Chapter 2 PDF

CHAPTER
2
OVERVIEW OF APPLICABLE ACTS &
LAWS
The U.S. needs legislation to protect the public’s right to free LEARNING
speech and a free press, to protect it from the actions of the OBJECTIVES
executive branch, and to promote the integrity and transparency
After studying this chapter, you
of the U.S. government. will be able to:
-Chelsea Manning 1. Explain Laws Applicable to the
Industry
2. Discuss about Contract Act
3. Describe The Factories Act
4. Understand Sale of Goods Act
INTRODUCTION 5. Learn Prevention of Food
Adulteration Act
Hospitality law is a legal and social practice related to the
6. Identify The Employees’
treatment of a person’s guests or those who patronize a Provident Funds and
place of business. Related to the concept of legal liability, Miscellaneous Provisions Act
hospitality laws are intended to protect both hosts and
guests against injury, whether accidental or intentional.
Hospitality laws is relate to food service, travel, and lodging
industries. It governs the various nuances of the hotel,
42 Legal Aspects in Tourism and Hospitality
restaurant, bar, spa, country club, meeting, and convention industries, A hotel is a
commercial establishment offering lodging to travelers and sometimes to permanent
residents, and often having restaurants, meeting rooms, stores, etc., which may be
used by the general public. Most states require restaurant and inn owners to apply for
and receive a license to operate such facilities. The owner is under a duty to furnish
proper accommodations, and to exercise proper care for the safety and peaceful stay
of the guest, while the guest must exercise due care to refrain from any disruptive
or offensive conduct. An innkeeper is under an additional duty to offer service and
lodging to all persons unless he or she has some reasonable grounds for refusal. An
innkeeper may not refuse service to any person on ground that would violate civil
rights laws. Owners are prohibited from refusing to accommodate or entertain persons
on account of their race, color, religion, or national origin.
2.1 LAWS APPLICABLE TO THE INDUSTRY

The hotel industry forms an integral part of the hospitality industry. The major fields
within the hospitality industry include lodging, restaurants, event planning, theme parks,
cruise line, etc. The hospitality industry is a multi-billion dollar industry that mostly
depends on the availability of leisure time and disposable income. A hospitality unit
such as a restaurant, hotel, or even an amusement park consists of various groups within
it, including facility maintenance, direct operations (servers, housekeepers, porters,
kitchen workers, bartenders, etc.), management, marketing, and human resources.
The majority of the legislations governing the hospitality and hotels industry can
be divided into three main sectors.
■■ The first head is the legislation for the construction and commissioning of
hotels, restaurants, guest houses and other establishments, and includes the
Foreign Exchange Management Act, the industrial licensing policies, land
laws and various development control orders issued by the central and state
governments.
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Overview of Applicable Acts & Laws 43
■■ The second head has legislation for the operation,

maintenance and management of establishments, food
and hygiene standards. It also includes insurance
laws, fire safety and weights and measures regulation.
Further, various licenses, such as a liquor license, dance
license, lodging house license, eating house license,
police permissions, a license under the Shops and
Establishment Act, or a license under the Food and
Drug Administration Act, granted on an annual basis.
■■ The third head has rules regarding taxation,
employment and other contractual relationships. This
includes laws on income tax, service tax, expenditure
tax, excise duty, luxury tax, entertainment tax, as well Keyword
as laws on employment matters like Apprentice Act, Luxury Tax is an
ESI Act, etc. Indirect statutory Tax.
This tax is imposed
primarily on the
services offered at
Hotels, Spas, and
Resorts.
2.1.1 Some of the Important Licenses Required

By Hotels under Various Acts
■■ Police License / Registration.
■■ License under Shops & Establishments Act.
■■ License under Prevention of Food Adulteration Act.
■■ Registration under the Luxury Tax Act.
■■ Registration under the Sales Tax Act.
■■ Registration under the Contract Labour Act.
■■ Registration under the Pollution Control Act.
■■ Registration under the Apprentices Act.
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■■ Registration under the Provident Fund Act.

■■ Registration under the ESI Act.
■■ Entertainment License on Festival Occasions.
■■ License for Chimney under the Smoke Nuisance Act.
■■ Registration under the Weights & Measures Act.
■■ Factory License for Laundry.
■■ Central Excise License for Bakery Products.
■■ Registration & Permits under the Motor Vehicle Act for Tourist Coaches / Taxies.
■■ Eating House License.
■■ Municipal Beer Bar License.
■■ License for storage of Diesel Oil.
■■ License for storage of Kerosene & Compressed Gas (LPG).
■■ Sign Board Directions, Neon Signs.
■■ License to deal in Foreign Exchange under FEMA.
■■ Cold Storage License, (if over 25 cubic ft.).
■■ License for Boiler & Generators and Mixers and Grinders.
■■ Bar License (Foreign Liquor).
■■ Mild Liquor License.
■■ Temporary License for Awnings & covering of Terrace during monsoon.
■■ Building Completion Certificate.
■■ Copy Right License for Playing of Music.
■■ Lodging House License Approval from the Department of Tourism.
■■ Registration from GTDC for new projects under the Package Scheme of Incentives.
2.1.2 The Many Laws that Hotel Owners must observe

For many people, running a restaurant seems fairly simple with the main aspect being
ensuring that quality is maintained at all times.
From a customer’s perspective it is difficult to imagine the extensive laws and
regulations governing restaurant and hotel operations.
Life behind the scenes for a restaurateur or hotelier is busy.
A big part of restaurant management is identifying and managing the legal risk
associated with the business.
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From labour laws to food safety and anti smoking rules, compliance becomes
more challenging as the restaurateur needs to stay abreast with the dynamic changes
in applicable laws.
The main Act applicable to restaurants and hotels is the Hotel and Restaurant Act.
The Act requires that any person who engages in the business of restaurant/hotel
be licensed.
It is worth noting that any person aggrieved by the manner in which a restaurant
is run may lodge a complaint to the Hotel Licensing Board after which the Board may
cancel the hotel’s license.
It is illegal to rate your hotel without involving the Authority.
For example you cannot claim your restaurant is a five star hotel when the authority
has not approved this rating.
There are also more detailed provisions regarding the running of hotels for example,
maintaining guest books.
Another statute applicable to the business is the Public Health Act.
The Public Health Act is an Act made to ensure that public health is secured and
maintained.
Restaurants are sensitive businesses in the area of public health due to their very
nature of food handling and being open to the public.
Therefore any unhygienic standards will expose the restaurant to penalties under
the Act.
When it comes to tent and caravan sites special regulations apply to them especially
under the Public Health Act
Hotels are subject to special tax statutes like the Hotel Accommodation Act and
the Entertainment Tax Act.
Before one agrees to hold an event at the hotel venue then he needs to be licensed
by the relevant authorities.
Before betting or gaming is allowed in one’s premises then he needs to have
the relevant license from the authority and must also observe all relevant rules and
regulations regarding conduct of such business.
For example one is not allowed to sell alcohol in premises where gaming is being
carried out.
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Before one can hold an entertainment event then a

license is required and he might be required to surcharge an
entertainment tax under the Entertainment Tax Act.
The Food Drugs and Chemical Substance Act is also
applicable in the sense that the restaurant is not allowed to
sell any food unfit for human consumption. Doing so would
expose one to penalties from the relevant authorities.
The statutes already mentioned apply to only one aspect
of restaurant management and that is quality management.
There are other laws that need to be considered in the
relationship between the restaurant and its customers.
One of this is the Occupier’s Liability Act whereby the
hotel remains liable to customers for any damages sustained
while in the restaurant/hotel unless the hotel can show that
it was not negligent.
Examples include injuries sustained in playgrounds due
to defective structures and injuries sustained from animals
owned by the hotel.
Employment laws are the other laws that need to be
considered and the relevant statutes include the Employment
Act, Workmen’s Compensation Act and Regulation of Wages
Act among others.
If a chef is injured while performing his duties on whom will liability fall? Liability
and damages would be determined under The Workmen’s Compensation Act.
Other laws that the restaurant management needs to

consider include property laws.
If the property is leased then the management needs to
determine if it is a controlled tenancy or a normal tenancy.
2.1.3 Assess Contracts

A controlled tenancy is a tenancy of a shop, hotel or catering
establishment that is not done in writing that is less than five
years or that provides a clause for termination for reasons
other than for breach.
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The importance of this determination is because different laws apply depending

on whether the tenancy is normal or a controlled one.
When it is controlled any disputes are determined by the Business Premises Rent
Tribunals and where it is normal then the courts have the first jurisdiction.
The restaurant must also asses the contracts with its stakeholders like suppliers,
employees and security firms to avoid exposure to unnecessary legal risk.
The restaurant should also consider intellectual property issues like trademarks
(for its logo) and trade secrets (for its recipes).
If the restaurant is a franchisee it also needs to ensure observance of all the terms
of the franchise to avoid being in breach of the franchise.
Running a restaurant/hotel is not as easy as it seems due to the vast laws that apply.
In addition to managing legal risk, the restaurant also has to observe general
principles of business management.
The laws applicable to restaurants/hotels change dynamically and a restaurateur
/ hotelier must keep abreast with changes in all relevant statues.
2.2 CONTRACT ACT

Any Commercial activities require ‘understanding’ among the party concerned. This
understanding is often expressed in writing which confirms the consensus of the
parties. This formal expression is known as Contract. To complete the contract, parties
in contract need to fulfill their obligation. Hence Law of Contract is considered as a
part of Law of Obligation. Some time, Contract creates self imposed obligation even-
though other parties has nothing to perform.
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In India, Indian Contract Act, 1872 governs the Contract and it applicability extends
to whole of India except State of Jammu and Kashmir. It came into force on First day
of September 1872.
2.2.1 What is a Contract?

