UNITV UNORGANISED SECTOR & SOCIAL SECURITY ACT 2008 At all times and in every society, at every stage of development, there have been sick people requiring medical aid and care, handicapped and old people unable to work for a living. “There are five giants on the road of reconstruction". These are want, disease, ignorance, squalor and idleness”. Every person is exposed to some kind of risk or danger. As per World Development Report, 1997, social security should be viewed as an investment for the human development.3 United Nation Development Programme (UNDP) stated that for most people, a feeling of insecurity arises more from worries about daily life (like will they and their families have enough to eat or will they lose their job?) than from the dread of a cataclysmic world event.4 The concept of social security has been transformed from charity-based to rights-based approach. It is well established and recognised in the national constitutions5 and international instruments6 that access to social security is the fundamental human rights. Besides, various policies and schemes have been launched. It is desirable that each and every person, irrespective of caste, creed, sex etc. could be protected by social security. However, even the single nation cannot claim that all the individuals have adequate coverage. The term “social security” is a dynamic concept and hence there is no commonly accepted definition. According to Weber and Cohen, “Social Security is a controversial and dynamic subject with various facets — philosophical, theoretical, humanitarian, financial, administrative, social, economic, political, statistical, actuarial, medical and legal”. Social security has been viewed from protective and promotional aspects. In the present context of unorganised sector, the protective form of social security has been explained by International Labour Organisation (Hereinafter |.L.O.) in its Convention No. , which enumerates nine risks or core contingencies from which unorganised or informal workers need to be protected that lead to the stoppage or substantial reduction of earnings namely; 1) Sickness 2) Maternity 3) Employment Injury 4) Unemployment 5) Invalidity 6) Old Age 7) Death 8) Need for long term medical care and 9) Need to support families with children. This view of ILL.O. has been v7] Edit with WPS Office © semved wth Ot Scannerdescribed as the protective form of social security as it limits the scope of social security to maintenance of one’s income against loss or diminution. On the other hand, Dreze and Sen articulated the broader concept of social security as ‘..social means to prevent deprivation and vulnerability to deprivation’, known as the promotional aspect of social security. This concept has the objective of enhancing the normal living conditions and dealing with regular and often persistent deprivation. In India, the National Commission on Labour has observes that “social security envisages that the members of a community shall be protected by collective action against social risks causing undue hardship and privation to individuals whose prime resources can seldom be adequate to meet them”. The aim of this paper is to highlight the existing social security policies and schemes available to the unorganised workforce of India. An attempt has been made to dwell upon the concept of unorganised worker in the Indian context. In this regard, several legislations and judicial decisions, along with schemes at the Central and State Levels have been analysed. Social Security of Unorganised Worker in India “Unorganised Worker” Defined - According to 1st National Commission on Labour; unorganised labour are those who have not been able to organise themselves in pursuit of common objectives on account of constraints like casual nature of employment, ignorance and illiteracy, small and scattered size of establishments and position of power enjoyed by employers because of the nature of industry. To this, poverty, indebtedness, working for below minimum wages, lack of bargaining power, using indigenous technology, compelled migration etc. may also be added. Ministry of Labour has categorised the unorganised labour force under four groups in terms of occupation, nature of employment, especially distressed categories and service categories. In terms of occupation, it included small and marginal farmers, landless agricultural labourers, share croppers, fishermen and those engaged in animal husbandry, beedi rolling, labelling and packing, building and construction workers, leather workers, weavers, artisans, salt workers, workers in brick kilns and stone quarries, workers in saw mills, oil mills etc. In terms of nature of employment, they are attached agricultural labourers, bonded labourers, migrant workers, contract and casual labourers. Toddy tappers, scavengers, carriers of head loads, drivers of animal driven vehicles, loaders and unloaders, belong to the especially distressed category while midwives, domestic workers, fishermen and v7] Edit with WPS Office © sewned wth Xt Scannerwomen, barbers, vegetable and fruit vendors, newspaper vendors etc. come under the service category.|n addition to the above categories, there exists a large section of unorganised labour force such as cobblers, hamals, handicraft artisans, handloom weavers, lady tailors, physically handicapped self-employed persons, rikshaw pullers/ auto drivers, sericulture workers, carpenters, leather and tannery workers, power loom workers and urban poor. Extent - In India, 93% - around 400 million - work in the unorganized sector. The number of unorganised workers was about 279 million in 1983, which increased to about 359 million by 2005- 2006 compared to organised workforce of 24 million in 1983, which increased only to about 26.5 million during the same period. One of the reason laid down by Ravi Srivastava (NCEUS member) for the growth of unorganised worker is that the “large firms (are) reducing risks and wage costs by outsourcing to the informal sector, and the organised sector (is) not creating enough jobs,” Legislative Protections - India has enacted several social security legislations. The law which could facilitate the cause of the unorganised sector may be divided under the general and special class. The former enactments cover both the organised and unorganised and the latter covers the special laws applicable for certain class of the unorganised workers. General Legislations - Although prima facie it does not cover the unorganised sector, but these laws should be considered; as the unorganised workers comes within their purview on the basis of the enacted provisions, supported by judicial interpretation. The table30 given below are the summary of some of the legislations which provide social security. 1. Workmen's Compensation Act, 1923 To provide compensation for workmen in cases of industrial accidents/occupational diseases resulting in disablement or death. Persons employed in factories, mines, plantations, railways and other establishments mentioned in Schedule || of the Act. The benefits are payable in respect of work-related injuries to the workers dependents not covered by the ESI Act. Compensation for death, disablement, and occupational disease. 2. Employees State Insurance Act, 1948 (Hereinafter ES!) v7] Edit with WPS Office © semved wth Ot ScannerTo provide for health care and cash benefits in the case of sickness, maternity and employment injury. Factories/establishments to which the law is made applicable by the Govt. Employees drawing pay not exceeding Rs. 5000 per month. Benefits to sickness, maternity, disability dependents, and death 3. Employees’ Provident Fund & Miscellaneous Provisions Act, 1952 To provide comp- ulsory provident fund, pension, deposit- linked insurance. Factories /Establishments employing 20 or more employees (in Scheduled industries); other establishments notified by the central Govt. There is no wage limit for coverage provided the workman is not covered by the ESI Act. Provident fund, pension, and refundable withdrawals. 4. Maternity Benefit Act, 1961 To provide for maternity protection before and after child birth. Factories, mines, plantations, commercial and other establishments to which the law is extended. There is no wage limit for coverage provided the woman is not covered by the ESI Act Payment for actual absence upto 12 weeks on average daily wages, minimum wage or Rs. 10. 5. Payment of Gratuity Act, 1972 To provide for payment of gratuity on ceasing to hold office. Factories, mines, oil- fields, plantations, railway companies, shops and establishments also to other establishments to which the law is extended. Five years continuous service is required for entitlement of gratuity. 15 days wages for every completed year of service or part thereof in excess of 6 month subject to maximum of Rs. 3,50,000. The seasonal employees are entitled to gratuity at a rate of 7 days wages for each season. Special Legislations - There are some special laws designed only for the unorganised class. Some of those are: 1. Contract Labour (Regulation & Abolition) Act, 1970 — It aims to regulate the employment of the contract labour in every establishments employing twenty or more workmen and also to provide for its abolition in certain circumstances 2. Inter-State Migrant Workmen (Regulation of Employment and Conditions v7] Edit with WPS Office © semved wth Ot Scannerof Service) Act, 1979 - An act to provide the employment of inter-State migrant workmen and to provide for their conditions of service. 