LexThe Telangana Shops and Establishments Act, 1988.
Telangana · state statute
Open in Lexace · Ask the AI about this actTHE TELANGANA SHOPS AND ESTABLISHMENTS ACT, 1988.
(ACT NO. 20 OF 1988)
ARRANGEMENT OF SECTIONS
Sections
1. Short title, extent, commencement and
application.
2. Definitions.
CHAPTER-II.
Registration of Establishments.
3. Registration of establishments.
4. Renewal of Registration Certificate.
5. Revocation or Suspension of the Registration
Certificate.
6. Appeal against revocation or suspension of the
Registration certificate.
CHAPTER-III.
Shops.
7. Opening and Closing hours of shops.
8. Selling outside prohibited, before opening and after
closing hours of shops.
9. Daily and weekly hours of work in shops.
10. Interval for rest.
11. Spread over periods of work.
12. Closing of shops and grant of holidays.
13. Closing of shops in public interest during special
occasions.
2 [Act No. 20 of 1988]
CHAPTER-IV.
Establishments other than Shops.
14. Application of this Chapter to establishments other
than shops.
15. Opening and closing hours.
16. Daily and weekly hours of work.
17. Interval for rest.
18. Spread over of periods of work.
19. Holidays.
CHAPTER-V.
Employment of Women, Children and Young
Persons.
20. Children not to work in establishment.
21. Special provision for young persons.
22. Daily and weekly hours of work for young persons.
23. Special provision for women.
24. Maternity leave.
25. Maternity benefit.
CHAPTER-VI.
Health and Safety.
26. Clean lines.
27. Ventilation.
28. Precautions for the safety of employees in
establishments.
29. Maximum permissible load.
[Act No. 20 of 1988] 3
CHAPTER-VII.
Leave and holidays with wages and Insurance
Scheme for Employees.
30. Leave.
31. Other holidays.
32. Pay during leave and holidays.
33. Power to increase the period of leave allowable
under section 30.
34. Compulsory enrolment of employees to Insurance-
cum-Savings Scheme.
CHAPTER-VIII.
Wages, Conditions for termination of services,
appeals, Suspension and terminal benefits.
35. Responsibility for payment of wages.
36. Fixation of wage period.
37. Wages for over-time work.
38. Time of payment of wages.
39. Wages to be paid in current coin or currency notes.
40. Deductions which may be made from wages.
41. Fines.
42. Deductions for absence from duty.
43. Deductions for damage or loss.
44. Deductions for services rendered.
45. Deductions for recovery of advances.
46. Deductions for payments to co-operative societies
and insurance schemes, etc.,
4 [Act No. 20 of 1988]
47. Conditions for terminating the services of an
employee, payment or service compensation for
termination, retirement, resignation, disablement,
etc., and payment of subsistence allowance for the
period of suspension.
48. Appointment of authority to hear and decide appeals
arising out of termination of services.
49. Notice and payment of service compensation to
employees in the case of transfer of establishment.
CHAPTER-IX
APPOINTMENT, POWERS AND DUTIES ETC., OF
THE AUTHORITY TO HEAR AND DECIDE CLAIMS
RELATING TO WAGES ETC. OF EMPLOYEES IN
ESTABLISHMENTS.
50. Appointment of authority to hear and decide claims
relating to wages etc.,
51. Claims arising out of deductions from wages or
delay in payment of wages etc., and penalty for
malicious or vexatious claims.
52. Single application in respect of claims from unpaid
group.
53. Appeal.
54. Conditional attachment of property of employer.
55. Power of authority appointed under section 50.
56. Power of Government to prescribe costs and court
fees for proceedings under this Chapter.
CHAPTER-X
APPOINTMENT, POWERS AND DUTIES OF THE
CHlEF INSPECTOR AND INSPECTORS.
57. Appointment of Chief Inspector and Inspectors.
[Act No. 20 of 1988] 5
58. Powers and duties of Chief Inspector.
59. Powers and duties of Inspectors.
60. Chief Inspector and Inspectors to be public servants.
CHAPTER-XI
PENALTIES FOR OFFENCES
61. Penalties.
62. Power to Compound offence.
63. Penalty for obstructing Inspector, etc.
64. Procedure in trial of offences.
65. Bar of suits.
66. Contracting Out.
67. Offences to be tried by Magistrate of Second Class
or above.
CHAPTER XII
MISCELLANEOUS
68. Maintenance of registers and records and display of
notices, etc.
69. Restriction on double employment on a Holiday or
during leave.
70. Delegation of powers.
71. Power to make rules.
72. Rights and privileges under other laws etc not
affected.
