The JHARKHAND SHOPS AND ESTABLISHMENT LAWS

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JHARKHAND SHOPS AND
ESTABLISHMENT LAWS

THE BIHAR SHOPS AND ESTABLISHMENTS
ACT, 19531
[Bihar Act VIII of 1954]
S.O No. 2/SEA (LC) 501/2001 L&T-2870, dated 14th November, 2002.
- In exercise of the powers conferred by Section 85 of the Bihar Reorganisati on Act, 2000,
the Government of Jharkhand do hereby adapt “The Bihar Shops and Establishment Act,
1953. The Bihar Shops and Establishment Rules, 1955” (hereinafter referred as the said
Rules) with the following amendments:-

1. In the said Rules wherever the word “Bihar” is mentioned to the word “Jharkhand”
shall be deemed to have been substituted.
2. Hereinafter the said Rules shall be known as “The Jharkhand Shops and Establishment
Rules, 2001”.
Note.- Though the Act has been adapted vide Notification S.O. No. 2/SEA (LC)
501/2001-L&T 2870, dated 14 th November, 2002 but the word “Bihar” and the year
“1953” of the title of the Act have not seen changed.

An Act to provide for the Regulation of conditions of work and employment in
shops and other establishments and for certain other purposes.

Whereas it is expedient to provide for the regulation of conditions of work and
employment in shops and other establishment and for certain other purposes
hereinafter specified.

An Act to provide for the Regulation of conditions of work and employment in shops
and other establishments and for certain other purposes.
Whereas it is expedient to provide for the regulation of conditions of work and
employment in shops and other establishment and for certain other purposes hereinafter specified.

1. It received the assent of the President on 17.3.1954 and is in force from 15.2.1955 vide
notification no. 1/S6-108.55L-1794 L dated 15.2.195

CHAPTER I
Preliminary.

1. Short title, extent and commencement. – (1) This Act may be called the
Bihar Shops and Establishments Act, 1953.
(2) It extends to the whole of the State of Bihar.
(3) It shall come into f orce on such date as the State Government may, by
notification appoint and different dates may be appointed for different
provisions of this Act or for different areas or for different classes of shops or
establishments.
(4) It shall apply, in the first instance, to the local areas comprised within a
municipalit y, notified area or a municipa l corporation constitute d and
established under any law for the time being in force, relating to municipalities and to
any mining settlement for which a Mines Board of Health has been established
under section 5 of the Bihar and Orissa Mining Settlements Act,
1920 (B. & O. Act IV of 1920).

2. Definitions. In this Act, unless there is anything repugnant in the subject or context –
(1) “Apprentice” means a person, aged not less than twelve years, 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;
(1A) “child” means a person who has not completed the age of fourteen years;
(2) “closed” means not open for the service of any customer to any business connected with the
establishment;
(3) “day” means a period of twenty-four hours beginning at midnight:
Provided that, in the case of an employee whose hours of work begins before and extend
beyond midnight, day means a period of twenty-four hours beginning at the hour his
work commences;
1[(4) “employee” means a person wholly or partially employed 2[whether directly or otherwise
for hire, wages including salary, reward, or commission 3[payable on permanent,
periodical, contract, piece r ate or other consideration in and in connection with any
establishment and includes ‘apprentice’ but does not include member of the
employer’s family. It also includes person employed in a factory who are not worker
within the meaning of the Factories Act, 1948 ( 63 of 1948), and for the purpose of
proceeding under this Act, include an employee, who has been dismissed, discharged or
retrenched for any reason whatsoever;
(5) “employer” means a person who owns or exercise ultimate control over the affairs of an
establishment and includes a manager, a gent or any other person in the immediate
charge of the general management or control of such establishment;

1. Subs. by Act 2 of 1975.
2. Inserted between the words “employed” and “for hire, wages” by amendment act of 2013
3. Inserted between the words “commission” and “in” by amendment Act of 2013

