Company : Sol Infotech Pvt. Ltd. Website : www.courtkutchehry.com Tamil Nadu Shops And Establishments Act, 1947 36 of 1947 [10 February 1948] CONTENTS CHAPTER 1 :- PRELIMINARY 1. Short Title, Extent And Commencement 2. Definitions 3. References To Time Of Day 4. Exemption 5 . Power Of Government To Apply Act To Exempted Persons Or Establishments 6. Exemptions CHAPTER 2 :- SHOPS 7. Opening And Closing Hours Of Shops 8. Selling Outside Shops Prohibited After Closing Hour 9. Daily And Weekly Hours Of Work In Shops 10. Spread Over Of Periods Of Work 11. Closing Of Shops And Grand Holidays CHAPTER 3 :- ESTABLISMENTS OTHER THAN SHOPS 12. Application Of This Chapter Of Establishments Other Than Shops 13. Opening And Closing Hours 14. Daily And Weekly Hours Of Work 15. Spread Over Of Periods Of Work 16. Holidays CHAPTER 4 :- EMPLOYMEMT OF CHILDREN AND YOUNG PERSONS 17. Children Not To Work In Establishments 18. Young Persons To Work Only Between 6 A.M. And 7 P.M 19. Daily And Weekly Hours Of Work For Young Persons CHAPTER 5 :- HEALTH AND SAFETY 20. Cleanliness 21. Ventilation 22. Lighting 23. Precaustions Against Fire 24. Appeal CHAPTER 6 :- HOLIDAYS WITH WAGES 25. Holidays And Sick Leave 26. Pay During Annual Holidays 27. Power To Increase The Number Of Holidays 28. Power Of Inspector To Act For Person Employed CHAPTER 7 :- WAGES 29. Responsibility For Payment Of Wages 30. Fixation Of Wage Period 31. Wages For Overtime Work 32. Time Of Payment Of Wages 33. Wages To Be Paid In Current Coin Or Currency Notes 34. Deductions Which May Be Made From Wages 35. Fines 36. Deductions For Absence From Duty 37. Deductions For Damage Or Loss 38. Deductions For Services Rendered 39. Deductions For Recovery Of Advances 4 0 . Deductions For Payments To Co-Operative Societies And Insurance Schemes 41. Notice Of Dismissal 4 1 A . Payment Of Full Wage To Person Employed Pending Proceedings In Higher Courts CHAPTER 8 :- APPOINTMENT, POWERS AND DUTIES OF INSPECTORS 42. Appointment Of Inspectors 43. Powers And Duties Of Inspectors 44. Inspectors To Be Public Sevants CHAPTER 9 :- PENALTIES FOR OFFENCES 45. Penalties 45A. Penalty For Failure To Comply With The Provision Of Section 41-A 46. Penalty For Obstructing Inspector, Etc 46A. Compounding Of Offences CHAPTER 10 :- MISCELLANEOUS 47. Maintenance Of Registers And Records And Display Of Notices 48. Delegation Of Powers 49. Power To Make Rules 50. Rights And Privileges Under Other Law, Etc., Not Affected 51. Commissioner Of Labour To Decide Certain Questions 52. Power Of Government To Suspend Provisions Of The Act During Fairs And Festivals 5 3 . Central Act Xviii Of 1942 Not To Apply To Establishments Governed By This Act Tamil Nadu Shops And Establishments Act, 1947 36 of 1947 [10 February 1948] An Act to provide for the regulation of conditions of work in shops, commercial establishments, restaurants, theatres and other establishments, and for certain other purposes. Whereas it is expedient to provide for the regulation of conditions of work in shops, commercial establishments, restaurants, theatres and other establishments and for certain other purposes ; it is hereby enacted as follows :-- 1. Received the assent of the Governor-General on the 2nd February, 1948, first published in the Fort St. George Gazette on the 10th February, 1948. CHAPTER 1 PRELIMINARY 1. Short Title, Extent And Commencement :- (1) This Act may be called the Tamil Nadu Shops and Establishments Act, 1947. (2) It extends to the whole of the1[State] of Madras. 2[(3) (a) It shall come into force in the following areas on such date as the State Government may, by notification, appoint: (i)the City of Madras, (ii) all the municipalities constituted under the Madras District Municipalities Act, 1920 (Madras Act V of 1920), and (iii) all areas within the jurisdiction of panchayats which, under rule 2 of Schedule III to the Madras Village Panchayats Act, 1950 (Madras Act X of 1950), should be deemed to be constituted under that Act, and which immediately before the commencement of that Act, were classified by the State Government as major panchayats and all areas within the jurisdiction of panchayats constituted or reconstituted under that Act which, for the time being, are classified by the State Government as Class I Panchayats under section 5(1) (a) of that Act.] (b) The1[State] Government may, by notification, direct that all or any of the provisions of this Act shall come into force in any other area on such date as may be specified in such notification. 1. Substituted for "Province" by the Adaptation Order of 1950. 2. Amended by Sch. to Act XI of 1952 (deemed to have come into force on the 1st April, 1951). 