st training

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The Tamil Nadu Shops and Establishments act, 1947 and

Rules, 1948

Objects and Reasons for the Enactment

The Weekly Holidays Act, 1942 which was in force was limited in scope as it dealt with

the grant of holidays only and did not contain provisions relating to hours of work,payment of wages, health and safety of persons working in the shops and Establishments.

Therefore, this comprehensive legislation was brought in

Hence, the main purpose of this Act is

To regulate the conditions of work in shops, commercial establishments,restaurants, theatres and other establishments

To regulate the opening and closing hours, daily and weekly working hours,

intervals of rest

To ensure that measures are taken to secure the health of the workers, payment of

wages, etc.

Important Definitions

Shop means the premises where trade or business is carried on or where services arerendered to the customers, and includes store-rooms, godowns, warehouses

Commercial establishment means the premises where advertising, commission,

forwarding, commercial agency is carried on or the clerical department of a factory,Insurance business, business of the Joint Stock company, banking business and any other

activity is carried on

Establishment means a shop or a commercial establishment or a restaurant, an eating

house, a residential hotel, theatre or any place of public amusement

Employer means the owner or the manager, Agent or any other person who has controlover the affairs the establishment

Employed person means the person employed either wholly or principally either in theshop or in the commercial establishment or clerical workers of a factory, etc.

Wages means remuneration capable of being expressed in terms of money as per expressor implied terms of contract and includes bonus and terminal benefit but does not include

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provident fund and pension fund contribution, traveling allowance, amount paid to defray

expenses and gratuity

Day means the period of 24 hours beginning from midnight. However, when a person

works beyond midnight, 24 hours from the beginning from the time when such

employment commences

Applicability

This Act is applicable to all municipal corporations, municipalities and panchayat areas

The Act may be extended to non-panchayat areas, cantonments, Industrial Town areas,etc.

All shops and commercial establishments which have been defined in the foregoing and

also theatres, places of public amusement, restaurants, residential hotels, are covered

under this Act.

Exemption

The government has powers to suspend the provisions of this Act during fairs and

festivals

The Act is not applicable

to persons employed in the positions of management

to persons whose work involve traveling and who work as canvassers or

caretakers subject to the issue of notification

to establishments in mines and oilfields to establishments under the control of state or central governments, local

authorities, RBI, Railways, establishments in bazaars at the time of festivals

which function for 15 days and less, hospitals, chemists and druggists shops,

clubs and residential hotels, hostels, boarding schools, docks, wharves or ports

to establishments which are specifically exempted by the order of the state

government

to the category of persons specifically exempted by the government

Important provisions

No shop or commercial establishment can be opened before or closed after the

time fixed by the state government

No person can be employed for more than 8 hours a day and 48 hours in a week

The spread over shall not exceed 12 hours including the internal of rest of onehour.

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The shops and commercial establishments shall be closed for a day in a week andan additional holiday of half a day can be prescribed by the state government.

Arrangements for proper cleanliness, ventilation, lighting and precautions against

fire shall be made

Provisions regarding leave

o 12 days of SL even in the first year of service shall be given

o 12 days of CL shall be given even in the first year of services shall be

given

o 12 days of PL after one year of service shall be given

o PL alone can be accumulated up to 24 days

o If a person is discharged from service, wages for the unavailed portion of

PL shall be paid

o The state government has the power to increase the no. of holidays

Provisions regarding wages

o The employer shall be responsible for payment of wages

o The employer shall fix the wage period but it shall not exceed one month

o OT wages at the rate of twice the ordinary rate of wages shall be

payable, when OT work is resorted to

o Wages shall be paid within 5 days after the expiry of the wage period

o In the case of termination of service, the wages shall be paid before

the expiry of the second working day

o All payments of wages shall be made on a working day in current

coins or notes or both

Provisions regarding deductions

o Deductions from wages can be effected by way of

Fines

Absence from work

Damage caused or loss to the property of the employer

House accommodation provided by the employer of any

Amenities provided

Recovery of advances or adjustment of over payments

Income tax

As per courts order

PF contribution

Co-operative society

Insurance premium maintained by the post office or the insurance

company

Savings scheme approved by the state government

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Provisions regarding fines

o Fine can be imposed For commission or omission of acts approved by the state

government or Labour commissioner

After exhibiting the approved list of acts and omissions for which

fine may be imposed

After giving the employee an opportunity to show cause or as per

procedures as may be prescribed

But the amount of fine shall not exceed 3 paise for every rupee ofthe wages

and recovered within 60 days from the date of commission /

omission of act

Registers and Records shall be maintained as noted in the ready Reckoner

The rights and privileges to which the employee are entitled as per any other Actshall continue to be operative

Name board of the establishment should contain the Tamil version in a bigger sizeand shall be in the reformed script followed by version in other languages

The state government has the power to exempt establishments , or class ofestablishments, persons or class of persons from all or any of the provisions of the

rules subject to the conditions as may be prescribed

The Inspectors appointed under the Act are public servants as defined under the

IPC and hence no interference be made in discharge of their duties

If the forms maintained under the other Acts contain the same particulars,exemption can be obtained from the labour commissioner

The Maternity Benefit Act, 1961 is applicable to the shops and commercial

establishments

The provisions of the Payment of Wages Act is applicable to the commercialestablishments covered under this Act

Chit fund establishments, banks, dispensaries working in the night, petrol pumps,book stalls in Railway premises, co-operative societies, shops dealing in

vegetables, fish and dairy products, chemists shops, market committees, IDBI

bank, software industries are exempted from some specific provisions of the Act.

