LexThe Tamil Nadu Handloom Workers (Conditions of Employment and Miscellaneous Provisions) Act, 1981
Tamil Nadu · state statute
Open in Lexace · Ask the AI about this actTAMIL NADU HANDLOOM WORKERS (CONDITIONS OF EMPLOYMENT AND
MISCELLANEOUS PROVISIONS) ACT, 1981
(TAMIL NADU ACT 61 OF 1981)
Arrangement of sections
CHAPTER I
Preliminary
1. Short title, extent and commencement.
2. Definitions.
CHAPTER II
Licensing of Industrial premises
3. Industrial premises to be licensed.
4. Licences.
5. Appeals.
CHAPTER III
Appointment of inspectors, etc.
6. Inspectors.
7. Inspectors, Chief Inspector, etc., to be public servants.
8. Powers of Inspectors.
CHAPTER IV
Health and Welfare
9. Cleanliness.
10. Ventilation.
11. Lighting.
12. Overcrowding.
13. Drinking water.
14 Latrines and urinals,
15. Washing facilities.
16. Creches.
17. First-Aid.
CHAPTER V
Working Hours
18. Working hours.
19. Wages for over-time work.
20. Interval for rest.
21. Spread-over.
22. Weekly holidays.
23. Notice of periods of work.
24. Hours of work to correspond with notice under section 23.
25. Prohibition of employment of children.
26. Prohibition of employment of women or young persons during certain hours.
27. Restriction on double employment.
28. Application of the Tamil Nadu Industrial Establishment (National and Festival Holidays) Act,
1958.
29. Annual leave with wages.
30. Wages during leave period.
31. Special casual leave for family planning.
CHAPTER VI
Industrial Relations
32. Refusal of supply of raw materials.
33. Rejection of finished goods.
34. Deduction in wages.
35. Reduction in wages.
36. Termination of service.
37. Appeal.
38. Appeal against lay-off.
39. Redressal of disabilities.
CHAPTER VII
Penalties and Procedure
40. General penalty for offences.
41. Penalty for obstructing Inspector.
42. Indemnity.
43. Restriction on disclosure of information.
44. Cognizance of offences.
45. Offences by companies.
45. Onus as to age.
CHAPTER VIII
Miscellaneous
47. Regulation of housing, medical, educational and terminal facilities, etc., by the Government.
48. Exemption from the provisions of the Factories Act, 1948.
49. Application of the Factories Act, 1948 to industrial premises.
50. Application of the Payment of Wages Act, 1936.
51. Application of the Industrial Employment (Standing Orders) Act, 1946, and the Maternity
Benefit Act, 1961.
52. Application of the Industrial Disputes Act, 1947.
53. Effect of laws and agreements inconsistent with this Act.
54. Power to exempt.
55. Act not to apply to self-employed persons in private dwelling houses,
56. Registration of employees and employer.
57. Power to make rules.
TAMIL NADU HANDLOOM WORKERS (CONDITIONS OF EMPLOYMENT AND
MISCELLANEOUS PROVISIONS) ACT, 1981
(TAMIL NADU ACT 61 OF 1981)
[30th September 1981]
An Act to provide for the welfare of the workers in the handloom industry and to regulate the
conditions of their work and security of their employment and for certain other matters
connected therewith.
Be it enacted by the Legislature of the State of Tamil Nadu in the Thirty -second Year of the
Republic of India as follows:-
CHAPTER I
Preliminary
1. Short title, extent and commencement .— (1) This Act may be called the Tamil Nadu
Handloom Workers (Conditions of Employment and Miscellaneous Provisions) Act, 1981.
(2) It extends to the whole of the State of Tamil Nadu.
(3) It shall come into force on such [date] as the Government may, by notification,
appoint and different dates may be appointed for different areas and for different provisions of
this Act.