73. Exemption.
74. Application of the Workmen’s Compensation Act,
1923.
75. Protection of persons acting in good faith.
6 [Act No. 20 of 1988]
76. Power of Government to suspend provisions of the
Act during fair and festivals.
77. Application of this Act to Co-operative Societies.
78. Central Act 18 of 1942 not to apply to establishments
governed by this Act.
79. Repeal and Saving.
THE TELANGANA SHOPS AND ESTABLISHMENTS ACT,
1988.1
ACT No. 20 OF 1988.
1. (1) This Act may be called the 2Telangana Shops and
Establishments Act, 1988.
(2) It extends to the whole of the State of 2Telangana.
(3) It shall come into force on such date as the
Government may, by notification, appoint.
(4) It shall apply–
(i) in the first instance to all areas 3[in Telangana] in
which the Andhra Pradesh Shops and Establishments Act,
1966 was in force immediately before the commencement of
this Act;
(ii) to such other areas in the State on such date as
the Government may, by notification, specify.
2. In this Act, unless the context otherwise requires,-
(1) „apprentice‟ means a person who is emp loyed
whether on payment of wage s or not, for the purpose of
1. The Andhra Pradesh Shops and Establishments Act, 1988 received
the assent of the President on the 18 th July, 1988. The said Act in force in
the combined State, as on 02.06.2014, has been ad apted to the State of
Telangana, under section 101 of the Andhra Pradesh Reorganisation
Act, 2014 (Central Act 6 of 2014) vide. the Notification issued in
G.O.Ms.No.5, Labour, Employment, Training and Factories (Labour)
Department, dated 01.02.2016.
2. Sub stituted by G.O.Ms.No.5, Labour, Employment, Training and
Factories (Labour) Department, dated 01.02.2016.
3. Inserted by ibid.
Definitions.
Short title, extent,
commencement
and application.
2 [Act No.20 of 1988]
being trained in any trade, craft or employment in any
establishment;
(2) „Chief Inspector ‟ means the Chief Inspector
appointed under section 57;
(3) „child‟ means a person who has not completed
fourteen years of age;
(4) „closed‟ means not open for the service of any
customer, or for any trade or business or for any other
purpose connected with the establishment except loading,
unloading and annual stock taking;
(5) „commercial establishment‟ means an establishment
which carries on any trade, business, profession or any
work in connection with or incidental or ancillary to any such
trade, business or profession or which is a clerical
department of a factory or an industrial undertaking or which
is a commercial or trading or banking or insurance
establishment and includes an establishment under the
management and control of a co -operative society, an
establishment of a factory or an industrial undertaking which
falls outside the scope of the Fac tories Act, 1948, and such
other establishment as the Government may, by notification,
declare to be a commercial establishment for the purposes
of this Act but does not include a shop;
(6) „day‟ means the period of twenty -four hours
beginning at mid-night:
Provided that, in the case of an employee, whose hours
of work extend beyond mid -night, day means the period of
twenty-four hours beginning from the time when such
employment commences.
Central Act 63 of 1948.
[Act No.20 of 1988] 3
(7) „dependent‟ means, in relation to a deceased
employee, his nominee or in the absence of such nominee,
the heir or legal representative;
(8) „employee‟ means a person wholly or principally
employed in, and in connection with, any establishment and
includes an apprentice and any clerical or other staff of a
factory or industrial establishment who fall outside the scope
of the Factories Act, 1948; but does not include the
husband, wife, son, daughter, father, mother, brother or
sister of an employer or his partne r, who is living with and
depending upon such employer or partner and is not in
receipt of any wages;
(9) „employer‟ means a person having charge of or
owning or having ultimate control over the affairs of an
establishment and includes the manager, agent or other
person acting in the general management or control of an
establishment;
(10) „establishment‟ means a shop, restaurant, eating -
house, residential hotel, lodging house, theatre or any place
of public amusement or entertainment and includes a
commercial establishment and such other establishment as
the Government may, by notification, declare to be an
establishment for the purposes of this Act;
(11) „factory‟ means factory within the meaning of the
Factories Act, 1948;
(12) „Government‟ means the State Government;
(13) „Inspector‟ means an Inspector appointed under
section 57;
Central Act 63 of 1948.
Central Act 63 of 1948.