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As per the notification, Holidays with wages and Wages provisions of the Act aremade applicable to all employees, including the managerial personnel

The provisions of the Act are made applicable to the persons employed in the

managerial positions

Sec 41 of the Act dealing with the precondition for dismissing the employees and

right to make an appeal to the appellate authority are made applicable to thepersons holding managerial positions

The services of an employee who has completed 6 months of service cannot beterminated except for a reasonable cause after giving one month notice or wages

in lieu of the notice or for commission of misconduct after conducting an enquiry

As penalties are prescribed for contravention of various provisions like opening

before or closing after the prescribed hours, asking employees to work OTexceeding 9 hours on a day or 48 hours in a week, not closing on the weeklyholiday, not making adequate measures to maintain cleanliness, ventilation,

lighting, precautions against fire, not providing leave facilities, not paying for the

eligible leave days, not paying the wages on the fixed day or before, terminating

the employee without the reasonable cause and not giving one month notice orpay in lieu of notice or terminating the services of an employee without

conducting the enquiry and failure to maintain registers and records, preventing

the Inspector from discharging his duties, care should be taken to observe theprovisions.

Ready Reckoner may be referred for statutory compliance under this Act.

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The Apprentices Act, 1961

Objects and Reasons

With the ongoing industrialization and computerization, the positions of skilled and semi

skilled employees, positions of technical and supervisory technical persons and engineers

had grown;

Though several institutes and educational institutions were started to give technical,operational and specialists training to cater to the growing needs of skilled, semi skilled

and technical personnel, specialists and engineers, the need to give them practical andactual working training was felt;

Hence it was thought that industries should be made to impart practical training and meeta portion of the cost of the training since ultimately only the industries are going to be

benefited by the knowledge of such persons, by engaging them;

Hence this Act was brought into statute book in the year 1961.


Apprentice means the person who is undergoing apprentice training

Designated Trade means any trade, occupation in any field of engineering andtechnology or in vocational course, as designated by the central government

Employer means the person who engages persons for remuneration and includes theperson who is entrusted with the supervision and control of the employees in such

establishment

Establishment means where any industry is carried on. All the departments andbranches shall be treated as part of the establishment

Exemption

No exemption from following the provisions of the Act, including the engagement of

apprentices or graduate or technician apprentice or vocational service apprentice ispossible

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Therefore, once the industry has designated trade, apprentices have to be engaged, as per

the terms as prescribed under the Act

Applicability

If the industry has designated trades, which are decided so, by the central government,

the Act is applicable

Authorities under the Act

Apprenticeship Advisor appointed under the state government Trade apprenticesand Vocational Services apprentices under the Act in designated trade come under the

control of state apprenticeship advisor He decides about the number of apprentices to

be appointed in the designated trades, depending upon the number of skilled and

unskilled workers or administrative staff, follows the apprenticeship training and all other

matters arising out of the same

Central Government Apprenticeship Advisor He functions in the areas specifiedabove in respect of graduate and technician apprentices

National Council for Vocational Trades It deals with vocational trades as decided bythe central government

State Council for training in vocational trades It deals with the vocational tradesassigned to be controlled by the state government

All India Council for Technical Education This council decides about the designatedtrades. Once the designated trades are decided in which apprenticeship training is to begiven, either the apprenticeship advisor of the central or state government has to

implement the decision by arranging for apprenticeship training and follow the same in

respect of trade apprentices, or in the vocational trades, the graduate and technicianapprentices.


The persons fit to be engaged as apprentices should possess necessary qualification

prescribed for each trade, vocation, graduate apprentice or technician apprentice and

physical fitness as may be fixed;

The apprentices are to be engaged after the contract is entered into stamp duty

exemption is given to this type of contract

The contract of apprenticeship may be changed from one employer to the other, if either

the first employer or the apprentice is unable to continue the contract and the secondemployer agrees and with the approval of the Apprenticeship Advisor

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The contract may be terminated by either party with the approval of the Apprenticeship

Advisor. If the termination is by the employer, he should pay the compensation to theapprentice whereas if it is by the apprentice, he should pay the cost of training as

determined by the Apprenticeship Advisor

The period of Apprenticeship training may be decided by the authorities under the Act.

The number of apprentices to be engaged by an industry is to be decided based on suchfactors, like the number of persons working in the industry, the totality of the training

facilities etc.,

Related Instructions of the Apprentices is to be arranged in the ITI in respect ofapprentices who have undergone institutional training at ITI since in most industries only

institutionally persons are taken as apprentices

It is the duty of the employer to arrange for imparting the training to the apprentices Itis the duty of the apprentices to learn the trade, attend the related instructions classes and

carry out the lawful orders of the employer and also to carry out the obligations under thecontract

It is the duty of the employer to pay the stipend to the trainees. However, the employercan get 50 % of the stipend paid to the graduate / technician apprentice from the central

Board of Apprenticeship

The employers duties are:

Health, Safety and Welfare of the apprentices should be taken care of as

prescribed in the Factories Act or Mines Act, as the case may be To extend leave as is applicable to the employees of the establishments, to the

apprentices

Should not ask apprentices to work overtime

To pay compensation to the apprentices in case they meet with employment injuryas provided under the WC Act. However, ESI Act is not applicable to the

apprentices

Should maintain records of progress of training of the apprentices in theprescribed form and submit to the Apprenticeship Advisor

He cannot compel the apprentices to work in the establishment after conclusion of

the apprenticeship training

The progress in apprenticeship training of graduate / technician apprentice,vocational apprentice shall be assessed from time to time

To apply the rules and regulations which are applicable to the other employees in

respect of conduct and discipline to the Apprentices also.