2. Definitions.— In this Act, unless the context otherwise requires,-
(a) "adult" means a person who has completed eighteen years of age;
(b) "child" means a person who has not completed sixteen years of age;
(c) "competent authority" means any authority authorised by the Government by notification
to perform all or any of the functions of the competent authority under this Act and for
such areas as may be specified therein;
(d) "day" means a period of twenty-four hours beginning at mid-night;
(e) "domestic weaver" means any person who gets the raw materials from a master weaver
or employer and attends to any operation connected with handloom weaving, whether
such operation is carried on in the home, in which such worker works or in any other
place, but does not include an independent weaver;
(f) "employee" means any person emplo yed in any work connected with handloom industry
under an employer and includes a domestic weaver, but excludes an independent
weaver, to do any work skilled, unskilled, manual or clerical;
(g) "employer" means a person who has the ultimate control over the affairs of any industrial
premises or who has, by reason of his advancing money, supplying goods or otherwise, a
substantial interest in the control of the affairs of any industrial premises and includes -
(i) any other person to whom the affairs of any industrial premises are entrusted,
whether such other person is called the managing agent, manager, superintendent
or by any other name; and
(ii) a president or a chief executive of any weavers co -operative society or a master
weaver engaged in handloom industry;
(h) "Government" means the State Government;
(i) "handloom industry" means an industry which is engaged in the manufacture or
production by a loom, other than a powerloom, of any cloth or fabric or product and
includes any process or work pertaining to handloom weaving;
(j) "independent weaver" means any person who carries on any weaving operation in his
dwelling place, but does not include a domestic weaver;
(k) "industrial premises" means any place or premises (not being a private dwelling house)
including the precincts thereof, in which or in any part of which any type of work relating
to handloom industry is carried on;
(l) "Inspector" means the Inspector appointed under sub-section (1) of section 6;
(m) "lay-off" means the failure, refusal or in ability of an employer on account of shortage of
raw materials or the accumulation of stock of finished products or the breakdown of any
machinery to give employment to a person employed, who is a registered worker, but
does not include retrenchment;
(n) "master weaver" means and includes any person not being a co -operative society, who
supplies raw materials to any other person, whether or not the other person is a domestic
weaver or an employee for the purpose of converting the same into finished product;
(o) "powerloom" means a loom which is worked by power as defined in clause (g) of section
2 of the Factories Act, 1948 (Central Act LXII1 of 1948) and includes any automatic loom;
(p) "private dwelling house" means a house in which persons engaged in any work
connected with handloom industry, reside;
(q) "retrenchment" means the termination by the employer of the service of an employee for
any reason whatsoever, otherwise than as a punishment inflicted byway of disciplinary
action, but does not include -
(i) voluntary retirement of the employee; or
(ii) retirement of the employee on reaching the age of superannuation if the contract of
employment between the employer and the workman concerned contains a
stipulation in that behalf; or
(iii) termination of the service of an employee on the ground of continued ill-health;
(r) "week" means a period of seven days beginning at Mid-night on Saturday;
(s) "young person" means a person who has completed sixteen years of age but has not
completed eighteen years of age.
CHAPTER II
Licensing of Industrial Premises
3. Industrial premises to be licensed .— Save as otherwise provided in this Act, no employer
shall use or allow to be used any place or premises as an industrial premises unless he holds a
valid licence issued under this Act and no such premises shall be used except in accordance
with the terms and conditions of such licence.
4. Licences.— (1) Any person who intends to use or allows to be used any place or premises
as industrial premises shall make an application in writing to the competent authority, in such
form and on payment of such fees as m ay be prescribed for a licence to use, or allow to be
used, such premises as an industrial premises:
Provided that nothing contained in this section shall apply to an independent weaver
carrying on the weaving operation in his dwelling place assisted only by the other members of
his family.
(2) The application for a licence shall specify the number of employees proposed to be
employed at any time of the day in the place or premises and shall be accompanied by a plan of
the place or premises prepared in such manner as may be prescribed.
(3) The competent authority shall, in deciding whether to grant or refuse a licence, have
regard to the following matters -
(a) the suitability of the place or premises which is proposed to be used for the weaving
operation;
(b) the financial resources of the applicant including his financial capacity to meet the
demands arising out of the provisions of this Act or of any other law for the time being in
force relating to welfare of labour;
(c) whether the application is made bona fide on behalf of the applicant himself or in benami
of any other person;
(d) the welfare of the labour in the locality, the interest of the general public and such other
matters as may be prescribed.
(4) (a) A licence granted under this secti on shall not be valid beyond the financial year in
which it is granted, but may be renewed every year on payment of such fees as may be
prescribed.
