OVERVIEW OF LABOUR LAWS with Case Studies- ppt.ppt

OVERVIEW OF LABOUR LAWS with Case Studies

1. OVERVIEW OF LABOUR LAWS
with Case Studies

2. SCOPE OF THE PRESENTATION
Gist of Labour Laws
Major Labour Laws
Case Studies

3. LABOUR LAWS
SCOPE OF LABOUR LAWS
CONTRACT LABOUR (R&A) ACT
FACTORIES ACT
AP SHOPS AND ESTABLISHMENT
ACT

4. CONTRACT LABOUR ACT, 1970
(REGULATION AND ABOLITION)
SCOPE & OBJECT
Toregulatetheemploymentofcontract
labourincertainprovideforitsabolition
incertaincircumstancesandformatters
connectedtherewith.

5. APPLICABILITY
To every establishment in which twenty or moreworkmen are
employed or were employed on any day of the preceding twelve
months as contract labour
To every contractor who employs or who employed on any day
of the preceding twelve months twenty or more workmen
It shall not apply to establishments in which work only of an
intermittent or casual nature is performed

6. CASE STUDY:
The concept of contract labour can be understood from the following
example, suppose A is an industrialist and he wants to build a factory
and for this he hires a person B to get the job done. This person B
hires other people X, Y and Z to build the factory. Now it is not
necessary that X, Y and Z should be hired by B with the permission of
A. A may not even know about this contract but B acting as a
mediator has got into a contract with other people to get A’s work
done. These people X, Y and Z who have no direct contact or
relationship with A are the “contract labourers.

7. The issue of Article 19 (1)(g).
AccordingtothecaseBastiSugarMillsLtd.v.RamUjagarandotherswhichwas
decidedbeforetheenactmentofthisActbutstillanswersthequestionthatwhether
obligationsregardingconferringamenitiesoncontractlabourersisincontradiction
toArticle19(1)(g)ornot.Inthiscasethecourtclearlystatedthatpublicwelfare
comesaboveprivateinterests.Righttocarryontradeandbusinessdoesnotgivea
righttotheemployertoexploithisworkers.Thepracticeofemployingacontractor
soastoevadethebenefitsconferredbymajorActsonindustriallabourwastotally
criticizedanddiscouragedbytheCourt.
InthecaseofGammonIndiaLtd.v.UnionofIndiaitwasheldthatthedutyof
theemployerisnotonlypayingwagesbutalsotoprovidethemwithbasicamenities
tomaintainhealthandwelfareofthelabourers.Hencetheexpendituresincurredare
notanytaximposedontheemployerbutformapartofthisdutyandinnomeans
canbereferredtoaswasteorunnecessaryrestrictions.Nowbygivingthisdecision
theSCclearlygaveamessagetotheindustrialiststhattherighttocarryonbusiness
cannotbeenjoyedwithoutfulfillingthedutieswhishtheyaresupposedtodo.

8. Registration of the Establishment.
Display of the following notices rate of wages, hours of work,
wage period, date of payment of wages, date of payment of unpaid
wages and name and address of the inspector having jurisdiction.
Maintenance and Preservation of Register of Contractor.
Filing of Return of Commencement and Completion of the
Contract.
Filing of Annual Return.
Supervising the responsibilities of Contractor to avoid enjoining
of the liabilities and ensure provision that facilities of Canteen,
Drinking Water, Washing, Rest Room, Latrines and Urinals, First
Aid, Crèche are provided by the Contractor.
Checklist for Principal Employer:

9. Licensing.
Renewal of the License.
Maintenance and Preservation of Register of Persons employed, Muster Roll,
Register of wages, Register of Fines, Register of Deductions for damages or loss,
Register of advances, Register of overtime.
Display of Notice rate of wages, hours of work, wage period, date of payment of
wages, date of payment of unpaid wages and name and address of the inspector having
jurisdiction.
Provide facilities of Canteen, Drinking Water, Washing, Rest Room, Latrines and
Urinals, First Aid, Crche.
Employment card.
Service Certificates.
Half yearly return.
Checklist For Contractor:

10. Registration for principal employer
Principal Employer means the owner or occupier
or the person who exercises ultimate control and
supervision and manages the affairs of the
establishment.
The establishment has more than one contractor
each employing less than 20 workers, the act will
not be applicable to any such contractor, through
the establishment will be covered by the act if the
total number of workmen employed by such
contractors is twenty or more.