3. Cine-workers welfare Fund Act, 1981 - An Act to provide for the financing of activities to promote the welfare of certain cine-workers. "cine- worker" means an individual who has been employed in connection with the production of not less than five feature films to work as an artiste (including actor, musician or dancer) or to do any work, skilled, unskilled, manual, supervisory, technical, artistic or otherwise; and whose remuneration with respect of each of any five feature films, has not exceeded 1600/- per month in case of monthly payment and Rs. 8000/- where such remuneration has been by way of a lump sum. 4. Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines Labour Welfare Fund Act, 1976 — An Act to provide for the financing of activities to promote the welfare of persons employed in the iron ore mines, manganese ore mines and chrome ore mines. 5. Limestone and Dolomite Mines Labour Welfare Fund Act, 1972 - An Act to provide for the levy and collection of a cess on limestone and dolomite for the financing of activities to promote the welfare of persons employed in the limestone and dolomite mines. 6. Mica Mines Labour Welfare Fund Act, 1946 - An Act to constitute a fund for the financing of activities to promote the welfare of labour employed in the mica mining industry. 7. Beedi Workers welfare Fund Act 197631 - An Act to provide for the financing of measures to promote the welfare of persons engaged in beedi establishments. 8. Building and other Construction Workers (Regulation of Employment and conditions of service) Act, 199632 - An Act to regulate the employment and condition of service of buildings and other construction workers and to provide for their safety, health and welfare measures and for other matters connected therewith or incidental thereto. 9. Unorganised Workers’ Social Security Act, 2008 - Finally, India has enacted an Unorganised Workers’ Social Security Act, 2008 for providing social security to the Unorganised Sector. The government has passed the bill on social security of unorganised workers in the Lok Sabha on December 17, 2008 despite opposition from trade unions, organisations of workers and civil society. It provides for framing of schemes by the Central as well as State Governments and funding of central government schemes. v7] Edit with WPS Office © semved wth Ot ScannerTo achieve its objective, there is a provision for the constitution of the Board at the State level and also the funding of State Government Schemes for record keeping by district administration and for the setup of the workers facilitation centre. Finally it empowers the Governments at Central and State levels for framing the rules. All unorganized sector workers above 14 years are entitled to register themselves and receive a ‘smart’ identity card. Judicial Response - The Supreme Court of India and several High Courts have played a vital role in the socio-economic reconstruction of the society as the Constitution of India guarantees fundamental right to every citizen that include right to life and the Supreme Court also point out that the right to livelihood is inherent in the right to life. Article 21 of the Indian Constitution guarantees right to life and the Supreme Court has laid down in the cases like Olga Tellis vs. Bombay Municipal Corporation, that the right to livelihood is inherent in the right to life under Article 21. The ultimate object of social security is to ensure that everyone has the means of livelihood. It follows, therefore, that the right to social security is also inherent right in the right to life. In Gammon India Ltd. vs. Union of India the Supreme Court while dealing with the object for which the Contract Labour (Regulation and Abolition) Act, 1970 was enacted observed that the Act was passed to prevent the exploitation of contract labour and also to introduce better conditions of work. The Act provides for regulation and abolition of contract labour. The underlying policy of the Act is to abolish contract labour, whenever possible and practicable, and where it cannot be abolished, the policy of the Act is that the working conditions of the contract labour should be so regulated as to ensure payment of wages and provisions of essential amenities. In Royal Talkies, Hyderabad vs. Employees State Insurance Corporation, the Supreme Court held that the employees of cycle stand and canteen run in a cinema theatre by contractors were to be covered by the definition of the employee under the Employee's State Insurance Act, 1948. In Siddheswar, Hubli vs. ESI, the Court whole interpreting ESI Act held that “the definition appears to be of wider connotation. It does not appear to exclude a casual labourer or casual employee. Even the person, whose services are lent to the principal employers, is included in the definition of employee’. v7] Edit with WPS Office © semved wth Ot ScannerSchemes - Both the Central and State Governments have formulated certain specific schemes to support unorganised workers - both promotional and protective. The social security for the unorganised sector is being provided through centrally funded Social Assistance Programmes, Social Insurance Scheme, and social assistance through welfare funds of Central and State Government and public initiatives. The centrally funded Social Assistance Programmes includes a Scheme called National Social Assistance Programme (NSAP) was launched through 3 sub- schemes of - i) National Old Age Pension Schemes (NOAPS); ii) National Family Benefit Schemes and iii) National Maternity Benefit Scheme.40 NSAP also provides opportunities for linking social assistance package to schemes for poverty alleviation and provision of basic minimum services. The Social Insurance Schemes available to the unorganized sector are cover through the LIC such as Social Security Group Insurance Scheme. All persons in the age group of 18 to 60 years belonging to the 24 approved occupation groups42 are covered. At present, to provide social security to some of the unorganised workers, welfare funds for various groups have been set up by the government without burden on the budget. These welfare funds have been developed by way of collecting cess from the persons who are selling the finished products. In the State level, the Old Age Pension Scheme (OAPS) was introduced in all the States and Union Territories. Kerala was the First State to experiment with the pension scheme for the agricultural workers in the year 1982, followed by Tamilnadu in the same year. Andhra Pradesh introduced the OAPS to the landless agricultural workers in 1983. The Government of Maharashtra introduced a pension scheme in 1980 to support the physically handicapped and economically weaker sections of the society. The Government of West Bengal introduced State Assisted Scheme of Provident Fund for Unorganised Workers (SASPFUW). 44 Similarly, the Government of Punjab has been implementing a social security scheme for farmers and labourers in case of death or injury on duty. To extend social security cover to manual workers, auto-rickshaws, washermen, tailoring workers, handcraft workers etc., the Government of Tamil Nadu has introduced a new social security and welfare scheme - 2001. Similar such State level initiatives are carried out v7] Edit with WPS Office © sewned wth Xt Scannerin Kerala, Bihar, Uttar Pradesh, Madhya Pradesh, Haryana, Gujarat and other states. Finally, several public institutions and agencies are also providing various kinds of social security benefits to the selected groups of workers. The services provided by the Non Governmental Organisations (NGOs) include access to micro credit, housing, preventive health care and employment. The NGOs support to unorganised workers is carried out in two ways. Firstly, the NGOs use their own funds and the aids obtained from other agencies (domestic and international donors) and implement several projects and schemes to the targeted people who are basically weaker and vulnerable sections of the community. Secondly, they serve as an intermediary between the formal provider (say Government) and the community, and help in routing the services to the needy. In both the ways, it is expected that the services are reaching to the community with no delay, less cost and to the right ones. It is estimated that the NGOs could cover only 3 to 4 per cent of the total workforce in the unorganised sector. The outstanding examples are those of Self-Employed Women's Association (SEWA), the Mathadi Workers Board in Maharashtra47 and IIMPS Karnataka commercial shops & establishments act 1961 an overview Karnataka Shops and Establishment Act 1961 and Rules 1963 make the base of labour laws that organisations should follow. This over view of the Shop and establishment act is the first in a series of articles to come on the labour laws in India. Shops and Commercial Establishments act is a must know act for the employer and employees both as it contains duties and the rights of owner and employees respectively. Here | have covered the salient features of this act. In the Year 1961 the Government of Karnataka had brought in the Shops and Establishment act, to provide for the regulations guiding the conditions of work and employment in shops & Commercial Establishment in