4 [Act No.20 of 1988]
(14) „notification‟ means a notification published in the
4Telangana Gazette and the word “notified” shall be
construed accordingly;
(15) „opened‟ means opened for the service of any
customer or for any trade or business connected with the
establishment;
(16) „periods of work ‟ means the time during which an
employee is at the disposal of the employer;
(17) „prescribed‟ means priscribed by rules made by the
Government under this Act;
(18) „register of establishment ‟ means a register
maintained for the registration of establishment under this
Act;
(19) „registration certificate‟ means a certificate issued
under this Act;
(20) „service compensation‟ means the service
compensation payable under section 47;
(21) „shop‟ means any premises where any trade or
business is carried on or where services are rendered to
customer and includes a shop run by a co -operative society
an office, a stor e room, godown, warehouse or work place,
whether in the same premises or otherwise, used in
connection with such trade or business a nd such other
establishments as the Government may, by notification,
declare to be a shop for the purposes of this Act, but does
not include a commercial establishment;
4. Substituted by G.O.Ms.No.5, Labour, Employment, Training and
Factories (Labour) Department, dated 01.02.2016.
[Act No.20 of 1988] 5
(22) „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 or circus performances or for any other public
amusement or entertainment;
(23) „wages‟ means every remuneration, whether by
way of salary, allowance, or otherwise expressed in terms of
money or capable of being so expressed which would, if the
terms of employment, express or implied were fulfilled, be
payable to an employee i n respect of his employment or of
work done in such employment, and includes–
(a) any remuneration payable under any settlement
between the parties or order of a tribunal or court;
(b) any remuneration to which the employee is
entitled in respect of overtime work or holidays or any leave
period;
(c) any additional remuneration payable under the
terms of employment, whether called a bonus or by any
other name;
(d) any sum which by reason of the termination of
employment of the employee is payable under any law,
contract or instrument which provides for the payment of
such sum, whether with or without deductions but does not
provide for the time within which the payment is to be made;
(e) any sum to which the employee is entitled under
any schem e framed under any law for the time being in
force; but does not include,-
(i) any bonus, whether under a scheme of profit
sharing or otherwise, which does not form part of the
remuneration payable under the terms of employment, or
6 [Act No.20 of 1988]
which is not payable under any award or settlement
between the parties or order of a court;
(ii) the value of any house accommodation, or of
the supply of light, water, medical attendance or other
amenity or of any service excluded from the computation of
wages by a general or special order of the Government;
(iii) any contribution paid by the employer to any
person or provident fund, and the interest which may have
accrued thereon;
(iv) any travelling allowance or the value of any
travelling concesssion;
(v) any sum paid to the employee to defray special
expenses entailed on him by the nature of his employment;
(vi) any service compensation payable on the
termination of employment in cases other than those
specified in sub-clause (d);
(vii) the subscrip tion paid by the employee to life
insurance and the contribution paid by the employer to the
life insurance of the employee under the provisions of this
Act and the bonus which may have accrued thereon; or
(viii) house rent allowance payable by the
employer;
(24) „week‟ means a period of seven days beginning at
mid-night on Saturday;
(25) „young person‟ means a person who is not a child
and has not completed eighteen years of age.
[Act No.20 of 1988] 7
CHAPTER-II.
Registration of Establishments.
3. (1) Every employer of an establishment shall,-
(i) in the case of an establishment existing on the
date of commencement of this Act, within thirty days from
that date; and
(ii) in the case of a new establishment, within thirty
days from the date on which the establishment commences
its work,
send to the Inspector concerned a statement containing
such particulars, together with such fees, as may be
prescribed.
(2) On receipt of such statement, the Inspector shall
register the establishment in the register of establishments
in such manner as may be prescribed and shall issue in the
prescribed form a registration certificate to the employer
who shall display it at a promi nent place of the
establishment:
5[Provided that if no adverse order is passed by the
Inspector within thirty days from the date of submission of
the statement under sub -section (1), then the registration
shall be deemed to be duly granted.]
6[Provided further that to facilitate the starting of
business, no inspection need be conducted prior to
registration.
5. Added by G.O.Ms.No.5, Labour, Employment, Training and Factories
(Labour) Department, dated 01.02.2016.
6. Added by Act No. 28 of 2017.
Registration of
establishments.
8 [Act No.20 of 1988]
Provided also that, on uploading the application for
registration along with other enclosures as may be
prescribed, provisional registration shall be granted within
24 business hours and be valid until a final order is passed
on the application for registration.]
(3) Every registration certificate issued under sub -
section (2), shall be valid with effect from the date on which
it is issued upto the 31st day of December following.
(4) Every employer shall give intimation to the Inspector,
in the prescribed form, any change in any of the particulars
in the statement made under sub -section (1) within fifteen
days after the change has taken place. The Inspector shall,
on receipt of such intimation and th e fees prescribed
therefor make the change in the register of establishments
in accordance with such intimation and shall amend the
registration certificate or issue a fresh registration certificate,
if necessary.
