CONDITIONS
OF SERVICE
AND
EMPLOYMENT
3. Conditions of Employment :
(1) In every establishment employment of
workers and other matters incidental thereto
shall be regular in accordance with the
provisions of this Chapter :
Provided that any establishment may have its
own rules regulating employment of workers,
but no such rules shall be less favourable to any
worker than the provisions of this Chapter.
(2) The service rules in any establishment as
mentioned in the proviso to sub-section (1) shall
be submitted for approval by the employer of
such establishment to the Chief Inspector who
shall, within six months of the receipt thereof
make such order therein as he deems fit.
(3) No service rules as mentioned in
sub-section (2) shall be put into effect without
the approval of the Chief Inspector.
(4) Any person aggrieved by the order of the Chief
Inspector may, within thirty days of the receipt of
the order, may prefer appeal to the Government and
the order of the Government on such appeal shall be
final.
(5) Nothing provided in sub-section (2) shall apply to any
establishment which is owned by or under
management or control the Government.
4. Classification of workers and period probation :
(1) Workers employed in any establishment shall
be classified in any of the following classes according
to the nature and condition of work : namely-
a) apprentice
b) badli
c) casual
d) temporary
e) probationer, and
f) permanent
(2) A worker shall be called an apprentice
if he is employed in an establishment as a learner
and is paid an allowance during the period of his
training.
(3) A worker shall be called a badli if he
is employed in an establishment in the post of a
permanent worker or of a probationer during
the period who is temporarily absent.
(4) A worker shall be called a casual
worker if his employment in an establishment is
of casual nature.
5) A worker shall be called a temporary worker if
he is employed in an establishment for work which is
essentially of temporary nature, and is likely to be
finished within a limited period.
6) A worker shall be called a probationer if he is
provisionally employed in an establishment to fill a
permanent vacancy in a post and has not completed
the period of his probation.
(7) A worker shall be called a permanent worker
if he is employed in an establishment on a permanent
basis or if he has satisfactorily completed the period of
his probation in the establishment.
(8) The period of probation for a worker
function is of clerical nature shall be six months
and for other workers such period shall be three
months:
Provided that in the case of skilled worker, the
period of probation may be extended by an
additional period of three months if for any
circumstances, it has not been possible to
determine the quality of his work within the first
three months period of his probation.
(9)If any worker, whose service has been
terminated during his probationary period,
including the extended period, is again
appointed by the same employed within a period
of three years, he shall, unless appointed on a
permanent basis, be deemed to a probationer
and the period or periods of his earlier probation
shall be counted for determining his total
period of probation.
(10) If a permanent worker is employed as a
probationer in a new post, he may, at any time
during the probationary period, be reverted to
his old permanent post.
[Link] of Appointment and Identity Card:
No employer shall employ any worker
without giving such worker a letter of
appointment and every such employed worker
shall be provided with an identity card with
photograph.
Service Book :
(1) Every employer shall, at his own cost provide
a service book for every employed by him.
(2) Such service book shall be kept in the custody
of the employer.
(3) Before employing a worker, the employer shall
require from him previous service book if the
worker that he has been previously in
employment under any other employer.
(4) If such worker has any service book, it shall be
handed over to the new employer by him and
shall be kept in the custody of the employer,
for which a receipt shall be given to him.
(5) If such worker has no service book, a service
book shall be provided under sub-section (1).
(6) If the worker desires to keep and maintain a
duplicate copy of his service book, he may do it
at his own cost.
(7) The employer shall hand over the service book to
the worker on the termination of the workers
service with him.
(8) If the service book handed over to the worker or the
duplicate thereof maintained by him lost by the
worker, the employer shall provide him with a
duplicate service book at the cost of the worker.
(9) Nothing in this section shall apply to an apprentice,
badli or casual worker.
Form of Service Book :
(1) The service book shall be of such size and in
such form as may be prescribed and a
photograph of the worker shall be affixed to
it.
