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SALES PROMOTION EMPLOYEES (CONDITIONS OF SERVICE) ACT, 1976
11 of 1976
An Act to regulate certain conditions of service of sales promotion employees in certain establishment. BE it enacted by Parliament in the Twenty-sixth Year of the Republic of India as follows:-
SECTION 01: 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 date as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appoint- ed 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.
SECTION 02: 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;
1[(d) "sales promotion employees" 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.
(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.
SECTION 03: 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.
SECTION 04: LEAVE
2[1)] In addition to such holidays, casual leave or other kinds of leave as ay be prescribed, every sales promotion employee 3[***] 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.
4[(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 earned 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.]
SECTION 05: 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.
SECTION 06: 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.
(2)5[***]
(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(39of 1972)-, as in force for the time being, shall apply to, or in relation to, sales promotion employees its they apply to, or in relation to, employees within the meaning of that Act.
6[(7) Notwithstanding anything contained in the foregoing sub- s,-
(a) in the application of any Act referred to in any of the said sub-sections 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.]
SECTION 07: MAINTENANCE OF REGISTERS
Every employer in relation to an establishment shall keep and maintain such registers and other documents and in such manner as may be prescribed.
SECTION 08: 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 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-
(2) shall be legally bound to do so.
SECTION 09: PENALTY
If any employer contravenes the provisions of section 4-orsection 5-orsection 7-or any rules made under this Act, he shall be punishable with fine which may extend to one thousand rupees.
SECTION 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.
(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.
SECTION 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.
SECTION 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.]
SECTION 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 employee8[, 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 rules 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.
SALES PROMOTION EMPLOYEES (CONDITIONS OF SERVICE) RULES, 1976
In exercise of the powers conferred by sub-section (1) read with sub-section (2) of section 12 of the Sales Promotion Employees (Conditions of Service) Act, 1976 (11 of 1976), the Central Government hereby makes the following rules, namely:-
RULE 01: SHORT TITLE
These rules may be called the Salt Promotion Employees (Conditions of Service) Rules, 1976.
RULE 02: DEFINITIONS
In these rules unless the context otherwise requires,-
(a) "Act" means the Sales Promotion Employees (Conditions of Service) Act, 1976 (11 of 1976);
(b) "authorised medical attendant" means the medical practitioner authorised by the employer for the purposes of any of the provisions of the Act or the rules made there under;
(c) "casual leave" means leave to cover casual absence of the sales promotion employee from duty for personal reasons;
(d) "earned leave" means leave admissible under clause (a) of section 4;-
(e) "extraordinary leave" means leave granted to the sales promotion employee in special circumstances and when-
(a) no other leave is admissible; or
(b) other leave is admissible but the employee applies in writing for the grant of extraordinary leave;
(f) "form" means a form appended to these rules;
(g) "leave" means earned leave, leave on medical certificate, extraordinary leave, leave not due, casual leave, study leave or quarantine leave;
(h) "leave not due" means leave which is not due to the sales promotion employee, but which may be granted to him in anticipation of its being earned subsequently;
(i) "leave on medical certificate" means leave admissible under clause (b) of section 4;
(j) "quarantine leave" means leave of absence from duty by reason of the presence of an infectious disease in the house-hold of the sales promotion employee;
(k) "section" means a section of the Act;
(l) "study leave" means leave granted to a sales promotion employee to enable him to undertake a course of study.
RULE 03: APPLICABILITY OF THIS CHAPTER
The provisions of this Chapter shall have effect notwithstanding anything incon- sistent therewith contained in any agreement or contract of service or award applicable to a sales promotion employee : Provided that where under any such agreement or contract of service or award a sales promotion employee is entitled to benefits in respect of any matter provided in this Chapter which are more favourable to him than those to which he would be entitled to under this Chapter, the sales promotion employee shall continue to be entitled to the more favourable benefits in respect of that matter notwithstanding that he received benefits in respect of other matters under these rules.
RULE 04: NUMBER OF HOLIDAYS IN A YEAR
A sales promotion employee shall be entitled to ten holidays in a calen- dar year.
RULE 05: COMPENSATORY HOLIDAYS
If a sales promotion employee is required to attend to his duties on a holiday, a compensatory holiday shall be given to him, within thirty days immediately following the holiday, on a day mutually agreed upon by him and his employer.
RULE 06: WAGES FOR HOLIDAYS
A sales promotion employee shall be entitled to wages on all holidays as if he was on duty.
RULE 07: WAGES FOR WEEKLY DAY OF REST
A sales promotion employee shall be entitled to wages for the weekly day of rest as if he was on duty.
RULE 08: COMPETENT OFFICERS
Every establishment may designate one or more officers in the estab- lishment as competent officers for the purpose of this Chapter.
RULE 09: APPLICATION FOR LEAVE
(1)A sales promotion employee who desires to obtain leave of absence shall apply in writing to the competent officer.
(2) Application for leave, other than for casual leave, leave on medical certifi- cate and quarantine leave, shall be made not less than one month before the date of commencement of leave, except in urgent or unforeseen circumstances.