Not to apply labour laws since the trainees are not workmen but only apprentices

Any disagreement or dispute between the employer and the apprentice arising out of the

contract of apprenticeship shall be referred to the Apprenticeship Advisor and the

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decision of the Advisor is binding on both the parties. Appeal lies against the decision of

the Advisor to the apprenticeship council within 30 days of the passing of the order by

the Advisor and the decision of the council is final

At the end of the apprentice training, in respect of the trade apprentices, the national

council will conduct a test and on passing the test, certificate of proficiency will be issuedby the council. In respect of graduate, technician and vocational trainees based on the

assessment of the progress done periodically by the employer and after making

independent assessment based on the report of the employer, the Regional Board shallgive the proficiency certificate to such apprentices

Apprenticeship Advisor, Additional, Joint, Regional, Deputy or Assistant Apprenticeship

Advisor appointed under this Act are public servants within the meaning of IPC and theyhave right to enter and inspect the establishments and records. All facilities should be

provided for the same

As penalties can be imposed on the employer for (a) engaging unqualified person asapprentice (b )failing to carry out the terms and conditions of contract of apprenticeship

(c) contravening the provision regarding the number of apprentices to be engaged (d)refusing or neglects to furnish information or return (e) submitting false information

sought or returns (f) refusing to answer any question with respect to the lawful

information or giving false answers (g) refusing / neglecting to allow the inspectingofficials entry, inspection, examination or inquiry (h) asking the Apprentices to work

overtime (i) engaging the apprentices in work not connected to the designated trade,

vocation, training (j) effecting the payment on piece-rate basis and (k) asking the

apprentice to work in an incentive plan, care should be taken to avoid these mistakes /defaults

The statutory obligations to be followed under this Act are noted in the Ready Reckonerwhich may be gone through for taking appropriate action

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The Employment Exchanges (Compulsory notification of

Vacancies) Act, 1959 and Rules, 1960

Objects and Reasons

To know about the employment trend in both public and private sectors

To keep a live register of persons who seek employment and refer their cases to both the

public and private sectors to enable their placement

Towards achieving the above to make the notification of vacancies compulsory


Employee means, any person who is employed in an establishment to do any work for

remuneration

Establishment means, any office or any place where industry, trade, business or

occupation is carried on, whether be in the public or private sector ( the words, Industry,

Trade, Business or Occupation should be interpreted individually without beinginfluenced by other word or words. The term occupation amounts to the meaning of

employment only)

Employer means, any person who employs other persons to do the work of anestablishment

Employment Exchange means the office established or maintained by the Governmentcollection of and furnishing information relating to the job seekers and the vacancies in

the establishments

Unskilled office workmeans daftri or cleaner, Jamedar or orderly or peon, dusting man,bundle or record lifter, process server, watchman, sweeper and any other category as may

be notified by the central government

Exemptions

This Act is not applicable to the vacancies in the

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The Inter-state Migrant Workmen ( Regulation of employment

and conditions of services ) Act, 1979 and Rules, 1980

Objects and Reasons

The system of inter-state migrant labour is exploitative in nature as the workers are sentto far off places in other states and asked to work without giving them adequate leave,

providing health facilities, without fixing working hours and paying them low wages.Such migrant workmen, even if they want to return, they are intimidated not to do so.

To bring an end to this system, 28th Session of Labour Ministers conference in 1976

formed a compact committee and based on their recommendation, this Act has been

passed


The contractor in relation to an establishment means, the person who undertakes to

produce given result for the establishment by employing workmen, whether in the

capacity of independent contractor, agent, employee or otherwise or supplying theworkmen and includes the sub-contractors

Establishment means, any office or department of central government or a local

authority and any place, where any industry, trade, business, manufacture or occupationis carried on

Inter-state Migrant Workman means, any person who is recruited by or through acontractor in one state for working in the establishment of another state either with or

without the knowledge of the principal employer

Principal Employer means, in relation to the factory, the owner or the occupier of thefactory and the Manager nominated as such by the occupier of the factory, and in relation

to the establishment, any person responsible for the supervision and control of the

establishment

Wages will have the meaning assigned to it under the Payment of Wages Act

Workmen will have the similar meaning as found in the Industrial Disputes Act

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Exemptions

The state government for a specific period or periods can exempt a class ofestablishment, class of contractors or a class of inter-state migrant workmen from any or

all of the provisions of the Act or the rules framed thereunder

Applicability

To the establishments which engage five or more inter-state workmen whether in addition

to the engagement of regular workman by the establishment or not and

To every contractor who employs or who had employed 5 or more inter-state workmen

either in addition to the engagement of regular workmen or not.

