The Tamil Nadu Shops and Establishments act, 1947 and Rules, 1948

Objects and Reasons for the Enactment

The Weekly Holidays Act, 1942 which was in force was limited in scope as it dealt with the grant of holidays only and did not contain provisions relating to hours of work, payment of wages, health and safety of persons working in the shops and Establishments. Therefore, this comprehensive legislation was brought in Hence, the main purpose of this Act is To regulate the conditions of work in shops, commercial establishments, restaurants, theatres and other establishments To regulate the opening and closing hours, daily and weekly working hours, intervals of rest To ensure that measures are taken to secure the health of the workers, payment of wages, etc.

Important Definitions
Shop means the premises where trade or business is carried on or where services are rendered to the customers, and includes store-rooms, godowns, warehouses Commercial establishment means the premises where advertising, commission, forwarding, commercial agency is carried on or the clerical department of a factory, Insurance business, business of the Joint Stock company, banking business and any other activity is carried on Establishment means a shop or a commercial establishment or a restaurant, an eating house, a residential hotel, theatre or any place of public amusement Employer means the owner or the manager, Agent or any other person who has control over the affairs the establishment Employed person means the person employed either wholly or principally either in the shop or in the commercial establishment or clerical workers of a factory, etc. Wages means remuneration capable of being expressed in terms of money as per express or implied terms of contract and includes bonus and terminal benefit but does not include

provident fund and pension fund contribution, traveling allowance, amount paid to defray expenses and gratuity Day means the period of 24 hours beginning from midnight. However, when a person works beyond midnight, 24 hours from the beginning from the time when such employment commences

Applicability
This Act is applicable to all municipal corporations, municipalities and panchayat areas The Act may be extended to non-panchayat areas, cantonments, Industrial Town areas, etc. All shops and commercial establishments which have been defined in the foregoing and also theatres, places of public amusement, restaurants, residential hotels, are covered under this Act.

Exemption
The government has powers to suspend the provisions of this Act during fairs and festivals The Act is not applicable to persons employed in the positions of management to persons whose work involve traveling and who work as canvassers or caretakers subject to the issue of notification to establishments in mines and oilfields to establishments under the control of state or central governments, local authorities, RBI, Railways, establishments in bazaars at the time of festivals which function for 15 days and less, hospitals, chemists and druggists shops, clubs and residential hotels, hostels, boarding schools, docks, wharves or ports to establishments which are specifically exempted by the order of the state government to the category of persons specifically exempted by the government

Important provisions
No shop or commercial establishment can be opened before or closed after the time fixed by the state government No person can be employed for more than 8 hours a day and 48 hours in a week The spread over shall not exceed 12 hours including the internal of rest of one hour.

 The shops and commercial establishments shall be closed for a day in a week and an additional holiday of half a day can be prescribed by the state government. Arrangements for proper cleanliness, ventilation, lighting and precautions against fire shall be made Provisions regarding leave o 12 days of SL even in the first year of service shall be given o 12 days of CL shall be given even in the first year of services shall be given o 12 days of PL after one year of service shall be given o PL alone can be accumulated up to 24 days o If a person is discharged from service, wages for the unavailed portion of PL shall be paid o The state government has the power to increase the no. of holidays Provisions regarding wages o The employer shall be responsible for payment of wages o The employer shall fix the wage period but it shall not exceed one month o OT wages at the rate of twice the ordinary rate of wages shall be payable, when OT work is resorted to o Wages shall be paid within 5 days after the expiry of the wage period o In the case of termination of service, the wages shall be paid before the expiry of the second working day o All payments of wages shall be made on a working day in current coins or notes or both Provisions regarding deductions o Deductions from wages can be effected by way of Fines Absence from work Damage caused or loss to the property of the employer House accommodation provided by the employer of any Amenities provided Recovery of advances or adjustment of over payments Income tax As per courts order PF contribution Co-operative society Insurance premium maintained by the post office or the insurance company Savings scheme approved by the state government

 Provisions regarding fines o Fine can be imposed For commission or omission of acts approved by the state government or Labour commissioner After exhibiting the approved list of acts and omissions for which fine may be imposed After giving the employee an opportunity to show cause or as per procedures as may be prescribed But the amount of fine shall not exceed 3 paise for every rupee of the wages and recovered within 60 days from the date of commission / omission of act Registers and Records shall be maintained as noted in the ready Reckoner The rights and privileges to which the employee are entitled as per any other Act shall continue to be operative Name board of the establishment should contain the Tamil version in a bigger size and shall be in the reformed script followed by version in other languages The state government has the power to exempt establishments , or class of establishments, persons or class of persons from all or any of the provisions of the rules subject to the conditions as may be prescribed The Inspectors appointed under the Act are public servants as defined under the IPC and hence no interference be made in discharge of their duties If the forms maintained under the other Acts contain the same particulars, exemption can be obtained from the labour commissioner The Maternity Benefit Act, 1961 is applicable to the shops and commercial establishments The provisions of the Payment of Wages Act is applicable to the commercial establishments covered under this Act Chit fund establishments, banks, dispensaries working in the night, petrol pumps, book stalls in Railway premises, co-operative societies, shops dealing in vegetables, fish and dairy products, chemists shops, market committees, IDBI bank, software industries are exempted from some specific provisions of the Act.