(2) The service book shall contain the
following particulars, namely :
a) name of the worker, name of mother and father
and address of the worker, (in appropriate case name
of husband/wife shall be written)
b) date of birth
c) particulars necessary for identification
d) name and address of the employer under whom
previously employed, if any
e) period of employment
f) occupation or designation
g) wages and allowance, if any
h) leave availed, and
i) conduct of the worker
8. Entries in the service book : The employer
shall at the commencement of the employment
and during the continuance of the same make
such entries therein from time to this as are
required by this Chapter and the Rules and both
the employer and the worker shall sign the
entries as they are made.
9. Register of workers and supply of tickets
and cards :
(1) The employer of every establishment
shall maintain a register of worker, to be
available to the Inspector at all times during
working hours.
(2) The register of workers shall contain
the following :
a) the name and date of birth of each worker in the
establishment;
b) date of appointment
c) the nature of his work
d) the period of work fixed for him
e) the intervals for rest and meals to which he is entitled
f) the days of rest to which he is entitled
g) the group, if any, in which he is included
h) where his group works in shift, the relay to which he
is allotted; and
i) such other particulars as may be prescribed by rules;
(3) If the Inspector is of opinion that any
muster roll of register maintained a part of the routine
of an establishment gives in respect of all or any of the
workers in the establishment the particulars required
under sub-section (2), he may, by order in writing,
direct that such muster roll or register shall, to the
corresponding extent, be maintained in place of, and be
treated as, the register of workers, in that establishment.
(4) The Government may make rules prescribing
the form of the register of workers, the manner in
which it shall be maintained and the period for which it
shall be preserved.
(5) The employer shall supply Tickets or cards to every
worker in the following manner :
(a) every permanent worker shall be provided with a
permanent departmental ticket showing his number;
(b) every badli worker shall be provided with a badli card
on which shall be entered the day on which he has
worked and which shall be surrendered of he obtains
permanent employment;
(c) every temporary worker shall be provided with a
temporary ticket which shall be surrendered on his
leaving the job or getting a permanent employment;
10. Procedure for leave :
(1) A worker who desire to obtain leave of absence shall
apply to the employer for the same in writing stating
his leave address therein.
(2) The employer or his authorized officer shall issue
orders on the application within seven days of the
application or two days prior to the commencement
of leave applied for, whichever is earlier;
Provided that, if due to urgent reasons the leave
applied for is to commence on the date of application or
within three days thereof the order shall be given on
the same day.
(3) If the leave asked for is granted, a leave pass shall be
issued to the worker.
(4) If the leave asked for is refused or postponed, the fact
of such refusal or postponement, and the reasons
thereof shall be communicated to the worker before
the date on which the leave was expected to be
commenced, and shall also be recorded in a register to
be maintained by the employer for the purpose.
(5) If the worker, after convincing of leave, desires an
extension thereof, he shall, if such leave is due to him,
apply sufficiently in advance before the expiry of the
leave to the employer who shall, as far as practicable
send a written reply either granting or refusing
extension of leave to the worker to his leave-address.
11. Payment of wages for unveiled leave:
If the services of a worker, to whom any annual
leave is due, is dispended with whether as a
result of retrenchment, discharge, remover,
dismissal, termination, retirement or by reason
of his resignation before he has availed of any
such leave, the employer shall pay his wages in
lieu of the unveiled leave at the rate he is
entitled to the payment of wages during the
period of leave in accordance with the
provisions of this Act.
12. Stoppage of Work :
(1) The employer may, at any time, in the event of fire,
catastrophe, breakdown of machinery, or stoppage of
power supply, epidemics, civil commotion or any
other cause beyond his control, stop any section or
sections of the establishment, wholly or partly for
such period as the cause for such stoppage continues
to exist.
(2) In the event of such stoppage occurring at any time
beyond working hours, the employer shall notify the
workers affected, by notice on the notice board in the
section or department concerned or at a conspicuous
place in such establishment before the work is due to
begin next.