11. Liability of principal employer
To ensure provision for canteen, rest-rooms,
sufficient supply of drinking water, latrines and
urinals, washing facilities
Principal employer entitled to recover from the
contractor for providing such amenities or to
make deductions from amount payable.

12. Returns
Contactor to file half early return in Form XXIV
in duplicate within 30 days.
principal employer to file annual return in Form
XXV in duplicate before 15
th
Feb. Following the
end of the year.

13. Forms and Registers
FORM NO. FORM DESCRIPTION
FORM I
Application for Registration of Establishment Employing Contract
Labour
See rule 17 (1))
FORM II Certificate of Registration See rule 18 (1)
FORM III Register of Registration See rule 18 (3)
FORM IV Application of License See rule 21 (1)
FORM V Application for adjustment of Security Deposit See rule 21 (2)
FORM VI
RENEWAL. (VI-A & B) Notice of Commencement/completion of
Contract Work
See rule 25 (1)
FORM VII Application for Renewal of License See rule 29 (2)
FORM VIII
Application for Temporary Registration of Establishments employing
Contract Labour
See rule 29 (2)
FORM IX Temporary Certificate of Registration See rule 32 (3)
FORM X Application for Temporary License See rule 32 (2)
FORM XI Temporary License See rule 32 (3)
FORM XII Register of Contractors Sec rule 74

14. FORM XIII Register of workmen employed by Contractor
See rule 75
FORM XIV Employment Card
See rule 76
FORM XV Service Certificate
See rule 77
FORM XVI Muster roll
See rule 78 (1) (a) (i)
FORM XVII Register of Wages
See rule 78 (1) (a) (i)
FORM XVIII Form of Register of Wages-cum-Muster Roll
See rule 78 (1) (a) (I)
FORM XIX Wage Slip
See rule 78 (1) (b)
FORM XX Register of Deductions for Damage of Loss
See rule 78 (1) (a) (ii)
FORM XXI Register of Fines
See rule 78 (1) a) (ii)]
FORM XXII Register of Advances
See rule 78 (1) (a) (ii)
FORM XXIII Register of Overtime
See rule 78 (1) (a) (iii)
FORM XXIV Return to be sent by the Contractor to the Licensing Officer
See rule 82 (1)
FORM XXV Annual Return of Principal Employer to be sent to the Registering Officer
See rule 82 (2)

15. Penalties
Obstructions: For obstructing the inspector or
falling to produce registers etc. 3 months
imprisonment or fine up to Rs.500 or both
Violation: For violation of the provisions of act or
the rules, imprisonment of 3 months or the up to
Rs.1000. On continuing contravention, additional
fine up to Ts.100 per day

16. Case Study # 1:
In xyz ltd company the policy of providing lunch to
the staff in their working premises as specified bellow:
Based on above definition given situation analyzed as
follows:
A. If the company appoint a cook on it rolls and
provides lunch.
Ans: the act is not applicable as is not a contract
labour
B. If the company hires a cook and provides lunch
Ans:The company hires a cook and providing lunch,
being the cook was hired and is a skilled labour the
contract labour Act applicable .

17. C. If the company outsourcing cooking arrangement by
maintain the canteen at premises and provides lunch
Ans:The company outsourcing cooking arrangements by
maintaining canteen at the premises in this case the
act is applicable being the appointment of contract
labour under skilled category and the company to be
registered as principle employer .
D. If the company outsource to hotels whose suppliers
will serve during lunch hour at the office premises
Ans: If the company outsourcing hotels whose suppliers
serving will not comes under contract labour as the
hotel employees are out workers i.e. as per the clause
C of section 2(i) of workmen definition under the act
being outside worker and the material was given for
the purpose of sale or trade.