 As per the notification, Holidays with wages and Wages provisions of the Act are made applicable to all employees, including the managerial personnel The provisions of the Act are made applicable to the persons employed in the managerial positions Sec 41 of the Act dealing with the precondition for dismissing the employees and right to make an appeal to the appellate authority are made applicable to the persons holding managerial positions The services of an employee who has completed 6 months of service cannot be terminated except for a reasonable cause after giving one month notice or wages in lieu of the notice or for commission of misconduct after conducting an enquiry As penalties are prescribed for contravention of various provisions like opening before or closing after the prescribed hours, asking employees to work OT exceeding 9 hours on a day or 48 hours in a week, not closing on the weekly holiday, not making adequate measures to maintain cleanliness, ventilation, lighting, precautions against fire, not providing leave facilities, not paying for the eligible leave days, not paying the wages on the fixed day or before, terminating the employee without the reasonable cause and not giving one month notice or pay in lieu of notice or terminating the services of an employee without conducting the enquiry and failure to maintain registers and records, preventing the Inspector from discharging his duties, care should be taken to observe the provisions. Ready Reckoner may be referred for statutory compliance under this Act.

The Apprentices Act, 1961

Objects and Reasons
With the ongoing industrialization and computerization, the positions of skilled and semi skilled employees, positions of technical and supervisory technical persons and engineers had grown; Though several institutes and educational institutions were started to give technical, operational and specialists training to cater to the growing needs of skilled, semi skilled and technical personnel, specialists and engineers, the need to give them practical and actual working training was felt; Hence it was thought that industries should be made to impart practical training and meet a portion of the cost of the training since ultimately only the industries are going to be benefited by the knowledge of such persons, by engaging them; Hence this Act was brought into statute book in the year 1961.

Important Definitions
Apprentice means the person who is undergoing apprentice training Designated Trade means any trade, occupation in any field of engineering and technology or in vocational course, as designated by the central government Employer means the person who engages persons for remuneration and includes the person who is entrusted with the supervision and control of the employees in such establishment Establishment means where any industry is carried on. branches shall be treated as part of the establishment All the departments and

Exemption
No exemption from following the provisions of the Act, including the engagement of apprentices or graduate or technician apprentice or vocational service apprentice is possible 6

Therefore, once the industry has designated trade, apprentices have to be engaged, as per the terms as prescribed under the Act

Applicability
If the industry has designated trades, which are decided so, by the central government, the Act is applicable

Authorities under the Act

Apprenticeship Advisor appointed under the state government Trade apprentices and Vocational Services apprentices under the Act in designated trade come under the control of state apprenticeship advisor He decides about the number of apprentices to be appointed in the designated trades, depending upon the number of skilled and unskilled workers or administrative staff, follows the apprenticeship training and all other matters arising out of the same Central Government Apprenticeship Advisor He functions in the areas specified above in respect of graduate and technician apprentices National Council for Vocational Trades It deals with vocational trades as decided by the central government State Council for training in vocational trades It deals with the vocational trades assigned to be controlled by the state government All India Council for Technical Education This council decides about the designated trades. Once the designated trades are decided in which apprenticeship training is to be given, either the apprenticeship advisor of the central or state government has to implement the decision by arranging for apprenticeship training and follow the same in respect of trade apprentices, or in the vocational trades, the graduate and technician apprentices.

Important provisions
The persons fit to be engaged as apprentices should possess necessary qualification prescribed for each trade, vocation, graduate apprentice or technician apprentice and physical fitness as may be fixed; The apprentices are to be engaged after the contract is entered into stamp duty exemption is given to this type of contract The contract of apprenticeship may be changed from one employer to the other, if either the first employer or the apprentice is unable to continue the contract and the second employer agrees and with the approval of the Apprenticeship Advisor 7

The contract may be terminated by either party with the approval of the Apprenticeship Advisor. If the termination is by the employer, he should pay the compensation to the apprentice whereas if it is by the apprentice, he should pay the cost of training as determined by the Apprenticeship Advisor The period of Apprenticeship training may be decided by the authorities under the Act. The number of apprentices to be engaged by an industry is to be decided based on such factors, like the number of persons working in the industry, the totality of the training facilities etc., Related Instructions of the Apprentices is to be arranged in the ITI in respect of apprentices who have undergone institutional training at ITI since in most industries only institutionally persons are taken as apprentices It is the duty of the employer to arrange for imparting the training to the apprentices It is the duty of the apprentices to learn the trade, attend the related instructions classes and carry out the lawful orders of the employer and also to carry out the obligations under the contract It is the duty of the employer to pay the stipend to the trainees. However, the employer can get 50 % of the stipend paid to the graduate / technician apprentice from the central Board of Apprenticeship The employers duties are: Health, Safety and Welfare of the apprentices should be taken care of as prescribed in the Factories Act or Mines Act, as the case may be To extend leave as is applicable to the employees of the establishments, to the apprentices Should not ask apprentices to work overtime To pay compensation to the apprentices in case they meet with employment injury as provided under the WC Act. However, ESI Act is not applicable to the apprentices Should maintain records of progress of training of the apprentices in the prescribed form and submit to the Apprenticeship Advisor He cannot compel the apprentices to work in the establishment after conclusion of the apprenticeship training The progress in apprenticeship training of graduate / technician apprentice, vocational apprentice shall be assessed from time to time To apply the rules and regulations which are applicable to the other employees in respect of conduct and discipline to the Apprentices also. Not to apply labour laws since the trainees are not workmen but only apprentices Any disagreement or dispute between the employer and the apprentice arising out of the contract of apprenticeship shall be referred to the Apprenticeship Advisor and the 8