(3)In the notice mentioned in sub-section (2)
direction shall be given indicating as to when the
work will be resumed and whether such workers
are to remain at their place or work at any time
before the actual resumption.
(4)In the event of such stoppage occurring at any
time during working hours, the workers affected
shall be notified, as soon as practicable, in the
manner specified in sub-section (2) indicating as
to when the work will be resumed and whether
such workers are to leave or remain at their place
of work.
(5)In the case where workers have been directed to
stay at their place of work following such
stoppage, the workers so detained may not be
paid for the period of such detention if it does
not exceed one hour, and the workers so detained
shall be paid wages for the whole period of such
detention if it exceeds one hours.
(6)If the period of stoppage of work does not
exceed one working day, a worker, unless entitled
to wages under sub-section (5), may not be paid
any wages.
(7) If the period of stoppage of work continues for
more than a working day, a worker affected,
other than a casual or badli worker, shall be paid
wages for day or days which it will except one
working day.
(8) If the period of stoppage of work extends
beyond three working days, the workers may be
laid-off in accordance with the provisions of
section-16.
(9) A lay-off mentioned in sub-section (8) shall be
effective from the day of stoppage of work and
any wage paid to a worker for the first three days
may be adjusted against the compensation
payable for such subsequent lay-off.
(10) For the piece-rate workers affected, their
average daily earning in the pervious month shall
be taken to be the daily wage for the purpose of
the sub-section.
13. Closure of establishment :
(1) The employer may, in the event of an illegal
strike by any section or department of any
establishment, close down either wholly or
partly such section or department and the
workers participated in the illegal strike shall
not be paid any wages for such closure.
(2)where by reason of closing down of any section
or department of any establishment under
sub-section (1), any other section or department
is so affected that it is possible to keep that
section or department open, that section or
department may also be closed down and the
workers affected thereby shall be paid wages as
in the case of lay-off for a period of three days
and thereafter they may not be paid by wages for
such closure.
(3)The fact of such closure shall be notified by the
employer, as soon as practicable, by notice
posted on the notice board in the section or
department concerned or at a conspicuous place
in the establishment and the fact of resumption
of work, following such closure, shall likewise be
notified.
16. Right of laid-off workers for compensation
:
(1) Whenever a worker, other than a badli or casual
worker, whose name is borne on the
muster-rolls of an establishment and who has
completed not less than one year of
continuous service under the employer is
laid-off, he shall be paid compensation by the
employer for all days during which he is so
laid-off, except for such weekly holiday as may
intervene.
(2)The amount of compensation as mentioned in
sub-section (1) shall be equal to half of the total
of the basis wages and dearness allowance, and
ad-hoc or interim pay, if any, and the full
amount of housing allowance, if any, that would
have been payable to him had he not been so
laid-off.
(3)A badli worker whose name is borne on the
muster-roll of an establishment shall cease to be
regarded as ‘badli’ for the purpose of this
section, if he has completed one year of
continuous service in the establishment.
(4)No worker shall, unless there is an agreement to
the contrary between the worker and the
employer, be entitled to the payment of
compensation under this section for more than
forty five days during any calendar year.
(5) Notwithstanding anything contained in sub-section (4),
if during a calendar year a worker is laid-off for more
than forty five days, whether continuously or
intermittently, and the lay-off after the expire of the
first forty five days comprises period or periods of
fifteen days or more, the worker shall, unless there is
any agreement contrary between him & employer, be
paid compensation for all the days comprised in every
subsequent period of lay-off for fifteen days or more.
(6) The amount of compensation as mentioned in
sub-section (5) shall be equal to one-fourth of the total
of the basic wages and dearness allowance, and ad-hoc
or interim pay, if any, and the full amount of housing
allowance, if any.