2. Definitions :- In this Act, unlessthere is anything repugnant in the subject or context-- (1) "child"means a person who has not completed fourteen years; (2) "closed"means not open for the service of any customer or open to any business connectedwith the establishment; (3) "commercialestablishment" means an establishment which is not a shop but which carrieson the business of advertising, commission, forwarding or commercial agency, orwhich is a clerical department of a factory or industrial undertaking or whichis an insurance company, joint stock company, bank, brokers office or exchangeand includes such other establishment as the State Government may bynotification1 declare to be a commercial establishment for thepurposes of this Act; ( 4 ) "day"means the period of twenty-four hours beginning at midnight: Provided that in thecase of a person employed, whose hours of work extend beyond midnight, day meansthe period of twenty-four hours beginning from the time when such employmentcommences; (5)"employer" means a person owning, or having charge of, the business ofan establishment and includes the manager, agent or other person acting in thegeneral management or control of an establishment; (6)"establishment" means a shop, commercial establishment, restaurant,eating-house, residential hotel, theatre or any place of public amusement orentertainment and includes such establishment as the 2 [State]Government may by notification declare to be an establishment for the purposesof this Act; 3 [(7)"factory" means any premises which is a factory within the meaning ofthe Factories Act, 1948;] (8)"inspector" means an Inspector appointed under section 42; (9)"notification" means a notification in the Fort St. George Gazette;4 (10)"opened" means opened for the service of any customer; (11) "periods ofwork" means the time during which a person employed is at the disposal ofthe employer; (12) "personemployed" means-- (i) in the case of ashop, a person wholly or principally employed therein in connexion with thebusiness of the shop; (ii) in the case of afactory or an industrial undertaking, a member of the clerical staff employed insuch a factory or undertaking ; (iii) in the case of acommercial establishment other than a clerical department of a factory or anindustrial undertaking, a person wholly or principally employed in connexionwith the business of the establishment, and includes a peon; (iv) in the case of arestaurant or eating-house, a person wholly or principally employed in thepreparation or the serving of food or drink or in attendance on customers or incleaning utensils used in the premises or as a clerk or cashier; (v) in the case of atheatre, a person employed as an operator, clerk, door-keeper, usher or in suchcapacity as may be specified by the 2 [State] Government by general orspecial order; (vi) in the case of anestablishment not falling under paragraphs (i) to (v) above, a person wholly orprincipally employed in connection with the business of the establishment, andincludes a peon; (vii) in the case ofall establishments, a person wholly or principally employed in cleaning any partof the premises; but does not includethe husband, wife, son, daughter, father, mother, brother or sister of anemployer who lives with and is dependent on such employer; (13)"prescribed" means prescribed by rules made under this Act; (14) "residentialhotel" means any premises in which business is carried on bona fide for thesupply of dwelling accommodation and meals on payment of a sum of money to atraveller or any member of the public or class of the public; (15)"restaurant" or "eating-house" means any premises in whichis carried on wholly or principally the business of the supply of refreshmentsor meals to the public or a class of the public for consumption on the premisesbut does not include a restaurant attached to a theatre; (16) "shop"means any premises where any trade or business is carried on or where servicesare rendered to customers and includes offices, store-rooms, godowns andwarehouses, whether in the same premises or otherwise, used in connection withsuch business but does not include a restaurant, eating-house or commercialestablishment; (17)"theatre" includes any place intended principally or wholly for therepresentation of moving pictures or for dramatic performances; (18) "wages"means any remuneration, capable of being expressed in terms of money, whichwould, if the terms of the contract of employment, express or implied, werefulfilled, be payable, whether conditionally upon the regular attendance, goodwork or conduct or other behaviour of the person employed, or otherwise, to aperson employed in respect of his employment or of work done in such employment,and includes any bonus or other additional remuneration of the nature aforesaidwhich would be so payable and any sum payable to such person by reason of thetermination of his employment, but does not include-- (a) the value of anyhouse-accommodation, supply of light, water, medical attendance or other amenityor of any service excluded by general or special order of the 2 [State]Government1 ; (b) any contributionpaid by the employer to any pension fund or provident fund; (c) any travellingallowance or the value of any travelling concession ; (d) any sum paid tothe person employed to defray special expenses entailed on him by the nature ofhis employment; or (e) any gratuitypayable on discharge; (19) "week"means a period of seven days beginning at midnight on Saturday; (20) "youngperson" means a person who is not a child and has not completed seventeenyears. 