Important Provisions

The central or state government is the appropriate government as the case may be (For

central government establishments, railways cantonment, major port, wharves and banks,

the central government is the appropriate government and for other establishment, the

state government in which the establishment is situated, is the appropriate government)has to appoint the government officers as the Registering officer with jurisdictional limit.

Registration of the establishment where 5 or more inter state migrant workmen isemployed has to be done by the employer with in the specified to me and in appropriate

cases, the registering officer may extend the to me

The Registering officer, if the application is in order has to register the establishment

with in one month or otherwise return the application. The corrected application has to be

considered and registration has to be done within 15 days of resubmission.

The registration can revoked if it is found that the registration has been obtained by

misrepresentation or suppression of facts of for any other reason and the registration has

become useless or ineffective.

The registration can be suspended while considering the revocation for any reason, by the

registering authority.

No inter state workmen can be employed by the principal employer without getting the

registration certificate. However if the application for registration is pending then theinter state workmen can be engaged.

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The appropriate government has to appoint the Licensing officer with jurisdictional limit

for licensing the contractors.

The contractor has to apply for license to the appropriate Licensing officer, after paying

the license fees and after giving security in specific cases.

On submission of relevant form containing the prescribed particulars along with the

licensing fees, the Licensing officer, if he finds that the application is in order and aftermaking investigation has to issue the license to the contractor for a specific period.

The license has to be renewed for further period by paying renewal fees by the contractor.

The license may be revoked if the application and information furnished are not genuine

or for any other reasons. If the license is proposed to be revoked for any reason as notedabove, till such action is taken, the license may be suspended.

The licensing officer may amend the license.

Appeal against revocation or suspension of registration certificate or license, and againstthe order asking the contractor to provide security lies with the Appellate officer. The

appeal has to be made within 30 days of the passing of the order by the Registration orLicensing officer as the case may be. The appeal has to be disposed of as expediciously

as possible.

Duties of the contractors are as follows:

To furnish the particulars of engagement of inter state workmen within 15 days of such

recruitment in the prescribed form to the appropriate officer of the central or stategovernment as the case may be.

To issue the passbook to the workmen in English and Hindi or in any other language ofthe workmen in the place of Hindi containing the particulars of name and place of the

establishment in which the workmen is employed the period of employment, the

proposed rates and modes of payment of wages, the displacement allowance payable, thereturn fare payable to the workmen on the expiry of his period of employment or return in

other contingencies, deductions made from the wages and any other particulars as may be

prescribed.

To furnish the particulars including the stopping of inter state workman and the fares paid

for his return trip, to the state government authorities to which state he belongs.

The contractor should maintain the said book update and return to the workmen when heleaves the work.

The wages to be paid to the Inter state workmen holidays to be given to them and otherconditions of service shall be the same as that of regular workmen of the establishment.

However the inter state workmen shall not be, in any case paid wages less that wages

fixed under the minimum wages Act.

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The inter state workmen shall be paid displacement allowance which shall be equal to

50% of his monthly wages, subject to a minimum of Rs75P.M.Thus displacement

allowance shall be in addition to the monthly wages and is not liable to be refundable.

Journey allowance, which shall not be less than actual fare, is payable when the inter

state workmen travels to the place of work in another state from his place of his state andvice versa.

The duties of the contractor shall also be as follows;

To ensure regular payment of wages to the interstate workmen.

To ensure equal pay for equal work irrespective of the sex.

To ensure suitable conditions of work to the workmen.

To provide and maintain suitable residential accommodation to the interstate

workmen.

To provide prescribed medical facilities to the interstate workmen free of charge.

To provide the prescribed protective clothing to the workmen.

To report to the specified authorities of the State in which the interstate workmen

works and the State to which he belongs and also to the next of kin of suchworkmen, in case of death.

The contractor shall be responsible for paying wages to the interstate workmen.

The wages shall be paid before the expiry of the prescribed period.

The wages should be paid by the contractor in the presence of the representative

of the Principal employer and such representative should certify the payment of

correct wages.

The Principal employer has the right to deduct the shortfall in wages paid by the

contractor, from out of the amount payable to the contractor.

The displacement allowance payable to the interstate workmen if not paid by thecontractor has to be paid by the Principal employer and deducted from the amountpayable to the contractor by the Principal employer.

Any loan given to the workmen by the contractor or by the Principal employershall be collected before the ending of the term of the workmen and if it is not

discharged before the ending of the period by the workmen it shall get

extinguished and no recovery is allowed from any amount payable to the Inter

state workmen.

The Inspectors appointed under this Act can enter the premises of the

establishment where he has reasons believe that Inter-State Migrant workmen are

engaged, satisfy himself about the observance of the Provisions of the Act,

examine the registers and records required to be kept under the Act, examine anyperson to find out whether he is migrant workman, ask the employer or the

contractor to furnish the relevant information, seize or take copies of registers,

records of wages and exercise such other functions which are necessary for theimplementation of the Act. The person who is asked to give information, record

or documents are to do so obliged.

The provisions of the Industrial Disputes Act relating to the Industrial Disputes

apply in respect of the Industrial Dispute or difference between the Inter-State

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Migrant workmen and the contractor. The dispute is to be raised by the workmen

within 6 months of returning to his state.

Inter-State Migrant shall be deemed to be in service from the time he was taken

by the contractor for employment in an establishment in another state.