decision of the Advisor is binding on both the parties. Appeal lies against the decision of the Advisor to the apprenticeship council within 30 days of the passing of the order by the Advisor and the decision of the council is final At the end of the apprentice training, in respect of the trade apprentices, the national council will conduct a test and on passing the test, certificate of proficiency will be issued by the council. In respect of graduate, technician and vocational trainees based on the assessment of the progress done periodically by the employer and after making independent assessment based on the report of the employer, the Regional Board shall give the proficiency certificate to such apprentices Apprenticeship Advisor, Additional, Joint, Regional, Deputy or Assistant Apprenticeship Advisor appointed under this Act are public servants within the meaning of IPC and they have right to enter and inspect the establishments and records. All facilities should be provided for the same As penalties can be imposed on the employer for (a) engaging unqualified person as apprentice (b )failing to carry out the terms and conditions of contract of apprenticeship (c) contravening the provision regarding the number of apprentices to be engaged (d) refusing or neglects to furnish information or return (e) submitting false information sought or returns (f) refusing to answer any question with respect to the lawful information or giving false answers (g) refusing / neglecting to allow the inspecting officials entry, inspection, examination or inquiry (h) asking the Apprentices to work overtime (i) engaging the apprentices in work not connected to the designated trade, vocation, training (j) effecting the payment on piece-rate basis and (k) asking the apprentice to work in an incentive plan, care should be taken to avoid these mistakes / defaults The statutory obligations to be followed under this Act are noted in the Ready Reckoner which may be gone through for taking appropriate action

The Employment Exchanges (Compulsory notification of Vacancies) Act, 1959 and Rules, 1960
Objects and Reasons
To know about the employment trend in both public and private sectors To keep a live register of persons who seek employment and refer their cases to both the public and private sectors to enable their placement Towards achieving the above to make the notification of vacancies compulsory

Important Definitions
Employee means, any person who is employed in an establishment to do any work for remuneration Establishment means, any office or any place where industry, trade, business or occupation is carried on, whether be in the public or private sector ( the words, Industry, Trade, Business or Occupation should be interpreted individually without being influenced by other word or words. The term occupation amounts to the meaning of employment only) Employer means, any person who employs other persons to do the work of an establishment Employment Exchange means the office established or maintained by the Government collection of and furnishing information relating to the job seekers and the vacancies in the establishments Unskilled office work means daftri or cleaner, Jamedar or orderly or peon, dusting man, bundle or record lifter, process server, watchman, sweeper and any other category as may be notified by the central government

Exemptions
This Act is not applicable to the vacancies in the

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 Employment in Agriculture and Horticulture other than agricultural and farm machinery operatives Employment in domestic services Employment which is less than 3 months duration Employment in unskilled office work which is noted above Employment in the Parliament Employment which carries a remuneration of Rs 60/- pm and less

Applicability
This Act is applicable to the private sector establishments where ordinarily 25 or more persons are employed for remuneration The Act is applicable to all vacancies in the private sector establishments except the employments mentioned in Exemption clause above

Other Important Provisions

All vacancies that may arise are to be notified to the Employment Exchange in the prescribed form, 15 days before filling the vacancies. But the employer is not obliged to recruit the persons referred by the Exchange The employer has to furnish the prescribed information and returns The officer appointed under the Act shall have the right to access any relevant record or document in possession of the employer relating to the furnishing of information or returns, inspect the same and take copies of the same and ask relevant and necessary questions Since penalties can be imposed on the employer for (a) Failing to notify vacancies (b) Refusing or neglecting to furnish information or return (c) Furnishing false returns or information (d) Refusing to answer or for giving false answers to any question (e) Impeding the Inspecting official to have access to the relevant records, or documents or refusing entry, care should be taken to avoid the above action The Statutory Compliances to be followed under this Act and Rules are noted in the Ready Reckoner which may be looked into for guidance As per the notification of the Tamil Nadu government, Biennial return in Form ER II is to be furnished by the private sector establishments

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The Inter-state Migrant Workmen ( Regulation of employment and conditions of services ) Act, 1979 and Rules, 1980
Objects and Reasons
The system of inter-state migrant labour is exploitative in nature as the workers are sent to far off places in other states and asked to work without giving them adequate leave, providing health facilities, without fixing working hours and paying them low wages. Such migrant workmen, even if they want to return, they are intimidated not to do so. To bring an end to this system, 28th Session of Labour Ministers conference in 1976 formed a compact committee and based on their recommendation, this Act has been passed

Important Definitions
The contractor in relation to an establishment means, the person who undertakes to produce given result for the establishment by employing workmen, whether in the capacity of independent contractor, agent, employee or otherwise or supplying the workmen and includes the sub-contractors Establishment means, any office or department of central government or a local authority and any place, where any industry, trade, business, manufacture or occupation is carried on Inter-state Migrant Workman means, any person who is recruited by or through a contractor in one state for working in the establishment of another state either with or without the knowledge of the principal employer Principal Employer means, in relation to the factory, the owner or the occupier of the factory and the Manager nominated as such by the occupier of the factory, and in relation to the establishment, any person responsible for the supervision and control of the establishment Wages will have the meaning assigned to it under the Payment of Wages Act Workmen will have the similar meaning as found in the Industrial Disputes Act 12

Exemptions
The state government for a specific period or periods can exempt a class of establishment, class of contractors or a class of inter-state migrant workmen from any or all of the provisions of the Act or the rules framed thereunder

Applicability
To the establishments which engage five or more inter-state workmen whether in addition to the engagement of regular workman by the establishment or not and To every contractor who employs or who had employed 5 or more inter-state workmen either in addition to the engagement of regular workmen or not.