Section 2(h) defines “Contract as an agreement enforceable by law”.
■■A Contract is an agreement; an agreement is a promise and a promise is an
accepted proposal.
■■ An Agreement which is legally enforceable alone is a contract.
If we decode the above definition it is very important to understand three terms
■■ Agreement
■■ Promise
■■ Accepted Proposal i.e., Offer and Acceptance.
2.2.2 What is Agreement?

Section 2(e) of the act defines the term ‘Agreement’ as ‘every promise or every set of
promises forming consideration for each other’.
An Agreement is a promise or a commitment or set of reciprocal promises or
commitments. An agreement involves an offer or proposal by one person and acceptance
of such offer or proposal by another person.
2.2.3 What is Promise?

Section 2(b) defines term Promise i.e., “When a person to whom proposal is made
signifies his assent thereto, the proposal is said to be accepted. Proposal when accepted
becomes a promise”.
■■ Offer + Acceptance = Promise
■■ Promise + Consideration = Agreement
■■ Agreement + Enforceable by law = Contract or Voidable Agreement
■■ Agreement + Not Enforceable by law = Void Agreement
2.2.4 Essential Elements of Contract

■■ Agreement –“An Agreement which is legally enforceable alone is a contract”. An
agreement which is not enforceable can be either Void Agreement or Voidable
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contract. In order to constitute a contract, there must

be an agreement in first place. An agreement in turn
is composed of two elements-offer and acceptance.
The two important element of agreement are
-- Plurality of person: There must be at-least two
parties-one making the offer and another
accepting it. A person cannot enter into
agreement with himself or with an inanimate
object.
-- Consensus ad idem: The promisor and promise
of the agreement should have agreed in same
sense & on same thing. There should be meeting
of minds.
■■ Legal Intention: The parties must intend to create a
legal relationship. Agreements of social or domestic
nature do not contemplate legal relationship, so they
are not contracts. For example, a husband promising
his wife to buy her a ‘necklace’ on occasion of her
birthday is not a contract.
■■ Lawful Consideration: The agreement must be supported
by a lawful consideration. Consideration means
‘something in return’. It is not important whether
consideration is adequate or in-adequate. ‘Something in
return’ may be an act or abstinence. But consideration Keyword
must be real and lawful.
Oral contract is a
■■ Capacity: The parties to an agreement must be capable contract, the terms
of entering into a contract. A person is considered of which have been
competent if he is (a) eighteen years of age (b) of agreed by spoken
sound mind (c) not disqualified from contracting by communication.
any law to which he is subject.
■■ Lawful Object: The object of agreement must be lawful.
■■ Free Consent: The consent of the parties must be free
and genuine i.e. not induced by coercion, undue
influence, fraud or misrepresentation.
■■ Void Agreement: The agreement not expressly declared
void or illegal by law.
■■ Certainty and Possibility of Performance: The terms of
agreement must be certain and capable of performance.
For example, D agrees to sell C garments. The type,
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quality, value etc are not discussed. The agreement cannot be enforced as terms
are uncertain. Similarly, if A promises B to bring rainfall through magic. Such
agreement cannot be enforced.
■■ Legal formalities: Where nature of agreement is such that it requires compliance
of certain formalities, such requirements should be fulfilled. A contract may
require registration in addition of being in writing. However as regards to
legal effects, an oral contract has same weight-age as a contract in writing.
2.2.5 Important Rules Relating to an Offer, as Provided in the

Contract Act
Important rules relating to an offer, as provided in the Indian contract act, 1872 are
listed below:
An offer must be capable of creating legal relations

An offer must be such that when accepted it will result in a valid contract. A mere
social invitation cannot be regarded as an offer, because if such an invitation is accepted
it will not give rise to any legal relationship.
The offer must be distinguished from mere statement of intention

The terms of an offer should be clear so that there is no confusion whether; it is a
valid offer or a mere statement of intention. Sometimes, a person declares that he has
the intention to do something; this does not amount to an offer.
The offer must be distinguished from an invitation to receive offer

The terms of an offer should be clear so that there is no confusion whether it is a
valid offer or an invitations Jo receive offer. Sometimes, a party does not make an
offer but simply proposes certain terms and invites the other party to make an offer
on proposed terms.
An offer may be express or implied

An express offer is made by words of mouth or it is written, while an implied offer
means an offer made by conduct.
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An offer may be general or specific

A specific offer is one which is made to an ascertained person. And a general offer
is one which is not made to a specific person, but to the public at large. It may be
noted that in case of a general offer, the contract is not made with the entire world.
An offer may be conditional

An offer to be valid may contain a condition and in that case it has to be accepted
along with the condition stated therein. However, no offer can contain a term or
condition the non compliance of which would amount to acceptance.
The terms of an offer must be certain, definite and not vague

The terms of an offer must be definite, clear and certain. If the terms of the offer are
vague and uncertain, no contract will come into existence.
An offer must be communicated to the other party

It is an important and essential element of a valid offer. The first part of the definition
of the offer emphasises this requirement. According to this, the willingness to make
offer should be ‘signified’ (i.e. indicated or declared).
In other words, the offer is completed only when it has been communicated to the
offeree. It may be noted that until the offer is communicated, it cannot be accepted.
Thus, an offer accepted without its knowledge, does not confer any legal rights
on the acceptor.
The offer must be made with a view to obtain the consent of the offeree
The second part of the definition of offer emphasises the requirement that an offer
must be made with a view to obtain the consent of the offeree to the proposed act
or abstinence.
2.3 THE FACTORIES ACT

To ensure adequate safety measures and to promote the health and welfare of the
workers employed in factories and prevent haphazard growth of factories through the
provisions related to the approval of plans before the creation of a factory.
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2.3.1 Applicability of the Act

■■ Covers all manufacturing processes and establishments falling within the
definition of ‘factory’.
■■ Applicable to all factories using power and employing 10 or more workers,
and if not using power, employing 20 or more workers on any day of the
preceding 12 months.
2.3.2 Scheme of the Act

■■ The Act consists of 120 Sections and 3 Schedules.
■■ Schedule 1 contains list of industries involving hazardous processes
■■ Schedule 2 is about permissible level of certain chemical substances in work
environment.
■■ Schedule 3 consists of list of notifiable diseases.
2.3.3 Important Provisions the Act
Facilities and Conveniences

The factory should be kept clean. (Section 11) There should be arrangement to dispose
of wastes and effluents. (Section 12) Ventilation should be adequate. Reasonable
temperature for comfort of employees should be maintained. (Section 13). Dust and
fumes should be controlled below permissible limits. (Section 14) Artificial humidification
should be at prescribed standard level. (Section 15) Overcrowding should be avoided.
(Section 16) Adequate lighting, drinking water, latrines, urinals and spittoons should
be provided. (Sections 17 to 19). Adequate spittoons should be provided. (Section 20)
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Welfare
Adequate facilities for washing, sitting, storing clothes when not worn during working
hours. (Section 42) If a worker has to work in standing position, sitting arrangement
to take short rests should be provided. (Section 44) Adequate First aid boxes should
be provided and maintained (Section 45).
Facilities in case of Large Factories

Following facilities are required to be provided by large factories - Ambulance room
if 500 or more workers are employed; Canteen if 250 or more workers are employed.
It should be sufficiently lighted and ventilated and suitably located. (Section 46). Rest
rooms / shelters with drinking water when 150 or more workmen are employed (Section
47) Crèches if 30 or more women workers are employed. [Section 48]; Full time Welfare
Officer if factory employs 500 or more workers [Section 49]; Safety Officer if 1,000 or
more workmen are employed.
Safety
All machinery should be properly fenced to protect workers when machinery is in
motion. (Section 21 to 27). Hoists and lifts should be in good condition and tested
periodically. (Section 28 and 29) Pressure plants should be checked as per rules. (Section
31) Floor, stairs and means of access should be of sound construction and free form
obstructions. (Section 32) Safety appliances for eyes, dangerous dusts, gas, and fumes
should be provided. (Sections 35 and 36) Worker is also under obligation to use the
safety appliances. He should not misuse any appliance, convenience or other things
provided. (Section 111) In case of hazardous substances, additional safety measures
have been prescribed. (Sections 41 A to 41 H) Adequate fire fighting equipment should
be available. (Section 38) Safety Officer should be appointed if number of workers in
factory is 1,000 or more. (Section 40 B)
Working Hours
A worker cannot be employed for more than 48 hours in a week. (Section 51) Weekly
holiday is compulsory. If he is asked to work on weekly holiday, he should have full
holiday on one of three days immediately or after the normal day of holiday. (Section
52(1)) He cannot be employed for more than 9 hours in a day. (Section 54) At least
half an hour rest should be provided after 5 hours. (Section 55) Total period of work
inclusive of rest interval cannot be more than 10.5 hours. (Section 56) A worker should
be given a weekly holiday. Overlapping of shifts is not permitted. (Section 58) Notice
of period of work should be displayed. (Section 61)
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Overtime Wages
If a worker works beyond 9 hours a day or 48 hours a week,
overtime wages are double the rate of wages are payable.
(Section 59(1)) A workman cannot work in two factories. There
is restriction on double employment. (Section 60) However,
overtime wages are not payable when the worker is on tour.
Total working hours including overtime should not exceed
60 in a week and total overtime hours in a quarter should
not exceed 50. Register of overtime should be maintained.
An employee working outside the factory premises like field
workers etc. on tour outside headquarters are not entitled to
overtime.
Keyword
Employment of Women
Factories Act provides A woman worker cannot be employed beyond the hours 6
safeguard for workers
to protect health, a.m. to 7.00 pm. State Government can grant exemption to
provides for safety any factory or group or class of factories, but no woman can
at the workplace be permitted to work during 10 PM to 5 AM. Shift change
when dealing can be only after weekly or other holiday and not in between.
with machinery, (Section 66)
improves the
physical conditions
of the workplace, Night Shift for Women
and provides welfare
amenities. Factories Act has been proposed to be amended to allow
night shift for women workers. The Government has decided
to amend Section 66 of the Factories Act, 1948 to allow
employment of women workers between 7.00 pm and 6.00 am.
The demand of women‘s organisations and in tune with the
present economic globalization, the Government has decided
to bring in then required changes in the Act. This flexibility
would be available to all manufacturing units including the
apparel sector. This decision has been taken after meetings with
the representatives of the employers and the trade unions. The
proposed Bill will empower the State Governments for allowing
the necessary flexibility in employment of women during night
shift in factories. The proposed amendment would inter-alia
provide that the employer has to ensure occupational safety
and adequate protection to the women workers. However,
the State Government or any person authorised by it would
be allowing employment of women during night only after
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consulting the workers or their representative organisations and concerned employers