18. CASE STUDY #2
‘A’companyand‘B’companydecidedtodobusiness
jointlyaccordinglytheyhiredonecommercial
establishmentinwhichAcompanyemployed19
contractlabourswhereasinBcompany3employees
frequentlyvisitsandspendstimessubsequentlyfor
theirjointbusinessdevelopment.
Examine the situation.

19. Ans:
Thecommercialestablishmentformedbythe
companiesdoesnotattractcontractlabour(abolition
prevention)Actastheworkmenoftheestablishment
arenotequaltoorexceeding20,theemployeesof
companyBdoesnotincludethedefinitionof
workmenundersec-2(i)thoughtheyworkedinthe
premises,astheyareperformingtheirdutiesofon
behalfoftheircompanyinaccordancewiththe
businessagreement.

20. CASE STUDY #3
Inaxyzltdcompany25casuallabourswereengaged
bysupervisorofthecompanywithoutintimatingto
theownerofthecompany.Subsequentlyduringthe
courseofinspectionoflabourofficials,theowner
rejectedofapplicabilityofcontractlabourActonthe
groundthatthesaidappointmentswasnotdonewith
hisconsentbyhissupervisor.
Examine the above situation.

21. Ans:
Aworkmenshallbedeemedtobeemployedascontractlabour
inorinconnectionwiththeworkofanestablishmentwhenheis
hiredinorinconnectionwithsuchworkbyorthrougha
contractor,withorwithouttheknowledgeoftheprinciple
employerundersection2(1)(b).
Furtherthewordprincipleemployerincludesincaseofsole
proprietorship,partnershipfirm(otherestablishment)any
personresponsibleforthesupervisionorcontrolofthe
establishment.
Thusifanyoftheemployeesofthecompanyappointedtheact
willapplicableeventhoughifitiswithouthisknowledgeand
moreovergivensituationtheappointmentdonebytheperson
whosupervisesuchworks.

22. FACTORIES ACT, 1948
SCOPE & APPLICABILITY:
ItextendstothewholeofIndia.
Theindustriesinwhichten(10)ormorethan
tenworkersareemployedwiththeaidof
powerortwenty(20)ormorethantwenty
workersareemployedwithouttheaidof
power.

23. Definition of a Factory:
“Factory”isdefinedinSection2(m)oftheAct.Itmeans
anypremisesincludingtheprecinctsthereof-
Whereontenormoreworkersareworking,orwere
workingonanydayoftheprecedingtwelvemonths,and
inanypartofwhichamanufacturingprocessisbeing
carriedonwiththeaidofpower,orisordinarilyso
carriedon;or
Whereontwentyormoreworkersareworking,orwere
workingonanydayoftheprecedingtwelvemonths,and
inanypartofwhichamanufacturingprocessisbeing
carriedonwithouttheaidofpower,orisordinarilyso
carriedon;
Butdoesnotincludeaminesubjecttotheoperationof
theMinesAct,1952oramobileunitbelongingtothe
ArmedforcesoftheUnion,arailwayrunningshedora
hotel,restaurantoreatingplace.

24. “Manufacturingprocess"meansanyprocessfor–
making,altering,repairing,ornamenting,finishing,packing,oiling,
washing,cleaning,breakingup,demolishing,orotherwisetreatingor
adaptinganyarticleorsubstancewithaviewtoitsuse,sale,transport,
deliveryordisposal,or
pumping oil, water, sewage or any other substance; or;
generating, transforming or transmitting power; or
composing types for printing, printing by letter press, lithography,
photogravure or other similar process or book binding;
Constructing, repairing, breaking of ships or vessels * Preserving articles
in cold storage. [section 2(k)].

