inspector may, by notification, appoint for any
area as may be specified therein, any authority to hear and decide appeals
arising out of the termination of service of employees under Section 47:
Provided that the
Chief Inspector may on administrative grounds transfer any appeal arising in
the territorial jurisdiction of any authority to the file of another authority
for disposal, and such authority to whom the appeal is transferred by the Chief
Inspector shall dispose of the appeal so transferred.
(b) Any employee
whose services have been terminated may, appeal to the authority concerned
within such time and in such manner as may be prescribed.
(2) The appellate
authority may, after inquiry in the prescribed manner, dismiss the appeal or
direct the reinstatement of the employee with or without wages for period he
was kept out of employment or direct payment of compensation without
reinstatement or grant such other relief as it deems fit in the circumstances
of the case:
Provided that the
authority concerned shall, without delay, hear such appeal and pass such orders
within a period of three months from the date of receipt of such appeal:
Provided further
that where any such authority considers it necessary or expedient so to do, it
may, for reasons to be recorded in writing, extend such period by such further
period as it may think fit:
Provided also that
no proceedings before such authority shall lapse merely on the grounds that any
period specified in this sub section had expired without such proceedings being
completed.
(3) Against any
decision of the authority under sub section (2), a second appeal shall lie to
such authority as may be notified by the Government within thirty days from the
date of communication of the decision and the decision of such authority on
such appeal shall be final and binding on both the employer and the employee
and shall be given effect to within such time as may be specified in the order
of that authority:
Provided that the
second appeal shall not be entertained unless the employer deposits the entire
amount of back wages as ordered by the appellate authority under sub section
(2) or the amount of compensation ordered as the case may be:
Provided further
that if the second appeal is against the order of reinstatement given by the
appellate authority under sub section (2), the employee shall be entitled to
wages last drawn by him during the pendency of the proceedings before appellate
authority.
(4) Where in any
case, an appellate authority by its award directs reinstatement of any employee
and the employer challenges such award in any Court of Law, the employer shall
be liable to pay such employee during the pendency of such proceedings, full
wages last drawn by him, if the employee had not been employed in any establishment
during such period and an affidavit by such employee had been filed to that
effect in such Court:
Provided that
where it is proved to the satisfaction of the Court that such employee has been
employed and has been receiving remuneration during any such period or part
thereof the Court shall order that no wage shall be payable under this section
for such period or part, as the case may be.
(5) Any amount
directed to be paid under this section may be recovered :
(a) if the
authority appointed under sub section (1) is a Magistrate, by the authority, as
if it were a fine imposed by him as Magistrate; and
(b) If the
authority is not a Magistrate, by any Magistrate to whom the authority makes
application in this behalf as if it were a fine imposed by such Magistrate.
49.
Notice and payment of service compensation to employees in the case of transfer
of establishment :- Where the ownership or
management of an establishment is transferred, whether by agreement or by
operation of law, from the employer in relation to that establishment to a new
employer every employee who has been in continuous employment for not less than
six months in that establishment immediately before such transfer shall be
entitled to the notice and the service compensation in accordance with the
provisions of sub section (1) of Section 47:
Provided that
nothing in this section shall apply to an employee in any case where there has
been a change of employers by reason of the transfer, if
(a) the employment
of the employee has been interrupted by such transfer;
(b) the terms and
conditions of employment applicable to the employee after such transfer are not
in any way less favourable to the employee than those applicable to him
immediately before such transfer; and
(c) the new
employer is under the terms of such transfer or otherwise, legally liable to
pay to the employee in the event of termination of his services, service
compensation on the basis that his employment has been continued and has not
been interrupted by the transfer.
CHAPTER IX
Appointment Powers and Duties etc., of the authority to hear and decide claims relating to Wages etc., of employees in Establishments
Appointment Powers and Duties etc., of the authority to hear and decide claims relating to Wages etc., of employees in Establishments
50.
Appointment of authority to hear and decide claims relating to wages etc. :- The Government may, by notification appoint an authority to hear
and decide for any specified area all claims arising out of deductions from the
wages or delay in payment of the wages or service compensation payable under
this Act to employees in any establishment in that area.
51.