(7)In any case where, during a calendar year, a
worker is to be laid-off after the first forty-five
days as aforesaid, for any continuous period of
fifteen days or more, the employer may, instead
of laying-off such a worker retrench him under
section-20.
[Link]-roll for laid-off workers :
Notwithstanding that the workers employed in
an establishment have been laid-off, the
employer shall maintain a muster-roll, and
provide for the making of entries therein by or
for the laid-off workers whom may present
themselves for work at the establishment at the
appointed time during normal working hours.
18. Laid-off workers not entitled to compensation in
certain cases : (1) Notwithstanding anything contained
elsewhere in this Chapter, no compensation shall be to a
worker who has been laid-off-
(a) if he refuses to accept on the same wages, any alternative
employment not requiring any special skill or previous
experience, in the same establishment for which he has been
laid-off, or in any other establishment belonging to the same
employer and situated in the same town or village or
situated within a radius of eight kilometers from the
establishment;
(b) if he does not present himself for work at the establishment at the
appointed time during normal working hours at least once a
day, if so required by the employer.
(2) For the purpose of sub-section (1) (b), every laid-off
worker who presents himself for work at the
establishment at the time appointed for the purpose
during normal working hours on any day and is not
given employment by the employer within two hours of
his so presenting himself, shall be deemed to have been
laid-off for that day within the meaning of this section.
(4) If a laid-off worker who presents himself for work
mentioned in sub-section (2), instead of being given
employment at the commencement of any shift for any
day, is asked to present himself for the purpose during
the second half of the shift for the day, and if he so
present himself, he shall be deemed to have been
laid-off only for one-half of that day, the other half
being treated as on duty, irrespective of the fact
whether he is given work or not.
19. Death benefit : If a worker dies while in service after
a continuous service of not less than three years, his
nominee or in the absence of any nominee, his
dependant shall be paid by the employer a
compensation at the rate of thirty days wages for every
completed year of service, or for any part thereof in
excess of six months or gratuity, if any, whichever is
higher, in addition to any other benefit to which the
decease worker would have been entitled has be retired
form service.
Provided that if such worker is covered by any
compulsory insurance scheme of the establishment, or,
if any compensation is payable for such death under
Chapter XII, the worker shall be entitled to whichever
is higher.
20. Retrenchment :
(1) A worker employed in an establishment may be retrenched
form service on the ground of redundancy.
(2) No worker who has been in continuous service for not less
than one year under an employer shall be retrenched by the
employer unless -
(a) the worker has been given one month’s notice in writing,
indicating the reasons for retrenchment, or the worker has
been paid in lieu of such notice, wages for the period of notice;
(b) a copy of the notice is sent of the Chief Inspector or any other
officer authorised by him and also to the collective bargaining
agent in the establishment, if any; and
(c) he has been paid, compensation which shall be equivalent to
thirty days wages or gratuity for every completed year of
service if any, whichever is higher.
(3) Notwithstanding anything contained in sub-section (2),
in the case of retrenchment of a worker under section
16(7), no notice as mentioned in sub-section (2) (a)
shall be necessary; but the worker so retrenched, shall
be paid fifteen days wages in addition to the
compensation or gratuity, as the case may be, which
may be payable to him under sub-section (2) (c).
(4) Where any worker belonging to a particular category of
worker is to be retrenched, the employer shall, in the
absence of any agreement between him and the worker
in this behalf, retrench the worker who was the last
person to be employed in that category.
22. Discharge from service :
(1) A worker may be discharged from service for
reasons of physical or mental incapacity or
continued ill-health certified by a registered
medical practitioner.
(2) If a worker who has completed not less than
one year of continuous service is so discharged
he shall be paid by the employer compensation
at the rate of thirty days wages for every
completed year of service, or gratuity, if any,
whichever is higher.