1 [(6) “establishment” means an establishment which carries on any business, trade or
profession or any work in connection with, or incidental or ancillary to any
business, trade or profession and includes —
(i) administrative or clerical service appertaining to such establishment;
(ii) a shop, restaurant, residential hotel, eating house, theatre or any place of public
amusement or entertainment; and 2[a society Registered under Societies Registration Act,
1860 (xxi of 1860) charitable or other trust, whether registered or not which carries on any
business, trade or profession or work in connection with or incidental or ancillary there to,
journalistic establishments, contractors or auditors establishments, educational or other
institutions run for private gain and premises in which business of banking, insurance, stocks
and shares brokerage or produce exchange is carried on.
(iii) such other establishment as the State Government may, by notification,
declare to be an establishment to which the Act applies; but does not include a
‘motor transport undertaking’ as defined in clause (g) of section 2 of the Motor
Transport Workers Act, 1961 (27 of 1961)].
(7) “family” in relation to an employer means the husband or wife, child or children, father
or mother, brother or sister, brother’s son, sister’s son, daughter’s son and son’s son of
such employer living with him and dependent on him;
(8) “holiday” means a day on which an establishment shall remain closed or on which an
employee shall be given a holiday under the provisions of this Act;
(9) “Inspecting officer” means an Inspecting Officer appointed under sub-section (1) of
section 29 and includes the Chief Inspecting Officer, Additional Inspecting Officer
and ex-officio Inspecting Officer appointed under or referred to in that section;
(10) “Leave” means leave provided for in Chapter IV of this Act;
(10A) “Opened” means opened for the service of any customer or for any business
connected with the establishment;
(10B) “Period of work” means the time during which an employee is at the disposal of the
employer;
(11) “Prescribed” means prescribed by rules made under this Act;
(12) “Residential hotel” means any premises used for the reception of guests travellers
desirous of dwelling or sleeping therein and includes a club;
(13) “Restaurant” or “eating house” means any premises in which is carried on wholly or
principally the business of the supply of meal or refreshments to the public or a class of
the public for consumption on the premises;
(14) “Retail trade, or business” includes the business of a hawker, hairdresser, the sale of
cooked food, refreshments or intoxicating liquors and retail sale by auction;
(15) “Schedule” means the Schedule appended to this Act;
(16) “Shop” means any premises where goods are sold, either by retail or wholesale or where
services are rendered to customers and includes an office, store-room, godown,
warehouse and work place, whether in the same premises or elsewhere, used in
connection with such sales or services, but does not include a restaurant, a residential
hotel, eating house, theatre or other place of public amusement or entertainment;

1. Subs. by Act 2 of 1975.
2. Inserted by Amendment Act of 2013.

(17) “Spread over” means the period between the commencement and the termination of an
employee on any day;
(18) “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 performance, or any other public amusement or entertainment;
(19) “Wage period” in relation to the payment of wages of any employee, means a wage
period fixed by an employer under section 20 in respect of such employee;
(20) “Wages” means wages as defined in the Payment of Wages Act, 1936 (IV of
1936) and includes the dearness allowance as the workman is for the time being entitled
to;
(21) “Week” means a period of seven days beginning at midnight of Saturday;
1(21A) “Year” means a year commencing on the first day of January, and
(22) “Young person” means a person who is not a child and has not completed the age of
eighteen years.

3. Reference to time of day. — References to the time of day in this Act are reference to the
Indian Standard Time , which is five and a half hours ahead of Greenwich Mean Time.
4. Exceptions.— (1) The provisions of this Act shall not apply to any precinct or
premises of a mine as defined in clause (j) of section 2 of the Mines Act, 1952 (XXV of
1952).
(2) Notwithstanding anything contained in this Act, the provisions thereof specified in the
third column of the Schedule shall not apply to the establishment, employees and other persons
referred to in the corresponding entry in the second column:
Provided that the State Government may, by notification, add to , omit or alter any of the
entries in the Schedule in respect of one or more areas of the State and on the publication of
such notification, the entries in either column of the Schedule shall be deemed to be amended
accordingly.
5. Rights and privileges under other laws, etc. not affected. — Nothing in this Act
shall affect any right or privilege to which an employee in any establishment is entitled, at the date
on which this Act applies to such establishment, under any other law for the time being in force, or
under award , agreement contract , custom or usage applicable to such establishment, if such
right or privilege is more favourable to him than any right or privilege conferred upon him by this
Act.

1. Ins. by Act 12 of 1961.

CHAPTER II
Establishments

1[6. Registration of establishments and renewal thereof.—The State Government may
make rules requiring the registration of establishment or any class of establishments or renewal
thereof and prescribing manner and the fees payable for such registration or renewal.]