(b) An application for renewal of a licence granted under this Act shall be made at least
thirty days before the expiry of the period thereof, on payment of such fees as may be
prescribed and where such application has been made, the licence shall be deemed to
continue, notwithstanding the expiry of the period thereof, until the renewal of the licence
or the rejection of the application, as the case may be:
Provided that if any application for a licence or for renewal of the licence is not made
within thirty days of commencement of any process connected with weaving operation or before
thirty days of expiry of any licence already issued, but is made after this period of thirty' days, a
surcharge of 25 per cent of the fee to be prescribed for issue or renewal of the licence, as the
case may be, shall be levied, subject, however, to the condition that such an option to get a
licence or renewal with surcharge shall be allowed only upto a period of ninety days either after
the commencement of any operation connected with the weaving process or after the expiry of
the licence already issued, but not renewed under the foregoing provisions of this section. In
that event, it shall be construed that the weaving operation is carried on without a valid licence,
which shall in turn be a contravention of the provi sions of this Act warranting penal action as
prescribed.
(c) The competent authority shall, in deciding whether to renew a licence or not, have regard
to the matters specified in sub-section (3).
(5) The competent authority may, after giving the holder of a licence an opportunity of being
heard, cancel or suspend any licence granted or renewed under this Act, if it appears to such
authority that such licence has been obtained by misrepresentation or fraud or that the licensee
has contravened or failed to comply with any of the provisions of this Act or the rules made
thereunder or any of the terms and conditions of the licence.
(6) The Government may issue in writing to the competent authority such directions as the
Government may consider necessary in respect of any matter relating to the grant or renewal of
licences under this section.
(7) Subject to the foregoing provisions of this section, the competent authority may grant or
renew licences under this Act on such terms and conditions as it may determine and where the
competent authority refuses to grant or renew any licence, it shall do so by an order in writing
communicated to the applicant giving the reasons for such refusal within a reasonable time.
5. Appeals. - Any person aggrieved by the decision or order of the competent authority refusing
to grant or renew a licence or cancelling or suspending a licence under sectio n 4 may, within
thirty days of receipt of the said order and on payment of such fees, not exceeding twenty
rupees, as may be prescribed, appeal to such authority as the Government may, by notification,
specify in this behalf, and such authority may, by an order in writing either confirm, modify or
reverse any order refusing to grant or renew a licence or renew a licence or suspending or
cancelling a licence. The order of such appellate authority shall be final and binding ami shall
not be questioned in any Court of Law.
CHAPTER III
Appointment of Inspectors, Etc.
6. Inspectors.— (1) The Government may, by notification, appoint such persons possessing
the prescribed qualifications to be Inspectors for the purposes of this Act. The Government or
such authority as may be prescribed may assign to the Inspectors the local limits withi n which
they shall exercise their functions under this Act.
(2) The Government may, by notification, appoint any person possessing the prescribed
qualifications to be a Chief Inspector who shall exercise the powers of an Inspector throughout
the State.
7. Inspectors, Chief Inspector, etc., to the public servants .— Every Inspector, Chief
Inspector, Authority and Appellate Authority appointed under this Act shall be deemed to be a
public servant within the meaning of section 21 of the Indian Penal Code (Centr al Act XLV of
1860).
8. Powers of Inspectors.— (1) Subject to any rules made in this behalf by the Government, an
Inspector may, within the local limits assigned two him-
(a) make such examination and hold such inquiry as may be necessary for ascertaining
whether the provisions of this Act have been or are being complied with:
Provided that no person shall be compelled under this section to answer any question or to give
any evidence which may tend to incriminate himself;
(b) require the production of any p rescribed register or form and any other document
required to be maintained by him, and take on the spot or otherwise statements of any
person which he may consider necessary for carrying out the purposes of this Act;
(c) enter at all times any industrial premises, with such assistants as he thinks fit, if he has
reason to believe that such industrial premises is being used for carrying on handloom
industry or any other operation connected with hand-loom industry:
(d) exercise such other powers as may be pr escribed for carrying out the purposes of this
Act.
(2) If an Inspector has reasonable grounds for suspecting that any handloom industry is being
carried on in any industrial premises in contravention of the provisions of this Act, he may, after
giving due notice to the employer or in the absence of the employer to the occupier, enter such
industrial premises with such assistants, if any, as he may think fit.
(3) Every employer or occupier shall afford to every Inspector all reasonable facilities in the
discharge of his discharge of his duties under this Act.
CHAPTER IV
Health and Welfare
9. Cleanliness .— Every industrial premises or any place, excepting the dwelling place of a
weaver, wherein any handloom industry or any other operation connected with handloom
industry is ordinarily carried on, shall be kept clean and free from effluvia arising from any dr ain,
privy or other nuisance and shall also maintain such standard of cleanliness including white
washing, colour washing, varnishing or painting as may be prescribed.