Claims arising out of deductions from wages or delay in payment of wages etc.,
and penalty for malicious or vexatious claims :- (1) Where, contrary to the provisions of this Act, any deduction
has been made from the wages of an employee in an establishment or any payment
of wages or service compensation to him has been delayed, such employee
himself, or if he is dead any of his dependants or any legal practioner, or any
official of a registered Trade Union authorised in writing to act on behalf of
such employee or dependant, or any Inspector under this Act or any other person
acting with the permission of the authority appointed under Section 50 may
apply to such authority for a direction under sub section (2):
Provided that
every such application shall be presented within one year from the date on
which the deduction from the wages was made or from the date on which the
payment of the wages or service compensation was due to be made, as the case
may be:
Provided further
that any application may be admitted after the said period of one year when the
applicant satisfies the authority that he had sufficient cause for not making
the application within such period.
(2) When any
application under sub section (1) is entertained the authority shall, hear the
applicant and the employer or give them an opportunity of making representation
either in person or through an authorised representative, and after such
further inquiry, if any, as may be necessary, may, without prejudice to any
other penalty to which such employer is liable under this Act, direct the
refund to the employee of the amount deducted, or the payment of the delayed
wages or the service compensation together with the payment of such
compensation as the authority may think fit, not exceeding ten times the amount
deducted or the amount of delayed wages and not exceeding ten rupees in case of
service compensation:
Provided that, no
direction for the payment of compensation shall be made in the case of delayed
wages or service compensation if the authority is satisfied that the delay was
due to
(a) a bonafide
error or a bonafide dispute as to the amount payable to the employee; or
(b) the existence
of exceptional circumstances such that the employer was unable, though
exercising reasonable diligence, to make prompt payment; or
(c) the failure of
the employee to accept payment.
(3) If the
authority hearing any application under this section is satisfied that it was
either malicious or vexatious, the authority may direct that a penalty not
exceeding five rupees be paid to the employer by the person presenting the
application.
(4) Any amount
directed to be paid under this section may be recovered
(a) if the
authority is a Magistrate, by the authority as if it were a fine imposed by him
as Magistrate; and
(b) if the
authority is not a Magistrate by any Magistrate to whom the authority makes an
application in this behalf, as if it were a fine imposed by such Magistrate.
Explanation :- For the purposes of this section, the term employee shall include part
time employee also.
52.
Single application in respect of claims from unpaid group :- (1) Employees are said to belong to the same unpaid group if they
are borne on the same establishment and if their wages or service compensation
for the same period or periods have remained unpaid after the day on which they
were due.
(2) A single
application may be presented under Section 51 on behalf, or in respect, of any
number of employees belonging to the same unpaid group, and in such case the
maximum compensation that may be awarded under sub section (2) of that section
shall be ten rupees per head.
(3) The authority
may deal with any number of separate pending applications, presented under
Section 51 in respect of persons belonging to the same unpaid group, as a
single application presented under sub section (2) of this section and the
provisions of that sub section shall apply accordingly.
53.
Appeal :- (1) An appeal against an order
dismissing either wholly or in part an application made under sub section (1)
of Section 51 or against a direction made under sub section (2) or sub section
(3) of that section may be preferred before the authority to be notified by
Government within thirty days of the date on which the order or direction was
served on the applicant or the employer, as the case may be
(a) by the
employer, if the total sum directed to be paid by way of wages, service
compensation and compensation exceeds three hundred rupees, or
(b) by the person
who had applied under sub section (1) of Section 51 if the total amount of
wages or service compensation claimed to have been withheld from the employee
or from the unpaid group to which he belonged exceeds fifty rupees; or
(c) by any person
directed to pay a penalty under sub section (3) of Section 51.
(2) Save as
provided in sub section (1) any order dismissing either wholly or in part an
application made under sub section (1) of Section 51 or a direction made under
sub section (2) or sub section (3) of that section shall be final.
54.
Conditional attachment of property of employer :- (1) Where at any time after an application has been made under sub
section (1) of Section 51, or where at any time after an appeal has been filed
under Clause (b) of sub section (1) of Section 53, the authority referred to in
those sections is satisfied that the employer is likely to evade payment of any
amount that may be directed to be made under Section 51 or Section 53, the
Authority, except in cases where it is of opinion that the ends of justice
would be defeated by the delay, after giving the employer an opportunity of
making representation may direct the attachment of so much of the property of
the employer as is in the opinion of the authority sufficient to satisfy the
amounts which may be payable under the direction.
(2) The provisions
of the Code of Civil Procedure, 1908 (Central Act 5 of 1908) relating to
attachment before judgment under that Code, shall, so far as may be, apply to
any direction for attachment under sub section (1).
55.