1.See Appendix. 2. Substituted for "Provincial" by the AdaptationOrder of 1950. 3. Substituted for Act XIV of 1951, Sec. 3 (1) and Sch. II. 4. Now the Tamil Nadu Government Gazette. 3. References To Time Of Day :- References to time of day in this Act are references to Indian Standard Time which is five and a half hours ahead of Greenwich Mean Time. 4. Exemption :- (1) Nothing containedin this Act shall apply to-- (a) persons employedin any establishment in a position of management; (b) persons whose workinvolves travelling; and persons employed as canvassers and caretakers; (c) establishmentsunder the Central and 1 [State] Governments, local authorities, theReserve Bank of India, 2 [***] 3 [a railway administrationoperating any railway as defined in clause (20) of article 366 of theConstitution] and cantonment authorities; (d) establishments inmines and oil-fields; (e) establishments inbazaars in places where fairs or festivals are held temporarily for a period notexceeding fifteen days at a time; (f) establishmentswhich, not being factories within the meaning of the Factories Act, 1948, are inrespect of matters dealt with in this Act, governed by a separate law for thetime being in force in the 1 [State]. (2) Nothing containedin section 7 or section 13, as the case may be, shall apply to-- (a) hospitals andother institutions for the treatment or care of the sick, the infirm, thedestitute or the mentally unfit; (b) such chemists ordruggists shops as the 1 [State] Government may, by general orspecial order, specify; ( c ) clubs andresidential hotels, hostels attached to schools or colleges, and establishmentsmaintained in boarding schools in connection with the boarding and lodging ofpupils and resident masters; (d) stalls andrefreshment rooms at railway stations, docks, wharves or ports. 1. Substituted for "Provincial" by the AdaptationOrder of 1950. 2. The words "the Federal Railway Authority" wereomitted by the Adaptation (Amendment) Order of 1950. 3 . These words, brackets and figures were substituted by theAdaptation (Amendment) Order, 1950, for the words "a railway administrationoperating a Federal Railway". 5. Power Of Government To Apply Act To Exempted Persons Or Establishments :- Notwithstanding anything contained in section 4, the1[State] Government may, by notification2apply all or any of the provisions of this Act to any class of persons or establishments mentioned in that section, other than those mentioned in clauses (c) and (f) of sub-section (1), and modify or cancel any such notification. 1. Substituted for "Provincial "by the Adaptation Order of 1950. 2. See Appendix. 6. Exemptions :- The1[State] Government may, by notification2, exempt either permanently or for any specified period, any establishment or class of establishments, or person or class of persons, from all or any of the provisions of this Act, subject to such conditions as the 1[State] Government deem fit. 1. Substituted for "Provincial "by the Adaptation Order of 1950. 2. See Appendix. CHAPTER 2 SHOPS 7. Opening And Closing Hours Of Shops :- (1) Save as provided by or under any other enactment for the time being in force, no shop shall on any day be opened earlier or closed later than such hours as may be fixed by the1[State] Government, by a general or special order2in that behalf: Provided that any customer who was being served or was waiting to be served in any shop at the hour fixed for its closing may be served during the quarter of an hour immediately following such hour. (2) Before passing an order under sub-section (1), the1[State] Government shall hold an inquiry in the prescribed manner. (3) The1[State] Government may, for the purposes of this section, fix different hours for different shops or different classes of shops or for different areas or for different times of the year. 1. Substituted for "Provincial" by the Adaptation Order of 1950. 2. See Appendix. 8. Selling Outside Shops Prohibited After Closing Hour :- 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 7 for the closing of shops 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. 