10. Ventilation.— (1) For the purpose of preventing injury to the health of the persons working
therein, every industrial premises shall maintain such standards of ventilation as may be
prescribed.
(2) Wherever dust or fume or other impurity of such a nature and to such an extent as is likely
to be injurious or offensive to the employees i n any industrial premises or weaving centre is
given off by reason of the manufacturing process carried on in such premises or weaving
centre, the competent authority may require the employer to take such effective measures as
may prevent the inhalation of such fume or dust or other impurity and accumulation thereof in
any work room.
Explanation. - For the purpose of this section "manufacturing process" means any
process for, or incidental to, making, finishing or packing or otherwise, treating any article or
substance with a view to its use, sale, transport, delivery or disposal as handloom fabric.
11. Lighting.— (1) In every industrial premises where employees are working or passing, there
shall be provided and maintained sufficient and suitable lighting, natural or artificial or both.
(2) In every industrial premises, all glazed windows and sky-lights used for the lighting of
any work room shall be kept clean on both the inner and outer surface.
12. Over-crowding.— (1) No room in any industrial premises shall be overcrowded to an extent
injurious to the health of the employees therein.
(2) Without prejudice to the generality of sub-section (1), there shall be in any work room
of any such industrial premises at least 4 1/4 cubic metres of space for every employee therein,
and for the purposes of this sub-sect ion, no account shall be take n of any space which is more
than 3 metres above the level of the floor of the work room.
13. Drinking water .— (1) The employer shall make, in every industrial premises, effective
arrangements to provide and maintain, at suitable points conveniently situated for all employees
therein, a sufficient supply of wholesome drinking water.
(2) All such points shall be legibly marked "Drinking Water" in Tamil and no such point
shall be situated within 6 metres of any washing place, urinal or latrine except with t he prior
approval in writing of the competent authority.
14. Latrines and urinals .— (1) In every industrial premises, sufficient latrine and urinal
accommodation of such types as may be prescribed, shall be provided and shall be so
conveniently situated as may be easily accessible to all the employees at all time while they are
in the industrial premises.
(2) Separate enclosed accommodation shall be provided for male and female
employees.
(3) All such accommodation shall be maintained in a clean and sanitary condition at all
times.
15. Washing facilities .— In every industrial premises wherein any item of work relating to
bleaching or dyeing or finishing is carried on, the employer shall provide such washing facilities
for the use of the employees as may be prescribed.
16. Creches .— In every industrial premises, wherein fifty or more female employees are
ordinarily employed on any day in a year, there shall be provided and maintained a suitable
room or rooms for the use of the children under the age o f six years of such female employees
and the Government may make rules relating to maintenance of such creches.
17. First -aid.— Every industrial premises shall provide such first -aid facilities as may be
prescribed.
CHAPTER V
Working Hours
18. Working hours.— No adult employee shall be required or allowed to work in any industrial
premises for more than eight hours in any day or for more than forty-eight hours in any week:
Provided that any adult employee may be allowed to work in such industria l premises for any
period in excess of the limit fixed under this section subject to the payment of overtime wages if
the period of work including overtime work, does not exceed ten hours in any day and in the
aggregate fifty four hours in any week.
19. Wages for overtime work.— (1) Where any employee employed in any industrial premises
is required to work overtime, he shall be entitled in respect of such overtime work, to wages at
the rate of twice his ordinary rate of wages.
(2) Where the employees in a n industrial' premises are paid on a piece -rate basis, the
overtime rate shall be calculated, for the purposes of this section, at the time rates which shall
be as nearly as possible equivalent to the daily average of their full -time earnings for the days
on which they had actually worked during the week immediately preceding the week in which
the overtime work has been done.
(3) For the purpose of this section, "ordinary rate of wages" means the basic wages plus
such allowance including the cash equivalent of the advantage accruing through the
concessional sale to the employees of food grains and other articles as the employee is, for the
time being entitled to, but does not include bonus or wages for over-time work.
(4) The cash equivalent of th e advantage accruing through the concessional sale to an
employee of food grains and other articles shall be computed as often as may be prescribed on
the basis of the maximum quantity of food grains and other articles admissible to a standard
family.
Explanation I. -"Standard family" means a family consisting of the employee, his or her
spouse and two children requiring in all three adult consumption units.
Explanation II. -"Adult consumption unit" means the consumption unit of a male above
the age of fourteen years; and the consumption unit of a female above the age of fourteen years
and that of a child shall be calculated at the rate of eight-tenths and six-tenths, respectively, of
one adult consumption unit.