7. Opening and closing hours of establishments.— 2(1) ) No establishment shall on any
day be opened earlier than 8 A.M. and closed later than 10 p.m. :
Provided that any customer who was being served or was waiting to be served at
such closing hour in any establishment ma y be served in such establishment during the
quarter of an hour immediately following such hour.]
(2) The State Government may, by notification, after the opening or closing hours for
different establishments or for different areas or for different periods of the year.
(3) When they are conducted in an establishment two or more trades or business, any or
which is of such a character that, if it was sole trade or business, therein conducted, the provisions
of this section would not apply to that establishment shall, so far the conduct of that trade or
business is concerned, be exempt from the operation of this section.

1. Subs. by Act 2 of 1975.
2. Subs. by Amendment Act of 2013.

1[8. Prohibition of sales before opening and after closing hours. — Save as
otherwise provided in this Act, or under any other enactment, no person shall carry on the sale of
any goods in any place, whether a shop or not, before the opening or after the closing hours fixed
under section 7 :
Provided that nothing in this section shall apply to hawkers on footpath or market street
upto 11 P.M.
Provided that nothing in this section shall apply to the hawking of the newspapers.]
2 [9. Hours of work in establishments.— No employee in any establishment shall be
required or allowed to work in such establishment for more than 9 hours in a day and or more than
48 hours in a week, exclusive of interval allowed for rest or for meals which together shall not
be less than one hour in any day :
3[ “ Provided that during any period of stock taking or making of accounts or any other
purpose as may be prescribed any person other than a child or a young person, may be allowed or
required to work a such establishment for any period in excess of hours fixed under this section
subject to payment of overtime wages at the rate fixed in section 21, but total hours of overtime
work shall not exceed 50 hours of overtime in a month.”
Provided further that advance intimation of at least 3 days in this respect has been given in
the prescribed manner to the Chief Inspector or any other officer authorised by the State
Government. ]
4[10. Interval for rest.—No employee in any establishment shall be required or allowed
to work in such establishment for more than five hours continuously in any day unless he has had
an interval for rest of at least half an hour:
Provided that there shall not be more than one such interval for rest during the whole of the
working period of any employee on any day.]

1. Subs. by Act 2 of 1975.
2. Subs. by Act 2 of 1975.
3. Subs. by Act of 2018.
4. Subs. by Act 2 of 1975.

11. Spreading of periods of work.—The periods of work and intervals of rest of an employee in
an establishment shall not be together spread over more than —
(i) in the case of child, eight hours in any day;
(ii) in the case of a young person, ten hours in any day;
1[(iii) in the case of any other employee, twelve hours in any day. ]
12. Weekly holidays in establishments.— 2[xxx]
(4) Every employee in an establishment shall be allowed in each week holiday of one
whole day:
2[xxx]
(5) No deduction shall be made from the wages of any employee in an establishment on
account of any day on which it has remained closed as a holiday under sub-section (1) or on which
an employee has been on his weekly holiday under sub-section (2) and if an employee is
employed on daily wages, he shall nonetheless be paid the daily wages of the day on which such
establishment remains closed or on which the employee is on his weekly holiday unless he is absent
on the day preceding such day.)
3[12A. Other holidays.—Every employee in an establishment shall be allowed— (a) a holiday
on full pay on the Independence Day, the Republic Day and
Mahatma Gandhi’s Birthday each year; and
(b) such other holidays on full pay upto five days in a year, in connection with such
festivals as the State Government may declare from time to time under this Act:
Provided that an employee required to work on any such holiday shall be paid
remuneration at double the rate of his normal wages calculated by the hour.

4[12B. Every employee to be furnished with service card.— Every employee in an
establishment shall be furnished by his employer with a service card in such form as may be
prescribed.

1. Ins. by Act 2 of 1975.
2. Sub-Sections (1), (2), (3) and proviso of sub-section (4) of Section 12 repealed by
Amendment Act of 2013.
3. Ins. by Act 2 of 1975.
4. Renumbered by Act 2 of 1975.