9. Daily And Weekly Hours Of Work In Shops :- (1) Subject to the provisions of this Act, no person employed in any shop shall be required or allowed to work therein for more than eight hours in any day and forty-eight hours in any week: Provided that any such person may be allowed to work in such shop for any period in excess of the limit fixed under this sub-section subject to payment of overtime wages, if the period of work including overtime work, does not exceed ten hours in any day and in the aggregate fifty-four hours in any week. (2) No person employed in any shop shall be required or allowed to work therein for more than four hours in any day unless he has had an interval for rest of at least one hour. 10. Spread Over Of Periods Of Work :- The periods of work of a person employed in a shop shall be so arranged that, along with his intervals for rest, they shall not spread over more than twelve hours in any day. 11. Closing Of Shops And Grand Holidays :- (1) Every shop shall remain entirely closed on one day of the week which day shall be specified by the shopkeeper in a notice permanently exhibited in a conspicuous place in the shop; and the day so specified shall not be altered by the shopkeeper more often than once in three months. (2) Every person employed in a shop shall be allowed in each week a holiday of one whole day: Provided that nothing in this sub-section shall apply to any person whose total period of employment in the week, including any days spent on authorised leave, is less than six days, or entitle a person who has been allowed a whole holiday on the day on which the shop has remained closed in pursuance of sub-section (1), to an additional holiday. (3) (a) The1[State] Government may, by notification, require in respect of shops or any specified class of shops, that they shall, in addition to the day provided for by sub-section (1), be closed at such hour in the afternoon of one week-day in every week at such hour as may be fixed by the1[State] Government. (b) Every person employed in any shop to which a notification under clause (a) applies, shall be allowed in each week an additional holiday of one half-day commencing at the hour in the afternoon fixed for the closing of the shop under clause (a). (4) The1[State] Government may, for the purpose of sub-section (3), fix different hours for different shops or different classes of shops or for different areas or for different times of the year. (5) The weekly day on which a shop is closed in pursuance of requirement under sub-section (3) shall be specified by the shop- keeper in a notice permanently exhibited in a conspicuous place in the shop, and shall not be altered by the shopkeeper more often than once in three months. (6) No deduction shall be made from the wages of any person employed in a shop on account of any day or part of a day on which it has remained closed or a holiday has been allowed in accordance with this section ; and if such person is employed on the basis that he would not ordinarily receive wages for such day or part of a day, he shall nonetheless be paid for such day or part of a day the wages he would have drawn, had the shop not remained closed, or had the holiday not been allowed, on that day or part of a day. 1. Substituted for "Provincial" by the Adaptation Order of 1950. CHAPTER 3 ESTABLISMENTS OTHER THAN SHOPS 12. Application Of This Chapter Of Establishments Other Than Shops :- The provisions of this Chapter shall apply only to establishments other than shops. 13. Opening And Closing Hours :- (1) Save as provided by or under any other enactment for the time being in force, no establishment shall on any day be opened earlier or closed later than such hour as may be fixed by the1[State] Government by general or special order2in that Behalf: Provided that in the case of a restaurant or eating house, any customer who was being served or was waiting to be served therein at the hour fixed for the closing may be served during the quarter of an hour immediately following such hour. (2) Before passing an order under sub-section (1), the1[State] Government shall make an inquiry in the prescribed manner. (3)The1[State] Government may, for the purposes 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. 1. Substituted for "Provincial" by the Adaptation Order of 1950. 2. See Appendix. 