Important Provisions
The central or state government is the appropriate government as the case may be (For central government establishments, railways cantonment, major port, wharves and banks, the central government is the appropriate government and for other establishment, the state government in which the establishment is situated, is the appropriate government) has to appoint the government officers as the Registering officer with jurisdictional limit. Registration of the establishment where 5 or more inter state migrant workmen is employed has to be done by the employer with in the specified to me and in appropriate cases, the registering officer may extend the to me The Registering officer, if the application is in order has to register the establishment with in one month or otherwise return the application. The corrected application has to be considered and registration has to be done within 15 days of resubmission. The registration can revoked if it is found that the registration has been obtained by misrepresentation or suppression of facts of for any other reason and the registration has become useless or ineffective. The registration can be suspended while considering the revocation for any reason, by the registering authority. No inter state workmen can be employed by the principal employer without getting the registration certificate. However if the application for registration is pending then the inter state workmen can be engaged.

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The appropriate government has to appoint the Licensing officer with jurisdictional limit for licensing the contractors. The contractor has to apply for license to the appropriate Licensing officer, after paying the license fees and after giving security in specific cases. On submission of relevant form containing the prescribed particulars along with the licensing fees, the Licensing officer, if he finds that the application is in order and after making investigation has to issue the license to the contractor for a specific period. The license has to be renewed for further period by paying renewal fees by the contractor. The license may be revoked if the application and information furnished are not genuine or for any other reasons. If the license is proposed to be revoked for any reason as noted above, till such action is taken, the license may be suspended. The licensing officer may amend the license. Appeal against revocation or suspension of registration certificate or license, and against the order asking the contractor to provide security lies with the Appellate officer. The appeal has to be made within 30 days of the passing of the order by the Registration or Licensing officer as the case may be. The appeal has to be disposed of as expediciously as possible. Duties of the contractors are as follows: To furnish the particulars of engagement of inter state workmen within 15 days of such recruitment in the prescribed form to the appropriate officer of the central or state government as the case may be. To issue the passbook to the workmen in English and Hindi or in any other language of the workmen in the place of Hindi containing the particulars of name and place of the establishment in which the workmen is employed the period of employment, the proposed rates and modes of payment of wages, the displacement allowance payable, the return fare payable to the workmen on the expiry of his period of employment or return in other contingencies, deductions made from the wages and any other particulars as may be prescribed. To furnish the particulars including the stopping of inter state workman and the fares paid for his return trip, to the state government authorities to which state he belongs. The contractor should maintain the said book update and return to the workmen when he leaves the work. The wages to be paid to the Inter state workmen holidays to be given to them and other conditions of service shall be the same as that of regular workmen of the establishment. However the inter state workmen shall not be, in any case paid wages less that wages fixed under the minimum wages Act.

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The inter state workmen shall be paid displacement allowance which shall be equal to 50% of his monthly wages, subject to a minimum of Rs75P.M.Thus displacement allowance shall be in addition to the monthly wages and is not liable to be refundable. Journey allowance, which shall not be less than actual fare, is payable when the inter state workmen travels to the place of work in another state from his place of his state and vice versa. The duties of the contractor shall also be as follows; To ensure regular payment of wages to the interstate workmen. To ensure equal pay for equal work irrespective of the sex. To ensure suitable conditions of work to the workmen. To provide and maintain suitable residential accommodation to the interstate workmen. To provide prescribed medical facilities to the interstate workmen free of charge. To provide the prescribed protective clothing to the workmen. To report to the specified authorities of the State in which the interstate workmen works and the State to which he belongs and also to the next of kin of such workmen, in case of death. The contractor shall be responsible for paying wages to the interstate workmen. The wages shall be paid before the expiry of the prescribed period. The wages should be paid by the contractor in the presence of the representative of the Principal employer and such representative should certify the payment of correct wages. The Principal employer has the right to deduct the shortfall in wages paid by the contractor, from out of the amount payable to the contractor. The displacement allowance payable to the interstate workmen if not paid by the contractor has to be paid by the Principal employer and deducted from the amount payable to the contractor by the Principal employer. Any loan given to the workmen by the contractor or by the Principal employer shall be collected before the ending of the term of the workmen and if it is not discharged before the ending of the period by the workmen it shall get extinguished and no recovery is allowed from any amount payable to the Inter state workmen. The Inspectors appointed under this Act can enter the premises of the establishment where he has reasons believe that Inter-State Migrant workmen are engaged, satisfy himself about the observance of the Provisions of the Act, examine the registers and records required to be kept under the Act, examine any person to find out whether he is migrant workman, ask the employer or the contractor to furnish the relevant information, seize or take copies of registers, records of wages and exercise such other functions which are necessary for the implementation of the Act. The person who is asked to give information, record or documents are to do so obliged. The provisions of the Industrial Disputes Act relating to the Industrial Disputes apply in respect of the Industrial Dispute or difference between the Inter-State 15

Migrant workmen and the contractor. The dispute is to be raised by the workmen within 6 months of returning to his state. Inter-State Migrant shall be deemed to be in service from the time he was taken by the contractor for employment in an establishment in another state. As, Penalties are likely to be levied for Obstructing the Inspector from discharging his duty. Refusing to produce the records or document when asked to do so by the Inspector. Contravening of any Provisions or Rules made hereunder, are likely to visited with stringent punishments, care should be taken to avoid such pitfalls. The compliances to be done, are noted in the Ready Reckoner which may be referred for guidance.

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The Equal Remuneration Act 1976 & Rules 1976

Objects and reasons for bringing this enactment
The constitution enshrines the principle of equality of sex. The equality of sex means that women workers doing the same or similar jobs as done by men, should be paid the same wages. The Act aims to provide equal remuneration to the women workers and prevention of discrimination on the grounds of sex not only in wages but also in the matters of employment.