or their representatives. The State Governments are also empowered to frame their
own rules for allowing such permissions.
Record of Workmen
A register (muster roll) of all workers should be maintained. No worker should be
permitted to work unless his name is in the register. Record of overtime is also required
to be maintained. (Section 62)
Leave
A worker is entitled in every calendar year annual leave with wages at the rate of
one day for every 20 days of work performed in the previous calendar year, provided
that he had worked for 240 days or more in the previous calendar year. Child worker
is entitled to one day per every 15 days. While calculating 240 days, earned leave,
maternity leave upto 12 weeks and lay off days will be considered, but leave shall
not be earned on those days. (Section 79) – Leave can be accumulated upto 30 days
in case of adult and 40 days in case of child. Leave admissible is exclusive of holidays
occurring during or at either end of the leave period. Wage for period must be paid
before leave begins, if leave is for 4 or more days. (Section 81). Leave cannot be taken
for more than three times in a year. Application for leave should not normally be
refused. (These are minimum benefits. Employer can, of course, give additional or
higher benefits)
Wages for overtime and Leave Salary

Wages for leave encashment and overtime will include dearness allowance and cash
equivalent of any benefit. However, it will not include bonus or overtime.
Child Employment
Child below age of 14 should not be employed. (Section 67) Child above 14 but
below 15 years of age can be employed only for 4.5 hours per day or during the
night. (Section 71) He should be certified fit by a certifying surgeon. (Section 68) He
cannot be employed during night between 10 pm to 6 am. (Section 71) A person over
15 but below 18 years of age is termed as ‗adolescent‘. He can be employed as an
adult if he has a certificate of fitness for a full day’s work from certifying surgeon.
An adolescent is not permitted to work between 7 pm and 6 am.(Section 70).There
are more restrictions on employment of female adolescent. Register of child workers
should be maintained.(Section 73).
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Display on Notice Board

A notice containing abstract of the Factories Act and the rules made there under, in
English and local language should be displayed. Name and address of Factories Inspector
and the certifying surgeon should also be displayed on notice board. (Section 108(1))
Notice of Accidents, Diseases Etc.

Notice of any accident causing disablement of more than 48 hours, dangerous occurrences
and any worker contacting occupational disease should be informed to Factories
Inspector. (Section 88) Notice of dangerous occurrences and specified diseases should
be given. (Sections 88A and 89)
Obligation regarding Hazardous Processes / Substances

Information about hazardous substances / processes should be given. Workers and
general public in vicinity should be informed about dangers and health hazards. Safety
measures and emergency plan should be ready. Safety Committee should be appointed.
Penalties and Procedure

Under section 92, 93, 94 & 95. , the occupier and manager of the factory shall each be
guilty of an offence and punishable with imprisonment for a term which may extend
to two years or with fine which may extend to one lakh rupees or with both and if
the contravention is continued after conviction, with a further fine which may extend
to one thousand rupees for each day on which the contravention is so continued:
2.3.4 Amendments related to Factories Act
The Factories (Amendment) Bill, 2005

1. (1) This Act may be called the Factories (Amendment) Act, 2005. (2) It shall
come into force on such date as the Central Government may, by notification
in the Official Gazette, appoint.
2. For section 66 of the Factories Act, 1948, the following section shall be substituted,
namely: — ―66. The provisions of this Chapter shall, in their application to
women in factories, be supplemented by the following further restrictions,
namely: — (a) no exemption from the provisions of section 54 may be granted
in respect of any woman; (b) there shall be no change of shifts except after
a weekly holiday or any other holiday; (c) no woman shall be required or
allowed to work in any factory except between the hours of 6 A.M. and 7 P.M.
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Provided that where the occupier of the factory makes adequate safeguards in the
factory as regards occupational safety and health, equal opportunity for woman workers,
adequate protection of their dignity, honour and safety and their transportation from
the factory premises to the nearest point of their residence, the State Government or
any person authorised by it in this behalf may, by notification in the Official Gazette,
after consulting the concerned employer or representative organisation of such employer
and workers or representative organisations of such workers, allow employment of
woman workers between the hours of 7 P.M. and 6 A.M. in such factory or group or
class or description of factories subject to such conditions as may be specified therein.”.
2.3.5 Hotel industry included under Factories Act

In a welcome development for hotel employees, the industry will now have to fix
proper shifts and pay overtime if they work for more than eight hours a day, apart
from ensuring workers’ health, safety and welfare facilities.
With the decision of ministry of labour and employment to include the ‘Hotel
Industry’ under the Factories Act, the rulebook of all the leading hotels would need
a relook.
“Hotel industry will have to work in a disciplined way with the inclusion of the
industry under the Factories Act. The Act clearly says that the employees will work
for eight hours in a shift and overstaying period will be paid and they have to do it,”
said a high-level official in the labour ministry.
“It is not only the time frame or shifts but the industry will also probably have
to look at the employee’s issues relating to health, safety, welfare facilities, working
hours, employment of young persons and annual leave with wages which is all a part
of Factories Act with the inclusion,” confirmed a ministry source.
The Factories Act is a social legislation which has been enacted for occupational
safety, health and welfare of workers at work places.
This Act provides for a maximum punishment up to two years imprisonment or
a fine of up to Rs 1 lakh or both.
Reacting to the decision, Sanjay Bose, manager, Human Resources of Taj Group of
Hotels, said this is not a welcome decision.
“We already have a set of norms that ensures safety and health issues of employees.
We have been anyways covered under shops and establishment Act, so there is no
point including us under the Factories Act,”
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2.4 SALE OF GOODS ACT

The Sale of Goods Act 1979 requires goods to be as described,
of satisfactory quality and fit for purpose.
Fit for purpose means both for their everyday purpose,
and also any specific purpose that you agreed with the seller
(for example, if you specifically asked for a printer that would
be compatible with your computer, or wall tiles that would
be suitable for use in a bathroom).
Goods sold must also match any sample you were shown
in store, or any description in a brochure.
The only time goods are not required to be satisfactory
quality is if a defect or issue was specifically drawn to your
attention before you bought them.
So, if you examined the goods and had the opportunity to
notice (but failed to do so) that they were not of satisfactory
quality; or, in the case of sale by sample, if the lack of quality
would have been obvious on a reasonable examination of the
sample, you would not be able to argue that the goods were
not of satisfactory quality.
Remember
If your goods do not
meet one or more
of these criteria, the
retailer is in breach of
contract, which would
give rise for you to
claim under the Sale
of Goods Act.
If you have bought a faulty product, our guide shows you

what you should do.
2.4.1 Who is Responsible?

If you bought goods on or before 30 September 2015, and
your goods fail to meet any of the above criteria, then you
may have a claim under the Sale of Goods Act.
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If you want to make a claim under the Sale of Goods Act you have several possible
ways of resolving your issue, depending on the circumstances and on what you want
done to solve the problem.
Your rights are against the retailer (the company that sold you the product), not
the manufacturer, so you must make any claim against the retailer.
However, the Sale of Goods Act does not apply to goods you have bought on hire
purchase.
In this case the Supply of Goods Implied Terms Act 1973 applies, which makes the
hire-purchase company responsible for the quality of the goods supplied, and gives
you slightly different rights.
2.4.2 Returning Faulty Goods

If you bought faulty goods on or before 30 September (even if you received them
after this date), you can choose to reject the goods under the Sale of Goods Act. This
means you can give them back and get a refund.
You should note that the law only gives you a ‘reasonable time’ to do this – what’s
reasonable depends on the product and how obvious the fault is.
However, even with major purchases or complex items, it is safest to assume you
would usually have no more than three to four weeks from when you receive the
goods to reject them.
2.4.3 Faulty Goods Replaced or Repaired

You have the right to get faulty goods replaced or repaired if it is too late to reject
them. You can state your preference, but the retailer can normally choose to do
whatever would be cheapest.
Under the Sale of Goods Act, the retailer must either repair or replace faulty goods
‘within a reasonable time but without causing significant inconvenience’.
If the seller does not do this, you are entitled to claim either:
■■ a reduction on the purchase price, or
■■ your money back, minus an amount for the usage you have had of the goods
(called recision).
If the retailer refuses to repair the goods, and would not replace them either, you
may have the right to arrange for someone else to repair your item, and then claim
compensation from the retailer for the cost of doing this.
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You have six years to take a claim to court for faulty

goods in England, Wales and Northern Ireland; in Scotland
you have five years.
2.4.4 Proving Your Claim for Faulty Goods