14. Daily And Weekly Hours Of Work :- (1) Subject to the provisions of this Act, no person employed in any establishment shall be required or allowed to work for more than eight hours in any day and forty-eight hours in any week: Provided that any such person may be allowed to work in such establishment for any period in excess of the limit fixed under this sub-section subject to payment of overtime wages, if the period of work, including overtime work, does not exceed ten hours in any day and in the aggregate fifty-four hours in any week. (2) No person employed in any establishment shall be required or allowed to work in such establishment for more than four hours in any day unless he has had an interval for rest of at least one hour. 15. Spread Over Of Periods Of Work :- The periods of work of a person employed in an establishment shall be so arranged that along with his intervals for rest, they shall not spread over more than twelve hours in any day. 16. Holidays :- (1) Every person employed in an establishment shall be allowed in each week a holiday of one whole day : Provided that nothing in this sub-section shall apply to any person whose total period of employment in the week, including any days spent on authorised leave, is less than six days. (2) The1[State] Government may, by notification, require in respect of any establishment or any specified class of establishments, that every person employed therein shall be allowed in each week an additional holiday of one half day commencing at such hour in the afternoon as may be fixed by the1[State] Government. (3) The1[State] Government may, for the purposes of sub-section (2), fix different hours for different establishments or different classes of establishments or for different areas or for different times of the year. (4) No deduction shall be made from the wages of any person employed in an establishment on account of any day or part of a day on which a holiday has been allowed in accordance with this section ; and if such person is employed on the basis that he would not ordinarily receive wages for such day or part of a day, he shall nonetheless be paid for such day or part of a day the wages he would have drawn, had the holiday not been allowed on that day or part of a day. 1. Substituted for "Provincial" by the Adaptation Order of 1950. CHAPTER 4 EMPLOYMEMT OF CHILDREN AND YOUNG PERSONS 17. Children Not To Work In Establishments :- No child shall be required or allowed to work in any establishment. 18. Young Persons To Work Only Between 6 A.M. And 7 P.M :- N o young person shall be required or allowed to work in any establishment before 6 a.m. and after 7 p.m. 19. Daily And Weekly Hours Of Work For Young Persons :- Notwithstanding anything contained in this Act, no young person shall be required or allowed to work in any establishment for more than seven hours in any day and forty-two hours in any week nor shall such person be allowed to work overtime. CHAPTER 5 HEALTH AND SAFETY 20. Cleanliness :- The premises of every establishment shall be kept clean and free from effluvia arising from any drain or privy or other nuisance and shall be cleansed at such times and by such methods as may be prescribed ; and these methods may include lime washing, colour washing, painting, varnishing, disinfecting and deodorising. 21. Ventilation :- The premises of every establishment shall be ventilated in accordance with such standards and by such methods as may be prescribed. 22. Lighting :- (1) The premises of every establishment shall be sufficiently lighted during all working hours. (2) If it appears to an Inspector that the premises of any establishment within his jurisdiction is not sufficiently lighted or ventilated, he may serve on the employer an order in writing specifying the measures which, in his opinion, should be adopted and requiring them to be carried out before a specified date. 23. Precaustions Against Fire :- In every establishment, such precautions against fire shall be taken as may be prescribed. 24. Appeal :- Against any order of the inspector under this Chapter, an appeal shall lie to such authority and within such time as may be prescribed ; and the decision of the appellate authority shall be final. CHAPTER 6 HOLIDAYS WITH WAGES 25. Holidays And Sick Leave :- (1) Every person employed in any establishment shall be entitled, after twelve months continuous service, to holidays with wages for a period of 12 days, in the subsequent period of twelve months: Provided that such holidays with wages may be accumulated upto a maximum period of twenty-four days. Explanation For the purposes of this sub-section any continuous period of service preceding the date on which this Act applies to any establishment shall also count, subject to a maximum period of twelve months. (2) Every person employed in any establishment shall also be entitled during his first twelve months of continuous service after the commencement of this Act, and during every subsequent twelve months of such service, (a) to leave with wages for a period not exceeding 12 days, on the ground of any sickness incurred or accident sustained by him and (b) to casual leave with wages for a period not exceeding 12 days on any reasonable ground. (3) If a person entitled to any holidays under sub-section (1) is discharged by his employer before he has been allowed the holidays, or