25. The Following Processes are not Manufacturing
Processes:
Exhibitionoffilmsprocess.
Industrialschoolorinstituteimpartingtraining,producing
cloth,notwithaviewtoitssale.
Receivingofnewsfromvarioussourcesonareelina
teleprinterofanewspaperoffice,isnotamanufacturingprocess
inasmuchasnewsisnotthearticleorsubstancetowhich
section2(k)(i)
Anypreliminarypackingofrawmaterialfordeliveringitto
thefactory
Finishedgoodsandpackingthereof

26. “Occupier'of a factory means the person who has ultimate control
over the affairs of the factory :
Provided that –
Inthecaseofafirmorotherassociationofindividuals,anyoneof
theindividualpartnersormembersthereofshallbedeemedtobethe
occupier;
Inthecaseofacompany,anyoneofthedirectorsshallbedeemed
tobetheoccupier;
InthecaseofafactoryownedorcontrolledbytheCentral
GovernmentoranyStateGovernment,oranylocalauthority,the
personorpersonsappointedtomanagetheaffairsofthefactorybythe
CentralGovernment,theStateGovernmentorthelocalauthority,as
thecasemaybe,shallbedeemedtobetheoccupier

27. The following have held to be a factory:-
Salt works
A shed for ginning and pressing of cotton.
A Beedi making shed.
A Railway Workshop.
Composing work for Letter Press Printing.
Saw Mills.
Place for preparation of foodstuff and other
eatables.

28. HIGHLIGHTS:
The Factories Act, 1948 came into force on the 1st day of
April,1949 and extends to the whole of India. It was, in
fact, extended to Dadra & Nagar Haveli, Pondicherry in
1963, to Goa in 1965 and to the State of Jammu &
Kashmir in 1970.
The Factories Act was amended in 1949, 1950, 1954, 1956,
1976 and 1989.
In Bhikusa Yamasa Kshatriya (P) Ltd. v UOI, the court
observed that the Act has been enacted primarily with the
object of protecting workers employed in factories against
industrial and occupational hazards. For that purpose, it
seeks to impose upon the owner or the occupier certain
obligations to protect the workers and to secure for them
employment in conditions conducive to their health and
safety.

29. Some of the crucial Sections:
Registration & Renewal of Factories
To be granted by Chief Inspector of
Factories on submission of prescribed form,
fee and plan.

30. Employer to ensure health of workers
pertaining to
Cleanliness Disposal of wastes and effluents
-Sec 12
Ventilation and temperature dust and fume
-Sec 13
Overcrowding Artificial humidification
Lighting –Sec. 14
Drinking water Spittoons. -Sec. 18


31. Welfare Measures:
Washing facilities –Sec 42
Facilities for storing and drying clothing –Sec 43
Facilities for sitting –Sec 44
First-aid appliances –one first aid box not less than one
for every 150 workers–Sec 45
Canteens when there are 250 or more workers. –Sec 46
Shelters, rest rooms and lunch rooms when there are 150
or more workers. –Sec 47
Creches when there are 30 or more women workers. –Sec
48
Welfare office when there are 500 or more workers. –Sec
49

32. Working Hours, Spread Over &
Overtime of Adults:
Weekly hours not more than 48 -Sec: 51
Daily hours, not more than 9 hours. -Sec: 54
Intervals for rest at least ½ hour on working for 5 hours. -
Sec: 55
Spread over not more than 10½ hours. -Sec: 56
Overlapping shifts prohibited. -Sec: 58
Extra wages for overtime double than normal rate of
wages -Sec:59
Restrictions on employment of women before 6AM and
beyond 7 PM. -Sec: 60

33. Annual Leave with Wages:
A worker having worked for 240 days @
one day for every 20 days and for a child
one day for working of 15 days.
Accumulation of leave for 30 days.

34. Forms and Registers
Form 1 : Application for permission to construct, extend or take into use any building as a factory
Form 2 : Application for registration and grant or renewal of licence
Form 3: Notice of Change of Manager
Form 4: Licence to work a factory
Form 5: Certificate Of Fitness
Form 6: Humidity Regsiter
Form 7: Record of Lime Washings, Paintings etc.
Form 8: Report of examination of pressure vessel
Form 9: Register Of Compensatory Holidays
Form 10: Overtime Muster Roll for exempted workers
Form 10-A: Overtime Slip
Form 11: Notice Of Periods Of Work for Adult Workers
Form 12: Register Of Adult Workers
Form 12-A: Identity Card Of Workers
Form 13: Notice of Periods of work for child workers
Form 14: Register Of Child Workers