20. Interval for rest .— The periods of work for employees in an industrial premises each day
shall be so fixed that no period shall exceed five hours and that no employee shall work for
more than five hours before he has had an interval for rest of at least half an hour.
21. Spread. —The periods of work of an employee in an industrial premises shall be so
arranged that inclusive of his intervals for rest under section 20, they shall not spread over more
than eleven hours in any day.
22. Weekly holidays .— (1) Every industrial premises sha ll remain entirely closed on any one
day in the week to be specified by the employer in a notice exhibited in a conspicuous place in
the industrial premises and the day so specified shall not be altered by the employer more than
once in three months and ex cept with the previous written permission of the Inspector having
jurisdiction over the industrial premises concerned.
(2) For a holiday under this section, an employee shall be paid, notwithstanding any contract to
the contrary, at the rate equal to the d aily average of his total full time earnings during the week
immediately preceeding the holiday exclusive of any overtime wages or bonus, but inclusive of
other allowances, if any:
Provided that nothing contained in this sub -section shall apply to any empl oyee whose total
period of employment in the week including any day spent on authorised leave or holiday or lay-
off is less than six days.
23. Notice of periods of work .— (1) In every industrial premises, a notice of periods of work
shall be displayed and correctly maintained in such form and in such manner as may be
prescribed, showing clearly for every day the periods during which the employees may be
required to work.
(2) (a) A copy of the notice referred to in sub -section (1) shall be sent in dupli cate to the
Inspector having jurisdiction over the industrial premises within two weeks from the date of the
grant of a licence for the first time under this Act, in the case of any industrial premises carrying
on work at the commencement of this Act, and in the case of any industrial premises work after
such commencement, before the day on which any work connected with the handloom industry
or any other operation connected with the handloom industry is begun in the industrial premises.
(b) Any proposed change in the system of work which will necessitate change in the notice
referred to in sub -section (1) shall be notified to the Inspector in duplicate before the
change is made and except with the previous sanction of the Inspector, no such chang e
shall be made until one week has elapsed since the last change.
24. Hours of work to correspond with notice under section 23 .— No employee shall be
employed in any industrial premises otherwise than in accordance with the notice of work
displayed in the premises under section 23.
25. Prohibition of employment of children.— No child shall be required or allowed to work in
any industrial premises.
26. Prohibition of employment of women or young persons during certain hours .— No
woman or young person shall be required or allowed to work in any industrial premises except
between 6 a.m. and 7 p.m.
27. Restriction on double employment .— Save as otherwise provided for in the rules, no
employee shall be required or allowed to work in any industrial premise s on any day on which
he has already worked in any other industrial premises.
28. Application of the Tamil Nadu Industrial Establishments (National and Festival
Holidays) Act, 1958 .— (1) Notwithstanding anything contained in the Tamil Nadu Industrial
Establishments (National and Festival Holidays) Act, 1958 (Tamil Nadu Act XXXIII of 1958)
(hereinafter in this section referred to as the said Act), the Government may, by notification,
direct that subject to the provisions of sub -section (2), the said Act or any of the provisions
thereof or the rules made thereunder shall apply to all or any class of employees to which this
Act applies.
(2) On the application of the provisions of the said Act to any industrial premises under sub -
section (1), the Inspector appo inted under this Act shall be deemed to be the Inspector for the
purpose of the enforcement of the provisions of the said Act within the local limits of his
jurisdiction.
(3) The Government may by a like notification, cancel or vary any notification issued under sub-
section (1).
29. Annual leave with wages.— (1) Every employee shall be allowed in a calendar year leave
with wages,-
(i) in the case of an adult, at the rate of one day for every twenty days of work performed by
him during the previous calendar year;
(ii) in the case of a young person at the rate of one day for every fifteen days of work
performed by him during the previous calendar year.
Explanation. - The leave admissible under this sub -section shall be exclusive of all
holidays whether occurring during, or at the beginning or at the end of, the period of leave.
(2) If an employee is discharged or dismissed from service or quits employment during the
course of the year, he shall be entitled to leave with wages at the rate laid down in
sub-section (1).
(3) In calculating leave under this section, any fraction of leave of half a day or more shall be
treated as one full day's leave and any fraction of less than half a day shall be omitted.
(4) If any employee does not, in any calendar year, take the whole of the leave allowed to him
under sub-section (1), the leave not taken by him shall be added to the leave to be allowed to
him in the succeeding calendar year.