Karnataka. This act came in to force from 1st March 1962. Who should register under Karnataka Shops and Establishment Act 1961? v7] Edit with WPS Office © semved wth Ot ScannerAll the Shops and Commercial Establishments in Karnataka, unless otherwise expressly exempted should register with the authorities under this act. Definition of Shop: As per the Act, "Shop means any premises where any trade or business is carried on or where services are rendered to customers and includes offices, storerooms godowns, warehouses, whether in the same premises or otherwise, used in such connection whit such trade or business, but does not include a commercial establishment or a shop attached to a factory where the persons employed in the shop fall within the scope of the Factories Act, 1948." Definition_of Commercial Establishment_:" Commercial establishment means a commercial or trading or banking or insurance establishment, an establishment or administrative service in which persons employed are mainly engaged in office work, a hotel, restaurant, boarding or eating house, a cafe or any other refreshment house, a theatre or any other place of public amusement or entertainment and includes such establishments as the State government may by notification declare to be a commercial establishment for the purpose of this Act" So basically every business unit will have to register with the act except it is exempted. That brings us to the question who is or which organisations are exempt from the applicability act. Who are Exempted form Karnataka Shops and establishment act 1961? Following types of establishments are exempt from the applicability of Karnataka Shop and establishment act 1961 by Section 3 of the act: central or State Government or Local Authority offices; 1. Any water transport service, postal, railway survey, telephone or telegraph service, any system of public sanitation or conversancy or any industry, undertakings which supplies light, water or power to the public; 2. Dining cars of Railways; 3. Establishments for care or treatment of the mentally unfit, infirm or the sick; }. The food corporation of India's establishments; . The offices of legal and medical practitioners provided that they have not employed more than three persons; os v7] Edit with WPS Office © semved wth Ot Scanner6. A Banking company’s offices; 7. Any person employed for any business referred above points. 8. persons who are occupying the positions of management in any establishment; 9. persons working on in positions which are inherently intermittent such as care takers , drivers, canvassers, or watch and ward staff, 10. Persons who are directly engaged in complementary or preparatory work, like clearing and forwarding clerks who are responsible for dispatch of the goods. Owner and his Duties: Owner is defined by the act as "the person having charge of or owning or having ultimate control over the affairs of an establishment and includes members of the family of an employer, a manager, agent, other person acting in the general management and control of an establishment" Duties: + Each owner should submit the application form in Form ‘A’ to register his establishment within 30 days from starting business. + Itis the duty of the owner to display the registration certificate inside the premises in a visible place. + Once issued the registration is valid for Five years. Before the expiry of this period, application for renewal should be submitted. Any change in particulars given in statement during registration, such as change in ownership, address number of employees etc., should be notified by the owner to the registration authority within 15 days of such change. + This certificate of registration should be surrendered to the registration authority in case of closure of the business. Working Hours as per Karnataka Shop & establishment act. Any Organisation shall not carry out business before and after the below given hours , If the work place is Bangalore city - Morning before 6 am. & night after 9 P.M. and other places in Karnataka before 8 a. m. in the morning and after 8 p.m. in the night. The maximum limit for continuous work is 5hrs after which there should be a break which is mandatory. v7] Edit with WPS Office © semved wth Ot ScannerEmployment of Child & Women: Employing child under the age of 14 years is prohibited. Further Women employees and young person between the age of 14-18 years should not be allowed or required to work after 8 p.m. at night. If any IT/BT company wants to allow women to work beyond 8 p.m. deadline, it has to obtain permission from authorities by giving required information in form R to the authorities. Weekly Holiday under the act: Every establishment in Karnataka shall mandatorily remain closed on one day in a week. It is the duty of the employer to fix such a day in the starting of the year and notify to the registering authority and display on notice board at the premises of the establishment. But if the organization has sufficient additional workers it can remain open whole week by fixing different days as holiday for different workers. In such a case a report to the effect will have to be submitted to the deputy labour commissioner. Exemptions from weekly holiday: Following establishments have been exempted from weekly holiday. Establishment engaged in Sale of medical equipment and medicine. + Hostel, Hostel attached to schools or college, Residential Schools, Lodging and Hotel, Clubs. + Refreshment rooms and stalls situated at bus stands, areodromes, railway stations and ports. + Hairdressing and Barber Shops + Shops which are mainly dealing in fish, meat, poultry, dairy produce (except ghee), eggs, bread, confectionery, chocolates, sweets, ice, ice cream, flowers, fruits, vegetables or green fodder, cocked food for sale; + Shops selling Cigarette, soft drinks, Pan beedi; + Shops dealing in news paper, magazine and related offices. + Public recreation centers like Cinema, theater shops and stalls attached to such recreation centres; + Sale of Petrol / Diesel establishments; + Body Tan Shops; v7] Edit with WPS Office © semved wth Ot ScannerRetails shops at an Exhibition, only if such retail items are incidental and ancillary to the Show's purpose; + Bricks manufacturing units, oil and flour mill which are not registered under factories act. + Establishments engaged in the process of melting of bronze and brass in a furnace. + Services related to information technology, biotechnology and institution doing research on contagious disease. + An establishment having exemption form weekly holiday, shall give mandatory holiday for a person working continuously for 6 days on the 7th day. In cases where this is not possible than 11th should be the mandatory holiday for him. Other Employee related Regulations: + Employer should issue appointment order in Form 'P’ to every person being employed in connection with the organization and keep the attendance in form 'T' Register. Salary shall be paid before the 7th of every month for the previous month. + At the end of every year, for continuing employees earned leave should be credited. This earned leave is calculated at 1 day for 20 days worked during the year. And sick leaves at the rate of 1 day for every 30 days shall be calculated and credited in addition to earned leaves. Form 'F' should be used to maintain the leave records. «+ To terminate an employee who has completed 180 days, issuing prior notice is mandatory. Rights of the Employees: + It is the right of every employee to take one day in a week as mandatory holiday. + Employee working extra hours is entitled to overtime pay at the rate of twice the normal wage. + Earned leave can be accumulated up to 40 days by every employee. + Encashment of unutilized earned leave is the right of every employee. + If an employee is removed and he believes that there was no sufficient cause for such removal can approach the jurisdiction v7] Edit with WPS Office © semved wth Ot Scannerofficer and place his appeal against such dismissal. Where such improper dismissal is proved, the employee is entitled to a compensation equal to one month's pay for every year of service rendered. The implementation of Karnataka Shops and Establishments act has gone online and the website is www.ekarmika.com. In my next article | will be explaining about registration process online for the Karnataka Shop and establishment act. If you think this article is helpful or you need any further assistance, just leave a comment below. Major characteristics of the unorganised workers: The major characteristics of unorganised workers are: - The unorganised labour is overwhelming in terms of its number range and therefore, they are omnipresent through India. : There is no formal employer employee relationship between small and marginal farmers, share croppers and agricultural labourers as they work together in marginally favourable situation. - The workplace is scattered and fragmented. « In rural areas, the unorganised labour force is highly satisfied on caste and community considerations. In urban areas while such considerations are much less, it can't be said that it is altogether absent as the bulk of the unorganized workers in urban areas are basically from rural areas. - The unorganised workers do not receive sufficient attention from the trade unions. In general, lack of attention from the trade unions. UNORGANISED WORKMEN SOCIAL SECURITY ACT 2008 GD cain th WPS Office © sewned wth Xt ScannerAn Act to provide for the social security and welfare of unorganised workers and for other matters connected therewith or incidental thereto. BE it enacted by Parliament in the Fifty-ninth Year of the Republic of India as follows:— Sect. Short title, extent and commencement.