CHAPTER III
Employment of children and young persons

13. No child to work in an establishment.—No children below the age of 1[fourteen years shall
be required or allowed to work as an employee in any establishment to which this Act applies.
2[14. Young person and women.— No young person or women shall be required or allowed to work
whether as an employee or otherwise in any establishment to which this Act applies before 8 A.M. or
after 10 P.M.
3[“ Provided that if the State Government is satisfied owing to the nature of work carried on or
other circumst ances, that it is unreasonable to regulate the periods of work of any women
employee, it may by written order relax or modify the above provisions for particular
establishment/category of establishments.
Provided further that before passing any order safe ty and welfare issues of women
employee shall be kept in mind.”
15. Daily and weekly hours of work for young persons.—(1) Notwithstanding anything
contained in this Act—
(a) no 4[xxx] young person shall be allowed to work as an employee in any
establishment to which this Act applies for more than —
(i) 5[xxx]
(ii) seven hours in any day or forty-two hours in any week in the case of a young
person;
(b) no 4[xxx] young person shall be required or allowed to work in such
establishment for more than four hours continuously in any day unless he has an
interval for rest and meals of at least one hour.
(2) 5[xxx]
CHAPTER IV
Leave with wages.
16. Annual leave with wages.—(1) Every employee who has worked for two hundred and
forty days or more in an establishment during a calendar year and who has not been involved in an
illegal strike, shall be allowed, during the subsequent calendar year, leave with wages for a
number of days calculated at the rate of –
(i) 6[xxx]
(ii) 6[xxx] one day for every twenty days of work performed by him during the
previous calendar year.
Explanation.—For the purpose of this sub-section—
(a) any day of lay off, by agreement or contract or as permissible under the
standing orders and any days of lock-out;
(b) in the case of a female employee, maternity leave for any number of days not
exceeding twelve weeks; and
(c) the leave earned in the year prior to that in which the leave is enjoyed;
shall be deemed to be days on which the employee has worked in an establishment for the purpose
of computation of the period of 240 days or more, but he shall not earn leave for these days.

1. Subs by the word “fourteen” in place of “twelve” by Amendment Act of 2013.
2. “Section 14” Subs. by ibid.
3. substituted by act of 2015.
4. Words “child or” repealed by Amendment Act of 2013
5. Sub-Section (i) of Section 15(1)(a) and Sub-Section (2) repealed by ibid.
6. Clause (i) of Sub-Section (1) of Section (16) and Words ‘in any other case’ used in clause (ii) deleted by Act 25
of 2013.

(2)(i) The leave admissible under this sub-section shall be exclusive of all holidays whether
occurring during or at either end of the period of leave.
(ii) An employee whose service commences, otherwise than on the first day of January
shall be entitled to leave with wages at the rate laid down in clause (i) or as the case may be, clause
(ii) of sub-section (1) if he has worked for two third of the total number of days in the remainder
of the calendar year.
(3) An employee who has been employed for a period of not less than one hundred and
twenty days shall be entitled to leave with wages at the rate prescribed in clause (i) or clause (ii)
of sub-section (1), as the case may be, if the ratio of the number of days of his employment is not
less than the ratio which 240 bears to 365, and the employer shall pay to him the amount payable
under section 17 in respect of the leave with wages to which he is deemed to have become entitled.
(4) In calculating leave under this section, fraction of leave of half-a-day or more shall
be treated as one full day’s leave, and fraction of less than half-a-day shall be omitted.
(5) If an employee does not in any one calendar year take the whole of the leave allowed to
him under sub-section (1) or sub-section (2), as the case may be, any leave not taken by him shall
be added to the leave to be allowed to him under that sub-section in the succeeding calender year :
1[Provided that the total number of days of leave that may be ca rried forward to a
succeeding year shall not exceed forty-five days.]
2[xxx]
(6) An employee may at any time apply in writing to the employer, not less than fifteen
days before the date on which he wishes his leave to begin, to take all the leave or any portion
thereof allowable to him during that calendar year under sub-section (1) or sub- section (3), as
the case may be:
Provided that the number of installments in which the leave is proposed to be taken shall
not exceed three.
(7) An application for leave which does not contravene the provisions of sub-section
(6) shall not be refused without sufficient cause to be recorded in writing:
Provided that an employee aggrieved by such refusal may appeal in the prescribed manner
to the prescribed authority who shall, if he is satisfied after hearing the parties that such refusal
was without sufficient cause, award such compensation to the employee as such authority may
consider fair and equitable.
3[(8) When earned leave is refused to an employee having to his credit such leave for forty-
five days, he shall be entitled, in respect of the period covered by the refusal, to an amount
which would have been payable to him as wages for the period in case he had been on leave during
that period. The amount payable under this sub-section shall he in addition to the normal wages
payable for the period.
On an employee receiving the said amount the leave to his credit shall be reduced by the
number of days in respect of which such amount is received.]