(5) An application of an employee for the whole or any portion of the leave allowed under sub-
section (1) shall be in writing and ordinarily shall have to be made sufficiently in advance of the
day on which he wishes the leave to begin.
(6) If the employment of an employee who is entitled to leave under sub -section (1) is
terminated by the employer, before he has taken the entire leave to which he is entitled, or if
having applied for leave, he has not been granted such leave, or if the employee quits his
employment before he has taken the leave, the employer shall pay him the amount payable
under section 30 , in respect of leave not taken and such payment shall be made where the
employment of the employee is terminated by the employer, before the expiry of the second
working day after such termination and where the employee quits his employment, on or before
the next pay day.
(7) The leave not availed of by an employee shall not be taken into consideration in computing
the period of any notice required to be given before discharge or dismissal.
30. Wages during leave period .— (1) For the leave allowed to him under section 29, an
employee shall be paid at the rate equal to the daily average of his total full time earnings for the
days on which he had worked during the month immediately preceding his leave exclusive of
any overtime earnings and bonus, but inclusive of dearness and other allowances.
Explanation I. - In this sub -section, the expression "total full time earnings" includes the
cash equivalent of the advantages accruing through the concessional sale to employees of food
grains and other articles, as the employee is for the time being entitled to, but does not include
bonus.
Explanation II. - For the purpose of determining the wages payable to a domestic weaver
during leave period or for the purpose of p ayment of maternity benefit to a woman domestic
worker, "day" shall mean any period during which such domestic worker was employed during a
period of twenty-four hours commencing midnight for making the handloom fabric.
(2) An employee who has been allo wed leave for not less than four days in the case of an
adult and five days in the case of a young person, shall, before his leave begins, be paid wages
for the period of the leave allowed.
31. Special casual leave for family planning operation .— (1) Ever y employee who
undergoes family planning operation shall be entitled to special casual leave with wages for a
period not exceeding-
(a) six days in the case of a male employee;
(b) fourteen days in the case of a female employee; with effect from the day on which he or
she had undergone such operation.
(2) If an employee who has undergone family planning operation is discharged by his or her
employer during the period specified in sub -section (1), the employer shall pay such employee
the amount payable under section 30 in respect of the period of the special casual leave to
which the employee was entitled at the time of discharge.
CHAPTER VI
Industrial Relations
32. Refusal of supply of raw materials.— No employer shall refuse to supply raw materials to
any of his employees. Any such refusal shall be a valid disability giving rise to a dispute.
33. Rejection of finished goods .— No employer shall ordinarily reject the finished goods
produced by his employee without sufficient reason to be shown by the employer to the
employee. Any such rejection shall be a valid disability giving rise to a dispute.
34. Deduction in wages .— No employer shall effect any deduction from the earned wages of
any employee excepting the deductions authorised under section 7 of the Payment of Wages
Act, 1936 (Central Act IV of 1936). Any such unauthorised deduction shall be a valid disability
giving rise to a dispute.
35. Reduction in wages .— No employer shall reduce or make short payment of the wages
earned by any employee for the reason of the finished product alleged to be defective unless
the reason for deduction in wages is explained in writing to the employee concerned and a copy
of such written explanation communicated to the Inspector having jurisdiction. An y such
reduction in wages or refusal to pay the earned wages shall be a valid disability giving rise to a
dispute.
36. Termination of service .— No employer shall dispense with the services of any employee
who has been employed for a period of six months or more except for a reasonable cause and
without giving such employee at least one month's notice in writing for wages in lieu of such
notice:
Provided that no such notice shall be necessary if the services of such employee is
dispensed with on a charge of misconduct supported by satisfactory evidence recorded in an
enquiry held by the employer for that purpose.
37. Appeal.— (1) Any employee' whose services have either been terminated or dispensed with
may prefer an appeal to such authority and with i n such time as may be prescribed questioning
the validity of such order either on the ground that there was no reasonable cause for
dispensing with his services or on the ground that he had not been guilty of misconduct alleged
to have been committed by him and as held by the employer or on the ground that the
punishment awarded was so severe that it was not in proportion to the misconduct alleged to
have been committed.
(2) The appellate authority prescribed under sub -section (1), may, after giving notice in the
prescribed manner to the appellant and his respondent, direct the reinstatement of the appellant
with or without back wages for the period of non -employment or direct payment of
compensation to the appellant by the respondent instead of rein statement or order re -
employment with or without wages for the period of non -employment or grant such other relief
as it deems fit in the circumstances of the case in order to meet the ends of justice or dismiss
the appeal.