—(1) This Act may be called the Unorganised Workers’ Social Security Act, 2008. (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. Sec 2. Definitions.—In this Act, unless the context otherwise requires,— (a) “Employer” means a person or an association of persons, who has engaged or employed an unorganised worker either directly or otherwise for remuneration; (b) “home-based worker” means a person engaged in the production of goods or services for an employer in his or her home or other premises of his or her choice other than the workplace of the employer, for remuneration, irrespective of whether or not the employer provides the equipment, materials or other inputs; (©) “Identity card” means a card, document or certificate issued to an unorganised worker by the District Administration under sub-section (3) of section 10; (d) “National Board” means the National Social Security Board for unorganised workers constituted under sub-section (1) of section 5; (e) “Notification” means a notification published in the Official Gazette; (f) “organised sector" means an enterprise which is not an unorganised sector; (g) “prescribed” means prescribed by rules made under this Act by the Central Government or the State Government, as the case may be; (h) “Registered worker” means an unorganised worker registered under sub -section (3) of section 10; () “Schedule” means the Schedule annexed to the Act; (j) "State Board” means the (name of the State) State Social Security Board for unorganised workers constituted under sub-section (1) of section 6; (k) “self-employed worker” means any person who is not employed by an employer, but engages himself or herself in any occupation in the unorganised sector subject to a monthly earning of an amount as may be notified by the Central Government or the State Government from time to time or holds cultivable land subject to such ceiling as may be notified by v7] Edit with WPS Office © semved wth Ot Scannerthe State Government; (I) “unorganised sector” means an enterprise owned by individuals or self- employed workers and engaged in the production or sale of goods or providing service of any kind whatsoever, and where the enterprise employs workers, the number of such workers is less than ten; (m) “unorganised worker” means a home-based worker, self-employed worker or a wage worker in the unorganised sector and includes a worker in the organised sector who is not covered by any of the Acts mentioned in Schedule II to this Act; SOCIAL SECURITY BENEFITS Sec3. Framing of scheme.—(1) The Central Government shall formulate and notify, from time to time, suitable welfare schemes for unorganised workers on matters relating to— (a) life and disability cover; (b) health and maternity benefits; (c) old age protection; and (d) any other benefit as may be determined by the Central Government. (2) The schemes included in the Schedule 1 to this Act shall be deemed to be the welfare schemes under sub-section (1). (3) The Central Government may, by notification, amend the Schedules annexed to this Act. (4) The State Government may formulate and notify, from time to time, suitable welfare schemes for unorganised workers, including schemes relating to— (a) provident fund; (b) employment injury benefit; (c) housing; (d) educational schemes for children; (e) skill upgradation of workers; (f) funeral assistance; and (g) old age homes. 4. Funding of Central Government Schemes.—(1) Any scheme notified by the Central Government may be- (i) wholly funded by the Central Government; or (ii) partly funded by the Central Government and partly funded by the State Government; or (iii) partly funded by the Central Government, partly funded by the State Government and partly funded through contributions collected from the beneficiaries of the scheme or the employers as may be prescribed in the scheme by the Central Government. (2) Every scheme notified by the Central Government shall provide for such matters that are necessary for the efficient implementation of the scheme including the matters relating to,— (i) scope of the scheme; (ii) beneficiaries of the scheme; (iii) resources of the scheme; (iv) agency or agencies that will implement the scheme; (v) redressal of grievances; and (vi) any other relevant matter. CHAPTER III v7] Edit with WPS Office © semved wth Ot ScannerNATIONAL SOCIAL SECURITY BOARD FOR UNORGANISED WORKERS Sec 5. National Social Security Board.—(1) The Central Government shall, by notification, constitute a National Board to be known as the National Social Security Board to exercise the powers conferred on, and to perform the functions assigned to, it under this Act. (2) The National Board shall consist of the following members, namely:— (a) Union Minister for Labour and Employment-Chairperson, ex officio; (b) the Director General (Labour Welfare)-Member-Secretary, ex officio; and (c) thirty-four members to be nominated by the Central Government, out of whom— (i) seven representing unorganised sector workers; (ii) seven representing employers of unorganised sector; (iii) seven representing eminent persons from civil society; (iv) two representing members from Lok Sabha and one from Rajya Sabha; (v) five representing Central Government Ministries and Departments concerned; and (vi) five representing State Governments. (3) The Chairperson and other members of the Board shall be from amongst persons of eminence in the fields of labour welfare, management, finance, law and administration. (4) The number of persons to be nominated as members from each of the categories specified in clause (c) of sub-section (2), the term of office and other conditions of service of members, the procedure to be followed in the discharge of their functions by, and the manner of filling vacancies among the members of, the National Board shall be such as may be prescribed: Provided that adequate representation shall be given to persons belonging to the Scheduled Castes, the Scheduled Tribes, the Minorities and Women. (5) The term of the National Board shall be three years. (6) The National Board shall meet at least thrice a year, at such time and place and shall observe such rules of procedure relating to the transaction of business at its meetings, as may be prescribed. (7) The members may receive such allowances as may be prescribed for attending the meetings of the National Board. (8) The National Board shall perform the following functions, namely:— (a) recommend to the Central Government suitable schemes for different sections of unorganised workers; (b) advise the Central Government on such matters arising out of the v7] Edit with WPS Office © semved wth Ot Scanneradministration of this Act as may be referred to it; (c) monitor such social welfare schemes for unorganised workers as are administered by the Central Government; (a) review the progress of registration and issue of identity cards to the unorganised workers; (e) review the record keeping functions performed at the State level; (f) review the expenditure from the funds under various schemes; and (g) undertake such other functions as are assigned to it by the Central Government from time to time. CHAPTER IV STATE SOCIAL SECURITY BOARD FOR UNORGANISED WORKERS Sec 6. State Social Security Board.—(1) Every State Government shall, by notification, constitute a State Board to be known as (name of the State) State Social Security Board to exercise the powers conferred on, and to perform the functions assigned to it, under this Act. (2) The State Board shall consist of the following members, namely:— (a) Minister of Labour and Employment of the concerned State—Chairperson, ex officio; (b) the Principal Secretary or Secretary (Labour) -Member—Secretary, ex officio; and (c) twenty-eight members to be nominated by the State Government, out of whom— (i) seven representing the unorganised workers; (ii) seven representing employers of unorganised workers; (iii) two representing members of Legislative Assembly of the concerned State; (iv) five representing eminent persons from civil society; and (v) seven representing State Government Departments concerned. (3) The Chairperson and other members of the Board shall be from amongst persons of eminence in the fields of labour welfare, management, finance, law and administration. (4) The number of persons to be nominated as members from each of the categories specified in clause (c) of sub-section (2), the term of office and other conditions of service of members, the procedure to be followed in the discharge of their functions by, and the manner of filling vacancies among the members of, the State Board shall be such as may be prescribed: Provided that adequate representation shall be given to persons belonging to the Scheduled Castes, the Scheduled Tribes, the Minorities and Women. (5) The term of the State Board shall be three years. v7] Edit with WPS Office © semved wth Ot Scanner(6) The State Board shall meet atleast once in a quarter at such time and place and shall observe such rules of procedure relating to the transaction of business at its meetings, as may be prescribed. (7) The members may receive such allowances as may be prescribed for attending the meetings of the State Board. (8) The State Board shall perform the following functions, namely:— (a) recommend the State Government in formulating suitable schemes for different sections of the unorganised sector workers; (b) advise the State Government on such matters arising out of the administration of this Act as may be referred to it; (c) monitor such social welfare schemes for unorganised workers as are administered by the State Government: (d) review the record keeping functions performed at the District level; (e) review the progress of registration and issue of cards to unorganised sector workers; (f) review the expenditure from the funds under various schemes; and (g) undertake such other functions as are assigned to it by the State Government from time to time. Sec 7. Funding of State Government Schemes.