As, Penalties are likely to be levied for

Obstructing the Inspector from discharging his duty. Refusing to produce the records or document when asked to do so by the

Inspector.

Contravening of any Provisions or Rules made hereunder, are likely to visited

with stringent punishments, care should be taken to avoid such pitfalls.

The compliances to be done, are noted in the Ready Reckoner which may be

referred for guidance.

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The Equal Remuneration Act 1976 & Rules 1976

Objects and reasons for bringing this enactment

The constitution enshrines the principle of equality of sex.

The equality of sex means that women workers doing the same or similar jobs asdone by men, should be paid the same wages.

The Act aims to provide equal remuneration to the women workers and

prevention of discrimination on the grounds of sex not only in wages but also inthe matters of employment.


The term employer is assigned the same meaning as is given to, in the Payment of

Gratuity Act. The employer in the case of the Central or State Govt., the authorityappointed by the Govt., in the case of local authority the person specifically appointed to

exercise the power of supervision or control of the employees and in other cases who has

the ultimate control over the affairs of the factory or establishment.

Remuneration means basic wages and any additional emoluments whatsoever payable in

cash or in kind, to the employed person in terms of the express or implied terms ofcontract.

Same work or work of similar nature means the work in respect of which the skill,

effort and responsibility required are same when performed under similar workingconditions by both men and women worker.

Words and expressions used in this Act and not defined but defined in I.D. Act shall have

the same meaning so far as this Act is concerned.

Exemptions

The Act shall not apply If special treatment is given to the women under any other Act.

When special provisions are made under any other Act related to the birth orexpected birth of a child and

When terms and conditions relating to retirement, maternity or death, or

retirement, marriage are provided under any other legislation.

When due to special factors, and not due to sex factor, the difference in wages

between male and female workers are to made and approved by the State Govt.

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The statutory compliances to be done are noted in the Ready Reckoner which may be

referred for guidance.

The Tamil Nadu Industrial Establishments (Conferment of

Permanent Status to Workmen) Act 1981 and Rules 1981

Object of the Act and the reasons for bringing this Enactment

Many workers in Industrial establishments are kept on temporary basis for a long timeand on that pretext, such workers are denied various statutory and non-statutory benefits

which are given to the other workers.

Further such workers are given consolidated wages which are far below the occupational

level wages and they are not given Dearness Allowance and other allowances.

Such workers are not given the benefits like payment of festival, cyclone and marriageadvances, payment of ex-gratia over and above the statutory basis, supply of uniforms

and tea etc., and preferential appointments to their children etc.

In order to curb various unfair labour practices and taking in to account the decision

taken in 20th meeting of State Labour Advisory Board, the Govt. of Tamil Nadu decided

to bring in legislation, to confer permanent status to the workers who have worked for480 days in a period twenty four calendar months, in the Industry.


Employer in respect of the factory means, the Manager, so nominated under the

Factories Act and in other Industrial establishments any person responsible to the owner

for supervision and control of the establishment.

Industrial establishment means (i) Factory as defined under the Factories Act (ii)

Establishment as defined under the Tamil Nadu Shops and Establishment Act (iii)Plantation as defined under the Plantations Labour Act (vi) Motor Transport undertaking

as defined in Motor Transport Workers Act (v) Beedi Industrial Premises as defined in

the Beedi and Cigar Workers (Conditions of Employment) Act (vi) CateringEstablishment as defined in the Tamil Nadu Catering Establishment Act and (vii) Any

other establishment which the govt., may by notification declare to be an establishment.

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Workman means the same as defined under the I.D. Act, except those who work in

police and prison service, Managerial Personnel and Supervisors who draw a salary

exceeding Rs.3500 p.m are not workmen within the meaning of this Act.

Exemptions

As noted above the managerial and supervisory personnel who draw a basic salary of

Rs.3500 and above are not covered by this Act.

The workmen employed in an industrial establishment engaged in the construction ofbuildings, bridges, roads, canals, dams and other construction work whether

structural, mechanical or electrical are not covered under this Act.

The Govt., has power to exempt conditionally or unconditionally any employer, orclass of employers or any industrial establishment or class of industrial

establishments from the provisions of this Act.

Applicability

As noted above this Act among other things is applicable to all the factories andestablishments which are not seasonal in character in which 50 or more workers were

employed in any day of the preceding 12 months.

The Act is applicable to the workmen who are employed to do, skilled or unskilled,

manual or technical, or electrical work for hire or reward whether the terms of

employment are express or implied and includes the badli workmen.


Every workman who has completed 480 days of continuous service in 24 calendarmonths in industrial establishments shall be made permanent.

Interruption due to sickness, or authorized leave or an accident or a legal strike or

lock out or any other cessation of work not due to the fault of the workmen, shall beincluded in the said 480 days of continuous work in 24 calendar month in the

Industrial establishment.

The lay off days, leave with wages which the workman have earned in the previous

years, absence due to temporary disablement, maternity leave not exceeding 12 weeksin the case of female workers shall be included in the said 480 days.

The Inspectors appointed under this Act shall have the same powers as is vested withthe Inspectors appointed under other Acts.

The employer of the industrial establishment shall furnish information as is required

to find out whether the provisions of this Act and the Rules framed there under are

followed within 7 days from the date of the request made by the Inspector.