Important Definitions
The term employer is assigned the same meaning as is given to, in the Payment of Gratuity Act. The employer in the case of the Central or State Govt., the authority appointed by the Govt., in the case of local authority the person specifically appointed to exercise the power of supervision or control of the employees and in other cases who has the ultimate control over the affairs of the factory or establishment. Remuneration means basic wages and any additional emoluments whatsoever payable in cash or in kind, to the employed person in terms of the express or implied terms of contract. Same work or work of similar nature means the work in respect of which the skill, effort and responsibility required are same when performed under similar working conditions by both men and women worker. Words and expressions used in this Act and not defined but defined in I.D. Act shall have the same meaning so far as this Act is concerned.

Exemptions
The Act shall not apply If special treatment is given to the women under any other Act. When special provisions are made under any other Act related to the birth or expected birth of a child and When terms and conditions relating to retirement, maternity or death, or retirement, marriage are provided under any other legislation. When due to special factors, and not due to sex factor, the difference in wages between male and female workers are to made and approved by the State Govt. 17

Applicability
It applies to all factories and establishments irrespective of the number of female workers employed. male or

Important Provisions
The employer has to pay equal remuneration to the women employees as is given to the male employees who are doing the same or similar work which term has been defined earlier. No discrimination shall be made between males and females in respect of recruitment, promotion, training or transfer except in employment in which engagement of women is prohibited. Advisory committees shall be farmed to explore the possibilities of employing women. The govt , either the central or state, as the case may be appoint the authorities not below the rank of Labour officers to hear the complaints of not following the provisions of this Act, claims for non payment of equal wages etc., The orders passed by the Labour officer has to be observed. Appeal lies against the orders of the Labour officer, to the Appellate Authority, within 30 days of the passing of the order The Appellate Authority can extend the time in reasonable cases The decision of the Appellate Authority shall be final. The Inspectors appointed under this Act shall have the same powers as is exercised by the inspectors other appointed under other Acts. As penalties can be levied for o Omission to maintain the prescribed registers or other documents. o Omission or failure to produce any register, muster roll or other documents relating to the workers. o Omitting or refusing to give any evidence and preventing others from giving evidence. o Omitting or refusing to give any information when sought for. o Making any recruitment in contravention of the provisions of the Act. o Making un equal payment. o Making discrimination and contravention of any provision of the Act or the Rules. o Failing or omitting to carry out any direction of the Govt. Care should be taken to avoid the pitfall.

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The statutory compliances to be done are noted in the Ready Reckoner which may be referred for guidance.

The Tamil Nadu Industrial Establishments (Conferment of Permanent Status to Workmen) Act 1981 and Rules 1981
Object of the Act and the reasons for bringing this Enactment
Many workers in Industrial establishments are kept on temporary basis for a long time and on that pretext, such workers are denied various statutory and non-statutory benefits which are given to the other workers. Further such workers are given consolidated wages which are far below the occupational level wages and they are not given Dearness Allowance and other allowances. Such workers are not given the benefits like payment of festival, cyclone and marriage advances, payment of ex-gratia over and above the statutory basis, supply of uniforms and tea etc., and preferential appointments to their children etc. In order to curb various unfair labour practices and taking in to account the decision taken in 20th meeting of State Labour Advisory Board, the Govt. of Tamil Nadu decided to bring in legislation, to confer permanent status to the workers who have worked for 480 days in a period twenty four calendar months, in the Industry.

Important Definitions
Employer in respect of the factory means, the Manager, so nominated under the Factories Act and in other Industrial establishments any person responsible to the owner for supervision and control of the establishment. Industrial establishment means (i) Factory as defined under the Factories Act (ii) Establishment as defined under the Tamil Nadu Shops and Establishment Act (iii) Plantation as defined under the Plantations Labour Act (vi) Motor Transport undertaking as defined in Motor Transport Workers Act (v) Beedi Industrial Premises as defined in the Beedi and Cigar Workers (Conditions of Employment) Act (vi) Catering Establishment as defined in the Tamil Nadu Catering Establishment Act and (vii) Any other establishment which the govt., may by notification declare to be an establishment.

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Workman means the same as defined under the I.D. Act, except those who work in police and prison service, Managerial Personnel and Supervisors who draw a salary exceeding Rs.3500 p.m are not workmen within the meaning of this Act.

Exemptions
As noted above the managerial and supervisory personnel who draw a basic salary of Rs.3500 and above are not covered by this Act. The workmen employed in an industrial establishment engaged in the construction of buildings, bridges, roads, canals, dams and other construction work whether structural, mechanical or electrical are not covered under this Act. The Govt., has power to exempt conditionally or unconditionally any employer, or class of employers or any industrial establishment or class of industrial establishments from the provisions of this Act.

Applicability
As noted above this Act among other things is applicable to all the factories and establishments which are not seasonal in character in which 50 or more workers were employed in any day of the preceding 12 months. The Act is applicable to the workmen who are employed to do, skilled or unskilled, manual or technical, or electrical work for hire or reward whether the terms of employment are express or implied and includes the badli workmen.

Important Provisions
Every workman who has completed 480 days of continuous service in 24 calendar months in industrial establishments shall be made permanent. Interruption due to sickness, or authorized leave or an accident or a legal strike or lock out or any other cessation of work not due to the fault of the workmen, shall be included in the said 480 days of continuous work in 24 calendar month in the Industrial establishment. The lay off days, leave with wages which the workman have earned in the previous years, absence due to temporary disablement, maternity leave not exceeding 12 weeks in the case of female workers shall be included in the said 480 days. The Inspectors appointed under this Act shall have the same powers as is vested with the Inspectors appointed under other Acts. The employer of the industrial establishment shall furnish information as is required to find out whether the provisions of this Act and the Rules framed there under are followed within 7 days from the date of the request made by the Inspector.