—(1) Any scheme notified by the State Government may be— (i) wholly funded by the State Government; or (ii) partly funded by the State Government, partly funded through contributions collected from the beneficiaries of the scheme or the employers as may be prescribed in the scheme by the State Government. (2) The State Government may seek financial assistance from the Central Government for the schemes formulated by it. (3) The Central Government may provide such financial assistance to the State Governments for the purpose of schemes for such period and on such terms and conditions as it may deem fit. Sec 8. Record keeping by District Administration.—The record keeping functions for the purpose of this Act shall be performed by the District Administration: Provided that the State Government may direct that the record keeping function shall be performed by— (a) the District Panchayat in rural areas; and (b) the Urban Local Bodies in urban areas. Sec 9. Workers facilitation centres.—The State Government may set up such Workers’ facilitation centres as may be considered necessary from time to time to perform the following functions, namely:— (a) disseminate information on available social security schemes for the unorganised workers; (b) facilitate the filling, processing and forwarding of application forms for registration of unorganised workers; (c) assist unorganised v7] Edit with WPS Office © semved wth Ot Scannerworker to obtain registration from the District Administration; (d) facilitate the enrollment of the registered unorganised workers in social security schemes. CHAPTER V REGISTRATION Sec 10. Eligibility for registration and social security benefits.— (1) Every unorganised worker shall be eligible for registration subject to the fulfilment of the following conditions, namely:— (a) he or she shall have completed fourteen years of age; and (b) a self-declaration by him or her confirming that he or she is an unorganised worker. (2) Every eligible unorganised worker shall make an application in the prescribed form to the District Administration for registration. (3) Every unorganised worker shall be registered and issued an identity card by the District Administration which shall be a smart card carrying a unique identification number and shall be portable. (4) If a scheme requires a registered unorganised worker to make a contribution, he or she shall be eligible for social security benefits under the scheme only upon payment of such contribution. (5) Where a scheme requires the Central or State Government to make a contribution, the Central or State Government, as the case may be, shall make the contribution regularly in terms of the scheme. CHAPTER VI Sec 11. Power of Central Government to give directions.—The Central Government may give directions to— (i) the National Board; or (ii) the Government of a State or the State Board of that State, in respect of matters relating to the implementation of the provisions of this Act. 12. Vacancies, etc., not to invalidate proceedings.—No proceedings of the National Board or any State Board shall be invalid on the ground merely of the existence of any vacancy or defect in the constitution of the National Board or, as the case may be, the State Board. 13. Power to make rules by Central Government—(1) The Central v7] Edit with WPS Office © semved wth Ot ScannerGovernment may, by notification, make rules to carry out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the contributions to be collected from the beneficiaries of the scheme or the employers under sub-section (1) of section 4; (b) the number of persons to be nominated, the term of office and other conditions of service of members, the procedure to be followed in the discharge of functions by, and the manner of filling vacancies of, the National Board under sub- section (4) of section 5; (©) The rules of procedure relating to the transaction of the business at the meeting of the National Board under sub-section (6) of section 5; (d) The allowances for attending the meetings of the National Board under sub-section (7) of section 5; (e) The form for making an application for registration under sub-section (2) of section 10; and (f) Any other matter which is required to be, or may be, prescribed. Sec 14. Power to make rules by State Government.—(1) The State Government may, by notification, make rules to carry out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely: (a) the number of persons to be nominated, the term of office and other conditions of service of members, the procedure to be followed in the discharge of functions by, and the manner of filling vacancies of, the State Board under sub-section (4) of section 6; (b) The rules of procedure relating to the transaction of business at the meetings of the State Board under sub-section (6) of section 6; (c) The allowances for attending the meetings of the State Board under sub -section (7) of section 6; (d) The contributions to be collected from the beneficiaries of the scheme or the employers under sub-section (1) of section 7; (e) The form in which the application for registration shall be made under sub-section (2) of section 10; and (f) Any other matter which is required to be, or may be, prescribed. Sec 15. Laying of rules.—(1) 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 v7] Edit with WPS Office © semved wth Ot Scanner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. (2) Every rule made under this Act by State Government shall be laid, as soon as may be after it is notified, before the State Legislature. Sec 16. Saving of certain laws.—Nothing contained in this Act shall affect the operation of any corresponding law in a State providing welfare schemes which are more beneficial to the unorganised workers than those provided for them by or under this Act. 17. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as may appear to it to be necessary for removing the difficulty: Provided that no such order shall be made under this section after the expiry of a period of two years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. KARNATAKA COMMERCIAL SHOPS & ESTABLISHMENTS ACT 1961 Karnataka Shops and Establishment Act 1961 and Rules 1963 make the base of labour laws that organisations should follow. This over view of the Shop and establishment act is the first in a series of articles to come on the labour laws in India. Shops and Commercial Establishments act is a v7] Edit with WPS Office © semved wth Ot Scannermust know act for the employer and employees both as it contains duties and the rights of owner and employees respectively. Here | have covered the salient features of this act. In the Year 1961 the Government of Karnataka had brought in the Shops and Establishment act, to provide for the regulations guiding the conditions of work and employment in shops & Commercial Establishment in Karnataka. This act came in to force from 1st March 1962. Who should register under Karnataka Shops and Establishment Act 1961? All the Shops and Commercial Establishments in Karnataka, unless otherwise expressly exempted should register with the authorities under this act. Definition of Shop: As per the Act, "Shop means any premises where any trade or business is carried on or where services are rendered to customers and includes offices, storerooms godowns, warehouses, whether in the same premises or otherwise, used in such connection whit such trade or business, but does not include a commercial establishment or a shop attached to a factory where the persons employed in the shop fall within the scope of the Factories Act, 1948." Definition _of Commercial _Establishment_:" Commercial establishment means a commercial or trading or banking or insurance establishment, an establishment or administrative service in which persons employed are mainly engaged in office work, a hotel, restaurant, boarding or eating house, a cafe or any other refreshment house, a theatre or any other place of public amusement or entertainment and includes such establishments as the State government may by notification declare to be a commercial establishment for the purpose of this Act" So basically every business unit will have to register with the act except it is exempted. That brings us to the question who is or which organisations are exempt from the applicability act. Who are Exempted form Karnataka Shops and establishment act 1961? Following types of establishments are exempt from the applicability of Karnataka Shop and establishment act 1961 by Section 3 of the act: Central or State Government or Local Authority offices; v7] Edit with WPS Office © semved wth Ot Scanner11. Any water transport service, postal, railway survey, telephone or telegraph service, any system of public sanitation or conversancy or any industry, undertakings which supplies light, water or power to the public; 12. Dining cars of Railways; 13. Establishments for care or treatment of the mentally unfit, infirm or the sick; 14. The food corporation of India's establishments; 15. The offices of legal and medical practitioners provided that they have not employed more than three persons; 16. ABanking company’s offices; 17. Any person employed for any business referred above points. 