1. Subs. by Act 2 of 1975.
2. Second proviso omitted by ibid.
3. Ins. by Act 2 of 1975.

1[(9) If the employment of an employee who is entitled to leave under sub-section (1) or
sub-section (2), as the case may be, is terminated by the employer before he has taken the entire
leave to which he is entitled or if, having applied for and having not been granted such leave, he
quits his employment before he has taken the leave, the employer shall pay him the amount
payable under section 17 in respect of the leave not taken, and such payment shall be made before
the expiry of the second working day after the day on which his employment is terminated and
to an employee who quits his employment on or before the next pay day.
Explanation 1.— “Illegal strike” means strike which is held by the State Government to be
illegal within the meaning of section 24 of the Industrial Disputes Act, 1947 (XIV of
1947), or of any other law for the time being in force relating to industrial disputes.
Explanation 2.— “Calendar year” shall mean a year from the first day of January to the
thirty-first day of December.
(10) If an employee wants to avail himself of the leave with wages due to him to cover
a period of illness, he shall be granted such leave if the application for leave is not made within
the time specified in sub-section (6) and in such a case wages as admissible under section 16
shall be paid not later than fifteen days.
(11) The unavailed leave of an employee shall not be taken into consideration in
computing the period of any notice required to be given before discharge or dismissal.]
2[16A. Other kinds of leave.— (1) Every employee in an establishment shall in
addition to the leave admissible under section 16, be entitled to —
(a) Casual leave with full pay for 12 days in a Calendar year; and
(b) Sick leave on half pay for 12 days in a Calendar year on production of a medical
certificate :
Provided that the casual leave or the sick leave shall not be accumulative.
(2) Care-takers, guards and watch men, who have been in continuous employment of a
period of 12 months or more shall, beside being entitled to leave provided for in section
16, and sub-section (1) of this section, be entitled to 45 days leave with full pay for every
completed 12 months of continuous service.
17. Wages during leave period.— (1) For the leave allowed to him under section
16, an employee shall be paid at a rate equal to the daily average of his total full time
earnings, exclusive of any overtime earnings and the yearly bonus, but inclusive of attendance bonus,
efficiency bonus and other incentive bonuses and dearness allowance and the cash equivalent of
any advantage accruing by the sale of foodgrains and other articles at concessional rates, for
the days on which he worked during the month immediately preceding his leave.]
(2) The State Government may prescribe —
(a) the manner in which the cash equivalent of the advantages accruing through the
concessional sale to employees of foodgrains and other articles shall be calculated;
and
(b) the registers that shall be maintained in an establishment for the purpose of
securing compliance with the provisions of this section.
2[(3) An employee proceeding on earned leave shall on demand be given advance
payment of the wages for half of period of leave and the wages for the wage period

1. Sub-secs. 8, 9, 10 re-numbered as sub-secs. 9, 10, 11 by ibid.
2. Ins. by Act 2 of 1975.

immediately preceding such leave. The wages for the remaining half period of such leave shall be
payable to him alongwith wages for the first wage period after he resumes duty. The wages for the
period of sick leave shall be payable to the employee alongwith his wages for the first wage period
after he resumes duty.
1[18. Power to increas e the amoun t of leave.— Notwithstandin g anything
contained in sections 16 and 16A, the State Government may by notification increase the total
amount of leave and the minimum number of days up to which such leave may be accumulated
in respect of such establishments or class of establishments as may be specified in the notification.
18A. Power to exempt establishment.—Where the State Government is satisfied that the
leave rules applicable to employees in an establishment provide benefits which in its opinion are
not less favourable than those for which this Chapter makes provision, it may by written order,
exempt the establishment from all or any of the provisions of this Chapter subject to such
conditions as may he specified in the order.

CHAPTER V
Wages.

19. Responsibility for payments of wages.— Every employer shall be responsible for the
payment to his employees of all wages required to be paid under this Act.
20. Fixation of wage period.— (1) Every employer shall fix period in respect of which
such wages shall be payable.
(2) No wage period shall exceed one month.
21. Extra pay for overtime.— (1) Where an employee is required to work in an
establishment for more than nine hours in any day or for more than forty-eight hours in any week,
he shall be entitled in respect of the overtime to wages at the rate which shall be twice the ordinary
rate of his wages.
Explanation.— For the purpose of this section, the expression “ordina ry rate of
wages”, in relation to an employee means the basic rates of wages and such allowances as the
employee is for the time being entitled to but does not include a bonus.
(2) The State Government may prescribe the registers that shall be maintained in an
establishment for the purpose of securing compliance with the provision of this section.

22. Payment, when to be made.—An employee, who has been allowed leave for not
less than five days in the case of a child and four days in any other case, shall before his leave
begins, be paid the wages due for the period of the leave allowed.

