The Andhra Pradesh Shops and Establishments Act, 1988.

THE ANDHRA PRADESH SHOPS AND ESTABLISHMENTS
ACT, 1988
Act No. 20 of 1988
ARRANGEMENT OF SECTIONS
SECTIONS
CHAPTER I
PRELIMINARY
1. Short title extent, Commencement and application
2. Definitions
CHAPTER-II
REGISTRATION OF ESTABLISHMENTS
3. Registration of establishments
4. Renewal of Registration Certificate
5. Revocation or Suspension of the Registration Certificate
6. Appeal against re-vocation or suspension of the Registration
certificate
CHAPTER-III
SHOPS
7. Opening and closing hours of shops
8. Selling out side prohibited, before opening and after closing
hours of shops
9. Daily and weekly hours of work in shops
10. Interval for rest
11. Spread over periods of work
12. Closing of shops and grant of holidays
13. Closingof shops in public interest during special occasions
CHAPTER-IV
ESTABLISHMENTS OTHER THAN SHOPS
14. Application of this chapter to establishment to other than shops
15. Opening and closing hours
16. Daily and Weekly hours of work
17. Interval for rest
18. Spread over of periods of work
19. Holidays
CHAPTER-V
EMPLOYMENT OF WOMEN, CHILDREN AND YOUNG PERSONS
20. Children not to work in establishment
21. Special provision for young persons
22. Daily and weekly hours of work for young persons
23. Special Provision for Women
24. Maternity leave
25. Maternitybenefit
CHAPTER-VI
HEALTH AND SAFETY
26. Clean lines
27. Ventilation
28. Precautions for the safely or employees in establishments
29. Maximum permissible land
CHAPTER-VII
LEAVE AND HOLIDAYS WITH WAGES AND
INSURANCE SCHEME FOR EMPLOYEES
30. Leave
31. Other holidays
32. Pay during leave and holidays
33. Power to increase the period of leave allowable under section 30
34. Compulsory enrolment of employees to Insurance-cum-Savings
Scheme
CHAPTER-VIII
WAGES, CONDITIONS FOR TERMINATION OF SERVICES, APPEALS
SUSPENSION AND TERMINAL BENEFITS
35. Responsibility for payment of wages
36. Fixation wage period
37. Wages for over time work
38. Time of payment of wages
39. Wages to be paid in current coin or currency notes
40. Deduction which may be made from wages
41. Fines
42. Deductions for absence from duty
43. Deductions for damage or less
44. Deductions for services rendered
45. Deductions for recovery of advances
46. Deductions for payments to co-operative societies and
insurance schemes,etc.,
47. Conditions for terminating the services of an employee,
payment of service compensation for termination, retirement
registration, resignation, disablement etc., and payment of
subsistence allowance for the period of suspension
48. Appointment of authority to hear and decide appeals arising out
of termination of services
49. 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
50. Appointment of authority to hear and decide claims relating to
wages, etc.
51. Claims arising out of deductions from wages or delay in
payment of wages etc., and penalty for malicious or vexatious
claims
52. Single application in respect of claims from unpaid group
53. Appeal
54. Conditional attachment of property of employer
55. Power of authority appointed under Section 50
56. 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
57. Appointment of Chief Inspector and Inspectors
58. Powers and duties of Chief Inspector
59. Powers and duties of Inspectors
60. Chief Inspector and Inspectors to be public servants
CHAPTER XI
PENALTIES FOR OFFENCES
61. Penalties
62. Power to compound offence
63. Penalty for obstructing Inspector, etc.
64. Procedure in trial of offences
65. Bar of suits
66. Contracting out
67. Offences to be tried by Magistrate of second class or above
CHAPTER XII
MISCELLANEOUS
68. Maintenance of registers and records and display of notices, etc
69. Restriction on double employment on a Holiday or during leave
70. Delegation of powers
71. Power to make rules
72. Rights and privileges under other laws etc., not affected
73. Exemption
74. Application of the Workmen's Compensation Act, 1923
75. Protection of persons acting in good faith
76. Power of Government to suspend provisions of the Act during
fairs and festivals
77. Application of this Act to Co-operative Societies
78. Central Act 18 of 1942 not to apply to establishments governed
by this Act
79. Repeal and Saving
THE ANDHRA PRADESH SHOPS AND ESTABLISHMENTS ACT, 1988
Act No. 20 of 1988
(26th  July, 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 of the follows:-
CHAPTER I
PRELIMINARY
1. Short title, extent Commencement and application - (1) This Act may be
called the 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
ancillary 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) ‘dependent’ 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 purposes of this Act;
(11) ‘factory’ means factory within the meaning of the Factories Act,
1948;
(12) ‘Government’ means the State Government;
(13) ‘Inspector’ means an Inspector appointed under section 57;
(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  establishments  under this Act;
(19) ‘registration certificate’ means a certificate issued under this Act;
(20) ‘service compensation’ means the service compensation payable
under section 47;
(21) ‘shop’ means any premises where any trade or business is carried an
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 a 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 the 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
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 Certificate - (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 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
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)      News papers;
(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.