18. persons who are occupying the positions of management in any establishment; 19. persons working on in positions which are inherently intermittent such as care takers , drivers, canvassers, or watch and ward staff; 20. Persons who are directly engaged in complementary or preparatory work, like clearing and forwarding clerks who are responsible for dispatch of the goods. Owner and his Duties: Owner is defined by the act as “the person having charge of or owning or having ultimate control over the affairs of an establishment and includes members of the family of an employer, a manager, agent, other person acting in the general management and control of an establishment" Duties: + Each owner should submit the application form in Form ‘A’ to register his establishment within 30 days from starting business. It is the duty of the owner to display the registration certificate inside the premises in a visible place. + Once issued the registration is valid for Five years. Before the expiry of this period, application for renewal should be submitted. + Any change in particulars given in statement during registration, such as change in ownership, address number of employees etc., should be notified by the owner to the registration authority within 15 days of v7] Edit with WPS Office © semved wth Ot Scannersuch change. + This certificate of registration should be surrendered to the registration authority in case of closure of the business. Working Hours as per Karnataka Shop & establishment act. Any Organisation shall not carry out business before and after the below given hours: If the work place is Bangalore city - Morning before 6 am. & night after 9 P.M. and other places in Karnataka before 8 a. m. in the morning and after 8 p.m. in the night. The maximum limit for continuous work is Shrs after which there should be a break which is mandatory. Employment of Child & Women: Employing child under the age of 14 years is prohibited. Further Women employees and young person between the age of 14-18 years should not be allowed or required to work after 8 p.m. at night. If any IT/BT company wants to allow women to work beyond 8 p.m. deadline, it has to obtain permission from authorities by giving required information in form R to the authorities. Weekly Holiday under the act: Every establishment in Karnataka shall mandatorily remain closed on one day in a week. It is the duty of the employer to fix such a day in the starting of the year and notify to the registering authority and display on notice board at the premises of the establishment. But if the organization has sufficient additional workers it can remain open whole week by fixing different days as holiday for different workers. In such a case a report to the effect will have to be submitted to the deputy labour commissioner. Exemptions from weekly holiday: Following establishments have been exempted from weekly holiday. Establishment engaged in Sale of medical equipment and medicine. + Hostel, Hostel attached to schools or college, Residential Schools, Lodging and Hotel, Clubs. + Refreshment rooms and stalls situated at bus stands, areodromes, railway stations and ports. v7] Edit with WPS Office © semved wth Ot ScannerHairdressing and Barber Shops Shops which are mainly dealing in fish, meat, poultry, dairy produce (except ghee), eggs, bread, confectionery, chocolates, sweets, ice, ice cream, flowers, fruits, vegetables or green fodder, cocked food for sale; Shops selling Cigarette, soft drinks, Pan beedi; Shops dealing in news paper, magazine and related offices. Public recreation centers like Cinema, theater shops and stalls attached to such recreation centres; Sale of Petrol / Diesel establishments; Body Tan Shops; Retails shops at an Exhibition, only if such retail items are incidental and ancillary to the Show's purpose; + Bricks manufacturing units, oil and flour mill which are not registered under factories act. + Establishments engaged in the process of melting of bronze and brass in a furnace. + Services related to information technology, biotechnology and institution doing research on contagious disease. + An establishment having exemption form weekly holiday, shall give mandatory holiday for a person working continuously for 6 days on the 7th day. In cases where this is not possible than 11th should be the mandatory holiday for him. Other Employee related Regulations: + Employer should issue appointment order in Form 'P’ to every person being employed in connection with the organization and keep the attendance in form 'T' Register. Salary shall be paid before the 7th of every month for the previous month. + At the end of every year, for continuing employees earned leave should be credited. This earned leave is calculated at 1 day for 20 days worked during the year. And sick leaves at the rate of 1 day for every 30 days shall be calculated and credited in addition to earned leaves. Form 'F' should be used to maintain the leave records. + To terminate an employee who has completed 180 days, issuing prior notice is mandatory. v7] Edit with WPS Office © semved wth Ot ScannerRights of the Employees: + It is the right of every employee to take one day in a week as mandatory holiday. + Employee working extra hours is entitled to overtime pay at the rate of twice the normal wage. + Earned leave can be accumulated up to 40 days by every employee. «+ Encashment of unutilized earned leave is the right of every employee. + If an employee is removed and he believes that there was no sufficient cause for such removal can approach the jurisdiction officer and place his appeal against such dismissal. Where such improper dismissal is proved, the employee is entitled to a compensation equal to one month's pay for every year of service rendered. The implementation of Karnataka Shops and Establishments act has gone online and the website is www.ekarmika.com. In my next article | will be explaining about registration process online for the Karnataka Shop and establishment act. If you think this article is helpful or you need any further assistance, just leave a comment below. REGISTRATION OF ESTABLISHMENTS. Sec 4. Registration of Establishments.—(1) Within the period specified in sub-section (3), the employer of every establishment shall send to the Inspector of the area concerned, a statement in the prescribed form together with such fees as may be prescribed, containing,— (a) the name of the employer and the manager, if any; (b) the postal address of the establishment; (c) the name, if any, of the establishment; and (d) such other particulars as may be prescribed. (2) On receipt of the statement and the fees, the Inspector shall, on being satisfied about the correctness of the statement, register the establishment in the register of establishments in such manner as may be prescribed, and shall issue, in a prescribed form, a registration certificate to the employer. The registration certificate shall be prominently displayed at the establishment. (3) Within thirty days from the date mentioned in column (2) below in respect of an establishment mentioned in column (1), the statement together with fees shall be sent to the Inspector under sub-section (1). Establishments. Date v7] Edit with WPS Office © semved wth Ot Scannerfrom which the period of thirty days to commence. (1) (2) (i) Establishment existing on the date on which this Act comes into force. (i) The date on which this Act comes Into force. (ii) New establishments. (ii) The date on which the establishment commences its work. 1[(3A) In case the Inspector is not satisfied about the correctness of the statement together with fees under sub-section (3) shall within thirty days from the date of receipt of the same communicate to the employer his decision for refusing to register the establishment with the reasons therefor, failing which the establishment shall be deemed to have been registered.(4) A registration certificate issued under sub-section (2), shall be valid for five years and shall be renewed before the expiry of the period of registration certificate on payment of such fees and in such manner as may be prescribed. 