LexThe Sales Promotion Employees (Conditions of Service) Act, 1976
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The Sales Promotion Employees
(Conditions of Service) Act, 1976
(No. 11 of 1976)
CONTENTS
Section
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
11-A. Effect of laws and agreements inconsistent with this Act
12. Power to make rules
1
The Sales Promotion Employees
(Conditions of Service) Act, 1976
(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 (Condition 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 an d different date ma y be appointed for
different State.
(4) It shall apply in the first instance to every establishment engaged in
pharmaceutical industry.
(5) The Central Government may, by notifi cation in the official Gazette, apply the
provision 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. Definition.- In this Act, unless the context otherwise requires,-
(a) “establishment” means an es tablishment engaged in pharmaceutical
industry or in any notified industry ;
(b) “notified industry” means an indu stry declared as such under section 3
(c) “prescribed” means prescr ibed by rules made under this Act;
2[(d) “sales promotion employee” 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 employed or engaged in a supervisory capacity, draws wages
exceeding sixteen hundred rupees per menses; or
(ii) who is employed or engaged mainly in a managerial or administrative
capacity.
1 With effect from 6th May, 1987, vide S. O. 458(E), dated 5th May, 1987, published in
the Gazette of India, Pt. II. Sec 3 (ii), No. 219, dated 5th May 1987.
2 Subs. by Act 48 of 1986, Sec. 2 (w.e.f. 6th May, 1987).
2
Explanation . - For the purpose of this clause, the wages per mensem of a person
shall be deemed to be the amount equal to th irty times his total wa ges (whether or not
including, or comprising only of, commission) in respect of the continuous period of this
service falling within the pe riod of twelve months immedi ately preceding the date with
reference to which the calculation is to be made, divided by th e number of days
comprising the period of service;]
(e) all words and expressions used but no t defined in this Ac t and defined in the
Industrial Disputes Act. 1947 (14 of 1947), sha ll have the meaning 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 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, declare such industry to be a notified industry for the purposes
of this Act.
4. Leave.-
3[(1) In addition to such holidays, cas ual leave or other kinds of leave as
may be prescribed, every sales promotion employee 4[* * *] shall be granted, if so
requested for-
(a) earned leave on full wages for not le ss than one-eleventh of the period spent
on duty;
(b) leave on medical certificate on one-h alf of the wages for not less than one-
eighteenth of the period service.
5(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 being
termination as punishment).
be entitled to cash compensation, subject to such conditions and restrictions as may be
prescribed (including conditions by way of specifying the maximum period for which
3 Section 4 re-numbered as sub-section (1 ) by Act 48 of 1986, section 3 ( w.e.f . 8th
March, 1976).
4 Words and brackets “drawing wages (being wages, not including any commission)”
omitted by Sec. 3 (a) ibid.
5 Ins. by Act. 48 of 1986, sectiton 3 (b) ( w.e.f. 8th March, 1976)
3
such cash compensation shall be payable), in respect of the earned leave 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 appoi ntment 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, as in force for the time being,
shall apply to, or in relation to sales promoti on employees as they appl y to, or in relation
to, workmen within the meaning of that Act.
6[(2) The provisions of the Industrial Dis putes 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 purpose
of any proceeding under that Ac t in relation to an industria l dispute, a sale promotion
employee shall be deemed to include a sale promotion employee who has been dismissed,
discharged or retrenched in connection with, or as a cons equence 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 prom otion employees as they apply
to, or in relation to, employees within the meaning of that Act.
(4) The provisions of the Maternity Benef it Act, 191 (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, wome n employed, whether directly or 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
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.
6 On the enforcement of section 24 of the Act 46 of 1982, sub-section (2) of section shall
stand omitted (Not yet enforced).
4
7[(7) notwithstanding anythi ng contained in the foregoing sub-sections,-
(a) in the application of any Act referre d to in any of the sa id 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 theis 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 to any sales promotion employee w hose 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 Government 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 sub- 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 in the establishment or any premises
connected therewith and require any one found in charge thereof to produce
before him for examination any register s and other documents relating to the
employment of sales promotion employees;
(c) examine with respect to any ma tter relevant to any of the purposes
aforesaid, the employer, his agent or servan t or any other person in charge of the
establishment or any premises connect ed therewith or 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 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
Sec. 21 of the Indian Penal Code, 1860 (45 of 1860).
7 Ins. By Act 48 of 1986, section 4 (w.e.f. 6th May, 1987)
5
(4) Any person required to produce any re gister 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 contrave nes the provisions of section 4 or section 5
or section 7 or any rules made under this Act, he shall be punished with fine which may
extended 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 time the offence was committed, was
in charge of, and was responsible to, the co mpany 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 contai ned in this sub-section sh all 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 ex ercised all due diligence to prevent the
commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence
under this Act has been committed by a company an 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 ot her 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 purpose of this section,-
(a) “company” means any body corpor ate 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 cl ass 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.
8[11.A 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 or service, a sales promotion employ ee is entitled to benefits in respect of any
matter which are more favourable to him than those to which he woul d be entitled under
this Act, the sales promotion employee shall continue to be entitled to the more favorably
8 Ins. by Act 69 of 1982, section 2.
6
benefits in respect of that matter, notwithstandi ng 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 w ith this employer for granting him rights or
privileges in respect to any matter which are more favourable to him than those to which
be 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 power,
such rules may provide for-
(a) The kinds of leave that may be granted to a sales promotion employee
9[the limit upto 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 s ubject to which he may be entitled to
cash compensation] under section 4:
(b) the form of the letter of appoi ntment to be furnished under section 5 :
(c) the registrar and other documents to be kept and maintained under section
7 and the manner in which such register s and other documents may be kept and
maintained;
(d) any other matter which has to be, or may be, prescribed.
(3) Every rule made by th e Central Government under th is 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 sessi on or in two or more
successive sessions, and if, before the expiry of the session immediately following the
session or the successive session aforesai d, 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 preciously done under that rule.
9 Ins. by Act 48 of 1986, Sec. 5 (w.e.f. 8th March, 1976).