35.  Form 15: Register Of Leave with wages
Form 16: Health Register
Form 17-A: Notice Of Accident or dangerous occurrence
Form 18: Notice Of Poisoning or disease
Form 19: Abstract of the Act
Form 20: Annual Return
Form 21: Half Yearly Return
Form 22: Muster Roll
Form 23: Register Of Accidents
Form 24: Special Certificate Of Fitness
Form 25: Certificate Of Fitness for dangerous operations
Form 26: Register Of Surgeon's fees for the issue of duplicate certificate
Form 27: Certifying Surgeon's visit Note
Form 28: Diary Of Inspector Of Factories
Form 29: Closure Report Of a Factory
Form 30: Register of Water Sealed Gas Holder
Form 31: Report of examination of water sealed gas holders
Form 32: Register of trained adult male workers employed to carry out mounting or shifting or belts, lubrications
etc.
Form 33: Certificate to young persons considered fit to work at machine, plant or process of dangerous character
Form 34: Form Of Certificate Of Stability
Form 35: Record Of Eye Examination
Form 38: Report of examination of lifts and hoists.

36. Sec.92 to 106
OFFENCE PENALTIES
ForcontraventionoftheProvisionsofthe
ActorRules
Imprisonmentupto2yearsorfineupto
Rs.1,00,000orboth
OnContinuationofcontravention Rs.1000perday
OncontraventionofChapterIVpertaining
tosafetyordangerousoperations.
NotlessthanRs.25000incaseofdeath.
NotlessthanRs.5000incaseofserious
injuries.
 Subsequentcontraventionofsome
provisions
Imprisonmentupto3yearsorfinenotless
thanRs.10,000whichmayextendtoRs.2,
00,000.
ObstructingInspectors Imprisonmentupto6monthsorfineupto
Rs.10,000orboth.
Wrongfuldisclosingresultpertainingto
resultsofanalysis.
Imprisonmentupto6monthsorfineupto
Rs.10,000orboth.
Forcontraventionoftheprovisionsof
Sec.41B,41Cand41Hpertainingto
compulsorydisclosureofinformationby
occupier,specificresponsibilityofoccupieror
rightofworkerstoworkimminentdanger.
Imprisonmentupto7yearswithfineupto
Rs.2,00,[email protected],
000perday.
Imprisonmentof10yearswhen
contraventioncontinuesforoneyear.

37. CASE STUDY #1.
Xyzpvtltdisaparentcompany,incorporatedanew
consultantcompany(i.eABCpvtltd)whichis
subsidiaryofxyzpvtltd.xyzcompanyishaving
factorylicenseunderfactoriesAct,oneofthe
employeesuggestedthatanycompanyhavingfactory
licenseneedtogetthesameforitssubsidiaries.
Examinethecaseandgivethelegalityofthe
employeesuggestion.

38. Ans:
In the above case, suggestion by the employee is invalid there no
need to get factory license for ABC pvt ltd which is subsidiary of
xyz pvt ltd
For obtaining factory license any company or an establishment
having a premises whereon 10 or more persons with the aid of
power or 20 or more workers are/were without aid of power
working on any day preceding 12 months, wherein
Manufacturing process is being carried on.
Hence consulting companies need not get factory license under
factories Act.
Under Sec.2 (ii), ABC Pvt ltdbeing consultant company no need
to get factory license.

39. CASE STUDY # 2.
A&AmanufacturingcompanyhasappliedforFactory
License,itpaidfeesandhasthereceiptforthesame,
itsplanwasalsoapprovedbyfactoryInspector.The
companyhastheapplicationreceiptwhichisgivenby
Govt.authorityforthesame.So,thecompany’s
questionisthatcanthecompanystarttheirfactory
withoutFactoryLicense?
Examine the case.

40. ANS:
Thecompanycanstartthefactoryproceedingsifanapplication
forthefactorylicensehasbeenmadeandifthereisnoreplyby
theconcernauthoritywithin90days,andthenpresumethatthe
saidapplicationisdeemedtobeapproved.
Normally,toobtainthefactorylicenseittakessometimeandthe
company cannot wait till then.
Oncethefactorydrawingsareapprovedbythefactory
inspectorateofficeandtheconstructionisalsobeingdonethe
Factorycangoahead.