Power of authority appointed under Section 50 (Central Act 5 of 1908) :- Every authority appointed under Section 50 shall have all the
powers of a Civil Court under the Code of Civil Procedure, 1908 for the purpose
of taking evidence and of enforcing the attendance of witnesses and compelling
the production of documents, and every such authority shall be deemed to be a
Civil Court for all the purposes of Section 195 and of Chapter XXVI of the Code
of Criminal Procedure, 1973 (Central Act 2 of 1974).
56.
Power of Government to prescribe costs and Court fees for proceedings under
this Chapter :- The Government may prescribe
the scales of costs which may be allowed and the amount of Court fees which
shall be payable in respect of any proceedings under this Chapter.
CHAPTER X
Appointment, Powers and duties of the Chief Inspector and Inspectors
Appointment, Powers and duties of the Chief Inspector and Inspectors
57.
Appointment of Chief Inspector and Inspectors :- The Government may, by notification, appoint a Chief Inspector and
such number of Inspectors as may be necessary for the purposes of this Act and
fix the local limits of their jurisdiction.
58.
Powers and duties of Chief Inspector :- The
Chief Inspector may exercise and perform in addition to the powers and duties
conferred and imposed on him by or under this Act, all the powers and duties of
an Inspector under this Act.
59.
Powers and duties of Inspectors :- An Inspector
may, within the local limits for which he is appointed,
(a) enter at all
reasonable hours with the assistance of such persons in the service of the
Government or any local authority as he thinks fit, any place which is or which
he has reason to believe is used as an establishment;
(b) make such
inspection of the premises and of any registers or other records and take on
the spot or otherwise evidence of such persons, as he may deem necessary in the
manner prescribed;
(c) exercise such
other powers as may be necessary for carrying out of the purposes of this Act.
60.
Chief Inspector and Inspectors to be public servants :- The Chief Inspector and every Inspector shall be deemed to be
public servants within the meaning of Section 21 of the Indian Penal Code.
CHAPTER XI
Penalties for offences
Penalties for offences
61.
Penalties :- (1) Any employer who makes any
false or incorrect statement under Section 3 shall be punishable with fine
which may extend to one hundred rupees.
(2) Any employer
who contravenes any of the provisions of the Sections 3, 4, 5, 7, 9 to 12, 13,
15 to 32; 34 to 47; 49, 68 and 69 shall be punishable for a first offence with
fine which may extend to rupees one hundred, for a second offence with fine
which shall not be less than rupees two hundred and fifty but which may extend
to rupees five hundred and for the third or subsequent offences with
imprisonment for a term which may extend to three months and with a fine which
shall not be less than rupees five hundred but which may extend to rupees one
thousand:
Provided that
where any employer fails to possess a valid certificate of registration in
contravention of the provisions of Sections 3, 4 and 5, he shall, on conviction
be punishable, in the case of a continuing offence with a further fine which
may extend to rupees two hundred and fifty for each day during which the
offence continues.
(3) Whoever
contravenes the provisions of Section 8 shall be punishable for a first offence
with fine which may extend to one hundred rupees, and for second or subsequent
offence with fine which may extend to two hundred and fifty rupees.
(4) Whoever
contravenes the provisions of sub section (2) of Section 48 shall on conviction
be punishable with fine which may extend to rupees fifty for each day during
which the offence continues.
(5) Whoever
contravenes the provisions of sub section (3) of Section 48 shall on conviction
be punishable with a fine which may extend to rupees fifty for each day during
which the offence continues.
62.
Power to compound offence :- The Chief
Inspector may authorise by notification any officer to accept from any person
who is reasonably believed to have committed an offence under Sections 3, 4, 7,
8, 10, 12, 15, 16, 17, 19, 20, 31 and 63 of this Act or the rules made
thereunder a sum of money not exceeding rupees one hundred in case of each
violation by way of compounding such offence. Any proceedings taken against
such person in respect of such offence shall on payment of such money be
withdrawn and no further proceedings shall be taken in respect of such offence.
63.
Penalty for obstructing Inspector etc. :- Any
person who wilfully obstructs an Inspector in the exercise of any power
conferred on him by or under this Act or any person lawfully assisting such
Inspector in the exercise of such power, or who fails to comply with any lawful
direction made by such Inspector, shall be punishable with imprisonment for a
term which may extend to three months or fine or with both.
64.