(5) The employer shall, within fifteen d ays of the closure
of the establishment, give intimation thereof in writing to the
Inspector, who shall, on receipt of such intimation, remove
the name of the establishment from the register of
establishments and cancel the registration certificate:
Provided that, where the Inspector is satisfied otherwise
than on receipt of such intimation, that the establishment
has been closed, he shall remove the name of such
establishment from the register and cancel the registration
certificate.
4. (1) The Inspector may, on an application made by the
employer accompanied by the fees prescribed therefor,
renew the registration certificate for a period of one year or
for such number of years as may be prescribed,
commencing from the date of its expiry.
Renewal of
Registration
Certificate.
[Act No.20 of 1988] 9
(2) Every application for the renewal of the registration
certificate shall be made in such form and in such manner
as may be prescribed so as to reach the Inspector not later
than thirty days before the date of its expiry:
Provided that, an application for the renewal of a
registration certificate received not later than thirty days after
its expiry may be entertained by the Inspector on the
applicant paying such penalty as may be prescribed, by the
Government from time to time.
(3) An applicant for the renewal of a registration
certificate under sub -section (2) shall, until communication
of orders on his application, be entitled to act as if the
registration certificate had been renewed:
7[Provided that if no adverse order is passed by the
Inspector within thirty days from the date of submission of
the application then the registration certificate shall be
deemed to have been renewed.]
5. If the Inspector is satisfied, either on a reference made
to him in this behalf or otherwise, that–
(a) the Registration Certificate granted under section 3
or renewed under section 4 has been obtained by mis -
representation, fraud or suppression of any material fact; or
(b) the employer has wilfully contravened any of the
provisions of t his Act or the Rules made there under, the
Inspector may, without prejudice to any other penalty to
which the employer may be liable under this Act, revoke or
suspend the Registration Certi ficate, after giving the
employer an opportunity of showing cause.
7. Added by G.O.Ms.No.5, Labour, Employment, Training and Factories
(Labour) Department, dated 01.02.2016.
Revocation or
Suspension of the
Registration
Certificate.
10 [Act No.20 of 1988]
6. (1) Any person aggrieved by an order made under
section 5 may, within thirty days f rom the date on which the
order is communicated to him, prefer an appeal to such
authority as may be prescribed:
Provided that the appellate authority may entertain the
appeal after the expiry of the said period of thirty days if he
is satisfied that the appellant was prevented b y sufficient
cause from filing the appeal in time.
(2) On receipt of an appeal under sub -section (1), the
appellate authority shall, after giving the appellant an
opportunity of being heard, dispose of the appeal within two
months.
CHAPTER-III.
Shops.
7. (1) No shop shall on any day be opened earlier or
closed later than such hour as may, after previous
publication, be fixed by the Government by a general or
special order in that behalf:
Provided that, any customer who was being served or
was waiting to be served in any shop at the hour fixed for its
closing may be served during the quarter of an hour
immediately following such hour.
(2) The Government may, for the purposes of this
section, fix different h ours for different classes of shops or
for different areas or for different time of the year.
8. No person shall carry on, in or adjacent to, a street or
public place, the sale of any goods, before the opening and
after the closing hours fixed under section 7 for the shops
dealing in any kind of goods in the l ocality in which such
street or public place is situated:
Opening and
Closing hours of
shops.
Selling outside
prohibited, before
opening and after
closing hours of
shops.
Appeal against
revocation or
suspension of the
Registration
certificate.
[Act No.20 of 1988] 11
Provided that, nothing in this section shall apply to the
sale of –
(i) News papers;
(ii) flowers;
(iii) pan;
(iv) vegetables and fruits; and
(v) such other goods as the Government may, by
notification, specify from time to time.
9. (1) Subject to other provisions of this Act, no employee
in any shop shall be required or allowed to work therein for
more than eight hours in any day and forty -eight hours in
any week.
(2) Any employee may be required or allowed to work in
a shop for any period in excess of the limit fixed under sub -
section (1) on payment of over -time wages, subject to a
maximum period of six hours in a week.
(3) For the purpose of stock -taking and preparation of
accounts, an employer may, with the previous intimation to
the Inspector, req uire or allow any employee to work in a
shop for not more than any six days in a year in excess of
the period fixed in sub -section (1), on payment of over -time
wages; so however, that the excess period shall not in
aggregate, exceed twenty-four hours.
10. No employee in any shop shall be required or allowed
to work therein for more than five hours in any day unless he
has had an interval for rest of at least one hour:
Daily and weekly
hours of work in
shops.