41. CASE STUDY # 3.
MSN &co is an cement manufacturing company having
more than 50 employees and having 5 directors , one
manager and one managing director. MD is a foreigner and
resides outside India and manager act as an occupier and
same was intimated to the factory authorities’ within 15
days of time.
The factory authorities sent a notice to the company
contending that instead of directors the manager is acting
as an occupier.
Examine the case.

42. Ans:
•Occupier’ofafactorymeansthepersonwhohasultimate
controlovertheaffairsoffactory.Itincludesapartnerincaseof
firmanddirectorincaseofacompany.IncaseofGovernment
company,'occupier'neednotbeadirector.Inthatcase,person
appointedtomanageaffairsofthefactoryshallbe‘occupier’.
[section2(n)].--Nameof'occupier'ofthefactoryshouldbe
informedtoFactoriesInspector.The'occupier'willbeheld
responsibleifprovisionsofFactoriesActarenotcompliedwith.
Hehastogiveanoticeof15daysbeforehebeginstooccupythe
premisesofafactory,givingdetailsasprescribedinsection7.
•Thus in case of non government companies if a manager
appointed in accordance with companies Act they can be treated
as occupier by giving specific notice otherwise director will be
the deemed to be occupier.

43. CASE STUDY # 4
MSN TRANSPORT PVT LTD carrying on the
business of transport with in India, and having
more than 100 employees, factory inspector visited
the premises and ordered to register under
factories Act.
The occupier of the said premises denied to get
registered under said Act since it is based on
transport and not within the scope of factories
definition.
Examine the case.

44. ANS:
'Factory'meansanypremiseswhere10ormoreworkersare
workingandamanufacturingprocessiscarriedoutwithaidof
power(20ifmanufactureiswithoutaidofpower).[section
2(m)].‘Manufacturingprocess’meansprocessofaltering,
repairing,ornamenting,finishing,packing,oiling,washing,
cleaning,breakingup,demolishingorotherwisetreatingor
adoptinganyarticleorsubstance.Italsoincludespumpingoil,
water,sewageoranyothersubstance*Generating,transforming
ortransmittingpowerComposing,typing,printing*
Constructing,repairing,breakingofshipsorvessels*Preserving
articlesincoldstorage.[section2(k)].--Workermeansaperson
employedinanymanufacturingprocessorcleaningoranywork
incidentaltomanufacturingprocess.Itincludespersons
employedthroughcontractor.[section2(l)].
InESICv.JaihindRoadways2001LLR570=101FJR38(Kar
HC),itwasheldthattransportationofgoodsoncontractbasis
fromoneplacetoanotherisnot‘manufacturingprocess’

45. CASE STUDY # 5
ABCltdCompanyhadnotnominatedanyof
itsdirectorsasoccupier,thefactoryinspector
foundsomecontraventionofAct&rulesin
factoryandthereforefiledacomplaintagainst
allthesixdirectorsofcompany.Isthislegal?

46. ANS:
•Definition of Occupier, as per Factory Act is, "in case of a
company, any one of the Directors, shall be deemed to be the
occupier." [Ch:1,Sec.1-n-(ii) ]. Section 7 and 7-A of the said Act
are vital as to the role of Occupier.
It is the prime duty of the director(s) to nominate any one of the
director as "OCCUPIER" under the Factories act, if not
nominated, there will be penal actions against the BOD, that is
violation of rules under factories act and in case of anything (like,
fatal accident, etc.,) the concerned Inspector of factories can
serve a legal notice to all directors.
•The action initiated by the inspector factories in your case is
correct and within the purview of law.

47. CASE STUDY # 6:
Acompanyisengagedinmaterialhandlingprojectexecution
business.AprojectisgoingonasiteofNTPC.Inspector
underFactoriesActissuedanoticetotheCompanytogetit
registeredundertheFactoriesAct.Myqueriesare:
1. whether the project is a factory under the Factories Act,
1948?
2. If yes, whether the company (its director) is occupier under
the act? and;
3. Whether the project is required to be registered under
theAct?