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The registers and records required to be maintained under this Act & Rules shall be in

Tamil or English.

The statutory obligations to be followed are noted in the Ready Reckoner which maybe referred for guidance.

As the employer is liable to be punished for contravention of the provisions, care

should be taken to follow the same.Important Point: This Act is applicable only to the Tamil Nadu State. Similar Act has

been passed in the U.P and Uttaarnchal States. In no other state, similar Act is in force.

The Labour Laws (Exemption From Furnishing Returns and

maintaining Registers by Certain Establishments) Act 1988

Objects of this Act

Small establishments and very small establishments have the statutory responsibility ofmaintaining various Registers and documents, exhibit notices and send returns under

various Acts and Rules framed there under.

The small establishments and very small establishments find it and not expedient to

spend the time in complying with the statutory requirements.

Therefore the Govt., of India brought this enactment to exempt the small establishments

and very small establishments from furnishing returns and maintaining register under

certain labour laws. For the laws not covered under the exemption, the statutorycompliances has to be done.


Scheduled Acts means the Acts noted in the Schedule I which are

The payment of Wages Act

The Weekly Holidays Act

The Minimum Wages Act

The Factories Act

The Plantations Labour Act

The Working Journalists & other Newspapers Employees (Conditions of Service)

and Miscellaneous Provisions Act

The Contract Labour (Regular and Abolition) Act

The Sales Promotion Employees (Conditions of Service) Act

The Equal Remuneration Act

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Small Establishment means an establishment in which not more than 10 and not more

than nineteen persons are employed or were employed in any day of the preceding twelve

months.

Very Small Establishment means the establishment in which more than 9 persons are

employed or were assigned in any day of the preceding twelve months.

Industrial Establishment shall have the meaning assigned to it under the payment of

Wages Act.

The term factory shall have the meaning employed to it under the Factories Act.

The employer means the person as noted in the above said 9 Acts.

Exemptions

No exemption from any of the provisions of this Act is available.

Applicability

It extends to the whole of India.

The Act is applicable to small establishments and very small establishments, as defined in

the foregoing.


It shall be not necessary for the Small Establishment and Very SmallEstablishment, to furnish the returns or to maintain the registers required to be

furnished on maintained under the 9 Acts noted in the foregoing provided,

o A core Return in Form A is submitted.

o Maintain the Registers in Form B, Form C and Form D by the Small

Establishments.

o Maintain the Form E by the Very Small Establishments and provided

further,

o The employer shall issue wage slip prescribed in the Minimum Wages

Rules.

o

The employer shall issue slips relating to the measurement of the workdone by the piece, rated workers under the Payment of Wages Act or

Plantation Labour Act.

The maintenance of registers and submission of returns under this Act willabsolve the employer from complying with the above noted 9 Acts and Rules

framed therein and he will not be liable to be prosecuted for omission or default

under the said 9 Acts.

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As penalty is proposed for contravention of the provisions of the Act, care should

be taken to follow the provisions of the Act.

The statutory compliances to be done as per this Act are noted in the ReadyReckoner which may be referred for reference.

The Tamil Nadu Industrial Establishment ( National &

Festival Holidays Act 1958 and Rules 1959

Objects and reasons for this enactment

The 15th and 16th sessions of standing Labour committee held in 1956 and 1957

respectively, discussed the question of prescribing a uniform code for the workers

relating to the National & Festival Holidays in the private and public sector industrial

establishments. Originally the committee recommended

Though the central government could have brought an Act to fulfill this purpose yet itdecided to ask the state govts to bring in legislation watch its practice and working andthen bring the comprehensive legislation.

But this had never happened and most of the state governments bought in separatelegislation, few incorporated in the shops and Establishments, and few to give 2 paid

National holidays and 5 paid Festival Holidays made the entry in the model standing

orders.

Therefore there is no uniformity either in the declaring of the National Holidays or

Festival Holidays or in the number of Holidays. Some states by way winning the support

of the working class or satisfy a section of population moved, or by ideology, havegranted more holidays on occasions which cannot be strictly treated as the National

Holidays

In Tamil Nadu the Act was brought in the year 1958, bringing in to force the

recommendations of the standing committee of labour.

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Day means 24 hours beginning after midnight

Employee means the person employed for reward, whether in terms be express or

implied, in an industrial establishment to do skilled, unskilled, manual, supervisory,technical or clerical work and includes apprentices.

Industrial Establishment among other things means establishment defined under TamilNadu Shops & Establishments Act and factory as defined under section 2 (m) of the

factories act,

Employee means the person who has ultimate control over the affairs of the industrial

establishment by whatever name he is called.

Wages means the remuneration payable as per the express or implied terms of

employment on fulfillment of the same and includes all allowances, the value of houseaccommodation, supply of light, water, medical attention or other amenities or any

service, or concessional sale of food grains or other articles. But it does not include

Bonus

Contribution paid or payable to the pension fund, provident fund or for the

benefit of the employee under law like ESI contribution. Labour welfare FundAct,

Any gratuity

Any sum paid to the employee to defray special expenses such asreimbursement of conveyance medical, housing etc,

Any traveling allowances

Applicability

The Act is applicable to the industrial establishment ie Factories and shops andcommercial establishments (so far as we are concerned) irrespective of the number of

persons employed.