If your claim under the Sale of Goods Act ends up in court,
you may have to prove that the fault was present when you
bought the item and not, for example, something that was the
result of normal wear and tear.
If your claim is about a problem that arose within six
months of buying the product, it is assumed that the problem
was there on the day you received it. It is up to the retailer
to prove that the goods were of satisfactory quality, fit for
purpose, or as described when it sold them.
Remember
For example, a retailer might try to prove this by showing
Accidental damage is that the problem was caused by an external factor, such as
pretty uniform across
damage that occurs accidental damage.
suddenly as a result
of an unexpected
and non-deliberate 2.4.5 Experts’ Reports
external action.
After six months of ownership, it is up to you to prove that
the problem was there when you received the product, even
if it has taken until now to come to light.
So, you may need to prove that the fault was not down
to ordinary wear and tear, or damage you caused, and that
the product (or a component) should have lasted longer than
it did.
To do this, you may need an expert’s report, for example
from an engineer or a mechanic.
Always try to keep the cost of any report proportionate to
the value of the claim and, if you can, try to find an expert
that you and the seller both agree has the necessary expertise.
2.4.6 Rights and Duties of the Seller

The rights and duties of a seller, under the Act, may be
summarized as below:
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RIGHT DUTIES
1. To reserve the right of disposal of the 1 To make the arrangement for transfer of
goods until certain conditions are property in the goods to the buyer.
fulfilled. ( sec 25 (1)
2. To assume that the buyer has accepted 2. To ascertain and appropriate the goods to
the goods , where the buyer the contract of sale
(i) Conveys his acceptance;
(ii) Does an act adopting the sale; or
(iii) Retains the goods without giving a

notice of rejection, beyond the specified
date (or reasonable time), in a sale on
approval. (sec 24)
3. To deliver the goods only when applied 3. To pass an absolute and effective title to
for by the buyer ( sec 35) the goods, to the buyer.
4. To make delivery of the goods in 4. To deliver the goods in accordance with
installments, when so agreed ( sec 39 (1) the terms of the contract ( sec 31)
5. To exercise lien and retain possession of 5. To ensure that the goods supplied
the goods, until payment of the price ( sec conform to the implied / express
47 (1) conditions and warranties.
6. To stop the goods in transit and resume 6. To put the goods in a deliverable state
possession of the goods, until payment of and to deliver the goods as and when
the price ( sec 49 (2) and 50 applied for by the buyer ( sec 35)
7 To resell the goods under certain 7 To deliver the goods within the time
circumstances ( sec 54) specified in the contract or within a
reasonable time and a reasonable hour. [
sec 36 (2) and (4)]
8 To withhold delivery of the goods when 8 To bear all expenses of and incidental to
the property in the goods has not passed making a delivery ( i.e. upto the stage of
to the buyer (sec 46 (2) putting the goods into a deliverable sate 0
(sec 36 (5)
9 To sue the buyer for price when the 9 To deliver the goods in the agreed
property in the goods has passed to the quantity. (Sec. 37 (1).
buyer or when the price is payment on a
certain day, in terms of the contract, and
the buyer fails to make the payment (sec
55)
10 To deliver the goods in installments only
when so desired by the buyer. (Sec 38 (1))
11 To arrange for insurance of the goods
while they are in transmission or custody
of the carrier. (Sec. 39 (2).
12 To inform the buyer in time, when the
goods are sent by a sea route, so that he
may get the goods insured [Sec. 39 (3) ]
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2.4.7 The Consumer Rights Act

On 1st October this year, the Consumer Rights Act 2015 was introduced, replacing
the Sale of Goods Act, the Supply of Goods and Services Act and the Unfair Terms
in Consumer Contract Regulations. As well as bringing these three different pieces of
legislation together, the new act provides additional protection for consumers. This
includes protection for digital content and a 30-day right to a refund if goods you
buy are faulty. Additionally, the new rules will make it harder for service providers to
bury charges and fees in the small print. Key terms can only be assessed for fairness
if they are displayed prominently or are transparent.
You have changed your mind

How many times have you spent more than you wanted on a new pair of shoes, or
got home and found that that new lamp does not work quite as well in that space as
you had hoped? Unfortunately, simply changing your mind is not in itself justification
for a refund. Although many shops will offer you a refund if the item is unused and
you have proof of purchase such as a receipt, they are not legally obliged to. Some
may refuse a refund altogether; others will offer an exchange or credit note. You have
more rights if you buy online or by mail order.
As you have not had the chance to physically inspect the goods before you buy
them, these retailers have to give you 14 days once you have received them to decide
whether or not you keep them. If you return the goods, the retailer must also refund
basic delivery charges but you may have to pay for postage to return the item. Whether
you buy in store or online, different retailers have different returns policies so always
check first. For example, SportsDirect.com offers the minimum 14 days required for
online sales, while John Lewis offers a more generous 90 days however you purchased
the item. Clothes retailer Boden takes it a step further and offers shoppers 365 days
to return goods they are not happy with, even if items have been worn.
Your new appliance does not work

Shoppers now have more rights than ever when returning faulty goods following the
introduction of the Consumer Rights Act 2015 on 1st October. As a result, consumers
now have up to 30 days to return faulty items and get a full refund, previously goods
needed to be returned within a ‘reasonable’ time period which offered no clarity to
customers and retailers alike. Your rights do not stop after 30 days, however.
After this point, you can ask the shop to either replace the item or repair it. If the
problem persists, you can then claim a refund or get a price reduction if you still want
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to keep the item. Any fault that is discovered within the first six months is considered
to have been there since delivery, and it is the retailer’s job to prove otherwise.
After six months, that responsibility shifts to the consumer so if you do have any
problems with an item it is important to make your complaint as soon as you can.
You are not happy with your eBay bargain

With items available for sale and on auction from private sellers and businesses, eBay
can be a minefield for consumer rights. If you buy goods at auction from a private
seller, your rights are limited – it really is a case of buyer beware, so if you have
concerns it makes sense to enquire about the condition of an item before you bid.
You only have consumer rights if they actually lie about the product they are selling,
or if it is not theirs to sell.
Your rights are strengthened if you buy from a business seller. Whether that is by
auction or ‘buy it now’, you have the same rights as you would if you had purchased
it in a shop, plus the additional 14-day cooling-off period offered for distance sales
(because you were not able to physically inspect the item before you bought it). If
you are not sure what type of seller you are buying from, take a look at their profile
to find out if they are registered as a business seller.
Ebay does provide additional protection itself through its Money-back Guarantee
for all buyers that pay with PayPal. It will refund your costs if your item does not
turn up or is not as it was described in the listing. First, you need to contact the seller
within 30 days of delivery (or anticipated delivery for goods that have not arrived)
and if the problem is not resolved Ebay will pick up the issue and arrange a refund
through PayPal within 48 hours.
Your accommodation is not as described

You spent hours researching that hotel for that long weekend, only to discover the
room was more antique than boutique or that your week in the sun would be spent
overlooking a building site, rather than the sparkling Mediterranean. How you deal with
accommodation that does not meet your expectations depends on how you booked it.
If it is a package holiday – where you booked travel and accommodation together
– then you are protected by the Package Travel Regulations.
Under this legislation, companies must not provide misleading information about
your accommodation and must stick to the terms of the contract. They also cannot
change your booking – for example, giving you a one-bedroom villa when you had
booked two or a shared pool when you had selected private. Should your holiday
company fall foul of the rules, you may be entitled to compensation. It is important
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not to wait until you get home to tackle the problem: failure to give the holiday
company the chance to rectify it while you are away may limit your ability to claim
compensation on your return.
If you booked your accommodation independently, you are protected by consumer
law and need to take any complaints direct to the hotel or accommodation provider.
Again, it is important to raise your concerns as soon as possible and give them
the opportunity to make amends. If you are not happy with their response, you can
pick up the complaint on your return. Not liking the room is not enough to warrant
compensation but you can if the room was not as described online or in the brochure
or services that were advertised are not provided – for example, a kids’ club.
Your claim can refer to loss of value (so the difference between the holiday you
got and the one you booked), out-of-pocket expenses, loss of enjoyment and physical
discomfort. You still need to complain direct to the hotel if you booked through a
travel agent or hotel search website as your contract is with them.
Some travel websites will have their own complaints process. If you are not
happy with accommodation booked through Airbnb for example (which helps hosts
with accommodation to spare find paying guests) you may be able to claim under its
‘Guest Refund Policy’ however you do need to attempt to rectify the problem with
the host first.
You want to cancel your gym membership

Joining a gym is a great way to get fit and lose weight – but if the novelty fades and
you do not make the most of all those cross-trainers and running machines, it can
quickly become an expensive waste of money.
But cancelling your gym membership may not be as straightforward as you expect
because when you sign up to join, you are actually signing a contract which you will
have to pay to cancel after an initial 14-day cooling- off period. So if you sign up
to a 12-month contract and want to leave after eight, you will still have to pay for
the remaining four. There are some exceptions, which may permit you to break the
contract early.
These include serious illness or injury, which prevent you going to the gym (if
you have medical evidence), or if a change of circumstances mean you are no longer
able to afford payments (for example, you have lost your job or got into serious debt).
It is also important to be aware of any terms in the contract that are unfair, and
as a result, not legally binding. This might include terms that allow your contract to
renew automatically and without your permission, have a minimum term of more
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than one year, allow prices to change significantly mid-contract or allow the facilities
to change significantly.
You are not happy with a tradesman’s work