48. ANS:
Whenmaterial is in manufacturing process, a
company needs to get it under Factory Act. Moreover
the commercial element of sale or supply or delivery
to the NTPC was clearly established.
thus the project is a factory under factories Act.
Yes, the director shall be deemed to be the occupier.
The factory should get a license under factories Act.

49. AP Shops and Establishment Act, 1988
Scope & Applicability:
TheAndhraPradeshShopsandEstablishmentsAct,was
enactedtoconsolidateandamendthelawrelatingtothe
regulationofconditionsofworkandemploymentinshops,
commercialestablishmentsandotherestablishmentsand
formattersconnectedtherewith.
IntheimplementationofthesaidActandinthechanged
conditionsinlabourrelations,itisfoundnecessaryto
provideforsomemoremeasuresforsafeguardingthe
interestsoftheemployees.Withaviewtoenlargethe
beneficialprovisionundertheActandtomakeprovision
forsomemorefacilitiesandbenefitstotheemployeesin
shopsandestablishmentstosuitthepresentneeds.

50. APPLY FOR REGISTRATION
Every employer and owner of a shop & establishment
shall apply for employment of registration of his
shops/Establishment irrespective of business any
person within 30 days of commencement of his/her.

51. GUIDE LINES FOR THE DISPLAY OF THE NAME PLATE OF THE
COMPANY
Based on the provisions of Sec-147(1) of Clause-a of Companies Act,1956 and Rule-
29 of Sub rule 13 of A.P. Shops and establishments rules,1990:
Name of every shop or Establishment should be in telugu first and the company may
use any other Language after the Telugu, that other language has to be below the
telugu version along with Name, address of its Registered office also mentioned in
telugu.
Name shall be painted or affixed outside of every office in a conspicuous place in
which its business is carried on, letters should be easily legible and understood to
common public.
Every year for renewal of A.P. Shops and Establishment license, photo graph of
Sign board of the same has to be attached, failure to produce the same, renewal
certificate will not be issued.
In further investigations if that boards are not shown fines and imprisonment will
be imposed as per the A.P. shops and Establishment Act and as per Section-147(1) of
Clause-a of Companies Act, 1956, the company and every officer of the company
who is in default, shall be punishable with fine which may extend upto Rs.500 and for
every day during such default continues.

52. Definition of commercial establishment:
Itmeansanestablishmentwhichcarriesonanytrade,
business,professionoranyworkinconnectionwithor
incidentalorancillarytoanysuchtrade,businessorprofession
orwhichisaclericaldepartmentofafactoryoranindustrial
undertakingorwhichisacommercialortradingorbankingor
insuranceestablishment.
Itincludesanestablishmentunderthemanagementand
controlofacooperativesociety,anestablishmentofafactory
oranindustrialundertakingwhichfallsoutsidethescopeofthe
FactoriesAct,1948,(CentralAct63of1948),andsuchother
establishmentastheGovernmentmay,bynotificationdeclare
tobeacommercialestablishmentforthepurposesofthisAct
butdoesnotincludeashop.

53. Renewal
•Every registration certificate must be renewed
before 30 days of expiry of the year i.e., by 1st
December of every year.

54. Procedure for applying Registration
& Renewal
Registration: The application for registration shall be
sent in from –I along with prescribed fee based on the
no. of employees (Scheduled-I)
Renewal: The application for renewal shall be sent in
form-III along with prescribed fee as per scheduled-I
before 1 December.
Last submission for Renewals: (a) Application
submitted on or after 2nd December and up to 31st
December @25% of fee prescribed.
Application submitted on or after 1st January @ 50%
of the fee prescribed.

55. Mode of payment of fee
Through E-Seva at Hyderabad (TCs) &
Vishakhapatnam
Through bank challan at the respective
branches of SBH/SBI under government
treasury under the following head of A/c.
•0230 -Labour & Employment.
•101 -Receipts under labour Laws.
•01 -Other Receipts
•DDO Code: Respective office jurisdiction.