(3) The decision of the appellate authority shall be final and binding on both the parties and
cannot be questioned in a Court of Law and shall be given effect to within such time as may be
specified in its order.
38. Appeal against lay -off.— (1) Any employee laid -off by his empl oyer, if aggrieved or
affected by such lay -off, may prefer an appeal to such authority within such time and in such
manner as may be prescribed.
(2) The prescribed authority shall, after giving an opportunity to the parties concerned, hear
the appeal an d pass an order in the manner prescribed determining the quantum of relief to
which the employee may be entitled.
(3) The order passed by the prescribed authority under sub -section (2) shall be final and
binding on both the parties and shall not be questioned in a Court of Law.
39. Redressal of disabilities.— (1) Any employee aggrieved or having suffered from any of the
disabilities mentioned in this Chapter, shall have a right to raise a valid dispute before such
authority as may be specified by the Government by rules made in this behalf for redressal.
(2) The procedure relating to the redressal by the authority mentioned under sub -section (1)
and other details relating to redressal including appeals from the order of the authority shall be
such as may be prescribed.
CHAPTER VII
Penalties and Procedure
40. General penalty for offences .— (1) Save as otherwise expressly provided in this act, any
person who contravenes any of the provisions of this act or of any rules made thereunder, or
fails to pay wages or compensation. In accordance with any order of the appellate authority
passed under sub-section (2) of section 37 of this act, shall be punishable, for the first offence
with fine which may extend to fifty rupees and for a second or any subsequent offence with
imprisonment for a term which may extend to three months or with fine which shall not be less
than two hundred rupees or more than five hundred rupees or with both.
(2) (a) Any employer who fails to reinstate or re -employ any employee in accordance with the
order of the appellate authority passed under sub -section (2) of section 37 of this Act, shall be
punishable with fine which shall not be less than two hundred rupees.
(b) Any employer, who, after having been convicted under clause (a) continues, after the
date of such conviction, to fail to reinstate or re -employ an employee in accordance with
the order mentioned in that clause shall be punishable for each day of such default, with
fine which may extend to twenty-five rupees.
(c) Any Court trying an offence punishable under this sub -section may direct that the whole
or any part of the fine, if realised, shall be paid by way of compensation, to the person,
who in its opinion, has been affected by such failure.
(3) Notwithstanding anything contained in the Payment of Wages Act, 1936 (Central Act IV of
1936), with regard to the definition of wages, any compensation required to be paid by an
employer under the provisions of this Act, but not paid by him shall be recoverable as delayed
wages under the provisions of the said Act.
(4) It shall be no defence in a prosecution of any person for the contravention of the provisions
of section 3 that any item of work relating to handloom weaving operation was carried on by
such person himself or any member of his family or by any other person living with or dependant
on such person.
41. Penalty for obstructing Inspector .— Whoever obstructs the Chief Inspector or an
Inspector in the exercise of any powers conferred on him by or under this Act or fails to produce
on demand by the Chief Inspector or an Inspector any register or other document kept in his
custody in pursuance of this Act or of any rules made thereunder, or conceals or prevents any
employee in any industrial premises from appearing before or being examined by the Chief
Inspector or an Inspector, shall be punishable with imprisonment for a term which may extend to
three months or with fine which may extend to five hundred rupees or with both:
Provided that such fine shall not be less than two hundred rupees.
42. Indemnity.— (1) No suit, prosecution or other legal proceedings shall lie against any person
for anything which is in good faith, done or intended to be done under this Act or any rule or
order made thereunder.
(2) No suit or other legal proceedings shall lie against the Government for any damage caused
or likely to be caused by anything which is in good faith done or intended to be done in
pursuance of this Act or any rule or order, made thereunder.
43. Restriction on disclosure of information.— (1) No Inspector shall, while in service or after
leaving the service, disclose otherwise than in connection with the execution or for the purposes
of this Act any information relating to any commercial business o r any working process which
may come to his knowledge in the course of his official duties.
(2) Nothing in sub -section (1) shall apply to any disclosure of information made with the
previous consent in writing of the owner, of such business or process or f or the purposes of any
legal proceeding (including arbitration) pursuant to this Act or of any criminal proceeding which
may be taken whether pursuant to this Act or otherwise or for the purpose of any report of such
proceeding as aforesaid.