1. Subs. by ibid.

23. Time of payment of wages.— (1) Wages of every employee shall be paid before the
expiry of the seventh day after the last day of the wage period as respect of which the wages are
payable :
Provided that if any employee be absent until the last day permissible under this sub- section
the wages shall be paid before the expiry of three working days from the day on which he
attends for work again or demands payment.
(2) Where the employment of an employee is terminated by or under the order of the
employer, the wages earned by such employee shall be paid before the expiry of the second
working day from the day on which his employment is terminated.
(3) All payments of wages shall be made on a working day at or near the place of work
and during working hours.
(4) The State Government may by general or special order exempt an employer from
the operation of this section in respect of the wages of a ny employee or class of employees,
to such extent and subject to such conditions as may be specified in the order.
24. Wages to be paid in current coins or currency notes.—All wages shall be paid in
current coins or currency notes or in both.
25. Deductions which may be made from wages. — No deductions other than those
which may be prescribed shall be made by the employer from the wages of this employee.
26. Notice of the dismissal or discharge.— 1[(1) No employer shall dismiss or
discharge or otherwise te rminate the employment of any employee who has been in his
employment continuously for a period of not less than six months, except for a reasonable cause
and after giving such employee at least one month’s notice or one month’s wages in lieu of such
notice :
Provided that such notice shall not be necessary where the services of such employee are
dispensed with on a charge of such misconduct as may be prescribed by the State
Government, supported by satisfactory evidence recorded at an enquiry held for the purpose:

Provided further that an employee who has been in continuous employment for a year or
more and whose services are dispensed with otherwise than on a charge of misconduct shall also be
paid compensation equivalent to fifteen days average wages for every completed year of service and
any part thereof in excess of six months before his discharge in addition to the notice or pay in lieu
of notice as prescribed above.]

1. Subs. by Act 2 of 1975.

1[(2) Every employee, dismissed or discharged or whose employment is otherwise
terminated, may make a complaint in writing in the prescribed manner, to a prescribed authority
within 90 days of the receipt of the order of dismissal or discharge or termination of employment
on the one or more of the following grounds, namely : —
(i) there was no reasonable cause for dispensing with his services; or
(ii) no notice was served on him as required by sub-seciton (1); or
(iii) he has not been guilty of any misconduct as held by the employer ; or
(iv) no compensation as prescribed in sub-section (1) was paid to him before
dispensing with his service.]
(3) Notwithstandin g anything contained in sub-section (2), where the order of
dismissal or discharge was received by an employee at any time before the commencement of the
Bihar Shops and Establishments (Amendment) Act, 1959, he may make a complaint in writing in
the prescribed manner before a prescribed authority within sixty days of the commencement of
the said Act :
Provided that such complaints, if any, pending before an authority prescribed prior to the
commencement of the said Act shall be deemed to have been duly filed before the authority
prescribed after such commencement and the said authority shall dispose the same in
accordance with the provisions of this Act.
(4) The prescribed authority may condone delay in filing such a complaint if it is satisfied
that there was sufficient cause for not making the application within the prescribed time.
(5)(a) The prescribed authority shall cause a notice to be served on the employer
relating to the said complaint, record briefly the evidence adduced by the parties, hear them and
after making such enquiry as it may consider necessary pass orders giving reasons therefor.
(b) In passing such order the prescribed authority shall have power to give relief to the
employee by way of reinstatement or money compensation or both.
(6) The decision of the prescribed authority shall be final and binding on both the
employer and employee.

27. Notice of termination of employment by employee.—(1) No employee shall
terminate his employment unless he has given to his employer a notice of at least one month.
(2) Where an employee contravenes the provision of sub-section (1), his employer may forfeit
any unpaid wages for a period not exceeding fifteen days.

1. Subs. by Act 2 of 1975.

28. Claims arising out of deductions from wages or delay in payment of wages and
penalty for malicious or vexatious claims.—(1) Where contrary to the provisions of this Act any
deduction has been made from the wages of an employee, or any payment of wages has been
delayed, or any sum is otherwise due from the employer to the employee, such employee, or any
legal practitioner or any authorised agent or any officer of a registered trade union or any Inspecting
Officer may make an application in such manner, within such time, and to such authority as
may be prescribed for a direction under sub-section (2).
(2) When an application under sub-section (1) is entertained, the prescribed authority shall
hear the application in the prescribed manner and may, without prejudice to any other penalty to
which an employer is liable under this Act, direct the refund of the amount deducted, or
payment of the delayed wages or any sum to the employee together with the payment of a
compensation not exceeding ten times the amount deducted in the first case and not exceeding ten
rupees in other case.
Provided that no direction for the Compensation shall be made in the case of delayed wages
if the authority is satisfied that the delay was due to —
(a) A bona fide error or bona fide dispute as to the amount payable to the employed person,
or

(b) The occu r renc e of an emergenc y, or the existenc e of exce ptional
circumstances, such that the person responsible for the payment of the wages was
unable though exercising reasonable diligence to make prompt payment,
or
(c) The failure of the employed person to apply for or accept payment.