RULE 10: RECORDING OF REASON FOR REFUSAL OR POSTPONEMENT OF LEAVE
If leave is refused or postponed, the competent officer shall record the reasons for such refusal or postponement, as the case may be, and send a copy of the order to the sales promotion employee concerned.
RULE 11: AFFIXING OF HOLIDAYS TO LEAVE
Holidays, other than weekly days of rest, shall not be prefixed or suf- fixed to any leave without the prior sanction of the competent officer.
RULE 12: HOLIDAYS INTERVENING DURING THE PERIOD OF LEAVE
A holiday, including a weekly rest day, intervening during any leave, except casual leave, granted under these rules shall form part of the period of leave.
RULE 13: RECALL BEFORE EXPIRY OF LEAVE
(1) The establishment may recall a sales promotion employee on leave if the employer considers it necessary to do so and in the event of such recall the employee shall be entitled to travelling allowance for the journey undertaken by him to join duty if at the time of recall the employee is spending his leave at a place other than his headquarters.
(2) The travelling allowance which shall be paid to a sales promotion employee under sub-rule (1) shall be determined in accordance with the rules of the establishment governing travelling allowance for journeys undertaken by the employees in the course of their duties.
RULE 14: EARNED LEAVE AND CASH COMPENSATION FOR EARNED LEAVE NOT AVAILED OF
(1) The maximum limit up to which earned leave can be accumulated shall be 180 days out of which a sales promotion employee can avail himself of 90 days at a time : Provided that where a sales promotion employee is suffering from any lingering illness such as, tuberculosis, cancer, leprosy, heart disease or mental illness, or any disability which prevents him from attending to his duties, the competent authority may allow the sales promotion employee to avail himself of earned leave for any period exceeding 90 days at a time.
(2) When a sales promotion employee voluntarily relinquishes his post, or retires from service on reaching the age of superannuation, he shall be entitled to cash compensation for earned leave earned by him and not availed of: Provided that a sales promotion employee shall not be entitled to cash compensation for earned leave not availed of for a period exceeding 120 days.
(3) Notwithstanding anything contained in sub-rule (2) where a sales promotion employee had applied for earned leave due to him so as to enable him to avail, of such leave immediately before he voluntarily relinquishes his post or retires on reaching the age of superannuation and such leave was refused, the sales promotion employee shall be entitled to cash compensation for the entire period of earned leave so refused as well as cash compensation for the period of earned leave due to him, in respect of which no application to avail of the same was made; so, however that the total period of earned leave for which cash compensation shall be payable under this sub-rule shall not exceed 180 days.
(4) Where a sales promotion employee dies while in service his heirs shall be entitled to cash compensation for the entire earned leave due to such employee and not availed of.
(5) Where a sales promotion employee's services are terminated for any reason whatsoever (not being termination as punishment), he shall be entitled to cash compensation for the entire earned leave due to him and not availed of.
(6) The cash compensation payable under this rule in respect of earned leave shall be equal to the amount of wages due to the sales promotion employee for the period of leave not availed of or refused.
RULE 15: MEDICAL LEAVE
(1) For the purposes of availing leave on medical certificate under clause (b) of section 4-, the sales promotion employee shall produce a medical certificate from an authorised medical attendant : Provided that where a sales promotion employee has proceeded to a place other than his headquarters with the permission of his employer or in the course of the discharge of his duties and there falls ill, he may produce a medical certificate from any registered medical practitioner practising at the place where he falls ill : Provided further that the employer may, when the registered medical practitioner whose certificate is produced is not in the service of the Government, arrange at his own expense for the medical examination of the employee concerned by any Government Medical Officer not below the rank of a Civil Assistant Surgeon or by any other Medical Officer in Charge of a hospital run by a local authority or a public organization at that place.
(2) Leave on medical certificate may be taken in continuation of earned leave.
(3) A sales promotion employee shall be entitled at his option to convert leave on medical certificate on one-half of the wages to half the amount of leave on full wages (hereinafter referred to as converted leave).
(4) Leave on medical certificate or converted leave may be granted to an employee at his request notwithstanding that earned leave is due to him.
(5) Every establishment may authorise one or more medical practitioners registered under the Indian Medical Council Act, 1956 (102 of 1956), as authorised medical attendants for the purposes of the Act or the rules made there under.
RULE 16: QUARANTINE LEAVE
(1) Where, in consequence of the presence of an infectious disease, in the house-hold of a sales promotion employee, his attendance is considered hazardous to the health of other people, the employee concerned may be granted quarantine leave.
(2) The quarantine leave may be granted for a period upto 30 days on the recommendation of the authorised medical attendant or Public Health Officer.
(3) A sales promotion employee on quarantine leave shall be treated as on duty for all purposes.
RULE 17: EXTRAORDINARY LEAVE
A sales promotion employee may be granted extraordinary leave in special circumstances without wages at the discretion of the employer.
RULE 18: LEAVE NOT DUE
A sales promotion employee who has no leave to his credit, maybe granted leave not due, at the discretion of the employer.
RULE 19: STUDY LEAVE
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