(3) If any Ins pector contravenes the provisions of sub -section (1), he shall be punishable with
imprisonment for a term, which may extend to three months or with fine, which may extend to
five hundred rupees or with both.
44. Cognizance of offences .— (1) No Court shall take cognizance of any offence punishable
under this Act except upon a complaint made by or with the previous sanction in writing of the
Chief Inspector or an Inspector within three months of the date on which the alleged
commission of the offence came to the knowledge of the Inspector:
Provided that where the offence consists of disobeying a written order made by the competent
authority, appellate authority, the Chief Inspector or an Inspector, complaint thereof may be
made within six months from the date on which the offence is alleged to have been committed.
(2) No Court inferior to that of a Metropolitan Magistrate or Judicial Magistrate of the first class
shall try any offence punishable under this Act.
45. 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 b e 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 Act if he proves that the offence was committed without his
knowledge or that he had exercised 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 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 shall also be deemed to be guilty of that offence and shall be liable to
be proceeded against and punished accordingly.
Explanation. - For the purposes of this section -
(a) "company" means any body corporate and includes firm or other association of
individuals; and
(b) "director" in relation to a firm, means a partner in the firm.
46. Onus as to age .— (1) When any act or omission would, if a person were under a certain
age, be an offence punishable under this Act and such person is in the opinion of the Court,
prima facie under such age, the burden shall be oh the accused to prove that such person is not
under such age.
(2) A declaration in writing by a medical officer not below the rank of a civil assistant surgeon
relating to an employee that he has personally examined him and believes him to be under the
age stated in such declaration shall, for the purposes of this Act and the rules made thereunder,
be admissible as evidence of the age of that employee.
CHAPTER VIII
Miscellaneous
47. Regulation of housing, medical, educational and terminal facilities, etc., by the
Government.— The Government may, by rules made in this behalf, regulate-
(a) the provision of house-sites or houses to the employees;
(b) the provision of medical facilities to the employees by creating a welfare fund;
(c) the provision of he grant-in-aid including scholarships for higher education to the children
of the employees from the welfare fund specified in clause (b);
(d) the formation of Family Benefit Fund Scheme to the employees.
48. Exemption from the provisions of the Factories Act, 1948 (Central Act LXIII of 1948).—
Subject to the provisions of section 49, nothing contained in the Factories Act, 1948 (Central Act
LXIII of 1948) shall apply to an industrial premises under this Act.
49. Application of the Factories Act, 1948 to industr ial premises .— (1) Notwithstanding
anything contained in section 48, the Government may, by notification, declare that all or any of
the provisions of the Factories Act, 1948 (Central Act LXIII of 1948) shall apply to all or any
classes of industrial premises under this Act.
(2) The Government may make rules providing for the measures for securing the safety of
persons employed in the industrial premises to which the provisions of the Factories Act, 1948
(Central Act LXIII of 1948) have been made applicable under sub-section (1).
50. Application of the Payment of Wages Act, 1936 .— (1) Notwithstanding anything
contained in the Payment of Wages Act, 1936 (Central Act IV of 1936) (hereinafter in this
section referred to as the said Act), the Government may, by notification, direct that, subject to
the provisions of sub-section (2), the said Act or any of the provisions thereof or the rules made
thereunder shall apply to all or any class of employees to which this Act applies.
(2) On the application of the provi sions of the said Act under sub -section (1), the Inspector
appointed under this Act shall be deemed to be the Inspector for the purpose of the
enforcement of the provisions of the said Act within the local limits of his jurisdiction.
(3) The Government may, by a like notification, cancel or vary any notification issued under sub-
section (1).
51. Application of the Industrial Employment (Standing Orders) Act, 1946 and the
Maternity Benefit Act, 1961 .— (1) The provisions of the Industrial Employment (Standin g
Orders) Act, 1946 (Central Act XX of 1946), shall apply to every industrial premises wherein fifty
or more persons are employed or were employed on any one day of the preceding twelve
months as if such industrial premises were an industria1 establishment to which that Act has
been applied, by a notification under sub-section (3) of section 1 thereof, and as if the employee
in the said premises was a workman within the meaning of that Act.
(2) Notwithstanding anything contained in sub -section (1), the Government may, after giving
not less than two months notice of their intention so to do, by notification, apply all or any of the
provisions of the Industrial Employment (Standing Orders) Act, 1946 (Central Act XX of 1946),
to any iExcerpt shown. Open the full act in Lexace.