Whether you are getting a bathroom tiled or an extension built, under the Consumer
Rights Act 2015 you can expect your tradesperson to use reasonable care and skill,
take reasonable time and charge a reasonable price. Materials should be of suitable
quality and be fit for purpose. So if you are not happy with the work that has been
done, you must first discuss it with the trader that arranged the work (even if they
sub- contracted it out to someone else).
You are legally entitled to ask them to either fix the problem or stop carrying out
any further work and give you a refund. Legislation states that work needs to be fixed
within a ‘reasonable’ time and refunds should be paid within 14 days.
If no agreement can be reached, you will need to write a letter of complaint and if
that does not fix things, discuss the matter with any trade association they belong to
(such as the Federation of Master Builders) and find out about their alternative dispute
resolution (ADR) services. ADR attempts to rectify problems on a more informal basis
and without going to court.
Parking fines
Whether you get a ticket on your windscreen or get a letter in the post, few things
have the power to anger us like parking fines, particularly if there were mitigating
circumstances or you think you have been treated unfairly.
Thankfully, you do have the right to appeal. If it was a ticket issued to use reasonable
care and skill, take reasonable time and charge a reasonable price. Materials should
be of suitable quality and be fit for purpose.
So if you are not happy with the work that has been done, you must first discuss it
with the trader that arranged the work (even if they sub- contracted it out to someone
else).
You are legally entitled to ask them to either fix the problem or stop carrying out
any further work and give you a refund. Legislation states that work needs to be fixed
within a ‘reasonable’ time and refunds should be paid within 14 days.
If no agreement can be reached, you will need to write a letter of complaint and if
that does not fix things, discuss the matter with any trade association they belong to
(such as the Federation of Master Builders) and find out about by your local council,
write an appeal to them in the first instance explaining why you think the ticket was
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unfair (a form will be included if you received your fine in the post). Include any
photographs, witness statements or evidence of mitigating circumstances that may
strengthen your case.
Make your argument compelling as the council does have the right to use discretion.
If this route fails, you will need to make a formal appeal through the Traffic Penalty
Tribunal (in England and Wales) or the Parking and Traffic Appeals Service (London)
or the Scottish Parking Appeals Service.
The waters are a lot muddier if you were parking on private land – for example,
a supermarket, retail estate, or hospital. Here, you have the right to appeal direct to
the car park operator and if that fails you can go through the independent appeals
service Popla (however, in using this service you will lose the right to pay the fine at
a discounted rate). Anecdotal evidence suggests you may have more luck contacting
the shop or business you were visiting at the time – in some cases, they will step in
and get the charge waived for you.
Complicating matters further, there is a large body of opinion that suggests these
fines are not legal and that if you simply ignore the charge, following a few threatening
letters, the matter will be forgotten. But some companies have taken motorists to court
for doing this, so it is not a strategy that works every time.
Following another law change on 1st October, private car park operators now have
to offer a 10- minute grace period before they are able to fine you. This can be added
on to the end of a period of free parking or paid for parking and levels the playing
field with council parks where this rule already applied.
2.5 PREVENTION OF FOOD ADULTERATION ACT

Food is one of the basic necessities for sustenance of life. Pure, fresh and healthy diet
is most essential for the health of the people. It is no wonder to say that community
health is national wealth.
Adulteration of food-stuffs was so rampant, widespread and persistent that nothing
short of a somewhat drastic remedy in the form of a comprehensive legislation became
the need of the hour. To check this kind of anti-social evil a concerted and determined
onslaught was launched by the Government by introduction of the Prevention of Food
Adulteration Bill in the Parliament to herald an era of much needed hope and relief
for the consumers at large.
In this Act unless the context otherwise requires, --
1 [(i) “adulterant” means any material which is or could be employed for the
purpose of adulteration;]
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2 [(i-a)] “adulterated”—an article of food shall be deemed

to be adulterated---
-- (a) If the article sold by a vendor is not of the
nature, substance or quality, demanded by the
purchaser and is to his prejudice, or is not of the
nature, substance or quality, which it purports Keyword
or is, represented to be; Food adulteration is
-- (b) If the article contains any other substance the process in which
which affect, or if the article is so processed the quality of food is
lowered either by the
as to affect injuriously the nature, substance or
addition of inferior
quality thereof; quality material or by
-- (c) If any inferior or cheaper substance has been extraction of valuable
substituted wholly or in part for the article so ingredient.
as to affect injuriously the nature substance or
quality thereof;
-- (d) If any constituent of the article has been
wholly or in part abstracted so as to affect
injuriously the nature, substance or quality
thereof.
-- (e) If the article has been prepared, packed or
kept under in sanitary conditions whereby it
has become contaminated or injurious to health;
-- (f) If the article consists wholly or in part of
any filthy, putrid, 3[* * *], rotten, decomposed
or diseased animal or vegetable substance or is
insect-infested or is otherwise unfit for human
consumption;
-- (g) If the article is obtained from a diseased
animal;
-- (h) If the article contains any poisonous or other
ingredient which renders it injurious to health:
-- (i) If the container of the article is composed,
whether wholly or in part, of any poisonous or
deleterious substance which renders its (contents
injurious to health;
4 [(j) If any coloring matter, other than that prescribed
in respect thereof is present in the article, or if the
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amounts of the prescribed coloring matter which is present in the article are
not within the prescribed limits of variability;]
-- (k) If the article contains any prohibited preservative or permitted
preservative in excess of’ the prescribed limits;
5 [(l) If’ the quality or purity of the article falls below the prescribed standards
or its constituents are present in quantities not within the prescribed limits of
variability but which renders it injurious to health;]
-- (m) If the quality or purity of the article falls below the prescribed
standard or its constituents are present in quantities not within the
prescribed limits of variability but which does not render it injurious
to health:
Provided that, where the quality or purity of the article, being a primary food has
fallen below the prescribed standards or its constituents are present in quantities not
within the prescribed limits of variability, in either case, solely due to natural causes
and beyond the control of human agency, then, such article shall not be deemed to
be adulterated within the meaning of this sub-clause.
Explanation. – Where two or more articles of primary food are mixed together and
the resultant article of food-
-- (a) Is stored, sold or distributed under a name which denotes the
ingredients thereof; and
-- (b) Is not injurious to health, Then, such resultant article shall not be
deemed to be adulterated within the meaning of this clause;
(ii) “Central Food Laboratory” means any laboratory or institute established or
specified under Sec. 4;
(iii) “Committee” means the Central Committee for Food Standards constituted
under Sec. 3;
(iv) “Director of the Central Food Laboratory” means the person appointed by
the Central Government by notification in the Official Gazette as the Director
of the Central Food Laboratory and includes any person appointed by the
Central Government in like manner to perform all or any of the functions of
the Director under this Act: 6[Provided that no person who has any financial
interest in the manufacture, import or sale of any article of food shall be
appointed to be a Director under this clause;]
7 [(v) “Food” means any article used as food or drink for human consumption
other than drugs and water and includes,
-- (a) Any article, which ordinarily enters into, or is used in the composition
or preparation of, human food,
-- (b) Any flavoring matter or condiments, and
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-- (c) Any other article which the Central Government may, having regard
to its use, nature, substance or quality declare, by notification in the
official Gazette, as food for the purposes of this Act;]
7 [(vi) “Food (Health) Authority” means the Director of Medical and Health
Services or the Chief Officer in-charge of health administration in a State, by
whatever designation he is known, and includes any officer empowered by the
Central Government or the State Government, by notification in the Official
Gazette, to exercise the powers and perform the duties of the Food (Health)
Authority under this Act with respect to such local area as may be specified
in the notification;]
(vii) “Local area” means any area, whether urban or rural, declared by 8[the
Central Government or the State Government] by notification the Official
Gazette, to be a local area for the purposes of this Act;
(viii) “Local authority” means in the case of:
(1) A local area which is-
-- (a) A municipality, the municipal board or municipal corporation;
-- (b) A cantonment, the cantonment authority;
-- (c) A notified area, the notified committee;
(2) Any other area, such authority as may be prescribed by 9[the Central Government
or the State Government] under this Act;
10 [(viii-a) “Local (Health) Authority”, in relation to a local area, means the officer
appointed by the Central Government or the State Government by notification
in the Official Gazette, to be in-charge of’ health administration in such area
with such designation as may be specified therein;
(Viii-b) “Manufacture” includes any process incidental or ancillary to the manufacture
of an article of food;]
(ix) “Misbranded”-an article of food shall be deemed to be, misbranded-
-- (a) If it is an imitation of, is a substitute for, or resembles in a manner
likely to deceive, another article of food under the name of which it is
sold, and is not plainly and conspicuously labeled so as to indicate its
true character;
-- (b) If it is falsely stated to be the product of any place or country
-- (c) If’ it is sold by a name which belongs to another article of food;
-- (d) If’ it is so colored, flavored or coated, powered or polished that the
fact that the article damaged is concealed or if the article is made to
appear better or of greater value than it really is;
-- (e) If false claims are made for it upon the label or otherwise;
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-- (f) If, when sold in packages which have been sealed or prepared by or
at the instance of the manufacturer or producer and which bear his name
and address, the contents of each package are not conspicuously and
correctly stated on the outside there of within the limits of variability
prescribed under this Act:
-- (g) If the package containing it, or the label on the package bears any
statement, design of device regarding the ingredients or the substances
contained therein, which is false or misleading in any material particular,
or if the package is otherwise deceptive with respect to its contents;
-- (h) If the package containing it or the label on the package bears the
name of a fictitious individual or company as the manufacturer or
producer of the article;
-- (i) If it purports to be, or is represented as being, for special dietary uses,
unless its label bears such information as may be prescribed concerning
its vitamin, mineral, or other dietary properties in order sufficiently to
inform its purchaser as to its value for such uses:
-- (j) If it contains any artificial flavoring, artificial coloring or chemical
preservative, without a declaratory label stating that fact, or in
contravention of the requirements of this Act or rules made thereunder
-- (k) f it is not labeled in accordance with the requirements of this Act
or rules made thereunder:
-- (x) “Package” means a box, bottle, gasket, tin, barrel, case, receptacle,
sack, bag, wrapper or other thing in which an article of food is placed
or packed;
-- (xi) “Premises” include any shop, stall or place where any article of
food is sold or manufactured or stored for sale:
-- (xii) “Prescribed” means prescribed by rules made under this Act;
11 [xii-a) “Primary food” means any article of food, being a produce of agriculture
or horticulture in its natural form;]
-- (xiii) “Sale” with its grammatical and cognate expressions, means the
sale of any article of food, whether for cash or on credit or by way of
exchange and whether by wholesale or retail, for human consumption
or use, or for analysis, and includes an agreement for sale, an offer for
sale, the exposing for sale or having in possession for sale of any such
article, and includes also an attempt to sell any such article:
-- (xiv) “Sample” means a sample of any article of food taken under the
provisions of this Act or any rules made thereunder:
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-- (xv) The words “unwholesome” and “noxious” when used in relation to

an article of food mean respectively that the article is harmful to health
or repugnant to human use.
2.5.1 The Payment of Wages Act