(3) If the authority hearing any application under this section is satisfied that it was either
malicious or vexatious, the authority may direct that a penalty not exceeding twenty- five rupees be
paid to the employer or other person responsible for the payment of wages by the person presenting
the application.
(4) Any amount dir ec te d to be paid under this section shall be recovered in the
prescribed manner.
(5) A single application may be presented under this section on behalf or in respect of any
number of employed persons belonging to the same unpaid group, and in such case the maximum
compensation that may be awarded under sub-section (2) shall be ten rupees per head.

Explanation.—Employed persons are said to belong to the same unpaid group if th ey
are borne on the same establishment and if their wages for the same wage period or periods have
remained unpaid after the day fixed by section 23.

(6) The, authority may deal with any numbers of separate pending applications,
presented under this section in respect of persons belonging to the same unpaid group, as a single
application presented under sub-section (5) and the provisions of that sub-section shall apply
accordingly.

(7) An appeal against an order dismissing either wholly or in part an application made
under sub-section (1) or against a direction made under sub-section (2) or sub-section (3) may be
preferred in such manner, within such time and to such authority as may be prescribed and such
authority shall consider and dispose of such appeals in the prescribed manner.
(8) Save as provided in sub-section (7), any order dismissing either wholly or in part of an
application made under sub-section (2) or sub-section (3) shall be final.
(9) Every authority appointed under this section shall have all the powers of a Civil Court
under the Code of Civil Procedure, 1908 (V of 1908) for the purpose of taking evidence and of
enforcing the attendance of witnesses and compelling the production of documents, and every such
authority shall be deemed to be a Civil Court for all the purposes of section
195 and of Chapter XXXV of the Code of Criminal Procedure, 1898 (V of 1898)]1

28A. A p p e a r a n c e by legal practitioner .—A lega l practitione r m a y , in any
proceeding under this Act, appear, plead or act on behalf of any party on such conditions as may be
prescribed.
28B. Power of the State Government to make rules for regulation of business and
transfer of case.—Where the authority prescribed under sub-section (2) of section 26, or sub-
section(1) or sub-section (7) of section 28, is more than one, the State Government may make
rules — (i) to regulate the distribution of business between them; and (ii) for the transfer of a
case or an appeal, from one authority to the other.

1. Now Cr.P.C., 1973 .

CHAPTER VI
Inspection and Penalties.

29. Appointmen t of Inspecting Officer.— (1) The State Government may, by
notification in the Official Gazette, appoint such persons on such class of persons as it thinks
fit to be Inspecting Officers for the purposes of this Act within such local limits as it may assign to
them respectively.
(2) The State Government may, by notification in the Official Gazette, appoint any person
to be the Chief Inspecting Officer who shall, in addition to such powers as may be prescribed for
the Chief Inspecting Officer, exercise the powers of an Inspecting Officer throughout the State.
(3) Every District Magistrate, the Additional District Magistrate of Saharsa, the
Additional Deputy Commissioners of Dhanhad and Singhbhum and every Subdivisional
Magistrate shall be an ex-officio Inspecting Officer within the limits of his respective
jurisdiction.
(4) The State Government may also, by notification as aforesaid, appoint such public officers
as it thinks fit to be additional. Inspecting Officers for all or any of the purposes of this Act, within
such local limits as it may assign to them respectively.
(5) In any area where there are more Inspectin g Officers than one, the State
Government may, by notification as aforesaid, declare the powers which such Inspecting Officers
shall respectively exercise and the Inspecting Officer to whom the prescribed notices are to he sent.
30. Powers and jurisdiction of an Inspecting Officer.—(1) Subject to any rules made
by the State Government in this behalf, an Inspecting Officer may within the limits of his
jurisdiction —
(a) enter, during such hours as may be prescribed and with such assistance, if an y,
as may be necessary, any premises which is, or which he has reasons to believe is,
an establishment;
(b) (b) inspect, or take extracts from any prescribed registers, records and notices
maintained under this Act or the rules made thereunder or seize such records,
registers or notices as he may consider relevant in respect of an offence under this
Act which he has reason to believe to have been committed by an
employer;]1
(c) take on the spot or otherwise the statement of any person which he may
consider necessary for carrying out the purposes of this Act :
Provided that no person shall be compelled to answer any question or give any
evidence tending to incriminate himself; and
(d) exercise such other power as may be prescribed for carrying out the purposes of this
Act.
(2) The Inspecting Officer shall for the purposes of any inquiry under this Act have same power
regarding the summoning and attendance of witnesses and compelling the production of
documents as a Civil Court has under the Code of Civil Procedure, 1908 (Vof 1908).