15 1[(5) The registration certificate issued or renewed before the commencement of the Karnataka Shops and Commercial Establishments (Amendment) Act, 1997 shall, on such commencement, continue to be valid till the expiry of the period of registration certificate already granted and the employer of every such establishment shall renew his registration certificate before the expiry of such period in accordance with sub-section @). In case the Inspector is not satisfied about the correctness of the statement or the renewal application or the payment fee prescribed or any other condition of renewal shall within thirty days from the date of receipt of statement together with fees from the employer seeking renewal of registration certificate communicate to the employer his decision for refusing to renew the registration with the reasons therefor, failing which the registration certificate shall be deemed to have been renewed. (7) In case the certificate of registration or renewal of registration is not received by any employer within the period specified in sub-section (3A) or (6), the employer shall display a self-certification statement sent by Registered Post with Acknowledgement Due to the Registering Authority for registration or renewal, as the case may be, along with the acknowledgement to that effect stating that he has got the deemed benefit. In case the certificate of registration or renewal of registration as the case may be, is received by the employer subsequently, such self certification shall be replaced with a regular certificate as soon as the same is received. (8) If any employer has falsely claimed the benefit of deemed registration v7] Edit with WPS Office © sewned wth Xt Scannerand has displayed such self certificate under sub-section (7), he shall on conviction be punished with an imprisonment of not less than six months and with a fine which may extend to five thousand rupees. Sec 5. Change to be communicated to Inspector.—It shall be the duty of an employer to notify to the Inspector, in the prescribed form, any change in respect of any information contained in his statement under section sec 4, within fifteen days after the change has taken place. The Inspector shall, on receiving such notice and on being satisfied about its correctness, make the change in the register of establishments and shall amend the registration certificate or issue a fresh registration certificate, if necessary. Sec 6. Closing of establishment to be communicated to Inspector.—The employer shall, within fifteen days of his closing the establishment, notify to the Inspector in writing the date of such closure and return the registration certificate. The Inspector shall, on receiving the information and being satisfied about its correctness, remove such establishment from the register of establishments and cancel the registration certificate: Provided that if the Inspector does not receive the information, but is otherwise satisfied that the establishment has been closed, he may remove such establishment from such register. Sec 6A. Issue of appointment orders.—Every employer, employing any person in or in connection with his establishment, shall issue an appointment order in writing indicating the name, designation, wage scale of such person and terms and conditions of his employment and serve the same on such person within thirty days from the date of appointment in his establishment , Provided that in case of employees appointed in any establishment prior to the commencement of the Karnataka Shops and Commercial Establishments (Amendment) Act, 1997, the employer of such establishment shall, if he has not yet issued any appointment order in writing to such employee, communicate in writing to the employee incorporating therein his name, designation and wage scale and the terms and conditions of employment and serve the same on him within thirty days from the date of such commencement.]1 Sec 7. Daily and weekly hours.—(1) No employee in any establishment shall be required or allowed to work for more than nine hours on any day and forty-eight hours in any week: Provided that the total number of hours of v7] Edit with WPS Office © semved wth Ot Scannerwork including overtime shall not exceed ten hours in any day except on days of stock-taking and preparation of accounts: Provided further that the total number of overtime hours worked by an employee does not exceed fifty in a period of three continuous months. (2) No young person shall be allowed to work in any establishment for more than five hours in a day. Sec 8. Extra wages for overtime work.—(1) Where an employee works in any establishment for more than nine hours in any day or for more than forty-eight hours in any week he shall in respect of such overtime work be entitled to wages at twice the rate of normal wages. (2) For the purposes of this section “normal wages” means the basic wages plus such allowances, including the cash equivalent of the advantage accruing through the concessional sale to workers of food grains and other articles, as the worker is for the time being entitled to, but does not include a bonus. (3) The cash equivalent of the advantage accruing through the concessional sale to a worker of food grains and other articles shall be computed as often as may be prescribed on the basis of the maximum quantity of food grains and other articles admissible to a standard family. Explanation 1.—"standard family” means a family consisting of an employee, his or her spouse and two children below the age of fourteen years requiring in all three adult consumption units. Explanation 2.—“adult consumption unit” means the consumption unit of a male above the age of fourteen years; and the consumption unit of a female above the age of fourteen years and that of a child below the age of fourteen years shall be calculated at the rates of .8 and .6 respectively of one adult consumption unit. (4) The State Government may make rules prescribing,- (a) the manner in which the cash equivalent of the advantage accruing through the concessional sale to a worker of food grains and other articles shall be computed; (b) the registers that shall be maintained in an establishment for the purpose of securing compliance with the provisions of this section. Sec 9. Interval for rest—The periods of work of an employee in an establishment each day shall be so fixed that no period shall exceed five hours and that no such person shall work for more than five hours before he has had an interval of rest of at least one hour. Sec 10. Spreadover.—The periods of work of an employee in an v7] Edit with WPS Office © semved wth Ot Scannerestablishment shall be so fixed that, inclusive of his interval for rest, they shall not spreadover more than twelve hours in any day. Sec 11. Opening and closing hours.—(1) No establishment shall on any day, be opened earlier than and closed later than such hours as may be fixed by a notification issued by the State Government: Provided that any customer who was being served or was waiting to be served in any establishment at the hour fixed for its closing may be served during the quarter of an hour immediately following such hour. (2) Before issuing a notification under sub-section (1), the State Government shall hold an enquiry in the prescribed manner. (3) The State Government may, for the purpose of this section, fix different hours for different establishments or different classes of establishments or for different areas or for different times of the year. Sec 12. Weekly Holidays.—(1) Every establishment shall remain closed for one day of the week. The employer shall fix such date at the beginning of the year, or within thirty days from the date of commencement of establishments, as the case may be notify it to the Inspector and specify it in a notice prominently displayed in a conspicuous place in the establishment. The employer shall not alter such date more often than once in three months, shall notify the alteration to the Inspector, and shall make the necessary change in the notice in the establishment. (2) Notwithstanding anything contained in sub-section (1), the State Government may allow an establishment to remain open throughout the week if it is satisfied that the establishment employs additional staff for meeting the requirements of sub-section (3) of this section. (3) Every employee in an establishment shall be given at least one whole day in a week as a holiday for rest: Provided that in establishments in which rest for one-and-a-half days in a week is allowed, such period of rest shall be continued. (4) It shall not be lawful for an employer to call an employee at, or for an employee to go to, his establishment or any other place for any work in connection with the business of his establishment on a weekly holiday given to the employee under sub-section (3) or on a day on which such establishment remains closed. (5) No deduction shall be made from the wages of an employee in any establishment on account of the holiday given to him under sub-section (3). If any employee is employed on daily wages, he shall nonetheless be paid his wages for the weekly holiday. v7] Edit with WPS Office © semved wth Ot ScannerSec 13. Selling outside establishments prohibited after closing hours.— Save as provided by or under any other enactment for the time being in force, no person shall carry on, in or adjacent to a street or public place, the sale of any goods after the hour fixed under section 11 for the closing of establishments dealing in the same class of goods in the locality in which such street or public place is situated: Provided that nothing in this section shall apply to the sale of newspapers and such other articles as may be exempted by notification by the State Government. Sec 14. Application of Chapter.