The Payment of Wages Act, 1936 regulates payment of wages to employees (direct and
indirect). The act is intended to be a remedy against unauthorized deductions made
by employer and/or unjustified delay in payment of wages.
Regular Pay
Payment should be made before the 7th day of a month where the number of workers
is less than 1000 and 10th day otherwise. The wage-period shall not exceed 1 month.
The Act is applicable only to employees drawing wages not exceeding Rs. 6500 a month.
Mode of Payment
Under the act, payment has to be made in currency notes or coins. Cheque payment
or crediting to bank account is allowed with consent in writing by the employee.
(Section 6)
Deduction from Wages

Employer is allowed to effect only authorized deductions, as specified in the Act. This
include fines (Section 8), absence from duty (Section 9), Damages or loss (Section 10),
deduction for services (amenities ) given to employer (Section 11) recovery of advances
and loans (Section 12, 13) and payment to cooperative society and insurance (Section
13).
Claims for excessive deduction and Non Payment

Employers individually or through trade union can approach the authority (Labour
Office) for relief. (Section 15, 16, 17)
2.5.2 Object of the Act

The Payment of Wages Act regulates the payment of wages to certain classes of persons
employed in industry and its importance cannot be under-estimated. The Act guarantees
payment of wages on time and without any deductions except those authorised under
the Act. The Act provides for the responsibility for payment of wages, fixation of
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wage period, time and mode of payment of wages, permissible deduction as also
casts upon the employer a duty to seek the approval of the Government for the acts
and permission for which fines may be imposed by him and also sealing of the fines,
and also for a machinery to hear and decide complaints regarding the deduction from
wages or in delay in payment of wages, penalty for malicious and vexatious claims.
The Act does not apply to persons whose wage is Rs. 10,000 or more per month. The
Act also provides to the effect that a worker cannot contract out of any right conferred
upon him under the Act.
“employed person” [sec 2 (i)] includes the legal representative of a deceased employed
person;
“employer”[sec 2 (ia)] includes the legal representative of a deceased employer;
“industrial or other establishment”[sec 2 (i1)] means any -
(a) tramway service or motor transport service engaged in carrying passengers or
goods or both by road for hire or reward;
(aa) air transport service other than such service belonging to or exclusively employed
in the military naval or air forces of the Union or the Civil Aviation Department;
(b) Dock wharf or jetty;
(c) inland vessel mechanically propelled;
(d) mine quarry or oil-field;
(e) plantation;
(f) workshop or other establishment in which articles are produced adapted or
manufactured with a view to their use transport or sale;
(g) establishment in which any work relating to the construction development or
maintenance of buildings roads bridges or canals or relating to operations connected
with navigation irrigation or to the supply of water or relating to the generation
transmission and distribution of electricity or any other form of power is being carried
on;
(h) any other establishment or class of establishments which the Central Government
or a State Government may having regard to
the nature thereof the need for protection of persons employed therein and other
relevant circumstances specify by notification in the Official Gazette.
“wages” [sec 2 (iv)] means all remuneration (whether by way of salary allowances or
otherwise) expressed in terms of money or capable of being so expressed which would
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if the terms of employment express or implied were fulfilled

by payable to a person employed in respect of his employment
or of work done in such employment and includes -
(a) any remuneration payable under any award or settlement
between the parties or order of a court;
(b) any remuneration to which the person employed 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 person employed 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 person employed is entitled under The Payment of
any scheme framed under any law for the time being in force, Wages Bill, 1935
was passed by the
but does not include - Legislative Assembly
(1) any bonus (whether under a scheme of profit sharing or and it received the
assent on 23rd April,
otherwise) which does not form part of the remuneration 1936. It came on
payable under the terms of employment or which is not the Statute Book as
payable under any award or settlement between the parties “THE PAYMENT OF
or order of a court; WAGES ACT, 1936 (4
of 1936)”.
(2) 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 State Government;
(3) any contribution paid by the employer to any pension
or provident fund and the interest which may have accrued
thereon;
(4) any travelling allowance or the value of any travelling
concession;
(5) any sum paid to the employed person to defray special
expenses entailed on him by the nature of his employment; or
(6) any gratuity payable on the termination of employment in
cases other than those specified in sub-clause (d).
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2.5.3 Responsibility for Payment of Wages

Every employer shall be responsible for the payment to persons employed by him of
all wages required to be paid.
■■In the case of the factory, manager of that factory shall be liable to pay the
wages to employees employed by him.
■■ In the case of industrial or other establishments, persons responsibility of
supervision shall be liable for the payment of the wage to employees employed
by him.
■■ In the case of railways, a person nominated by the railway administration for
specified area shall be liable for the payment of the wage to the employees.
■■ In the case of contractor, a person designated by such contractor who is directly
under his charge shall be liable for the payment of the wage to the employees.
If he fails to pay wages to employees, person who employed the employees
shall be liable for the payment of the wages .
With the consultation of the central government, state government having power
and can change the person responsible for the payment of the wages in Railways,
or person responsible to daily-rated workers in the Public Works Department of the
Central Government or the State Government.
2.5.4 Fixation of wage-periods.

Every person responsible for the payment of wages under section 3 shall fix periods in
respect of which such wages shall be payable. No wage-period shall exceed one month.
That means wage can be paid on daily, weekly, fortnightly (for every 15 days) and
monthly only. Wage period for payment of wages to employees by employer should
not exceed 30days i.e. one month according to this act.
But wages cannot be paid for quarterly, half yearly or once in a year.
2.5.5 Time Of Payment Of Wages.

■■ In railway factory or industrial or other establishment, if there are less than
1000 employees, wages of employees should be paid before the expiry of the
7th day after the last day of the wage period. (ex:- wages should be paid on
starting of present month within 7 days i.e. before 7th date if wage is paid
on 1st in previous month )
■■ In other railway factory or industrial or other establishment, if there are more
than 1000 employees, wages of employees should be paid before the expiry
of the 10th day after the last day of the wage period. (ex:- wages should be
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paid on starting of present month within 10 days i.e. before 10th date if wage
is paid on 1st in previous month )
■■ For employees of port area, mines, wharf or jetty, wages of employees should
be paid before the expiry of the 7h day after the last day of the wage period.
[Sec 5 (2)]
If the employee is terminated or removed for the employment by the employer the
wage of that employee should be paid within 2 days from the day on which he was
removed or terminated.
Illustration: if the employee was terminated or removed from the employment by
the employer on 10th of this month, his wage should be paid within 2 days from the
day on which he was removed or terminated, i.e. his/her wage should be paid by 12th
date of this month and this date should not exceed.
[Sec 5 (4)]
Except the payment of wage of the terminated employee, all the wages of the employees
should be paid by their employer on the working day only.
Section 6. (THE PAYMENT OF WAGES (AMENDMENT) ACT, 2017)

All wages shall be paid in current coin or currency notes or by cheque or by crediting
the wages in the bank account of the employee:
Provided that the appropriate Government may, by notification in the Official
Gazette, specify the industrial or other establishment, the employer of which shall
pay to every person employed in such industrial or other establishment, the wages
only by cheque or by crediting the wages in his bank account.”
2.5.6 Provision for Timely Payment of Wages

Wages needs to be paid-
■■ Before the expiry of the 7th day after the last day of the wage period, where
there are less than 1000 workers employed and in rest case on the 10th day;
■■ In current coin or currency notes and by cheques or by crediting the wages
in the employee’s bank account after obtaining his written authority;
■■ On a working day;
■■ Before the expiry of the second day, to the person whose employment is
terminated.
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2.5.7 Deductions from Wages

The following mentioned are the main deductions that are allowed under the Act-
■■Fines;
■■Deduction for the actual period of absence
■■Deduction for the damage or loss of goods expressly entrusted to the employed
person;
■■ Deduction for house accommodation;
■■ Deduction for the amenities and service supplied by employer with agreement
to the employee;
■■ Deduction for recovery of advances and interest, and adjustment of overpayment;
■■ Deductions for recovery of loans from any fund constituted for the welfare of
labour as agreed between employer and employee;
■■ Deduction for income tax;
■■ Deduction on orders of a court or other authority;
■■ Deduction for subscription and repayment of advance from any Provident Fund;
■■ Deduction for payments to cooperative societies as agreed between employer
and employee;
■■ Deduction of premium for LIC policy on written authorization of the employed
person; or any other investment for Post Office Saving Schemes;
However, as mentioned in section 7 of the Act, the total amount of deductions
should not exceed 75% of wages of the employee in any wage period if whole or part
of the deductions is meant for the payments to cooperative societies. In other cases
it should not exceed 50%.
Fines
Incase of fines that need to be imposed on the employee it should only be for the
acts and omissions that are mentioned in the list of which has been approved by the
appropriate Government. Fines should not exceed 3% of the wages in a month. This
needs to be recovered within 90 days of the date of act or omission, be imposed after
a proper show cause procedure and cannot be imposed on an employee of less than
15 years of age.
Employers have compulsorily to maintain following registers in the prescribed
forms-
■■ Register of wages;
■■ Register of fines;
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■■ Register of deduction for damages or loss