Procedure in trial of offences :- (1) No Court
shall take cognizance of a complaint against an employer under sub section (2)
of Section 61 relating to deductions from the wages or delay in payment or
wages or service compensation payable under this Act to an emplo yee, unless an
application in respect of facts constituting the offence has been presented
under Section 51 and has been granted wholly or in part and the authority
empowered under the latter section or the appellate authority granting such
applications has sanctioned the making of the complaint.
(2) Before
sanctioning the making of a complaint against the employer for such an offence,
the authority empowered under Section 50 or the Appellate Authority, as the
case may be, shall give such employer an opportunity of showing cause against
the granting of such sanction, and the sanction shall not be granted if such
employer satisfies the authority or Court that his default was due to :
(a) a bonafide
error or bonafide dispute as to the amount payable to the employee; or
(b) the existence
of exceptional circumstances, such that the employer was unable, though
exercising diligence, to make prompt payment; or
(c) the failure of
the employee to accept payment.
(3) No Court shall
take cognizance of a complaint against any person for an offence under Section
61 other than the offence referred to in sub section (1) or for a contravention
of any rule made under Section 71 except on a complaint made by or with the
previous sanction in writing of an Inspector under this Act within six months
from the date on which the offence or contravention is alleged to have been
committed.
(4) In imposing
any fine for an offence referred to in sub section (1), the Court shall take
into consideration the amount of any compensation already awarded against the
accused in any proceedings taken under Section 51.
65.
Bar of suits :- No Court shall entertain any
suit for the recovery of wages or service compensation or of any deduction
therefrom in so far as the sum so claimed
(a) forms the
subject of an application under Section 51 which has been presented by the
plaintiff and which is pending before the authority appointed under Section 50
or of an appeal under Section 53; or
(b) has formed the
subject of a direction under Section 51 in favour of the plaintiff;or
(c) has been
adjudged, in any proceeding under Section 51 not to be owed to the plaintiff;or
(d) could have
been recovered by an application under Section 51.
66.
Contracting out :- Any contract or agreement,
whether made before or after the commencement of this Act, whereby an employee
relinquishes any right conferred by this Act shall be null and void in so far
as it purports to deprive him of such right.
67.
Offences to be tried by Magistrate of Second Class or above :- No Court, inferior to that of a Magistrate of Second Class shall
try any offence punishable under this Act or any rule or order made thereunder.
CHAPTER XII
Miscellaneous
Miscellaneous
68.
Maintenance of registers and records and display of notices, etc., :- (1) Subject to the control of the Government an employer shall
maintain such registers and records and display such notices, as may be
prescribed. All such registers and records shall be kept, and all such notices
shall be displayed on the premises of the establishment to which they relate.
(2) Every employer
shall, on demand produce or cause to be produced for inspection by an inspector
all registers, records, and notices required to be kept by or under this Act.
(3) Every employer
shall submit such returns relating to his business, in such manner, within such
period, and to such authority as may be prescribed.
(4) Every employer
shall give an order of appointment to his employee in the establishment before
such employee joins the service and shall also furnish a copy of such order to
the Inspector having jurisdiction over the area, within three days of issue of
each such order:
Provided that in
case of an employee in the service at the commencement of this Act, the
employer shall give such order of appointment within a period of three months
from the date of such commencement.
69.
Restriction on double employment on a holiday or during leave :- No employee shall work in any establishment nor shall any employer
knowingly permit an employee to work in any establishment on a day or part of a
day on which the employee is given a holiday or is on leave in accordance with
the provisions of this Act.
70.
Delegation of Powers :- (1) The Government may,
by notification, authorise any officer or authority subordinate to them to
exercise any one or more of the powers vested in them by or under this Act,
except the powers mentioned in Section 71 subject to such restrictions and
conditions, if any, as may be specified in the notification.
(2) The exercise
of the powers delegated under sub section (1) shall be subject to control and
revision by the Government or by such persons as may be empowered by them in
that behalf. The Government shall also have power to control and revise the
acts or proceedings of any person so empowered.
71.
Power to make rules :- (1) The Government may
by notification make rules for carrying out the purposes of this Act.
(2) In making a
rule under sub section (1), the Government may provide that a contravention
thereof shall be punishable with fine which may extend to fifty rupees.
(3) The power to
make rules conferred by this section shall be subject to the condition of the
rules being made after previous publication.