—The provisions of this Chapter shall not operate to the prejudice of any rights to which an employee may be entitled under any other law or under the terms of any award, agreement or contract of service: Provided that where such award, agreement or contract of service provides for a longer leave with wages or weekly holidays than are provided in this Chapter, the employee shall be entitled to only such longer leave or weekly holidays, as the case may be. See 15, Annual leave with wages. (1) Every employee in an establishment shall be entitled to leave with wages and shall be allowed to avail such leave for the number of days calculated at the rate of, (i) one day for every twenty days work performed by him, in case of an adult; (ii) one day for every fifteen days of work performed by him, in case of a young person; Explanation: For the purpose of this sub-section,— (a) any day of lay-off, by agreement or contract as permissible under the standing order or for any other reasons beyond the employer's control; (b) in the case of female employee, maternity leave for any number of days not exceeding twelve weeks; and (c) the leave earned in the year prior to that in which the leave is enjoyed: -shall be deemed to be days on which the employee has worked in an establishment for the purposes of computation of leave under this section, but the employee shall not earn leave for that period. (3) Every employee shall also be entitled during the first twelve months of continuous service and during every subsequent twelve months of such service in any establishment to leave with wages for a period not exceeding twelve days, on the ground of any sickness incurred or accident sustained by him or for any other reasonable cause. (4) If an employee is v7] Edit with WPS Office © semved wth Ot Scannerdischarged or dismissed from service during the course of the year he shall be entitled to leave with wages at the rates laid down in sub-section (1) even if he has not worked for the entire period specified in sub-section (1) entitling him to earn leave. (5) If an employee entitled to any leave under sub-section (3) is discharged or dismissed from service when he is sick or suffering from the result of an accident, the employer shall pay him the amount payable under this Act in respect of the period of the leave to which he was entitled at the time of his discharge or dismissal, in addition to the amount, if any, payable to him under sub-section (4). (6) In calculating leave under this section, fraction of leave of half a day or more shall be treated as one full day's leave, an fraction of less than half a day shall be omitted. (7) If an employee does not in any one calendar year take the whole of the leave allowed to him under sub-section (1) or sub- section (2), as the case may be, any leave not taken by him shall be added to the leave to be allowed to him in the succeeding calendar year: Provided that the total number of the days of leave that may be carried forward to a succeeding year shall not exceed thirty days in the case of an adult and forty days in the case of a young person: Provided further that an employee who has applied for leave with wages but has not been given such leave in accordance with any scheme laid down in sub-sections (10) and (11) shall be entitled to carry forward the unavailed leave without any limit. (8) An employee may at any time apply in writing to the manager of the establishment, not less than ten days before the date on which he wishes his leave to begin, to take all the leave or any portion thereof allowable to him during the calendar year: Provided that the number of times in which leave may be taken during any year shall not exceed three or such number as may be agreed upon between the employer and the employee. (9) If any employee wants to avail himself of the leave with wages due to him under sub-section (3), he shall be granted such leave even if the application for leave is not made within the time specified in sub-section (8), and in such a case wages as admissible under section 17 shall be paid not later than fifteen days from the date on which the leave begins. (10) For the purpose of ensuring continuity of work in an establishment, the employer in agreement with the representatives of employees therein, chosen in the prescribed manner, may formulate a scheme in writing whereby the grant of leave allowable under this section may be regulated. (11) A scheme formulated under sub-section (10) shall be posted in convenient places in v7] Edit with WPS Office © semved wth Ot Scannerthe premises of the establishment and shall be in force for a period for twelve months from the date on which it comes into force and may thereafter be renewed, with or without modification, for a further period of twelve months at a time by the employer in agreement with the representatives of the employees as specified in sub-section (10). (12) An application for leave which does not contravene the provisions of sub- section (8) shall not be refused, unless the refusal is in accordance with the scheme for the time being in operation under sub-sections (10) and (11). (13) If the employment of an employee who is entitled to leave under sub- section (1) 1[x x x]1_ is terminated by the employer before he has taken the entire leave to which he is entitled or if having applied for and having not been granted such leave, the employee quits his employment before he has taken the leave, the employer shall pay him the amount payable under section 16 in respect of the leave not taken, and such payment shall be made, where the employment of the employee is terminated by the employer, before the expiry of the second working day after such termination, and where an employee quits his employment, on or before the next pay day. 1. Omitted by Act 25 of 1997 w.ef. 12.2.1998. (14) The unavailed leave of an employee shall not be taken into consideration in computing the period of any notice required to be given before discharge or dismissal. Sec 16. Wages during leave period.—(1) For the leave allowed to him under section 15, an employee shall be paid at the rate equal to the daily average of his total full-time earnings for the days on which he worked during the month immediately preceding his leave, exclusive of any overtime wages and bonus but inclusive of dearness allowance and the cash equivalent of the advantage accruing through the concessional sale to the employee of foodgrains and other articles. (2) The cash equivalent of the advantage accruing through the concessional sale to the employee of foodgrains and other articles shall be computed as often as may be prescribed on the basis of the maximum quantity of foodgrains and other articles admissible to a standard family. Explanation.—The explanations to sub-section (3) of section 8 shall be applicable for purposes of determining standard family under this sub- section. Sec 17. Payment in advance in certain cases.—An employee who has been allowed leave for not less than four days in the case of an adult, and for not v7] Edit with WPS Office © sewned wth Xt Scannerless than five days in the case of a young person, shall before his leave begins, be paid the wages due for the period of leave allowed. Sec 18. Mode of recovery of unpaid wages.—Any sum required to be paid by an employer under this Chapter but not paid by him shall be recoverable as delayed wages under the provisions of the Payment of Wages Act, 1936 Sec 19. Power to make rules.—The State Government may, to carry out the purposes of this Chapter, make rules directing employers to keep registers containing such particulars as may be prescribed and requiring the registers to be made available for examination by Inspectors. Sec20. Power to exempt establishment.—Where the State Government is satisfied that the leave rules applicable to employees in an establishment provide benefits which in its opinion are not less favourable than those for which this Chapter makes provision, it may, by notification, exempt the establishment from all or any of the provisions of this Chapter, subject to such conditions as may be specified in the notification. Sec 21. Application of the Payment of Wages Act.—(1) Notwithstanding anything contained in the Payment of Wages Act, 1936, the State Government may, by notification, direct that subject to the provisions of sub-section (2), the said Act or any of the provisions thereof as in force on the date of passing of this Act by the State Legislature shall apply to all or any class of employees and their employers in establishments to which this Act applies, and thereupon, the said Act or the provisions thereof shall be applicable to the employers and employees, as if enacted in this Act. (2) On the application of the provisions of the said Act to any establishment under sub-section (1), the Inspector appointed under this Act shall be deemed to be the Inspector for the purpose of the enforcement of the provisions of the said Act within the local limits of his jurisdiction. Sec 22. Application of the Workmen's Compensation Act.—The provisions of the Workmen's Compensation Act, 1923 (Central Act VIII of 1923), as in force on the date of passing of this Act by the State Legislature, and the rules made there under by the State Government for the time being in force shall mutatis mutandis apply to employees and employers of shops and commercial establishments. Sec 24. Prohibition of employment of children.—No child shall be required v7] Edit with WPS Office © sewned wth Xt Scanner