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 The registers and records required to be maintained under this Act & Rules shall be in Tamil or English. The statutory obligations to be followed are noted in the Ready Reckoner which may be referred for guidance. As the employer is liable to be punished for contravention of the provisions, care should be taken to follow the same. Important Point: This Act is applicable only to the Tamil Nadu State. Similar Act has been passed in the U.P and Uttaarnchal States. In no other state, similar Act is in force.

The Labour Laws (Exemption From Furnishing Returns and maintaining Registers by Certain Establishments) Act 1988
Objects of this Act
Small establishments and very small establishments have the statutory responsibility of maintaining various Registers and documents, exhibit notices and send returns under various Acts and Rules framed there under. The small establishments and very small establishments find it and not expedient to spend the time in complying with the statutory requirements. Therefore the Govt., of India brought this enactment to exempt the small establishments and very small establishments from furnishing returns and maintaining register under certain labour laws. For the laws not covered under the exemption, the statutory compliances has to be done.

Important Definitions
Scheduled Acts means the Acts noted in the Schedule I which are The payment of Wages Act The Weekly Holidays Act The Minimum Wages Act The Factories Act The Plantations Labour Act The Working Journalists & other Newspapers Employees (Conditions of Service) and Miscellaneous Provisions Act The Contract Labour (Regular and Abolition) Act The Sales Promotion Employees (Conditions of Service) Act The Equal Remuneration Act

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Small Establishment means an establishment in which not more than 10 and not more than nineteen persons are employed or were employed in any day of the preceding twelve months. Very Small Establishment means the establishment in which more than 9 persons are employed or were assigned in any day of the preceding twelve months. Industrial Establishment shall have the meaning assigned to it under the payment of Wages Act. The term factory shall have the meaning employed to it under the Factories Act. The employer means the person as noted in the above said 9 Acts.

Exemptions
No exemption from any of the provisions of this Act is available.

Applicability
It extends to the whole of India. The Act is applicable to small establishments and very small establishments, as defined in the foregoing.

Important Provisions
It shall be not necessary for the Small Establishment and Very Small Establishment, to furnish the returns or to maintain the registers required to be furnished on maintained under the 9 Acts noted in the foregoing provided, o A core Return in Form A is submitted. o Maintain the Registers in Form B, Form C and Form D by the Small Establishments. o Maintain the Form E by the Very Small Establishments and provided further, o The employer shall issue wage slip prescribed in the Minimum Wages Rules. o The employer shall issue slips relating to the measurement of the work done by the piece, rated workers under the Payment of Wages Act or Plantation Labour Act. The maintenance of registers and submission of returns under this Act will absolve the employer from complying with the above noted 9 Acts and Rules framed therein and he will not be liable to be prosecuted for omission or default under the said 9 Acts.

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 As penalty is proposed for contravention of the provisions of the Act, care should be taken to follow the provisions of the Act. The statutory compliances to be done as per this Act are noted in the Ready Reckoner which may be referred for reference.

The Tamil Nadu Industrial Establishment ( National & Festival Holidays Act 1958 and Rules 1959
Objects and reasons for this enactment
The 15th and 16th sessions of standing Labour committee held in 1956 and 1957 respectively, discussed the question of prescribing a uniform code for the workers relating to the National & Festival Holidays in the private and public sector industrial establishments. Originally the committee recommended Though the central government could have brought an Act to fulfill this purpose yet it decided to ask the state govts to bring in legislation watch its practice and working and then bring the comprehensive legislation. But this had never happened and most of the state governments bought in separate legislation, few incorporated in the shops and Establishments, and few to give 2 paid National holidays and 5 paid Festival Holidays made the entry in the model standing orders. Therefore there is no uniformity either in the declaring of the National Holidays or Festival Holidays or in the number of Holidays. Some states by way winning the support of the working class or satisfy a section of population moved, or by ideology, have granted more holidays on occasions which cannot be strictly treated as the National Holidays In Tamil Nadu the Act was brought in the year 1958, bringing in to force the recommendations of the standing committee of labour.

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Important Definitions
Day means 24 hours beginning after midnight Employee means the person employed for reward, whether in terms be express or implied, in an industrial establishment to do skilled, unskilled, manual, supervisory, technical or clerical work and includes apprentices. Industrial Establishment among other things means establishment defined under Tamil Nadu Shops & Establishments Act and factory as defined under section 2 (m) of the factories act, Employee means the person who has ultimate control over the affairs of the industrial establishment by whatever name he is called. Wages means the remuneration payable as per the express or implied terms of employment on fulfillment of the same and includes all allowances, the value of house accommodation, supply of light, water, medical attention or other amenities or any service, or concessional sale of food grains or other articles. But it does not include Bonus Contribution paid or payable to the pension fund, provident fund or for the benefit of the employee under law like ESI contribution. Labour welfare Fund Act, Any gratuity Any sum paid to the employee to defray special expenses such as reimbursement of conveyance medical, housing etc, Any traveling allowances

Applicability
The Act is applicable to the industrial establishment ie Factories and shops and commercial establishments (so far as we are concerned) irrespective of the number of persons employed. The rights and privileges under any other act, contract, and usage, if such rights are more favorable than those provided under this act shall continue to operate.