Interval for rest.
12 [Act No.20 of 1988]
Provided that, an employee who was serving a
customer at the commencement of the interval may be
required to serve him during the quarter of an hour
immediately following such commencement.
11. The periods of work of an employee in a shop shall be
so arranged that along with his intervals for rest, they shall
not spread over for more than twelve hours in any day:
Provided that, where an employee works on any day for
the purpose of stock -taking and preparation of accounts,
the spread over shall not exceed fourteen hours in any su ch
day on payment of over-time wages.
12. (1) Every shop, whether with or without employees, shall
remain closed on every Sunday which shall be a holiday for
every employee in the shop:
Provided that the Chief Inspector may, by notification,
specify in respect of any shop or class of shops or in
respect of shops or class of shops in any area any day in
the week instead of Sunday on which day such shop or
class of shops shall remain closed.
(2) (a) The Chief In spector may, by notification, require
in respect of any specified class of shops that they shall in
addition to the weekly holiday mentioned in sub -section (1),
be closed for one half day in a week, as may be fixed by the
Government;
(b) Every employee in any shop to which a
notification under clause (a) applies, shall be allowed in
each week an additional holiday of one half day fixed for the
closing of the shop under clause (a).
Closing of shops
and grant of
holidays.
Spread over
periods of work.
[Act No.20 of 1988] 13
(3) The Chief Inspector may, for the purposes of sub -
section (2), fix different hours for different classes of shops
or for different areas or for different times of the year.
(4) The weekly day on which a shop is closed in
pursuance of a requirement under sub -section (2) shall be
specified by the employer in a notice prom inently exhibited
in a conspicuous place in the shop.
(5) It shall not be lawful for the employer to call an
employee at or for the employee to go to his shop or any
place for any work in connection with the business of his
shop on any day or part of the day on which it has remained
closed.
(6) No deduction shall be made from the wages of any
employee in a shop on account of any day or part of a day
on which it has remained closed; and if such employee is
employed on the basis that he would not ordinari ly receive
wages for such da y or part of a day he shall non e the less
be paid for such day or part of a day the wages he would
have drawn had the shop not remained closed, or had the
holiday not been allowed, on that day or part of a day.
13. In addition to the holidays mentioned in section 12 the
Chief Inspector may, by notification and during with the
previous approval of the Government, requ ire in respect of
any specified class of shops that they shall be closed on
any specified day or days in the public interest.
CHAPTER-IV.
Establishments other than Shops.
14. The provisions of this Chapter shall apply only to
establishments other than shops.
Closing of shops
in public interest
during special
occasions.
Application of this
chapter to
establishments
other than shops.
14 [Act No.20 of 1988]
15. (1) No establishment shall on any day be opened
earlier, or closed later, than such hour as may, after
previous publication, be fixed by the Government by general
or special order in that behalf:
Provided that, in the case of a restaurant or eating -
house, any customer who was being served or was waiting
to be served therein at the hour fixed for its closing may be
served during the quarter of an hour immediately following
such hour.
(2) The Government may, for the purposes of this
section, fix different hours for different classes of
establishments or for different areas or for different times of
the year.
16. (1) Subject to the provisions of this Act, no employee in
any establishment shall be required or allowed to work
therein for more than eight hours in any day and forty eight
hours in any week.
(2) Any employee may be required or allowed to work in
an establishment for any period in e xcess of the limit fixed
under sub-section (1), on payment of over-time wages,
subject to a maximum period of six hours in any week.
(3) For the purposes of stock taking and preparation of
accounts, an employer may, with the previous intimation to
the Inspector, require or allow any employee to work in an
establishment for not more than any six days in a year, in
excess of the period fixed in sub -section (1) on payment of
overtime wages; so however, that the excess period shall
not, in the aggregate, exceed twenty-four hours.
17. No employee in any establishment shall be required or
allowed to work in such establishment for more than five
Opening and
closing hours.
Daily and weekly
hours of work.
Interval for rest.
[Act No.20 of 1988] 15
hours in any day unless he has had an interval for rest of at
least one hour:
Provided that the Chief Inspector may, in the case of an
establishment whose daily hours of work are less than eight
hours, reduce interval for rest to half -an-hour on an
application made by the employer, with the consent of the
employees.
18. The periods of work of an employee in an establishment
shall be so arranged that, along with his interval for rest,
they shall not spread over for more than twelve hours on
any day:
Provided that, where an employee works on any day for
the purpose of stock taking and preparation of accounts the
spread over shall not exceed fourteen hours on any such
day on payment of over-time wages.