if having applied for and been refused the holidays, he quits his employment before he has been allowed the holidays, the employer shall pay him the amount payable, under this Act in respect of the holidays. (4) If a person entitled to any leave under sub-section (2) is discharged by his employer 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, in addition to the amount, if any payable to him under sub-section (3). (5) A person employed shall be deemed to have completed a period of twelve months continuous service within the meaning of this section, notwithstanding any interruption in service during those twelve months brought about (i) by sickness, accident, or authorised leave (including authorised holidays) not exceeding ninety days in the aggregate for all three; or (ii) by a lock-out; or (iii) by a strike which is not an illegal strike; or (iv) by intermittent periods of involuntary unemployment not exceeding thirty days in the aggregate ; and authorised leave shall be deemed not to include any weekly holiday or half-holiday allowed under this Act which occurs at the beginning or end of an interruption brought about by the leave. (6) A person employed in a hostel attached to a school or college or in an establishment maintained in a boarding school in connexion with the boarding and lodging of pupils and resident masters shall b e allowed the privileges referred to in sub-sections (1) to (5), reduced however proportionately to the period for which he was employed continuously in the previous year or to the period for which he will be employed continuously in the current year, as the case may be ; and all references to periods of holidays or of leave in sub-sections (1) and (2) shall be construed accordingly, fractions of less than one day being disregarded. (7) The1[State] Government shall have power to issue directions as to the manner in which the provisions of sub-section (6) shall be carried into effect in all or any class of cases or in any particular case. 1. Substituted for "Provincial" by the Adaptation Order of 1950. 26. Pay During Annual Holidays :- Every person employed shall, for the holidays or the period of the leave allowed under sub-section (1) or (2) of section 25, be paid at a rate equivalent to the daily average of his wages for the days on which he actually worked during the preceding three months exclusive of any earnings in respect of overtime. 27. Power To Increase The Number Of Holidays :- Notwithstanding anything contained in section 25, the1[State] Government may, by notification, increase the total number of annual holidays and the maximum number of days upto which such holidays may be accumulated in respect of any establishment or class of establishments. 1. Substituted for "Provincial" by the Adaptation Order of 1950. 28. Power Of Inspector To Act For Person Employed :- Any Inspector may institute proceedings on behalf of any person employed to recover any sum required to be paid under this Chapter by an employer which he has not paid. CHAPTER 7 WAGES 29. Responsibility For Payment Of Wages :- Every employer shall be responsible for the payment to persons employed by him of all wages and sums required to be paid under this Act. 30. Fixation Of Wage Period :- (1) Every employer shall fix periods (in this Act referred to as wage periods) in respect of which such wages shall be payable. (2) No wage period shall exceed one month. 31. Wages For Overtime Work :- Where any person employed in any establishment is required to work overtime, he shall be entitled, in respect of such overtime work, to wages at twice the ordinary rate of wages. Explanation -- For the purpose of this section, the expression "ordinary rate of wages" shall mean such rate of wages as may be calculated in the manner prescribed. 32. Time Of Payment Of Wages :- (1) The wages of every person employed shall be paid before the expiry of the fifth day after the last day of the wage period in respect of which the wages are payable. (2) Where the employment of any person is terminated by or on behalf of the employer, the wages earned by such person shall be paid before the expiry of the second working day from the day on which his employment is terminated. (3) The1[State] Government may, by general or special order, exempt an employer from the operation of this section in respect of the wages of any person employed or class of persons employed, to such extent and subject to such conditions as may be specified in the order. (4) All payments of wages shall be made on a working day. 1. Substituted for "Provincial" by the Adaptation Order of 1950. 