The SALES PROMOTION EMPLOYEES (CONDITIONS OF SERVICE) ACT, 1976

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22 (2) The Sales Promotion Employees (Conditions of Service) Rules, 1976

THE SALES PROMOTION EMPLOYEES (CONDITIONS
OF SERVICE) ACT, 1976
INDEX
Sections
Introduction
1. Short title, extent, commencement and applicatio n
2. Definitions
3. Power of Central Government to declare certain i ndustries
to be notified industries
4. Leave
5. Issue of appointment letter
6. Application of certain Acts to sales promotion e mployees
7. Maintenance of registers
8. Inspectors
9. Penalty
10. Offences by companies
11. Cognizance of offence
11-A. Effect of laws and agreements inconsistent wi th this Act
12. Power to make rules

22 (2) The Sales Promotion Employees (Conditions of Service) Rules, 1976
THE SALES PROMOTION EMPLOYEES (CONDITIONS OF SERVICE) ACT,
1976
INTRODUCTION
Due to a judgment of the Supreme Court the persons engaged in sales
promotion do not come within the purview of the def inition of “workman” under
the Industrial Disputes Act, 1947 and as such they have no protection regarding
security of employment and other benefits under tha t Act. These persons,
particularly the medical representatives in the pha rmaceutical industry, have
been demanding from time to time that they should b e covered by the Industrial
Disputes Act, 1947. The Federation of Medical Repre sentatives Associations of
India made a petition to the Committee on Petitions (Rajya Sabha). The said
Committee came to the conclusion that the demand of the sales promotion
employees is justified. Keeping in view the recomme ndations of the Committee it
was considered more appropriate to have a separate legislation for governing the
conditions of service of sales promotion employees, instead of amending the
Industrial Disputes Act, 1947 to bring such employe es within its purview.
Accordingly the Sales Promotion Employees (Conditio ns of Service) Bill was
introduced in the Parliament.
STATEMENT OF OBJECTS AND REASONS
As a result of the Supreme Court judgment in the ca se of May and Baker (India)
Limited and their Workmen (1961-II-LLJ. p. 94), the persons engaged in sales
promotion do not come within the purview of the def inition of “workman” under
the Industrial Disputes Act, 1947 and as such they have no protection regarding
security of employment and other benefits under tha t Act. These persons,
particularly the medical representatives in the pha rmaceutical industry, have
been demanding from time to time that they should h e covered by the Industrial
Disputes Act. On a petition made by the Federation of Medical Representatives,
Associations of India, the Committee on Petitions ( Rajya Sabha) in its thirteenth
report submitted on March 14,1972, came to the conc lusion that “the ends of
social justice to this class of people will be met only by suitably amending the
definition of the term ‘workman’ in the Industrial Disputes Act, 1947 in a manner
that the medical representatives are also covered b y the definition of ‘workman’
in the said Act”. The Committee also felt that othe r workers engaged in sales
promotion should similarly be considered as workmen.

22 (2) The Sales Promotion Employees (Conditions of Service) Rules, 1976
2. Keeping in view the justification of the demand of the sales promotion
employees, and the recommendation made by the Commi ttee on Petitions, and
taking other relevant aspect into consideration, it is considered more appropriate
to have a separate legislation for governing the co nditions of service of sales
promotion employees, instead of amending the Indust rial Disputes Act, 1947 to
bring such employees within its purview.
3. The Bill seeks to achieve the above objects. ACT 11 OF 1976
The Sales Promotion Employees (Conditions of Servic e) Bill having been passed
by both the Houses of Parliament received the assen t of the President on 25th
January, 1976. It came into force on 6th March, 197 6 as THE SALES
PROMOTION EMPLOYEES (CONDITIONS OF SERVICE) ACT, 19 76 (11 of
1976).
LIST OF AMENDING ACTS
1. The Sales Promotion Employees (Conditions of Ser vice) Amendment Act,
1982 (69 of 1982).
2. The Sales Promotion Employees (Conditions of Ser vice) Amendment Act,
1986 (48 of 1986).

22 (2) The Sales Promotion Employees (Conditions of Service) Rules, 1976

THE SALES PROMOTION EMPLOYEES
(CONDITIONS OF SERVICE) ACT, 1976 1
(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 Y ear of the Republic of
India as follows;—
1. Short title, extent, commencement and applicati on.— (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 date1 as the Central Government may, by
notification in the Official Gazette, appoint and d ifferent dates may be
appointed for different States.
(4) It shall apply in the first instance to every e stablishment 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 a s 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 employees” means any person by whatever name called
(including an apprentice) employed or engaged in an y establishment for hire
or reward to do any work relating to promotion of s ales or business, or both,
but does not including any such person,—

1 Came into force on 6-3-1976, vide S.O. 176 (E), dated 6th March, 1976.
2 Subs. by Act 48 of 1986, sec. 2, for clause (d) (w.e.f. 6-5-1987).

22 (2) The Sales Promotion Employees (Conditions of Service) Rules, 1976
(i) who, being employed or engaged in a supervisor y capacity, draws wages
exceeding sixteen hundred rupees per mensem; or
(ii) who is employed or engaged mainly in a manager ial or administrative
capacity.
Explanation. — For the purposes of this clause, the wages per mens em of a
person shall be deemed to be the amount equal to th irty times his total wages
(whether or not including, or comprising only of, c ommission) in respect of the
continuous period of his service falling within the period of twelve months
immediately preceding the date with reference to wh ich 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 h ave the meanings
respectively assigned to them in that Act.
3. Power of Central Government to declare certain industries to be notified
industries.— The Central Government may, having reg ard to the nature of
any industry (not being pharmaceutical industry), t he number of employees
employed in such industry to do any work relating t o 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 Govern -ment, are relevant,
declare such industry to be notified industry for the purposes of this Act.
4. Leave.
1[(1)]—In addition to such holidays, casual leave or other kinds of
leave as may be prescribed, every sales promotion e mployee 2[***] shall be
granted, if requested for—
(a) earned leave on full wages for not less than on e-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.