■■ Register of advances.
2.6 THE EMPLOYEES’ PROVIDENT FUNDS AND MISCELLANE-

OUS PROVISIONS ACT
The Payment of Gratuity Act applies to factories and other establishments employing
ten or more persons. On completion of five years service, the employees are entitled to
payment of gratuity 15 days wages for every completed year of service or part thereof
in excess of six months subject to a maximum of Rs.3.50 lakh. The current maximum
limit is applicable from 24.9.1997. The wage ceiling for coverage under the Act has
since been removed w.e.f. 24.05.1994.
1[17. Power to exempt.—
(1) The appropriate Government may, by notification in the Official Gazette, and
subject to such conditions as may be specified in the notification, 2[exempt,
whether prospectively or retrospectively, from the operation] of all or any of
the provisions of any Scheme—
(a) any 3[establishment] to which this Act applies if, in the opinion of the appropriate
Government, the rules of its provident fund with respect to the rates of contribution
are not less favourable than those specified in section 6 and the employees are also in
enjoyment of other provident fund benefits which on the whole are not less favourable
to the employees than the benefits provided under this Act or any Scheme in relation
to the employees in any other 3[establishment] of a similar character; or
(b) any 3[establishment] if the employees of such 3[establishment] are in enjoyment
of benefits in the nature of provident fund, pension or gratuity and the appropriate
Government is of opinion that such benefits, separately or jointly, are on the whole
not less favourable to such employees than the benefits provided under this Act
or any Scheme in relation to employees in any other 3[establishment] of a similar
character: 3[establishment] if the employees of such 3[establishment] are in enjoyment
of benefits in the nature of provident fund, pension or gratuity and the appropriate
Government is of opinion that such benefits, separately or jointly, are on the whole not
less favourable to such employees than the benefits provided under this Act or any
Scheme in relation to employees in any other 3[establishment] of a similar character\:”
4[Provided that no such exemption shall be made except after consultation with the
Central Board which on such consultation shall forward its views on exemption to the
appropriate Government within such time limit as may be specified in the Scheme.]
5[***] 6[(1A) Where an exemption has been granted to an establishment under clause
(a) of sub-section (1),—
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(a) the provisions of sections 6, 7A, 8 and 14B shall, so far as may be, apply to the
employer of the exempted establishment in addition to such other conditions as may
be specified in the notification granting such exemption, and where such employer
contravenes, or makes default in complying with any of the said provisions or conditions
or any other provision of this Act, he shall be punishable under section 14 as if the
said establishment had not been exempted under the said clause (a);
(b) the employer shall establish a Board of Trustees for the administration of the
provident fund consisting of such number of members as may be specified in the
Scheme;
(c) the terms and conditions of service of members of the Board of Trustees shall be
such as may be specified in the Scheme;
(d) the Board of Trustees constituted under clause (b) shall—
(i) maintain detailed accounts to show the contributions credited, withdrawals made
and interest accrued in respect of each employee;
(ii) submit such returns to the Regional Provident Fund Commissioner or any other
officer as the Central Government may direct from time to time;
(iii) invest the provident fund monies in accordance with the directions issued by the
Central Government from time to time;
(iv) transfer, where necessary, the provident fund account of any employee; and
(v) perform such other duties as may be specified in the Scheme.
(1B) Where the Board of Trustees established under clause (b) of sub-section (1A)
contravenes, or makes default in complying with, any provisions of clause (d) of that
sub-section, the Trustees of the said Board shall be deemed to have committed an
offence under sub-section (2A) of section 14 and shall be punishable with the penalties
provided in that sub-section. 7[(1C) The appropriate Government may, by notification
in the Official Gazette, and subject to the condition on the pattern of investment of
pension fund and such other conditions as may be specified therein, exempt any
establishment or class of establishments from the operation of the Pension Scheme if
the employees of such establishment or class of establishments are either members of
any other pension scheme or propose to be members of such pension scheme, where
the pensionary benefits are at par or more favourable than the Pension Scheme under
this Act.]]
(2) Any Scheme may make provision for exemption of any person or class of persons
employed in any 8[establishment] to which the Scheme applies from the operation of all
or any of the provisions of the Scheme, if such person or class of persons is entitled to
benefits in the nature of provident fund, gratuity or old age pension and such benefits
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separately or jointly, are on the whole not less favourable than the benefits provided
under this Act or the Scheme: Provided that no such exemption shall be granted in
respect of a class of persons unless the appropriate Government is of opinion that
the majority of persons constituting such class desire to continue to be entitled to
such benefits. 9[(2A) 10[The Central Provident Fund Commissioner may, if requested
so to do by the employer, by notification in the Official Gazette, and subject to such
conditions as may be specified in the notification, exempt, whether prospectively or
retrospectively, any establishment from the operation of all or any of the provisions of
the Insurance Scheme, if he is satisfied] that the employees of such establishment are,
without making any separate contribution or payment of premium, in enjoyment of
benefits in the nature of life insurance, whether linked to their deposits in provident
fund or not, and such benefits are more favourable to such employees than the benefits
admissible under the Insurance Scheme.
(2B) Without prejudice to the provisions of sub-section (2A), the Insurance Scheme
may provide for the exemption of any person or class of persons employed in any
establishment and covered by that Scheme from the operation of all or any of the
provisions thereof, if the benefits in the nature of life insurance admissible to such
person or class of persons are more favourable than the benefits provided under the
Insurance Scheme.] 11[(3) Where in respect of any person or class of persons employed
in an establishment an exemption is granted under this section from the operation of
all or any of the provisions of any Scheme (whether such exemption has been granted
to the establishment wherein such person or class of persons is employed or to the
person or class of persons as such), the employer in relation to such establishment—
(a) shall, in relation to the provident fund, pension and gratuity to which any such
person or class of persons is entitled, maintain such accounts, submit such returns,
make such investment, provide for such facilities for inspection and pay such inspection
charges, as the Central Government may direct;
(b) shall not, at any time after the exemption, without the leave of the Central
Government, reduce the total quantum of benefits in the nature of pension, gratuity
or provident fund to which any such person or class of persons was entitled at the
time of the exemption; and
(c) shall, where any such person leaves his employment and obtains re-employment
in another establishment to which this Act applies, transfer within such time as may
be specified in this behalf by the Central Government, the amount of accumulations
to the credit of that person in the provident fund of the establishment left by him to
the credit of that person’s account in the provident fund of the establishment in which
he is re-employed or, as the case may be, in the Fund established under the Scheme
applicable to the establishment.] 12[(3A) Where, in respect of any person or class of
persons employed in any establishment, an exemption is granted under sub-section
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(2A) or sub-section (2B) from the operation of all or any of the provisions of the
Insurance Scheme (whether such exemption is granted to the establishment wherein
such person or class of persons is employed or to the person or class of persons as
such), the employer in relation to such establishment—
(a) shall, in relation to the benefits in the nature of life insurance, to which any such
person or class of persons is entitled, or any insurance fund, maintain such accounts,
submit such returns, make such investments, provide for such facilities for inspection
and pay such inspection charges, as the Central Government may direct;
(b) shall not, at any time after the exemption without the leave of the Central Government,
reduce the total quantum of benefits in the nature of life insurance to which any such
person or class of persons was entitled immediately before the date of the exemption,
13[***] 1[***]” 14[***]
(4) Any exemption granted under this section may be cancelled by the authority which
granted it, by order in writing, if an employer fails to comply,—
(a) in the case of an exemption granted under sub-section (1) with any of the conditions
imposed under that sub-section 15[or sub-section (1A)] or with any of the provisions
of sub-section (3); 16[***] 3[or sub-section (1A)] or with any of the provisions of sub-
section (3); 4[***]” 17[(aa) in the case of an exemption granted under sub-section 18[(1C)]
with any of the conditions imposed under that sub-section; and] 5[(aa) in the case of
an exemption granted under sub-section 6[(1C)] with any of the conditions imposed
under that sub-section; and]”
(b) in the case of an exemption granted under sub-section (2), with any of the provisions
of sub-section (3); 19[(c) in the case of an exemption granted under sub-section (2A),
with any of the conditions imposed under that sub-section or with any of the provisions
of sub-section (3A); 7[(c) in the case of an exemption granted under sub-section (2A),
with any of the conditions imposed under that sub-section or with any of the provisions
of sub-section (3A);”
(d) in the case of an exemption granted under sub-section (2B), with any of the
provisions of sub-section (3A).] 20[(5) Where any exemption granted under sub-section
(1), sub-section 18[(1C)] 21[, sub-section (2), sub-section (2A) or sub-section (2B)] is
cancelled, the amount of accumulations to the credit of every employee to whom such
exemption applied, in the Provident Fund 21[, the 22[Pension] Fund or the Insurance
Fund] of the establishment in which he is employed 23[together with any amount
forfeited from the employer’s share of contribution to the credit of the employee who
leaves the employment before the completion of the full period of service] shall be
transferred within such time and in such manner as may be specified in the Scheme
or the 24[Pension] Scheme 25[or the Insurance Scheme] to the credit of his account
in the Fund or the 24[Pension] 25[Fund or the Insurance Fund], as the case may be.
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(6) Subject to the provisions of sub-section 26[(1C)] the employer

of an exempted establishment or of an exempted employee of
an establishment to which the provisions of the 24[Pension]
Scheme apply, shall, notwithstanding any exemption granted
under sub-section (1) or sub-section (2), pay to the 24[Pension]
Fund such portion of the employer’s contribution 27[***] to
its provident fund within such time and in such manner as
may be specified in the 24[Pension] Scheme.]
2.6.1 The Workmen’s Compensation