The rights and privileges under any other act, contract, and usage, if such rights are more

favorable than those provided under this act shall continue to operate.

Exemptions

The Act is not applicable

To persons employed in the positions of management

To persons whose work involve traveling

To the central govt industrial establishments

To the mines or oil fields

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To those establishment or class of establishments, to the persons or to the

class of persons who are exempted by the govt for specific reasons and eitherfor specific period or permanently


National Holidays with wages have to given to all the employees irrespective of

their services with the establishment or Rebublic day, May day, Independence

day, and Gandhi Jayanthi day.

Five festival holidays in consultation with the Trade union if it exists or with the

representatives of the employees and approved by the Inspector, appointed underthis Act, with wages to all the employees who have 30 days of services and more

has to be given.

The employer should display the notices, relating to the holidays allowed as perthe above procedure and send the yearly statement at the appropriate to me.

The employer may ask the employees to work on either the declared, National orFestival Holidays, by sending a notice in the prescribed form asking the employee

to work on such holidays, send a copy of the above said notice to the Inspector

and by allowing a substituted holiday with wages either 3 days before of after theholidays or paying such employees twice the rate of wages.

The Inspector appointed under this Act is public servant within the meaning of

Indian penal code and therefore obstructing the inspector in performing his dutyor refusing of failing to produce any document or giving any false statement is

punishable, therefore the Inspectors should be treated with utmost courtesy and

necessary help should be given to them.

For complying with the statutory obligations relating to the maintenance of

registers, records, exhibiting the notices and sending returns the Ready Reckonermay be referred for guidance.

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The Contract Labour (Regulation and Abolition) Act 197 at

Tamil Nadu Rules 1975

Object and Reasons for this enactment

The Practice of engaging the contract to do the core and non-core jobs of industrial

establishment, govt department is wide spread all over the globe.

This system is used with the objective of reducing the cost of operation, seasonal nature

of employment, short duration of the particular avocation, paying less emoluments to the

contractors than payable to the regular employees denying the benefits to the contract

labour as is available to the regular workers etc.

The international labour organization (ILO) appalled at the status if contract labour

passed a convention that regulatory laws in engaging the contract labour fixing certainacceptable standards of terms of employment and conditions of contract labour and if

possible abolition of contract labour wherever is possible , shall be passed.

India being one of the founding members of ILO promptly enacted this law which mainlydeals with regulation of contract labour in certain categories of establishments and for

abolition of contract labour in certain circumstances and relating to the connectedmatters. Tamil Nadu has brought in the rules in 1975, which is applicable to the industrial

establishments for which Tamil Nadu govt is the appropriate Govt.

Therefore it should be understood that the contract labour system is not abolished andcontract labour system may be abolished only in certain process or operations carried in

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the industrial establishment based on the factors such as perennial nature of jobs whether

it is ordinarily done by the regular workmen in the particular establishment or in similar

establishment or whether it is sufficient to employ regular workmen after following theprocedure, issuing a notification in the official gazette in consultation with the Central or

State Board, as the case may be, and after considering the objections and suggestion may

pass the appropriate order otherwise, stated the Govt. Whether the central or state govtwhichever is the appropriate Govt, considering the various factors, including the financial

and considering the expediency can decide to abolish the contract system only in certain

process or operations and should give cogent and convincing reasons for the same.

In the present days where non-core jobs of industrial establishment and other

establishments are given on contract and couched in the sophisticated language of out-

sourcing, the govts may be hesitating to abolish the contract labour system, since the govtand many industrial establishments will come to a grounding halt if contract labour

system is abolished or attempted to be abolished in toto.

Therefore we have to cope up with the idea that the contract labour system will continueand we as contractors should assiduously follow the various provisions of the Act and

Rules.

Important definitions

Appropriate govt means the Central for which it is the appropriate govt as per the

I.D.Act and in relation to other establishments, the State govt is the appropriate govt.

Since we have taken up the role of contractors for mostly the establishmentsfor which the state govts are appropriate govt, the relevant State Rules are

applicable. In this write up the Tamil Nadu Rules are mainly dealt with as

other State Rules with minor variations will otherwise resemble the TamilNadu Rules.

Contractor is who engages 20 or more contract labour either in one establishment or in

different establishments, for undertaking or for producing given result, or who suppliescontract labour. So our establishment, so far as it relates to wearing the role of contactor

is covered under this Act and Rules framed by the different state govts where the

industrial establishments are situated.

Establishment is defined in wider sense to include the Govt departments or local

authority and any place where industry, trade, business, manufacture or occupation is

carried on.

Contract labour means the person employed in connection with the work of theestablishments when he is hired for such work of the establishments by or through a

contractor either with or without the knowledge of the principal employer.

Any person who is not hired through some intermediary other than the

principal of the establishment, is therefore the contract labour.

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Principal employer means

In respect of Govt departments or local authority the officer authorized toact as principal employer

In a factor the occupier or owner of the factory or when a person has been

named as manager under the Factories Act or.

In any other establishment any person responsible for the supervision andcontrol of the establishment. Therefore if we have the role of contractor in

a factory, the occupier owner or Manger and in respect of the

establishments covered under various State Acts, the Manager is theprincipal employer.

