THE SALES PROMOTION EMPLOYEES (CONDITIONS OF SERVICE) ACT, 1976
ACT NO. 11 OF 1976
[25th January, 1976.]
An Act to regulate certain conditions of service of sales promotion
employees in certain establishments.
BE it enacted by Parliament in the Twenty-sixth Year of the
Republic of India as follows:--
1.
Short title, extent, commencement and application.
1. Short title, extent, commencement and application.- (1) This
Act may be called the Sales Promotion Employees (Conditions of
Service) Act, 1976.
(2) It extends to the whole of India.
(3) It shall come into force on such date1* as the Central
Government may, by notification in the Official Gazette, appoint and
different dates may be appointed for different States.
(4) It shall apply in the first instance to every establishment
engaged in pharmaceutical industry.
(5) The Central Government may, by notification in the Official
Gazette, apply the provisions of this Act, with effect from such date
as may be specified in the notification, to any other establishment
engaged in any notified industry.
2.
Definitions.
2. Definitions.- In this Act, unless the context otherwise
requires,--
(a) "establishment" means an establishment engaged in
pharmaceutical industry or in any notified industry;
(b) "notified industry" means an industry declared as such
under section 3;
(c) "prescribed" means prescribed by rules made under this
Act;
2*[(d) "sales promotion employee" means any person by
whatever name called (including an apprentice) employed
or engaged in any establishment for hire or reward to
do any work relating to promotion of sales or business,
or both, but does not include any such person--
(i) who, being employed or engaged in a
supervisory capacity, draws wages exceeding sixteen
hundred rupees per mensem; or
(ii) who is employed or engaged mainly in a
managerial or administrative capacity.
Explanation.--For the purposes of this clause, the wages per
mensem of a person shall be deemed to be the amount equal to thirty
times his total wages (whether or not including, or comprising only
of, commission) in respect of the continuous period of his service
falling within the period of twelve months immediately preceding the
date with reference to which the calculation is to be made, divided by
the number of days comprising that period of service;]
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1. 6-3-1976:--Vide Notifn. No. S. O. 176(E), dated 6-3-1976.
2. Subs. by Act 48 of 1986, s. 2 (w.e.f. 6-5-1987).
544
(e) all words and expressions used but not defined in this
Act and defined in the Industrial Disputes Act, 1947
(14 of 1947), shall have the meanings respectively
assigned to them in that Act.
3.
Power of Central Government to declare certain industries to benotified
industries.
3. Power of Central Government to declare certain industries to
be notified industries.- The Central Government may, having regard to
the nature of any industry (not being pharmaceutical industry), the
number of employees employed in such industry to do any work relating
to promotion of sales or business or both, the conditions of service
of such employees and such other factors which, in the opinion of the
Central Government, are relevant, declare such industry to be a
notified industry for the purposes of this Act.
4.
Leave.
4. Leave.- 1*[(1)] In addition to such holidays, casual leave or
other kinds of leave as may be prescribed, every sales promotion
employee 2*** shall be granted, if so requested for--
(a) earned leave on full wages for not less than one-
eleventh of the period spent on duty;
(b) leave on medical certificate on one-half of the wages
for not less than one-eighteenth of the period of
service.
3*[(2) The maximum limit up to which a sales promotion employee
may accumulate earned leave shall be such as may be prescribed.
(3) The limit up to which the earned leave may be availed of at a
time by a sales promotion employee and the reasons for which such
limit may be exceeded shall be such as may be prescribed.
(4) A sales promotion employee shall,--
(a) when he voluntarily relinquishes his post or retires
from service, or
(b) when his services are terminated for any reason
whatsoever (not being termination as punishment),
be entitled to cash compensation, subject to such conditions and
restrictions as may be prescribed (including conditions by way of
specifying the maximum period for which such cash compensation shall
be payable), in respect of the earned leave earned by him and not
availed of.
(5) Where a sales promotion employee dies while in service, his
heirs shall be entitled to cash compensation for the earned leave by
him and not availed of.
(6) The cash compensation which will be payable to a sales
promotion employee or, as the case may be, his heirs in respect of any
period of earned leave for which he or his heirs, as the case may be,
is or are entitled to cash compensation under sub-section (4) or sub-
section (5), as the case may be, shall be an amount equal to the wages
due to such sales promotion employee for such period.]