1 Section 4 re-numbered as sub-section (1) thereof by Act 48 of 1986, sec. 3 (w.r.e.f. 8-3-1976).
2 The words “drawing wages (being wages not including a ny Commission)” omitted by Act 48 of
1986, sec. 3 (w.r.e.f. 8-3-1976).
3 Ins. by Act 48 of 1986, sec. 3 (w.r.e.f 8-3-1976).

22 (2) The Sales Promotion Employees (Conditions of Service) Rules, 1976
(3) The limit up to which the earned leave may be a vailed of at a time by a sales
promotion employee and the reasons for which such l imit 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 being
termination as punishment), be entitled to cash com pensation, subject to
such conditions and restrictions as may be prescrib ed (including conditions
by way of specifying the maximum period for which s uch cash compensation
shall be payable), in respect of the earned leave e arned 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 ar e 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 s ales 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 appointment 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 e mployees.— (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.

22 (2) The Sales Promotion Employees (Conditions of Service) Rules, 1976
1[(2) The provisions of the Industrial Disputes Act, 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 i n relation to an industrial
dispute, a sales promotion employee shall be deemed to include a sales
promotion employee who has been dismissed, discharg ed or retrenched in
connection with, or as a consequence of, that dispu te 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.
(4) The provisions of the Maternity Benefit Act, 19 61(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, w omen employed, whether
directly or through any agency, for wages in any es tablishment within the
meaning of that Act.
(5) The provisions of the Payment of Bonus Act, 196 5(21 of 1965), 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.
(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 relation to. employees within the meaning of that Act.
2[(7) Notwithstanding anything contained in the foregoing sub-sections,—
(a) in the application of any Act referred to in an y 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 wag es as computed in
accordance with the provisions of this Act;
(b) where an Act referred to in any of the said sub -sections provides 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

1 On the enforcement of section 24 of Act 46 of 1982, su b-section (2) of section 6 shall stand
omitted.
2 Ins by Act 48 of 1986, sec 4 (w.e.f. 6-5-1987).

22 (2) The Sales Promotion Employees (Conditions of Service) Rules, 1976
to any sales promotion employee whose wages as comp uted in accordance
with the provisions of this Act exceed such ceiling limit.]
7. Maintenance of registers. — Even employer in relation to an establishment
shall keep and maintain such registers and other do cuments and in such
manner as may be prescribed.
8. Inspectors.— (1) The State Government may, by notification in th e Official
Gazette, appoint such persons as it thinks fit to b e Inspectors for the
purposes of this Act and may define the local limit s within which they shall
exercise their functions.
(2) Any Inspector appointed under sub-section (1) m ay, 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 there of to produce before him
for examination any registers and other documents r elating 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 per son found in charge of the
establishment or any premises connected therewith o r any person whom the
Inspector has reasonable 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 regist er 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 India Penal Code. I860 (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) s hall be legally bound to do
so.

22 (2) The Sales Promotion Employees (Conditions of Service) Rules, 1976
9. Penalty.— If any employer contravenes the provisions of secti on 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.
10. Offences by companies. —(1) Where an offence under this Act has been
committed by a company, every person who, at the ti me 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-sectio n shall render any such
person liable to any punishment provided in this se ction, 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-secti on (1), where an offence
under this Act has been committed by a company and it is proved that the
offence has been committed with the consent or conn ivance of, or is
attributable to, any neglect on the part of any dir ector, manager, secretary or
other officer of the company, such director, manage r, secretary or other
officer shall also be deemed to be guilty of such offence a nd 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 ot her
association of individuals; and
(b) ‘’director” , in relation to a firm, means a partner in the firm.
11. Cognizance of offences— (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 un der this Act, unless the
complaint thereof is made within six months of the date on which the offence
is alleged to have been committed.

22 (2) The Sales Promotion Employees (Conditions of Service) Rules, 1976
1[11-A. Effect of laws and agreements inconsistent w ith this Act.— (1) The
provisions of this Act or of any rule made thereund er shall have effect,
notwithstanding anything inconsistent therewith con tained 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, agr eement, 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 prom otion employee shall
continue to be entitled to the more favourable bene fits in respect of that
matter, notwithstanding that he is entitled to rece ive 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 e mployer for granting him
rights or privileges in respect of any matter which arc 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 gene rality of the foregoing power,
such rules may provide for—
(a) the kinds of leave that may be granted to a sal es promotion employee 2[the
limit up to which he may accumulate earned leave, t he 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 subjec t 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 an d maintained under section 7
and the manner in which such registers and other do cuments may be kept
and maintained;
(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

1 Ins. by Act 69 of 1982. sec, 2 (w.e.f. 13-11-1982).
2 Ins. by Act 48 of 1986, sec. 5 (w.e.f. 8-3-1976).

22 (2) The Sales Promotion Employees (Conditions of Service) Rules, 1976
in session, for a total period of thirty days which may be comprised in one
session or in two or more Successive sessions afore said, both Houses agree
in making any modification in the rule or both Hous es 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, ho wever, that any such
modification or annulment shall be without prejudice to the validity of anything
previously done under that rule.

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