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THE SALES PROMOTION EMPLOYEES (CONDITIONS OF SERVICE) ACT, 1976
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ARRANGEMENT OF SECTIONS
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SECTIONS
1. Short title, extent, commencement and application.
2. Definitions.
3. Power of Central Government to declare certain industries to be notified industries.
4. Leave.
5. Issue of appointment letter.
6. Application of certain Acts to sales promotion employees.
7. Maintenance of registers.
8. Inspectors.
9. Penalty.
10. Offences by companies.
11. Cognizance of offence.
11A. Effect of laws and agreements inconsistent with this Act.
12. Power to make rules.
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THE SALES PROMOTION EMPLOYEES (CONDITIONS OF SERVICE) ACT, 1976
ACT NO. 11 OF 1976
[25th January, 1976.]
An Act to regulate certain conditions of service of sales promotion employees in certain
establishments.
BE it enacted by Parliament in the Twenty-sixth Year of the Republic of India as follows:—
1. Short title, extent , commencement and application. —(1) This Act may be called the Sales
Promotion Employees (Conditions of Service) Act, 1976.
(2) It extends to the whole of India.
(3) It shall come into force on such date 1as the Central Government may, by notification in the
Official Gazette, appoint and different dates may be appointed for different States.
(4) It shall apply in the first instance to every establishment engaged in pharmaceutical industry.
(5) The Central Government may, by notification in the Official Gazette, apply the provisions of this
Act, with effect from such date as may be specified in the notification, to any other establishment engaged
in any notified industry.
2. Definitions.—In this Act, unless the context otherwise requires,—
(a) “establishment” means an establishment engaged in pharmaceutical industry or in any notified
industry;
(b) “notified industry” means an industry declared as such under section 3;
(c) “prescribed” means prescribed by rules made under this Act;
2[(d) “sales promotion employee s” means any person by whatever name called (including an
apprentice) employed or engaged in any establishment for hire or reward to do any work relating to
promotion of sales or business, or both, but does not include any such person—
(i) who, being employe d or engaged in a supervisory capacity, draws wages exceeding
sixteen hundred rupees per mensem; or
(ii) who is employed or engaged mainly in a managerial or administrative capacity.
Explanation.—For the purposes of this clause, the wages per mensem of a p erson shall be
deemed to be the amount equal to thirty times his total wages (whether or not including, or
comprising only of, commission) in respect of the continuous period of his service falling within the
period of twelve months immediately preceding t he date with reference to which the calculation is to
be made, divided by the number of days comprising that period of service;]
(e) all words and expressions used but not defined in this Act and defined in the Industrial
Disputes Act, 1947 (14 of 1947), shall have the meanings respectively assigned to them in that Act.
3. Power of Central Government to declare certain indust ries to be notified industries. —The
Central Government may, having regard to the nature of any industry (not being pharmaceutical
industry), the number of employees employed in such industry to do any work relating to promotion of
sales or business or both, the conditions of service of such employees and such other factors which, in the
opinion of the Central Government, are relevant, d eclare such industry to be a notified industry for the
purposes of this Act.
1. 6th March, 1976, vide notification No. S.O. 176(E), dated 6th March, 1976, see Gazette of India, Extraordinary,Part II,
sec. 3(ii).
2. Subs. by Act 48 of 1986, s. 2, for clause (d) (w.e.f. 6-5-1987).
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4. Leave. —1[(1)] In addition to such holidays, casual leave or other kinds of leave as may be
prescribed, every sales promotion employee 2*** shall be granted, if so requested for—
(a) earned leave on full wages for not less than one- eleventh of the period spent on duty;
(b) leave on medical certificate on one -half of the wages for not less than one -eighteenth of the
period of service.
3[(2) The maximum limit up to which a sales promotion employee may accumulate earned leave shall
be such as may be prescribed.
(3) The limit up to which the earned leave may be availed of at a time by a sales promotion employee
and the reasons for which such limit may be exceeded shall be such as may be prescribed.
(4) A sales promotion employee shall,—
(a) when he voluntarily relinquishes his post or retires from service, or
(b) when his services are terminated for any reason whatsoever (not be ing termination as
punishment),
be entitled to cash comp ensation, subject to such conditions and restrictions as may be prescribed
(including conditions by way of specifying the maximum period for which such cash compensation shall
be payable), in respect of the earned leave earned by him and not availed of.