Exemptions
The Act is not applicable To persons employed in the positions of management To persons whose work involve traveling To the central govt industrial establishments To the mines or oil fields

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 To those establishment or class of establishments, to the persons or to the class of persons who are exempted by the govt for specific reasons and either for specific period or permanently

Important Provisions
National Holidays with wages have to given to all the employees irrespective of their services with the establishment or Rebublic day, May day, Independence day, and Gandhi Jayanthi day. Five festival holidays in consultation with the Trade union if it exists or with the representatives of the employees and approved by the Inspector, appointed under this Act, with wages to all the employees who have 30 days of services and more has to be given. The employer should display the notices, relating to the holidays allowed as per the above procedure and send the yearly statement at the appropriate to me. The employer may ask the employees to work on either the declared, National or Festival Holidays, by sending a notice in the prescribed form asking the employee to work on such holidays, send a copy of the above said notice to the Inspector and by allowing a substituted holiday with wages either 3 days before of after the holidays or paying such employees twice the rate of wages. The Inspector appointed under this Act is public servant within the meaning of Indian penal code and therefore obstructing the inspector in performing his duty or refusing of failing to produce any document or giving any false statement is punishable, therefore the Inspectors should be treated with utmost courtesy and necessary help should be given to them. For complying with the statutory obligations relating to the maintenance of registers, records, exhibiting the notices and sending returns the Ready Reckoner may be referred for guidance.

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The Contract Labour (Regulation and Abolition) Act 197 at Tamil Nadu Rules 1975
Object and Reasons for this enactment
The Practice of engaging the contract to do the core and non-core jobs of industrial establishment, govt department is wide spread all over the globe. This system is used with the objective of reducing the cost of operation, seasonal nature of employment, short duration of the particular avocation, paying less emoluments to the contractors than payable to the regular employees denying the benefits to the contract labour as is available to the regular workers etc. The international labour organization (ILO) appalled at the status if contract labour passed a convention that regulatory laws in engaging the contract labour fixing certain acceptable standards of terms of employment and conditions of contract labour and if possible abolition of contract labour wherever is possible , shall be passed. India being one of the founding members of ILO promptly enacted this law which mainly deals with regulation of contract labour in certain categories of establishments and for abolition of contract labour in certain circumstances and relating to the connected matters. Tamil Nadu has brought in the rules in 1975, which is applicable to the industrial establishments for which Tamil Nadu govt is the appropriate Govt. Therefore it should be understood that the contract labour system is not abolished and contract labour system may be abolished only in certain process or operations carried in 26

the industrial establishment based on the factors such as perennial nature of jobs whether it is ordinarily done by the regular workmen in the particular establishment or in similar establishment or whether it is sufficient to employ regular workmen after following the procedure, issuing a notification in the official gazette in consultation with the Central or State Board, as the case may be, and after considering the objections and suggestion may pass the appropriate order otherwise, stated the Govt. Whether the central or state govt whichever is the appropriate Govt, considering the various factors, including the financial and considering the expediency can decide to abolish the contract system only in certain process or operations and should give cogent and convincing reasons for the same. In the present days where non-core jobs of industrial establishment and other establishments are given on contract and couched in the sophisticated language of outsourcing, the govts may be hesitating to abolish the contract labour system, since the govt and many industrial establishments will come to a grounding halt if contract labour system is abolished or attempted to be abolished in toto. Therefore we have to cope up with the idea that the contract labour system will continue and we as contractors should assiduously follow the various provisions of the Act and Rules.

Important definitions
Appropriate govt means the Central for which it is the appropriate govt as per the I.D.Act and in relation to other establishments, the State govt is the appropriate govt. Since we have taken up the role of contractors for mostly the establishments for which the state govts are appropriate govt, the relevant State Rules are applicable. In this write up the Tamil Nadu Rules are mainly dealt with as other State Rules with minor variations will otherwise resemble the Tamil Nadu Rules. Contractor is who engages 20 or more contract labour either in one establishment or in different establishments, for undertaking or for producing given result, or who supplies contract labour. So our establishment, so far as it relates to wearing the role of contactor is covered under this Act and Rules framed by the different state govts where the industrial establishments are situated. Establishment is defined in wider sense to include the Govt departments or local authority and any place where industry, trade, business, manufacture or occupation is carried on. Contract labour means the person employed in connection with the work of the establishments when he is hired for such work of the establishments by or through a contractor either with or without the knowledge of the principal employer. Any person who is not hired through some intermediary other than the principal of the establishment, is therefore the contract labour.

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Principal employer means In respect of Govt departments or local authority the officer authorized to act as principal employer In a factor the occupier or owner of the factory or when a person has been named as manager under the Factories Act or. In any other establishment any person responsible for the supervision and control of the establishment. Therefore if we have the role of contractor in a factory, the occupier owner or Manger and in respect of the establishments covered under various State Acts, the Manager is the principal employer. Wages means remuneration paid or payable to the contract labour either in terms of express contract or as per the implied terms of contract with contactor i.e., M/s. ACSL Ltd . The terms includes bonus but the other usual payment like contribution to pension or provident fund or any other fund established under law, such as ESI or labour fund etc., reimbursements made or traveling expenses. It must be understood that so far as the contract labour engaged by ACSL the employer-employee relations exist between ACSL and the contract labour and no such relations exist between the contact labour and the principal employer. Workman of the establishments (to which contract labour is supplied by us or work is carried by engaging our labour) means the (regular) persons employed in or in connection with the work of the establishment to do any skilled, semi-skilled, or unskilled, manual supervisory, technical or electrical work for hire a reward either as per express terms or implied terms lent does not include managerial supervisory personnel who draw wages for more that Rs.500 and an out worker to whom material are given carrying on any operations connected to the work of the principal employer, inspective of whether such out-worker does the work in the home or in some premises which is not under the control and management of the principal employer. It must be clearly understood that ACSL as the contractor does no have anything to do with workman of the principal employer. But so far as the contract labour engaged by ACSL, ACSL is the principal employer. But at the same time if ACSL engages sub-contractor then there is no relationship of employeremployee relationship between ACSL and the sub-contract labour even though ACSL may have to follow the provisions of the Contract Labour (Regulation and Abolition) Act.