23. Punishment for conviction and misconduct
:
(1) Notwithstanding anything regarding lay-off,
retrenchment, discharge and termination of
service as provided elsewhere in this Act, a
worker may be dismissed without prior notice
or pay in lieu thereof if he is-
a) convicted for any criminal offence; or
b) he is found guilty of misconduct under
section-24
2) Any worker found guilty of misconduct may, instead
of being dismissed under sub-section (1), in
consideration of any extenuating circumstances, be
awarded any of the following punishments, namely :
a) removal;
b) reduction to a lower post, grade or scale of pay for a period
not exceeding one year;
c) stoppage of promotion for a period not exceeding one year;
d) withholding of increment for a period not exceeding one
year;
e) fine;
f) suspension without wages and subsistence allowance for a
period not exceeding seven days;
g) censure or warning
(3)A worker who is dismissed under sub-section
(1) or removed as a measure of punishment
under sub-section (2) (a) shall, if his continuous
service is not less than one year, be paid by the
employer compensation at the rate of fourteen
days wages for every completed year of service,
or gratuity, if any, whichever is higher;
Provided that no compensation shall be payable if
the worker is dismissed for misconduct as
specified in sub-section (4) (b).
(4)The following acts and omissions shall be
treated as misconduct-
(a) willful insubordination or disobedience,
whether alone or in combination with others to
any lawful or reasonable order of a superior;
(b) theft, fraud or dishonesty in connection
with the employer’s business or property;
(c) taking or giving bribe in connection with
his or any other worker’s employment under the
employer;
(d)habitual absence without leave or absence
without leave for more than ten days;
(e) habitual late attendance;
(f) habitual breach of any law or rule or regulation
applicable to the establishment;
(g)riotous or disorderly behaviour in the
establishment, or any act subversive of
discipline;
(h)habitual negligence work;
(i)habitual breach of any rule of employment,
including conduct or discipline, approved by the
Chief Inspector;
(j)falsifying, tempering with, damaging or causing
loss of employers official records.
(5)If a worker who is dismissed from service from
under sub-section (1) (a), is acquitted on an
appeal, he will be reinstated to his original post
without back wages or to any new post suitable
to him; and if such reinstatement is not possible,
he shall be paid compensation at the rate payable
to a person on discharge excluding the
compensation already paid to him for this
dismissal.
24. Procedure for punishment :
(1) No order of punishment under section -23
shall be made against a worker unless :
a) the allegation against him are recorded in
writing
b) he is given a copy thereof and not less than
seven day’s time to explain;
c) he is given an opportunity of being heard;
d) he is found guilty, after enquiry;
e) the employer or the manager approves of such
order
(2)A worker charged for misconduct may be
suspended pending enquiry into the charge
against him and unless the matter is pending
before any Court, the period of such suspension
shall not exceed sixty days :
Provided that during the period of such
suspension, a worker shall be paid by his
employer a subsistence allowance equivalent to
half of his average wages, and dearness
allowances and ad-hoc or interim pay, if any.
(3)An order of suspension shall be writing and
shall taken effect immediately on delivery to the
worker.
(4)In an enquiry the accused worker may be
helped by any person nominated by him who is
employed in the establishment.
(5)If in an enquiry, any oral evidence is given in
behalf of any party, the party against whom the
evidence is given may cross examine the witness.
(6) If, on enquiry, a worker is found guilty and is punished
under section 23(1), he shall not be entitled to his wages
for any period of suspension but shall be entitled to the
subsistence allowances for such period.
(7) If the charges against the worker is not proved in the
inquiry, he shall be deemed to have been on duty for
the period of suspension for enquiry, if any, and shall
be entitled to his wages for such period of suspension
and the subsistence allowance shall be entitled to his
wages for such period of suspension and the
subsistence allowance shall be adjusted accordingly.
(8) In cases of punishment, a copy of the order inflicting
such punishment shall be supplied to the worker
concerned.