33. Wages To Be Paid In Current Coin Or Currency Notes :- All wages shall be paid in current coin or currency notes or in both. 34. Deductions Which May Be Made From Wages :- (1) The wages of aperson employed shall be paid to him without deductions of any kind except thoseauthorised by or under this Act. Explanation -- Everypayment made by a person employed to the employer shall, for the purpose of thisAct, be deemed to be a deduction from wages. (2) Deduction from thewages of a person employed shall be made only in accordance with the provisionsof this Act, and may be of the following kinds only, namely ;-- (a) fines; (b) deductions forabsence from duty; (c) deductions fordamage to, or loss of goods expressly entrusted to the employed person forcustody, or for loss of money for which he is required to account, where suchdamage or loss is directly attributable to his neglect or default; (d) deductions forhouse accommodation supplied by the employer; ( e ) deductions forsuch amenities and services supplied by the employer as the 1 [State]Government may, by general or special order, authorise2 ; (f) deductions forrecovery of advances or for adjustment of overpayments of wages; (g) deductions ofincome-tax payable by the employed person; (h) deductionsrequired to be made by order of a Court or other authority competent to makesuch order; (i) deductions forsubscription to, and for repayment of advances from, any provident fund to whichthe Provident Funds Act, 1952 applies or any recognised provident fund asdefined in section 58-A of the Indian Income-tax Act, 1922, or any providentfund approved in this behalf by the 1 [State) Government during thecontinuance of such approval; (j) deductions forpayments to co-operative societies approved in this behalf by the 1 [State]Government or to a scheme of insurance maintained by the Indian Post Office orby any insurance company approved in this behalf by the 1 [State]Government; (k) deductions madewith the written authorisation of the employed person in furtherance of anysavings scheme approved by the 1 [State] Government for the purchaseof securities of the Central or 1 [State] Government. 1. Substituted for "Provincial" by the AdaptationOrder of 1950. 2. See Rule 11 (1)(a). 35. Fines :- (1) No fine shall be imposed on any person employed save in respect of such acts and omissions on his part as the employer, with the previous approval of the1[State] Government or of the prescribed authority2, may have specified by notice under sub- section (2). (2) A notice specifying such acts and omissions shall be exhibited in the prescribed manner on the premises in which the employment is carried on. (3) No fine shall be imposed on any person employed until he has been given an opportunity of showing cause against the fine, or otherwise than in accordance with such procedure as may be prescribed for the imposition of fines. (4) The total amount of fine which may be imposed in any one wage period on any person employed shall not exceed an amount equal to half an anna in the rupee of the wages payable to him in respect of that wage period. (5) No fine shall be imposed on any person employed who has not completed his fifteenth year. (6) No fine imposed on any person employed shall be recovered from him after the expiry of sixty days from the day on which it was imposed. (7) Every fine shall be deemed to have been imposed on the day of the act or omission in respect of which it was imposed. (8) All fines and all realizations thereof shall be recorded in a register to be kept by the employer in such form as may be prescribed3; and all such realization shall be applied only to such purposes beneficial to the persons employed in the establishment as are approved by the prescribed authority4. Explanation -- When the persons employed are part only of a staff employed under the same management, all such realizations may be credited to a common fund maintained for the staff as a whole, provided that the fund shall be applied only to such purposes as are approved by the prescribed authority. 1. Substituted for "Provincial" by the Adaptation Order of 1950. 2. See Rule 11 (1)(a). 3. See Rule 11 (3)(a). 4. See Rule 11(I) (a). 36. Deductions For Absence From Duty :- (1) Deductions may be made under clause (b) of sub-section (2) of section 34 only on account of the absence of an employed person from the place or places where, by the terms of his employment, he is required to work, such absence being for the whole or any part of the period during which he is so required to work. (2) The amount of such deduction shall in no case bear to the wages payable to the employed person in respect of the wage period for which the deduction is made, a larger proportion than the period for which he was absent bears to the total period, within such wage period during which by the terms of his employment, he was required to work: Provided that, subject to any rules made in this behalf by the1[State] Government, if ten or more employed persons acting in