(5) Where a sales promotion employee dies while in service, his heirs shall be entitled to cash
compensation for the earned leave earned by him and not availed of.
(6) The cash compensation which will be payable to a sales promotion employee or, as the case may
be, his heirs in respect of any period of earned leave for which he or his heirs, as the case may be, is or are
entitled to cash compensation under sub -section (4) or sub -section (5), as the case may be, shall be an
amount equal to the wages due to such sales promotion employee for such period.]
5. Issue of appointment letter. —Every employer in relation to a sales promotion employee shall
furnish to such employee a letter of appointment, in such form as may be prescribed,—
(a) in a case where he holds a ppointment as such at the commencement of this Act, within three
months of such commencement; and
(b) in any other case, on his appointment as such.
6. Application of certain Acts to sales promotion employees. —(1) The provisions of the
Workmen’s Compensation Act, 1923 (8 of 1923), as in force for the time being, shall apply to, or in
relation to, sales promotion employees as they apply to, or in relation to, workmen within the meaning of
that Act.
4[(2) The provisions of the Industrial Disputes Ac t, 1947 (14 of 1947), as in force for the time being,
shall apply to, or in relation to, sales promotion employees as they apply to, or in relation to, workmen
within the meaning of that Act and for the purposes of any proceeding under that Act in relation to an
industrial dispute, a sales promotion employee shall be deemed to include a sales promotion employee
who has been dismissed, discharged or retrenched in connection with, or as a consequence of, that dispute
or whose dismissal, discharge or retrenchment had led to that dispute.]
(3) The provisions of the Minimum Wages Act, 1948 (11 of 1948), as in force for the time being,
shall apply to, or in relation to, sales promotion employees as they apply to, or in relation to, employees
within the meaning of that Act.
1. Section 4 renumbered as sub-section (1) thereof by Act 48 of 1986, s. 3 (w.e.f. 8-3-1976).
2. The words and brackets “drawing wages (being wages, not including any commission)” omitted by s. 3, ibid. (w.e.f. 8-3-
1976).
3. Ins. by s. 3, ibid. (w.e.f. 8-3-1976).
4. Sub-section (2) shall stand omitted (date to be notified) by Act 46 of 1982, s. 2.
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(4) The provisions of the Maternity Benefit Act, 1961 (53 of 1961), as in force for the time being,
shall apply to, or in relation to, sales promotion employees, being women, as they apply to, or in relation
to, women employed, whether directly o r through any agency, for wages in any establishment within the
meaning of that Act.
(5) The provisions of the Payment of Bonus Act, 1965 (21 of 1965), as in force for the time being,
shall apply to, or in relation to, sales promotion employees as they app ly to, or in relation to, employees
within the meaning of that Act.
(6) The provisions of the Payment of Gratuity Act, 1972 (39 of 1972), as in force for the time being,
shall apply to, or in relation to, sales promotion employees as they apply to, or in r elation to, employees
within the meaning of that Act.
1[(7) Notwithstanding anything contained in the foregoing sub-sections,—
(a) in the application of any Act referred to in any of the said sub -sections to sales promotion
employees, the wages of a sales promotion employee for the purposes of such Act, shall be deemed to
be his wages as computed in accordance with the provisions of this Act;
(b) where an Act referred to in any of the said sub -sections pro vides for a ceiling limit as to
wages so as to exclude from the purview of the application of such Act persons whose wages exceed
such ceiling limit, such Act shall not apply to any sales promotion employee whose wages as
computed in accordance with the provisions of this Act exceed such ceiling limit.]
7. Maintenance of registers. —Every employer in relation to an establishment shall keep and
maintain such registers and other documents and in such manner as may be prescribed.
8. Inspectors.—(1) The State Go vernment may, by notification in the Official Gazette, appoint such
persons as it thinks fit to be Inspectors for the purposes of this Act and may define the local limits within
which they shall exercise their functions.