(9) If a worker refuses to accept any notice, letter,
charge-sheet, order or any other document addressed to
him by the employer, it shall be deemed that such
notice, letter, charge-sheet, order or the document has
been delivered to him, if a copy of the same has been
exhibited on the notice board and another copy has
been sent to the address of the worker as available from
the records of the employer, by registered post.
(10) In awarding punishment, the employer shall taken
into account the previous record of the worker
concerned, the gravity of the misconduct, and any other
that may exist.
XXX 25. Special provisions relating to fine :
(1) No fine exceeding one-tenth of the wages
payable to a worker in respect of a wage-period
may be imposed in any one wage-period on any
worker.
(2)No fine shall be imposed on a worker who is
under the age of fifteen years
(3)No fine imposed on any worker shall be
recovered from him by installments or after the
expiry of sixty days from the day on which it
was imposed.
(4)Every fine shall be deemed to have been
imposed or the day of the commission of the
offence in respect of which it was imposed.
(5)All fines and all realizations thereof be recorded
in a prescribed register to be kept by the
employer and all such realisation shall be
spended only to such purposes beneficial to the
workers employed in the establishment.
26. Termination of employment by employer
otherwise than by dismissal, etc. :
(1) The employment if a permanent worker may
be terminated by the employer, otherwise, than
in the manner provided else-where in this
Chapter, by giving to him in writing-
(a) one hundred and twenty days’ notice, if he is a
monthly rated worker;
(b) sixty days’ notice, in case of other worker.
(2) The employment of a temporary worker may
be terminated by the employer, otherwise than
in the manner provided elsewhere in this
Chapter, and if it is not due to the completion,
cessation, abolition or discontinuance of the
temporary work for which he was appointed,
by giving to him in writing-
a) thirty day’s notice, if he is a monthly rated
worker;
b) fourteen day’s notice, in case of other worker.
(3) Where an employer intends to terminate the
employment of a worker without any notice, he
may do so by paying to the worker, wages in
lieu of the notice, which is required to be given
under sub-section (1) or (2), as the case may be
(4) Where the employment of a permanent worker
is terminated under this section, he shall be
paid by the employer compensation at the rate
of thirty days wages for every completed year
of service or gratuity, if any, whichever is
higher, in addition to any other benefit to
which he may be entitled under this Act.
27. Termination of employment by worker:
1) A permanent worker may resign from his
service by giving to the employer in writing
sixty day’s notice.
(2) A temporary worker may resign from his
service by giving to the employer in writing -
a) thirty day’s notice, if he is a monthly rated
worker;
b) fourteen days notice in case of other worker.
(3)Where a worker intended to resigns from his
service without any notice, he may do so by
paying to the employer wages in lieu of the
notice which is required to be given under
sub-section (1) or (2), as the case may be.
(4) Where a permanent worker resigns from his
service under this section, he shall be paid by the
employer compensation-
(a) at the rate of fourteen days’ wages for every
completed year of service, if he completed five
years of continuous service or more but less
than ten years
(b) at the rate if thirty days, wages for every
completed year of service, if he has completed
ten years of continuous service or more; or
gratuity, if any, whichever is higher, in addition
to any other benefit to which he may be entitled
under this Act.
28. Retirement of works :
(1) A worker employed in any establishment shall,
notwithstanding anything contained elsewhere in this
Chapter, retire from employment on the completion
of the fifty-seventh years of his age.
(2) For the purpose of counting age of the worker under
this section the date of birth recorded in the service
book of the concerned worker shall be the conclusive
proof.
(3) Every retiring worker under the provisions of section
26(4) or under own service rule of the establishment,
shall be paid his benefits due to him.
(4) Appropriate authority, if thinks proper, may
afterwards, employ the retiring worker under
contract.
29. Payment of Provident Fund :
No worker, who is a member of any Provident
Fund, shall be deprived due to retrenchment
dismissal, removal, discharge or termination of
service of the benefit of the Provident Fund
including the employer’s contribution thereto,
if he is entitled to it under the rules of that
Fund.