56. Obligations on the Employer in Implementation of
the Act
No shop owner should open his shop before 8:30AM & after
8:30PM.
Every Shop with or without employees shall invariably close the
shop on all the weekly holidays i.e., Sunday & other notified
national & festival holidays.
Every employee must be allowed to avail weekly holiday for
every period of seven days.
No employee shall be allowed to work more than 8 hours in any
day & 48 hours in a week without making payment of overtime
wages.
Every employee shall be issued letter of appointment in form
No. XXVI & maintained the registers prescribed i.e.,

57. Register of Employment in form No. XXII.
Register of wages in form no. XXIII
Register of Leave in form no. XXV.
Register of Advance of Wage in form no. XII and bond visit
book and others as applicable.
Every employer having 10 or more employees shall sent a
periodical return in form no. XXVII for the month ending
March, June, September & December of every year.
Every employer is required to furnish the information or
document to the inspector notified under the Act on demand.
No person who has not completed his 14 years of age shall be
required or allowed to work in any Shop & Establishment.
Special Provisions to Women’s Employees :-
•No women employee shall be required or allowed to work in
any shop & establishment before 6:00 Am & after 8:30 PM.
•Every women employee in entitled for paid leave for six weeks
immediately proceeding the date of delivery and six weeks after
the date of delivery.

58. Leaves:-
The Employee who has served for a period of 240 days or more
is entitled for 15 days of leave with wages, 12 days casual leaves
and 12 days sick leaves and such leave with wages may be
accumulated up to a minimum of 60 days.
Every employer is responsible for payment of all wages and
sums required to be paid under this Act and monthly wages
shall be paid by 5th of every month.
No employer shall without a reasonable cause, terminate the
service of an employee who has been in his employment
continuously for a period of not less than 6 months without
giving such employees at least one months notice.
Every termination of employment shall be made in writing.
Every employee who has served in any establishment for a
period of not less than one year shall subscribe to the insurance
scheme or insurance saving scheme.

59. The rights & privileges of the employees.
Every employee is entitled to receive the wages for the period of work
rendered to the employees.
Every employee is entitled for 15 days leave with wages, 12 days
casual leave and 12 days sick leave.
Every employee is entitled for the overtime wages worked beyond the
normal working hours i.e., 8 hours at the rate double the average
wages earned.
Every employee is entitled weekly holiday with wages and also
Notional/Festival Holidays notified from time to time.
Any employee who has been in his employment continuously for the
period of not less than one year, shall be eligible for service
compensation @ 15 days of average wages of each year.
Every employee is eligible for encashment of the leave with wages for
a period of 8 days in every year.
Every employee is entitled for a special casual leave for 6 days only
once during his entire service, if he/she has undergone vasectomy or
tubectomy operation on production of certificate.

60. CASE STUDY# 1.
Abcpvtltd.incorporatedundercompaniesAct,1956is
inthebusinessofsteelmanufacturing.Theassistant
labourofficervisitedthecompanyandorderedthemto
getregisteredunderapseAct.Butthecompanyofficials
repliedthatAPS&EAct,isnotapplicablebeingtheyare
alreadyregisteredwithfactoriesAct.
Examinethecase.
Ans:
The contention of company officials will be
correct if the factory premises not possessing
administrative , clerical wing. other wise APS&E
Act will applicable.

61. CASE STUDY# 2.
Raju&coisregisteredwithAPSEAct1988inthe2008
andneverrenewedtilldateon2ndJanuary2010
Assistantlabourofficervisitedthecompanyand
expressedhisintentionstoinspectthecertificatesand
discoveredthatthereisnorenewalfortheyear2009and
2010,theALOissuedanoticetothecompany.
Examine the case
Ans:
Everyregistrationcertificatemustberenewedbefore
30daysofexpiryoftheyeari.e.,by1stDecemberof
everyyear.

62. Case Study #3.
A multi national software company situated at A.P and
displayed name board of the company in English only.
The labour officer pointed out that it is a voilation of
APS&E ,Act.
Examine.
Ans:
The contention of labour officer is correct as the name
board plate shall be in telugu as per the APS&E rules.