Wages means remuneration paid or payable to the contract labour either in terms ofexpress contract or as per the implied terms of contract with contactor i.e., M/s. ACSL

Ltd . The terms includes bonus but the other usual payment like contribution to pension

or provident fund or any other fund established under law, such as ESI or labour fundetc., reimbursements made or traveling expenses. It must be understood that so far as the

contract labour engaged by ACSL the employer-employee relations exist between ACSLand the contract labour and no such relations exist between the contact labour and the

principal employer.

Workman of the establishments (to which contract labour is supplied by us or work is

carried by engaging our labour) means the (regular) persons employed in or in connectionwith the work of the establishment to do any skilled, semi-skilled, or unskilled, manual

supervisory, technical or electrical work for hire a reward either as per express terms or

implied terms lent does not include managerial supervisory personnel who draw wagesfor more that Rs.500 and an out worker to whom material are given carrying on any

operations connected to the work of the principal employer, inspective of whether such

out-worker does the work in the home or in some premises which is not under the controland management of the principal employer. It must be clearly understood that ACSL as

the contractor does no have anything to do with workman of the principal employer. But

so far as the contract labour engaged by ACSL, ACSL is the principal employer. But at

the same time if ACSL engages sub-contractor then there is no relationship of employer-employee relationship between ACSL and the sub-contract labour even though ACSL

may have to follow the provisions of the Contract Labour (Regulation and Abolition)

Act.

Applicability

The Act is applicable to the establishment which engages 20 or more contract labour,either through one contractor or through more than one contractor.

The Act is applicable to every contractor who employs 20 or more contract labourseither in one establishment or in more than one establishment.

However the Act is not applicable to the establishments where the work is

intermittent or casual nature when work is performed for less than 120 days and is

seasonal in nature when work is not carried for more than 60 days.

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Exemption

The appropriate Govt in the case of emergency only, can exempt an establishment orclass of establishments from all or any of the provisions of the Act for any period or

periods. Otherwise stated the exemption cannot be given on adhoc basis and only in

emergency and for a specifies period and not permanently.


The central Advisory Board shall consist of

Chairman appointed by the central govt.

The chief labour commissioner central

11 members to represent the Govt, the railways, coal industry, mining

industry, the contractors, workman and other interests.

The State Advisory Board shall consist of

The chairman to be appointed by the state govt.

The labour commissioner and

Members not exceeding 11 and not less than 9 to represent the govt, the

industry contractors, the workman and other interests which in the opinion of

the govt ought to be represented.

The conditions of source and procedures to be followed in discharging their

function, the manner of filling the vacancy shall be prescribed by the central

or state govt as the case may be.

The central or state advisory board may form the committees in furtherance tothe achievements of the object of this Act.

All the establishment which are covered under this act have to register the

establishment by following the prescribed procedure, have to amend the registration

certificate when there is change in the particulars already furnished and necessary

fees has to be paid.

The certificate of registration can be revoked, when registration has been

obtained misrepresentation and suppressing material fact or for any other

reasons or when the registration has because useless and ineffective, by theregistration officer after observing the principle of natural justice.

Without the valid registration certificate whether in the original or in the

amended form or after revocation of registration no contract labour shall be

employed by the principal Employer and if he does so he is liable forprosecution and imposition of penalty.

The appropriate govt, central or state, shall appoint licensing officers to givelicense to the contractor who engage 20 or more contract labour ether with the one

employer or with more than one employer.

The contractors who are covered under the Act, in terms of the foregoing shall

take a license for engaging the contract labor and execute the work in

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accordance with the license issued by the licensing officer. The appropriate

govt shall fix the fees payable, deposit amount as security for due

performance of the conditions prescribed.

The license shall have to be amended, if there is change in the material

particulars, by paying the prescribed fees.

The license can be revoked by the licensing officer if (a) the license has beenobtained by misrepresentation or suppression of any material fact (b) or the

license has failed to follow the conditions prescribed in the Act or in the rules

framed thereunder after following the principle of natural justice and withoutfully or partially the security deposit on reasonable grounds.

Appeal against the decision of the registration officer or the licensing officer shalllie to the appellate officer appointed by the appropriate govt within the prescribed

time or within the extended time of the delay or appeal was due to genuine

reasons.

Canteens should be provided by the contractors who engage 100 or more workersand where the work is like to continue for a longer time.

From which date such canteens should function, the standards in respect of

construction, accommodation, furniture, other equipments the food stuffs to be

supplied and the charges which have to be made shall be in accordance with

the rules prescribed by the appropriate govt.

Rest room shall be provided for the stay of the contract labour for halting in the

nights when the work is likely to continue for a long time.

The rest rooms or alternative suitable accommodation should have proper lighting

and ventilation and shall be maintained in clean and comfortable condition.

The contractor should provide

Sufficient whole sum drinking water for use by the contract labour atconvenient places,

Sufficient numbers of urinals and latrines of the prescribed manner at

convenient places which is easily accessible for both male and female workers

separately.

Washing facilities

First Aid Boxes in the presented manner-equipped with prescribed first-aid

materials which are easily accessible during all working hours.

If the contractor fails to provide the above said facilities the principal employer

has to provide the same and in such case deduct the expenses incurred, from theamount payable to the contractor.

The contactor shall be responsible for paying wages to the contractlabour before the expiry of the prescribed period in the presence of the

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st training

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