19. (1) Every employee in any establishment shall be
allowed in each week a holiday of one whole day:
Provided that, nothing in this sub -section shall apply to
any employee whose total, period of employment in the
week, including any days spent on authorised leave is less
than six days.
(2) The Government may, by notification, require in
respect of any specified class of establishments that every
employee therein shall be allowed in each week an
additional holiday of one half-day commencing at such hour
in the afternoon as may be fixed by the Government.
(3) The Government may, for the p urposes of sub -
section (2), fix different hours for different classes of
establishments or for different areas or for different times of
the year.
Spread over of
periods of work.
Holidays.
16 [Act No.20 of 1988]
(4) No deduction shall be made from the wages of any
employee in an establishment on account of any day or p art
of a day on which a holiday has been allowed in accordance
with this section and if such employee is employed on the
basis that he would not ordinarily receive wages for such
day or part of a day, he shall non e the less be paid for such
day or part of a day the wages he would have drawn, had
the holiday not been allowed on that day or part of a day.
(5) It shall not be lawful for the employer to call an
employee at or for the employee to go to, his establishment
or any other place for any work in connection with the
business of his establishment on any day or part of a day on
which a holiday has been allowe d in accordance with this
section.
CHAPTER-V.
Employment of Women, Children and Young Persons.
20. No Child shall be required or allowed to work in any
establishment.
21. No young person shall be required or allowed to work in
any establishment before 6 a.m. and after 7 p.m.
22. Notwithstanding anything in this Act, no young person
shall be required or allowed to work in any establishment for
more than 7 hours in any day and forty -two hours in any
week nor shall such person be allowed to work overtime.
23. No Woman employee shall be required or allowed to
work in any establishment befo re 6-00 a.m. and after 8 -30
p.m.
24. The periods of absence from duty in respect of which a
women employee is entitled to maternity benefit under
section 25, shall be treated as authorised absence from
Children not to
work in
establishment.
Special provision
for young
persons.
Daily and weekly
hours of work for
young persons.
Special provision
for women.
Maternity leave.
[Act No.20 of 1988] 17
duty, and the women employee shall be entitled to maternity
benefit, but not to any wages for any of those periods.
25. Every woman who has been for a period of not less than
six months preceding the date of her delivery in continuous
employment of the same employer whether in the same or
different shops or commercial establishments, shall be
entitled to receive from her employer for the period of–
(a) six weeks immediately preceding the day of delivery;
and
(b) six weeks following the day of delivery; such
maternity benefit and in such manner as may be prescribed:
Provided that, no woman employee shall be entitled to
receive such benefit for any day during any of the aforesaid
periods, on which she attends work and receive wages
thereof.
CHAPTER-VI.
Health and Safety.
26. The premises of every establishment shall be kept clean
and free from effluvia arising from any drain or privy or other
nuisance and shall be cleaned at such times and by such
methods as may be prescribed.
27. The premises of every establishment shall be ventilated
as provided for in the laws relating to the municipalities,
gram-panchayats or other local authorities for the time being
in force.
28. (1) In every establishment other than such esablishment
or class of establishments as the Government, may by
notification, specify, such precautions against fire shall be
taken as may be prescribed.
Clean lines.
Ventilation.
Precautions for
the safety of
employees in
establishments.
Maternity benefit.
18 [Act No.20 of 1988]
(2) If power driven machinery is used, or any process
which, in the opinion of the Government, is likely to expose
any employee to a serious risk of bodily injury is carried on
in any establishment, such precautions including the
keeping of first aid box shall be taken by the employer for
the safety of the employees therein, as may be prescribed.
29. (1) No employee in any establishment shall be required
or allowed to engage in the manual transport of a load
therein which by reason of its weight is likely to jeopardise
his health or safety.
(2) The Government may, for the purposes of this
section prescribe different maximum limits of weight for
different classes of employees in any establishment.
Explanation:- For the purposes of this section, the term
„manual transport of a load ‟ means any transport in which
the weight of the load is wholly borne by one employee,
inclusive of the lifting and putting down of load.
CHAPTER-VII.
Leave and holidays with wages and Insurance Scheme for
Employees.
30. (1) Every employee who has served for a period of two
hundred and forty days or more during a continuous period
of twelve months in any establishment shall be entitled
during the subsequent period of twelve months, to leave
with wages for a period of f ifteen days, provided that such
leave with wages may be accumulated upto a maximum
period of sixty days:
Provided that any continuous period of service in an
establishment preceding the date on which this Act applies
to that establishment shall also count:
Maximum
permissible load.
Leave.