(2) Any Inspector appointed under s ub-section (1) may, for the purpose of ascertaining whether any
of the provisions of this Act have been complied with in respect of an establishment,—
(a) require an employer to furnish such information as he may consider necessary;
(b) at any reasonable time enter the establishment or any premises connected therewith and
require any one found in charge thereof to produce before him for examination any registers and other
documents relating to the employment of sales promotion employees;
(c) examine with respect to any matter relevant to any of the purposes aforesaid, the employer,
his agent or servant or any other person found in charge of the establishment or any premises
connected therewith or any person whom the Inspector has reasona ble cause to believe to be or to
have been a sales promotion employee in the establishment;
(d) make copies of or take extracts from any register or other documents maintained in relation to
the establishment under this Act;
(e) exercise such other powers as may be prescribed.
(3) Every Inspector shall be deemed to be a public servant within the meaning of section 21 of the
Indian Penal Code, 1860 (45 of 1860)
(4) Any person required to produce any register or other document or to give information by an
Inspector under sub-section (2) shall be legally bound to do so.
9. Penalty.—If any employer contravenes the provisions of section 4 or section 5 or section 7 or any
rules made under this Act, he shall be punishable with fine which may extend to one thousand rupees.
1. Ins. by Act 48 of 1986, s. 4 (w.e.f. 6-5-1987).
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10. Offences by companies. —(1) Where an offence under this Act has been committed by a
company, every person who, at the time the offence was committed, was in charge of, and was
responsible to, the company for the conduct of the business of the company, as well as the company, shall
be deemed to be guilty of the offence and shall be liable to be proceeded against and punished
accordingly:
Provided that nothing contained in this sub -section shall render any such person liable to any
punishment provided in this section, if he proves that the offence was committed without his knowledge
or that he exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub -section (1), where an offence under th is Act has been
committed by a company and it is proved that the offence has been committed with the consent or
connivance of, or is attributable to, any neglect on the part of any director, manager, secretary or other
officer of the company, such director , manager, secretary or other officer shall also be deemed to be
guilty of such offence and shall be liable to be proceeded against and punished accordingly.
(3) For the purposes of this section,—
(a) “company” means any body corporate and includes a firm or other association of individuals;
and
(b) “director”, in relation to a firm, means a partner in the firm.
11. Cognizance of offence. —(1) No court inferior to that of a Metropolitan Magistrate or a
Magistrate of the first class shall try any offence punishable under this Act.
(2) No court shall take cognizance of an offence under this Act, unless the complaint thereof is made
within six months of the date on which the offence is alleged to have been committed.
1[11A. Effect of laws and agreements inconsistent with this Act.—(1) The provisions of this Act or
of any rule made thereunder shall have effect, notwithstanding anything inconsistent therewith contained
in any other law or in the terms of any award, agreement, settlement or contract of service, whether made
before or after the coming into force of this Act:
Provided that where under any such law, award, agreement, settlement or contract of service, a sales
promotion employee is entitled to benefits in respect of any matter which are more favourable to him than
those to which he would be entitled under this Act, the sales promotion employee shall continue to be
entitled to the more favourable benefits in respect of that matter, notwithstanding that he is entitled to
receive benefits in respect of other matters under this Act.
(2) Nothing contained in this Act shall be construed to preclude a sales promotion employee from
entering into an agreement with his employer for granting him rights or privileges in respect of any matter
which are more favourable to him than those to which he would be entitled under this Act.]
12. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,
make rules to carry out the purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing powe r, such rules may
provide for—
(a) the kinds of leave that may be granted to a sales promotion employee 2[, the limit up to which
he may accumulate earned leave, the limit up to which he may avail of earned leave at a time and the
reasons for which such limit may be exceeded, the conditions and restrictions subject to which he
may be entitled to cash compensation] under section 4;
(b) the form of the letter of appointment to be furnished under section 5;
(c) the registers and other documents to be kept and maintained under section 7 and the manner in
which such registers and other documents may be kept and maintained;
1. Ins. by Act 69 of 1982, s. 2 (w.e.f. 13-11-1982).
2. Ins. by Act 48 of 1986, s. 5 (w.e.f. 8-3-1976).
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(d) any other matter which has to be, or may be prescribed.
(3) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it
is made, before each House of Parliament while it is in session, for a total period of thirty days which may
be comprised in one session or in two or more successive sessions, and if, before the expiry of the session
immediately following the session or the successive sessions aforesaid, both Houses agree in making any
modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter
have effect only in such modified form or be of no effect, as the case may be; so, however, that any such
modification or annulment shall be without prejudice to the validity of anything pr eviously done under
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