5.
Issue of appointment letter.
5. Issue of appointment letter.- Every employer in relation to a
sales promotion employee shall furnish to such employee a letter of
appointment, in such form as may be prescribed,--
(a) in a case where he holds appointment as such at the
commencement of this Act, within three months of such
commencement; and
(b) in any other case, on his appointment as such.
6.
Application of certain Acts to sales promotion employees.
6. Application of certain Acts to sales promotion employees.- (1)
The provisions of the Workmen's Compensation Act, 1923 (8 of 1923),
as in force for the time being, shall apply to, or in relation to,
sales promotion employees as they apply to, or in relation to, workmen
within the meaning of that Act.
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1. Re-numbered by Act 48 of 1986, s. 3 (w.e.f. 8-3-1976).
2. Omitted by s. 3, ibid. (w.e.f. 6-5-1987).
3. Ins. by s. 3, ibid. (w.e.f. 8-3-1976).
545
(2) The provisions of the Industrial Disputes Act, 1947 (14 of
1947), as in force for the time being, shall apply to, or in relation
to, sales promotion employees as they apply to, or in relation to,
workmen within the meaning of that Act and for the purposes of any
proceeding under that Act in relation to an industrial dispute, a
sales promotion employee shall be deemed to include a sales promotion
employee who has been dismissed, discharged or retrenched in
connection with, or as a consequence of, that dispute or whose
dismissal, discharge or retrenchment had led to that dispute.
(3) The provisions of the Minimum Wages Act, 1948 (11 of 1948),
as in force for the time being, shall apply to, or in relation to,
sales promotion employees as they apply to, or in relation to,
employees within the meaning of that Act.
(4) The provisions of the Maternity Benefit Act, 1961 (53 of
1961), as in force for the time being, shall apply to, or in relation
to, sales promotion employees, being women, as they apply to, or in
relation to, women employed, whether directly or through any agency,
for wages in any establishment within the meaning of that Act.
(5) The provisions of the Payment of Bonus Act, 1965 (21 of
1965), as in force for the time being, shall apply to, or in relation
to, sales promotion employees as they apply to, or in relation to,
employees within the meaning of that Act.
(6) The provisions of the Payment of Gratuity Act, 1972 (39 of
1972), as in force for the time being, shall apply to, or in relation
to, sales promotion employees as they apply to, or in relation to,
employees within the meaning of that Act.
1*[(7) Notwithstanding anything contained in the foregoing sub-
sections,--
(a) in the application of any Act referred to in any of the
said sub-section to sales promotion employees, the wages
of a sales promotion employee for the purposes of such
Act, shall be deemed to be his wages as computed in
accordance with the provisions of this Act;
(b) where an Act referred to in any of the said sub-sections
provides for a ceiling limit as to wages so as to exclude
from the purview of the application of such Act persons
whose wages exceed such ceiling limit, such Act shall not
apply to any sales promotion employee whose wages as
computed in accordance with the provisions of this Act
exceed such ceiling limit.]
7.
Maintenance of registers.
7. Maintenance of registers.- Every employer in relation to an
establishment shall keep and maintain such registers and other
documents and such manner as may be prescribed.
8.
Inspectors.
8. Inspectors.- (1) The State Government may, by notification in
the Official Gazette, appoint such persons as it thinks fit to be
Inspectors for the purposes of this Act and may define the local
limits within which they shall exercise their functions.
(2) Any Inspector appointed under sub-section (1) may, for the
purpose of ascertaining whether any of the provisions of this Act have
been complied with in respect of an establishment,--
(a) require an employer to furnish such information as he
may consider necessary;
(b) at any reasonable time enter the establishment or any
premises connected therewith and require any one found
in charge
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1. Ins. by Act 48 of 1986, s. 4 (w.e.f. 6-5-1987).
546
thereof to produce before him for examination any
registers and other documents relating to the
employment of sales promotion employees;
(c) examine with respect to any matter relevant to any of
the purposes aforesaid, the employer, his agent or
servant or any other person found in charge of the
establishment or any premises connected therewith or
any person whom the Inspector has reasonable cause to
believe to be or to have been a sales promotion
employee in the establishment;
(d) make copies of or take extracts from any register or
other documents maintained in relation to the
establishment under this Act;
(e) exercise such other powers as may be prescribed.