[Act No.20 of 1988] 19
Provided further that any leave accumulated by an
employee in an establishment under the law applicable to
that establishment preceding the date on which this Act
applies to it, shall not be affected:
Provided also that every employee in any shop or
establishment shall be entitled for encashment of the leave
with wages for a period of eight days in every year.
(2) An employee may apply in writing to the employer,
not less than seven full working days before the date of
availing himself of his leave , to allow all the leave or any
portion thereof, to which he is entitled under sub-section (1):
Provided that the number of install ment for taking leave
shall not exceed three during a period of twelve months.
(3) An employee who has been allowed leave for not
less than five days under sub -section (2) shall before his
leave begins, be paid the wages due for the period of the
leave allowed if he makes a request therefor.
(4) Every employee who has served for a period of not
less than two hundred and fo rty days during a continuous
period of twelve months in any establishment shall be
entitled for encashment of eight days of leave with wages
that has accrued to him under sub -section (1) during the
subsequent period of twelve months. The employer shall
pay to the employee the wages for the leave so encashed
by the employee within a week of receipt of the application
for such encashment from the employee.
(5) Every employe e in any establishment shall al so be
entitled during his first twelve months of conti nuous service
and during every subsequent twelve months of such service
(a) to leave with wages for a period not exceeding twelve
days on the ground of any sickness or accident and (b) to
20 [Act No.20 of 1988]
casual leave with wages for a period not exceeding twelve
days on any reasonable ground.
(6) Every employee in an establishment after he has put
in not less than six months of service under the same
employer, shall also be entitled for a special casual leave
not exceeding six days only once during his entire service, if
he has undergone vasectomy or tubectomy operation,
subject to the production of a certificate therefor from an
authorised medical practitioner under whom he has
undergone the operation.
(7) If any employee entitled to any leave under s ub-
section (1 ) is d ischarged by his employer before he has
been allowed such leave, or it the leave applied for by such
employee has been refused and if he quits his employment
before he has been allowed the leave, the employer shall
pay him the amount, payable under this Act in respect of the
period of leave.
(8) If an employee is lawfully discharged by his
employer when he is sick or suffering from the result of an
accident, the employer shall pay him the amount payable
under this Act in respect of the period of leave t o which he
was entitled at the time of his discharge in addition to the
amount, if any payable to him under sub-section (3).
(9) An employee in a hostel attached to a school or
college or in an establishment maintained in connection with
the boarding and lodging of pupils and resident masters,
shall be allowed the privileges referred to in sub -sections (1)
to (8), reduced however proportionately to the period for
which he was employed continuously in the previous year or
to the period for which he will be employed continuously in
the current year, as the case may be; and all references to
the periods of leave in sub -sections ( 1) and (5) shall be
[Act No.20 of 1988] 21
construed accordingly, fractions of less than half a day
being disregarded.
31. (1) Every employee in any establishment shall also be
entitled to nine holidays in a year with wages on the days to
be specified by not ification, from time to time, by the
Government which shall include, the 26th January (Republic
Day), 1st May, (May Day), 15th August (Independence Day),
2nd October (Gandhi Jayanthi) and 8[2nd June, (Telangana
Formation Day)] and on every such holiday, all the
establishments, either with or without employee s, shall
remain closed.
(2) Notwithstanding anything contained in sub -section
(1) the Chief Inspector may, having due regard to any
emergency or special circumstances prevaili ng in the State
or any part thereof, notify any other day or days as holidays
with wages to employees or class of employees as he may
deem fit. The holidays so notified shall be deemed to be
additional holidays:
Provided that , any such employee in any residential
hostel, restaurant, eating -house, theatre, or any place of
public amusement or entertainment may be required to
work in such establishment on any such holiday declared
under sub -section (1) or sub -section (2), subject to the
condition that in lieu thereof, a compensatory holiday with
wages shall be allowed to such person within thirty day s
from the date of such holiday:
Provided further that, such compensatory holidays shall
not exceed seven in a year and where any such employee in
any such establishment is required to work on any such
8. Substituted by G.O. Ms.No.5, Labour, Employment, Training and
Factories (Labour) Department, dated 01.02.2016 w.e.f.02.06.2014.
Other holidays.
22 [Act No.20 of 1988]
compensatory holiday, he shall be paid additional wages at
the ordinary rate of wages in lieu of such holiday.
(3) Nothing in sub -section (1) shall apply in respect of
any establishment where the number of holidays with wages
allowed by the employer is more than the holidays notified,
by the Government under that sub-section:
Provided that, every such employer shall send a list of
holidays with wages allowed by him, which shall include the
five holidays specified in sub -section (1), to the inspector
and to the Chief Inspector and shall also displ ay the list at a
prominent place of the establishment.