1[(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 the following limitations:
  (i)  The total number of hours of work, including overtime, in any day
shall not exceed twelve;
  (ii)  The spread over, inclusive of intervals of rest, shall not exceed
thirteen hours in any one day;
  (iii)  The total number of hours of work in any week, including overtime,
shall not exceed sixty two;
   (iv) No employee shall be allowed to work overtime, for more than seven
days at a stretch;
1.  Substituted by the Act No. 36 of 2018, S.2
  (v)  The total number of hours of overtime work in any month shall not
exceed fifty.
Explanation: for the purpose of this sub-section ‘Month’ means
Calendar month.]
(3)1[XXXX]
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 over-time 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 - In
addition to the holidays mentioned in section 12, the Chief Inspector may, by
notification and with the previous approval of the Government, require in
1. Omitted by the Act No. 36 of 2018, S.2.
respect of any specified class of shops that they shall be closed on any specified
day or days in the public interest.
CHAPTER-IV
ESTABLISHMENT OTHER THAN SHOPS
14. Application of this chapter to establishments to 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 purposes 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 fortyeight hours in any week.
(2) 1 [Any employee may be 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 the following limitations:
  (i)  The total number of hours of work (including overtime), in any day
shall not exceed twelve;
  (ii)  The spread over, inclusive of intervals of rest, shall not exceed
thirteen hours in any one day;
  (iii)  The total number of hours of work in any week, including overtime,
shall not exceed sixty two;
   (iv) No employee shall be allowed to work overtime, for more than seven
days at a stretch and the total number of hours of overtime work in any month
shall not exceed fifty hours.
Explanation: for the purpose of this sub-section ‘Month’ means Calendar
month.]
(3)2[XXXX]
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 wages.
1 . Substituted by the Act No. 36 of 2018, S.3.2 . Omitted by the Act No. 36 of 2018, S.3.
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 afternoon 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 non the less 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
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 any 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 –1[No Woman employee shall be required or
allowed to work  in any establishment before 6-00 a.m. and after 8-30 p.m.:
Provided that the women employees may be required or allowed to work
between 8.30 p.m. and 6.00 a.m. in any establishment in which adequate
safety security measures and other safeguards as my be prescribed by the
State Government are provided. The safety and security measures shall include
provision of shelter, rest rooms, lunch rooms, night crèches and ladies, toilets,
adequate protection of their privacy, dignity, honour and safety, protection
from sexual harassment, employment of at least five (5) women employees
together and their transportation between factory premises and the doorstep of
their residence:
Provided further that the above relaxation shall not be allowed to a
woman employee during a period of sixteen (16) weeks before and after her
childbirth, of which at least eight (8) weeks shall be before the expected
childbirth, and for such additional period, if any, as specified in the medical
certificate stating that it is necessary for the health of the woman employee or
her child].
1 . . Substituted by the Act No. 36 of 2018, S.4.
24. Maternity leave - The periods of absence from duty in respect of which a
women employee is entitled to maternity benefit under section 25, shall be
treated as authorised absence from duty, and the women 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 the 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 thereof.
CHAPTER-VI
HEALTH AND SAFETY
26. Clean lines - 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
Government, may, by notification, specify, such precautions against fire shall
be taken as may be prescribed.
(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) and (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-Saving 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 installments 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
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 over time 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 and in respect
of work in excess of eight hours a day and forty eight hours a week at twice the
ordinary rate of 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 purposes 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 all
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 day 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 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
realisations 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 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 less - (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 shah 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 installments 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, 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 service 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
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 a 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 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 subsistence 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 bey

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