The Act provides for payment of compensation to workmen
and their dependants incase of injury and accident (including
certain occupational disease) arising out of and in the course
of employment and resulting in disablement or death. The Act
applies to railway servants and persons employed in any such Remember
capacity as is specified in Schedule II of the Act. Schedule II The amount of
includes persons employed in factories, mines, plantations, compensation is
mechanically propelled vehicles, construction works and certain limited to $100 for the
other hazardous occupations. property of a guest,
unless the property
The Workmen’s Compensation Act, 1923, aims to provide had been lodged in the
hotel’s safety deposit
workmen and/or their dependents some relief in case of box, when the amount
accidents, arising out of and in the course of employment of compensation is
and causing either death or disablement of workmen. limited to $2000.
Scope and Coverage

The Act extends to the whole of world and it applies to railways
and other transport establishments, factories establishments
engaged in making, altering, repairing, adapting, transport
or sale of any articles, mines, docks, establishments engaged
in constructions, fire-brigade, plantations, oilfields and other
employments listed in Schedule II of the Act.
Employees Entitled
Every employee (including those employed through a
contractor but excluding casual employee), who is engaged
for the purposes of employer’s business and who suffers an
injury in any accident arising out of and in the course of his
employment, shall be entitled for compensation under the Act.
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However to determine that whether particular person is a workman or not under the
Act two things must be determined viz.
■■Whether his employment was of a casual nature; and
■■Whether his employment was otherwise for the purpose of employer’s trade
or business.
A person employed in a factory which is yet to commence production would not
be deprived of the benefit of the provisions of the Act. The workman employed in
premises where manufacturing process is intended to be carried on is not necessarily
required to be actually connected with manufacturing process. Any person engaged
in such premises who is contributing for the intended manufacturing process would
be deemed to be workman for the purpose of the Act. The provisions of the Act have
been extended to the cooks employed in hotels, restaurants using power, liquefied
petroleum gas or any other mechanical device, in the process of cooking.
Whether Contractor is a ‘Workman’

The broad distribution between a workman and an independent contractor lies in
this that while the former agrees him to work, the latter agrees to get other persons
to work. A person who agrees himself to work and does so work and is, therefore,
a workman does not cease to be such by reason merely of the fact that he gets other
persons also to work along with him and that those persons are controlled and paid
by him. If a person agreed to work personally, then he is a workman and the fact
that he takes assistance from other persons would not affect his status.” Thus, where
a person entered into a construction contract and agreed to work himself and also to
employ his own labour, while construction material was to be supplied by the owner,
and the contractor died while working himself, it was held that the dependents of the
deceased were entitled to compensation.
Disablement Injury caused to a workman by an accident ordinarily results in
the loss of the earning capacity of the workman concerned and this loss of earning
capacity is technically “disablement”. Disablements can be classified as (a).Total and (b)
Partial. It can further be classified into (i) Permanent, and (ii) temporary,, Disablement,
whether permanent or temporary is said to be total when it incapacitates a worker
for all work he was capable of doing at the time of the accident resulting in such
disablement. “Total disablement” is considered to be permanent if a workman, as a
result of an accident, suffers from the injury specified in Part I of Schedule I or suffers
from such combination of injuries specified in Part II of Schedule I as would be the
loss of earning capacity when totaled to one hundred per cent or more. Disablement
is said to be permanent partial when it reduces for all times, the earning capacity of
a workman in every employment which he was capable of undertaking at the time
of the accident. Every injury specified in Part II of Schedule I is deemed to result
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in permanent partial disablement. Where the disablement is of a temporary nature

and reduces the earning capacity of a workman in the employment in which he was
engaged at the time of the accident it is “temporary partial disablement.
Salient Provisions
Accident Compensation-when payable

The employer of any establishment covered under this Act, is required to compensate
an employee (a) who has suffered an accident arising out of and in the course of his
employment, resulting into (i) death, (ii) permanent total disablement, (iii) permanent
partial disablement, or (iv) temporary disablement whether total or partial, or (b) who
has contracted an occupational disease.
Accident arising out of and in the course of Employment

An accident arising out of employment implies a casual connection between the injury
and the accident and the work done in the course of employment. Employment should
be the distinctive and the proximate cause of the injury. The three tests for determining
whether an accident arose out of employment are :
■■ At the time of injury workman must have been engaged in the business of the
employer and must not be doing something for his personal benefit;
■■ That accident occurred at the place where he was performing his duties; and
■■ Injury must have resulted from some risk incidental to the duties of the service,
or inherent in the nature or condition of employment.
The expression ‘arising out of employment’ is not confined to the mere nature
of employment. The expression applies to employment as such — to its nature, its
conditions, its obligations and its incidents. If by reason of any of those factors the
workman is brought within the zone of special danger, the injury would be one which
arises ‘out of employment’. To put it differently, if the accident had occurred on account
of a risk which is an incident of the employment, the claim for compensation must
succeed, unless of course, the workman has exposed himself to an added peril by
his own imprudent act. The phrase “in the course of employment” is understood to
mean that the injury has resulted during the course of employment from some risk
incidental to the duties of the service, which unless engaged in the duty owing to the
master, it is reasonable to believe the workman would not otherwise have suffered.
Thus, whereas ‘in the course of employment’ emphasizes the time when accidental
injury was caused, “arising out of employment” emphasizes that there must be a casual
connection between the employment and the accidental injury.
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Occupational Diseases
Workers employed in certain types of occupations are exposed to the risk of contracting
certain diseases which are peculiar and inherent to those occupations. A worker
contracting an occupational disease is deemed to have suffered an accident out of and
in the course of employment and the employer is liable to pay compensation for the
same. Occupational diseases have been categorized in Parts A, B and C of Schedule
III. The employer is liable to pay compensation:
■■ when a workman contract any disease specified in Part A at anytime,5
■■ when a workman contracts any disease specified in Part B, while in service for
a continuous period of 6 months under one employer. (Period of service under
any other employer in the same kind of employment shall not be included)
■■ when a workman contracts any disease specified in Part C, while he has
been in continuous service for a specified period, whether under one or more
employers. (Proportionate compensation is payable by all the employers, if the
workman had been in service under more than one employer).
Compensation-when not Payable

The employer is, however not liable to pay compensation for the injury to an employee
under any of the following circumstances:
■■ When injury does not cause total/partial disablement for more than 3 days;
■■ When injury, not resulting in death [or permanent total disablement] is directly
attributable to employee’s willful disobedience of the safety rules, or disregard
of the safety devices, or the employee having been under the influence of
drink or drugs. The burden of proving intentional disobedience on the part
of the employee shall lie upon the employer. Where an employee received
eye injury for not using goggles supplied by employer and where it was not
established that the employee was not using the goggles intentionally and in
willful disobedience of the orders, the employer was held to be liable to pay
compensation.
■■ When the employee has contacted a disease which is not directly attributable
to a specific injury caused by the accident or to that occupation or
■■ When the employee has filed a suit for damages against the employer or any
other person, in a Civil Court.
Statement of Fatal Accidents

Where a commissioner receives information from any source that a workman has died
as a result of an accident arising out of and in the course of his employment, he may
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require the employer, by serving upon him a registered notice, to submit within 30
days of its service, a statement in the prescribed form
■■ Giving the circumstances attending the death of the workman, and
■■ Indicating whether he is or, is not, liable to pay accident compensation.
If the employer feels that he is liable to pay compensation, he shall make the deposit
within 30 days of the service of the notice. If the employer disclaims his liability, he
should indicate the grounds for such disclaimer.
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CHAPTER

2.1 LAWS APPLICABLE TO THE INDUSTRY

■■ The second head has legislation for the operation,

2.1.1 Some of the Important Licenses Required

■■ Registration under the Provident Fund Act.

2.1.2 The Many Laws that Hotel Owners must observe

Before one can hold an entertainment event then a

Other laws that the restaurant management needs to

2.1.3 Assess Contracts

The importance of this determination is because different laws apply depending

2.2 CONTRACT ACT

2.2.1 What is a Contract?

2.2.2 What is Agreement?

2.2.3 What is Promise?

2.2.4 Essential Elements of Contract

contract. In order to constitute a contract, there must

2.2.5 Important Rules Relating to an Offer, as Provided in the

An offer must be capable of creating legal relations

The offer must be distinguished from mere statement of intention

The offer must be distinguished from an invitation to receive offer

An offer may be express or implied

An offer may be general or specific

An offer may be conditional

The terms of an offer must be certain, definite and not vague

An offer must be communicated to the other party

2.3 THE FACTORIES ACT

2.3.1 Applicability of the Act

2.3.2 Scheme of the Act

2.3.3 Important Provisions the Act

Facilities and Conveniences

Facilities in case of Large Factories

consulting the workers or their representative organisations and concerned employers

Wages for overtime and Leave Salary

Display on Notice Board

Notice of Accidents, Diseases Etc.

Obligation regarding Hazardous Processes / Substances

Penalties and Procedure

2.3.4 Amendments related to Factories Act

The Factories (Amendment) Bill, 2005

2.3.5 Hotel industry included under Factories Act

2.4 SALE OF GOODS ACT

If you have bought a faulty product, our guide shows you

2.4.1 Who is Responsible?

2.4.2 Returning Faulty Goods

2.4.3 Faulty Goods Replaced or Repaired

You have six years to take a claim to court for faulty

2.4.4 Proving Your Claim for Faulty Goods

2.4.6 Rights and Duties of the Seller

(i) Conveys his acceptance;

(ii) Does an act adopting the sale; or

(iii) Retains the goods without giving a

2.4.7 The Consumer Rights Act

You have changed your mind

Your new appliance does not work

You are not happy with your eBay bargain

Your accommodation is not as described

You want to cancel your gym membership

You are not happy with a tradesman’s work

2.5 PREVENTION OF FOOD ADULTERATION ACT

2 [(i-a)] “adulterated”—an article of food shall be deemed

-- (xv) The words “unwholesome” and “noxious” when used in relation to

2.5.1 The Payment of Wages Act

Deduction from Wages