Applicability
The Act is applicable to the establishment which engages 20 or more contract labour, either through one contractor or through more than one contractor. The Act is applicable to every contractor who employs 20 or more contract labours either in one establishment or in more than one establishment. However the Act is not applicable to the establishments where the work is intermittent or casual nature when work is performed for less than 120 days and is seasonal in nature when work is not carried for more than 60 days.

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Exemption
The appropriate Govt in the case of emergency only, can exempt an establishment or class of establishments from all or any of the provisions of the Act for any period or periods. Otherwise stated the exemption cannot be given on adhoc basis and only in emergency and for a specifies period and not permanently.

Important provisions
The central Advisory Board shall consist of Chairman appointed by the central govt. The chief labour commissioner central 11 members to represent the Govt, the railways, coal industry, mining industry, the contractors, workman and other interests. The State Advisory Board shall consist of The chairman to be appointed by the state govt. The labour commissioner and Members not exceeding 11 and not less than 9 to represent the govt, the industry contractors, the workman and other interests which in the opinion of the govt ought to be represented. The conditions of source and procedures to be followed in discharging their function, the manner of filling the vacancy shall be prescribed by the central or state govt as the case may be. The central or state advisory board may form the committees in furtherance to the achievements of the object of this Act. All the establishment which are covered under this act have to register the establishment by following the prescribed procedure, have to amend the registration certificate when there is change in the particulars already furnished and necessary fees has to be paid. The certificate of registration can be revoked, when registration has been obtained misrepresentation and suppressing material fact or for any other reasons or when the registration has because useless and ineffective, by the registration officer after observing the principle of natural justice. Without the valid registration certificate whether in the original or in the amended form or after revocation of registration no contract labour shall be employed by the principal Employer and if he does so he is liable for prosecution and imposition of penalty. The appropriate govt, central or state, shall appoint licensing officers to give license to the contractor who engage 20 or more contract labour ether with the one employer or with more than one employer. The contractors who are covered under the Act, in terms of the foregoing shall take a license for engaging the contract labor and execute the work in 29

accordance with the license issued by the licensing officer. The appropriate govt shall fix the fees payable, deposit amount as security for due performance of the conditions prescribed. The license shall have to be amended, if there is change in the material particulars, by paying the prescribed fees. The license can be revoked by the licensing officer if (a) the license has been obtained by misrepresentation or suppression of any material fact (b) or the license has failed to follow the conditions prescribed in the Act or in the rules framed thereunder after following the principle of natural justice and without fully or partially the security deposit on reasonable grounds.

Appeal against the decision of the registration officer or the licensing officer shall lie to the appellate officer appointed by the appropriate govt within the prescribed time or within the extended time of the delay or appeal was due to genuine reasons. Canteens should be provided by the contractors who engage 100 or more workers and where the work is like to continue for a longer time. From which date such canteens should function, the standards in respect of construction, accommodation, furniture, other equipments the food stuffs to be supplied and the charges which have to be made shall be in accordance with the rules prescribed by the appropriate govt. Rest room shall be provided for the stay of the contract labour for halting in the nights when the work is likely to continue for a long time. The rest rooms or alternative suitable accommodation should have proper lighting and ventilation and shall be maintained in clean and comfortable condition. The contractor should provide Sufficient whole sum drinking water for use by the contract labour at convenient places, Sufficient numbers of urinals and latrines of the prescribed manner at convenient places which is easily accessible for both male and female workers separately. Washing facilities First Aid Boxes in the presented manner-equipped with prescribed first-aid materials which are easily accessible during all working hours. If the contractor fails to provide the above said facilities the principal employer has to provide the same and in such case deduct the expenses incurred, from the amount payable to the contractor. The contactor shall be responsible for paying wages to the contract labour before the expiry of the prescribed period in the presence of the

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representative of the principal employer who should certify the payment of correct amount of wages to the contract labour. If the contractor fails to make the payment within the prescribed time makes the short payment, then the principal employer is liable to pay the full wages or the short falls of the wages and collect the amount from the amount payable to the contractor. The inspectors appointed under this Act have powers To enter the establishment within reasonable hours with assistants examining the registers, records or notices which are required to be kept or exhibited and require production of the same for inspection. Examine any person found in the premises and when he thinks to be the workman therein. Require any person who gives work and any workman to give any information, including the payments made See or take copies of the registers, records of wages or notices or portions there of which he considers relevant to the offences believed to have been committed. And exercise such other powers as may be prescribed The person who is required to furnish any information produce records, if he fails to do so or refuses to do so also shall be punishable as per the provisions of this Act. The validity of the license issued to the contactor shall be up to the end of 31st December every year and shall have to be periodically renewed. Duplicate copy of the registration certificate or the license can be obtained if those are lost, or destroyed by payment of appropriate fees. The registers and records to be maintained, the returns to be sent, the notices to be sent, the fees payable and other statutory compliances are noted in the ready Reckoner which maybe referred for guidance.

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