(4) Every rule
made under this Act shall, immediately after it is made, be laid before the
Legislative Assembly of the State if it is in session and if it not in session
in the session immediately following, for a total period of fourteen days which
may be comprised in one session or in two successive sessions, and if, before
the expiration of the session in which it is so laid or the session immediately
following the Legislative Assembly agrees in making any modification in the
rule or in the annulment of the rule, the rule shall from the date on which the
notification or annulment is notified have effect only in such modified form or
shall stand annulled, as the case may be so however that any such modification
or annulment shall be without prejudice to the validity of anything previously
done under that rule.
72.
Rights and privileges under other laws etc., not affected :- Nothing in this Act shall affect any rights or privileges which any
employee in any establishment is entitled to, on the date on which this Act
applies to such establishment, under any other law, contract custom or usage
applicable to such establishment, if such rights or privileges are more
favourable to him than those to which he would be entitled under this Act.
73.
Exemption :- (1) Nothing in this Act shall apply to
(a) employees in
any establishment in a position of management and having control over the
affairs of the establishment, whose average monthly wages exceed sixteen
hundred rupees;
(b) establishments
under the Central and State Governments, local authorities, the Reserve Bank of
India, a railway administration operating any railway as defined in Clause (20)
of Article 366 of the Constitution and Cantonment authorities;
(c) establishments
in mines and oil fields;
(d) establishments
in bazars in places where fairs or festivals are held temporarily for a period
not exceeding one month at a time.
(2) Nothing in
Section 7 or Section 15, as the case may be, shall apply to
(a) hospitals or
other institutions for treatment or care of the sick, the infirm, the destitute
or the mentally unfit;
(b) such chemists
and druggists shops as the Government may, by general or special order,
specify;
(c) hair dressing
shops, clubs and residential hotels, educational institutions, hostels attached
to schools or colleges and establishments maintained in connection with the
boarding and lodging of pupils and resident masters;
(d) stalls and
refreshment rooms at railway stations, docks, wharves, ports, airports or but
stands;
(e) establishments
wholly or principally engaged in the sale of ice or aerated waters;
(f) establishments
wholly or principally engaged in the sale of funeral requisites;
(3) Nothing in
Sections 9, 12 or in Section 15 shall apply to
(a) person whose
work is of an intermittent nature such as caretaker, sweeper, travelling staff;
(b) persons
employed for loading and unloading of goods at godowns.
(4) The Government
may, by notification, exempt either permanently or for any specified period,
any establishment or class of establishments, or persons or class of persons,
from all or any of the provisions of this Act, subject to such conditions as
they may deem fit.
(5)
Notwithstanding anything in the foregoing sub section, the Government may, by
notification apply all or any of the provisions of this Act to any class of
persons or establishments mentioned in those sub sections other than those
mentioned in Clause (b) of sub section (1) and modify or cancel any such
notification.
74.
Application of the Workmen s Compensation Act, 1923 :- The Provisions of the Workmen s Compensation Act, 1923 (Central
Act, 1923) and the Rules thereunder shall, so far as may be, apply to every
employee to whom this Act applies.
75.
Protection of persons acting in good faith:- No
suit, prosecution or other legal proceeding shall lie against any person for
anything which is in good faith done or intended to be done under this Act.
76.
Power of Government to suspend provisions of the Act to during fairs and
festivals :- On any special occasion in
connection with a fair or festival or a succession of public holidays, the
Government may, by notification, suspend for a specified period the operation
of all or any of the provisions of this Act, subject to such conditions as may
be specified in such notification.
77.
Application of this Act Co operative Societies :- Notwithstanding any thing in the Andhra Pradesh Co operative
Societies Act, 1964, the Provisions of this Act shall apply to the Co operative
Societies.
78.
Central Act 18 of 1942 not to apply to establishment governed by this Act :- On and from the date on which this Act comes into operation in
respect of an establishment, the Weekly Holidays Act, 1942, shall cease to
apply to such establishment.
79.
Repeal and saving:- With effect on and from the
date on which this Act is brought into force in any area, the Andhra Pradesh
Shops and Establishments Act, 1966, (Act 15 of 1966) as in force in that shall
stand repealed:-
Provided that-
(a) every
appointment, order, rule, notification or notice made, issued or given under
the provisions of the Act so repealed shall, in so far as it is not
inconsistent with the provisions of this Act, be deemed to have been made,
issued or given under the provisions of this Act, unless and until superseded
by any appointment, order, rule, notification or notice made, issued or given
under this Act;
(b) any
proceedings relating to the trial of any offence punishable under the
provisions of the Act so repealed shall be continued and completed as if the
said Act had not been repealed but had continued in operation and any penalty
imposed in such proceedings shall be recovered under the Act so repealed.