32. (1) Every employee shall, for the period of the leave
allowed under sub -sections (1) and (5) of section 30 or the
holidays allowed under section 31, be paid at a rate
equivalent to the daily average of his wages for the days on
which he actually worked during the preceding month
exclusive of any earning in respect of overtime.
33. Notwithstanding anything in section 30, the Government
may, by notification, increase the total number of days of
leave allowable under sub-section (1) of that section and the
maximum number of days upto which such leave may be
accumulated in respect of any establishment or class of
establishments.
34. (1) Every employee who has served in an establishment
for a period of not less than one year shall subscribe to the
insurance scheme or Insurance-cum-Saving scheme as may
be notified by the Government to be applicable to the
establishment in which the employee is working, at the
rates, stipulated by the Government in the notification either
in lumpsum every year or in monthly instal lments as may be
prescribed by the Government in the notification. For this
purpose the employer, shall make the payment to the
Pay during leave
and holidays.
Power to increase
the period of
leave allowable
under section 30.
Compulsory
enrolment of
employees to
Insurance-cum-
Savings Scheme.
[Act No.20 of 1988] 23
authority notified by the Government on behalf of the
employee on or before the stipulated date and recover the
same from the wages payable to the employee.
(2) In addition to the subscription of the employee
mentioned in sub -section (1), every employer of the
establishment to which the scheme of insurance or
Insurance-cum-Savings is made applicable by the
Government, shall also pay such percentage of annual
wages of employee as may be notified by the Government,
from time to time to the authority notified for the purpose as
employer‟s con tribution on or before the specified date
every year.
CHAPTER-VIII.
Wages, Conditions for termination of services, appeals,
Suspension and terminal benefits.
35. Every employer shall be responsible for the payment by
him to employees of all wages and sums, required to be
paid under this Act.
36. (1) Every employer shall fix periods (herein-after referred
to as wage-periods) in respect of which such wages shall be
payable.
(2) No wage-period shall exceed one month.
37. Where any employee in any establishment is required to
work over-time he shall be entitled, in respect of such over -
time work, to wages at twice the ordinary rate of wages:
Provided that, where the normal hours of work in an
establishment are ordinarily less than eight hours a day and
48 hours a week, he shall be entitled in respect of work in
excess of such normal hours upto eight hours a day and
forty eight hours a week to wages at the ordinary rate of
Responsibility for
payment of
wages.
Fixation of wage
period.
Wages for over-
time work.
24 [Act No.20 of 1988]
wages and in respect of work in excess of eight hours a day
and forty eight hours a week at twice the ordinary rate of
wages, in addition to the wages for the normal hours of
work.
Explanation:- For the purpose of this secti on, the
expression „ordinary rates of wages‟ shall mean such rate of
wages as may be calculated in the manner prescribed.
38. (1) The wages of every employee shall be paid before
the ex piry of the fifth day after the last day of the wage -
period in respect of which the wages are payable.
(2) Where the service of any employee is terminated by
or on behalf of the employer the wages earned by such
employee shall be paid before the expiration of the second
working day fr om the day on which his employment is
terminated.
(3) The Government may, by general or special order
and for reasons stated, therein exempt an employer from
the operation of this section in respect of the wages of any
employee or class of employees to s uch extent and subject
to such conditions as may be specified in the order.
(4) All payments of wages shall be made on a working
day.
39. All wages shall be paid in current coin or currency notes
or in both.
40. (1) The wages of an employee shall be paid to him
without deduction of any kind except those authorised by or
under this Act.
Time of payment
of wages.
Wages to be paid
in current coin or
currency notes.
Deductions which
may be made
from wages.
[Act No.20 of 1988] 25
Explanation:- Every payment made by an employee to
the employer shall, for the purposes of this Act, be deemed
to be a deduction from wages.
(2) Deductions from the wages of an employee shall be
made only in accordance with the provisions of this Act and
may be of the following kinds only, namely:-
(a) fines and other penalties lawfully imposed;
(b) deductions for absence from duty;
(c) deductions for damages to, or loss of goods
expressly entrusted to the employee for custody or for loss
of money for which h e is required to account, where such
damage or loss is directly attributable to his neglect or
default;
(d) deductions for house accommodation provided
by the employer;
(e) deductions for such amenities and services
supplied by the employer as the Go vernment may, by
general or special order, authorise;
(f) deductions for recovery of advances or for
adjustment of over-payments of wages;
(g) deductions of income -tax or profession -tax
payable by the employee;
(h) deductions required to be made by orderExcerpt shown. Open the full act in Lexace.