1. Subs. by Act 2 of 1975.

31. Inspecting Officers to be public servant.—Every Inspecting Officer appointed under
section 29 shall be deemed to be public servant within the meaning of section 21 of the Indian
Penal Code, 1860 (XLV of 1860).
32. Penalty for obstructing Inspecting Officer, etc.—Any person who voluntarily
obstructs an Inspecting Officer in the exercise of any power conferred on him by or under this Act
or any person lawfully assisting an Inspecting Officer in the exercise of such power or who fails
without sufficient cause to comply with any lawful direction made by an Inspecting Officer
shall be punishable with imprisonment which may extend to six months or with fine which may
extend to 1[ five thousand rupees, or with both.
33. Maintenance of registers and records and display of notices.—Every employer of an
establishment shall maintain such records and registers and display such notices and in such manner
as may he prescribed.
(2) Every employer shall on demand produce for inspection of Inspecting Officer all
registers, records and notices required to be kept under and for the purposes of this Act.
34. Penalties.—Any employer who contravenes any provisions of this Act or any rule or
order made thereunder shall, if no other penalty is provided for the offence, be punishable with
fine which may extend to 2[ five thousand rupees for the first offence and to ten thousand rupees for
every subsequent offence after the first conviction.

1. Substituted by words “five thousand rupees” by Amendment Act of 2013.

2. Substituted by words “five thousand rupees” and “ Ten thousand rupees” by Amendment Act of 2013.

35. Penalt y whethe r the empl oyer is a fir m or compan y.—If the person
contravening any provision of this Act or a rule or order made thereunder is a company or a
partnership firm every director, partner, manager or secretary thereof shall, unless he proves that
the contravention took place without his knowledge or that he exercised all due diligence to prevent
such contravention, be deemed to be guilty of such contravention.
1[36. Cognizance of offences.—(1) No court shall take cognizance of any offence
punishable under this Act or any rule or order made there under except on a complaint in writing
of the facts constituting such offence made by Inspecting Officer or any person authorised in
this behalf by the State Government within six months of the date on which the offence is alleged
to have been committed:
Provided that the court may by reasons to be recorded in writing take cognizance of the
offences for the breach of the provisions of sections 16, 16A, 26 and 28 after the expiry of the said
period of six months, if it is satisfied that the complainant was prevented by sufficient cause
from filling the complaint within the said period.
(2) No court inferior to that of a Magistrate of the first class shall take cognizance or try an
offence punishable under the Act.]

CHAPTER VII
Miscellaneous.

37. Protection of persons acting under this Act.— No suit, prosecution or other legal
proceeding shall lie against any person for anything in good faith done or intended to be done
under this Act or any rule or order made thereunder.
2[37A. Presump tion.—Whenever an establishmen t is found open it shall be
presumed that it is open for the service of customers or for the business, trade or profession
normally carried on the establishment.]
38. Power of Government to suspen d provision of this Act during public
holidays.—The State Government may by notification, suspend in any area, in respect of all
establishments or any class of establishments the operation of all or any of the provisions of this Act
for such period and subject to such conditions as may be prescribed on account of public holidays
or occasions or for any other reason of whatever kind.
1[39. Workmen’s Compensation Act, 1923 to apply to an employer and an employee to
whom this Act applies.— The provisions of the Workmen’s Compensation Act, 1923 (VIII of
1923), and of rules made thereunder, shall mutatis mutandis, apply to every employer or
employee to whom the provisions of this Act apply.]
1[39A. Maternity Benefits Act, 1961 (53 of 1961) to apply to establishment and persons to
whom this Act applies. — The provisions of the Maternity Benefits Act, 1961

Excerpt shown. Open the full act in Lexace.

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