(3) Every Inspector shall be deemed to be a public servant within
the meaning of section 21 of the Indian Penal Code, 1860 (45 of
1860).
(4) Any person required to produce any register or other document
or to give information by an Inspector under sub-section (2) shall be
legally bound to do so.
9.
Penalty.
9. Penalty.-If any employer contravenes the provisions of section
4 or section 5 or section 7 or any rules made under this Act, he shall
be punishable with fine which may extend to one thousand rupees.
10. Offences by companies.- (1) Where an offence under this Act
has been committed by a company, every person who, at the time the
offence was committed, was in charge of, and was responsible to, the
company for the conduct of the business of the company, as well as the
company, shall be deemed to be guilty of the offence and shall be
liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render
any such person liable to any punishment provided in this section, if
he proves that the offence was committed without his knowledge or that
he exercised all due diligence to prevent the commission of such
offence.
(2) Notwithstanding anything contained in sub-section (1), where
an offence under this Act has been committed by a company and it is
proved that the offence has been committed with the consent or
connivance of, or is attributable to, any neglect on the part of any
director, manager, secretary or other officer of the company, such
director, manager, secretary or other officer shall also be deemed to
be guilty of such offence and shall be liable to be proceeded against
and punished accordingly.
547
(3) For the purposes of this section,--
(a) "company" means any body corporate and includes a firm
or other association of individuals; and
(b) "director", in relation to a firm, means a partner in
the firm.
11.
Cognizance of offences.
11. Cognizance of offences.- (1) No court inferior to that of a
Metropolitan Magistrate or a Magistrate of the first class shall try
any offence punishable under this Act.
(2) No court shall take cognizance of an offence under this Act,
unless the complaint thereof is made within six months of the date on
which the offence is alleged to have been committed.
11A.
Effect of laws and agreements inconsistent with this Act.
1*[11A. Effect of laws and agreements inconsistent with this Act.-
(1) The provisions of this Act or of any rule made thereunder shall
have effect, notwithstanding anything inconsistent therewith contained
in any other law or in the terms of any award, agreement, settlement
or contract of service, whether made before or after the coming into
force of this Act:
Provided that where under any such law, award, agreement,
settlement or contract of service, a sales promotion employee is
entitled to benefits in respect of any matter which are more
favourable to him than those to which he would be entitled under this
Act, the sales promotion employee shall continue to be entitled to the
more favourable benefits in respect of that matter, notwithstanding
that he is entitled to receive benefits in respect of other matters
under this Act.
(2) Nothing contained in this Act shall be construed to preclude
a sales promotion employee from entering into an agreement with his
employer for granting him rights or privileges in respect of any
matter which are more favourable to him than those to which he would
be entitled under this Act.]
12.
Power to make rules.
12. Power to make rules.- (1) The Central Government may, by
notification in the Official Gazette, make rules to carry out the
purposes of this Act.
(2) In particular and without prejudice to the generality of the
foregoing power, such rules may provide for--
(a) the kinds of leave that may be granted to a sales
promotion employee 2*[, the limit up to which he may
accumulate earned leave, the limit up to which he may
avail of earned leave at a time and the reasons for
which such limit may be exceeded, the conditions and
restrictions subject to which he may be entitled to
cash compensation] under section 4;
(b) the form of the letter of appointment to be furnished
under section 5;
(c) the registers and other documents to be kept and
maintained under section 7 and the manner in which such
registers and other documents may be kept and
maintained;
(d) any other matter which has to be, or may be prescribed.
(3) Every rule made by the Central Government under this Act
shall be laid, as soon as may be after it is made, before each House
of Parliament while it is in session, for a total period of thirty
days which may be comprised in one session or in two or more
successive sessions, and if, before the expiry of the session
immediately following the session or the successive sessions
aforesaid, both Houses agree in making any modification in the rule or
both Houses agree that the rule should not be made, the rule shall
thereafter have effect only in such modified form or be of no effect,
as the case may be; so, however, that any such modification or
annulment shall be without prejudice to the validity of anything
previously done under that rule.
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1. Ins. by Act 69 of 1982, s. 2 (retrospectively).
2. Ins. by Act 48 of 1986, s. 5 (w.e.f. 8-3-1976).
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