concert absent themselves without due notice (that is to say, without giving the notice which is required under the terms of their contract of employment) and without reasonable cause such deduction from any such person may include such amount not exceeding his wages for eight days as may by any such terms be due to the employer in lieu of due notice. Explanation -- For the purposes of this section, an employed person shall be deemed to be absent from the place where he is required to work, if, although present in such place, he refuses, in pursuance of a stay-in-strike or for any other cause which is not reasonable in the circumstances, to carry out his work. 1. Substituted for "Provincial" by the Adaptation Order of 1950. 37. Deductions For Damage Or Loss :- (1) A deduction under clause (c) of sub-section (2) of section 34 shall not exceed the amount of the damage or loss caused to the employer by the neglect or default of the person employed and shall not be made until the person employed has been given an opportunity of showing cause against the deduction, or otherwise than in accordance with such procedure as may be prescribed for the making of such deductions. (2) All such deductions and all realizations thereof shall be recorded in a register to be kept by the employer in such form as may be prescribed. 38. Deductions For Services Rendered :- A deduction underclause (d) or clause (e) of sub-section (2) of section 34 shall not be made fromthe wages of a person employed unless the house accommodation, amenity orservice has been accepted by him, as a term of employment or otherwise, and suchdeduction shall not exceed an amount equivalent to the value of the houseaccommodation, amenity or service supplied and in the case of deduction underthe said clause (e) shall be subject to such conditions as the 1 [State]Government may impose. 1. Substituted for "Provincial" by the AdaptationOrder of 1950. 39. Deductions For Recovery Of Advances :- Deductions under clause (f) of sub-section (2) of section 34 shall be subject to the following conditions, namely :-- (a) recovery of an advance of money given before employment began shall be made from the first payment of wages in respect of a complete wage period, but no recovery shall be made of such advances given for travelling expenses; (b) recovery of advances of wages not already earned shall be subject to any rules made by the1[State] Government regulating the extent to which such advances may be given and the instalments by which they may be recovered. 1. Substituted for "Provincial" by the Adaptation Order of 1950. 40. Deductions For Payments To Co-Operative Societies And Insurance Schemes :- Deductions under clauses (j) and (k) of sub-section (2) of section 34 shall be subject to such conditions as the1[State] Government may impose. 1. Substituted for "Provincial" by the Adaptation Order of 1950. 41. Notice Of Dismissal :- (1) No employer shalldispense with the services of a person employed continuously for a period of notless than six months, except for a reasonable cause and without giving suchperson at least one months notice or wages in lieu of such notice, providedhowever, that such notice shall not be necessary where the services of suchperson are dispensed with on a charge of misconduct supported by satisfactoryevidence recorded at an enquiry held for the purpose. (2) The person employedshall have a right to appeal to such authority1 and within such time2 as may prescribed either on the ground that there was no reasonable cause fordispensing with his services or on the ground that he had not been guilty ofmisconduct as held by the employer. (3) The decision of theappellate authority shall be final and binding on both the employer and theperson employed. 1. See Appendix. 2. See Rule 9. 41A. Payment Of Full Wage To Person Employed Pending Proceedings In Higher Courts :- Where in any case, the appellate authority, by its decision under Section 41, directs reinstatement of any person employed and the employer prefers any proceeding against such decision in a High Court or the Supreme court, the employer shall be liable to pay such person employed, during the period of pendency of such proceedings in the High Court or the Supreme Court, full wages last drawn by him, inclusive of any maintenance allowance admissible to him under any rule if the person employed had not been employed in any establishment during such period and an affidavit by such person employed had been filed to that effect in such court : Provided that where it is proved to the satisfaction of the High Court or the Supreme Court that such person employed had been employed and had been receiving adequate remuneration during any such period or part thereof, the Court shall order that no wages shall be payable under this section for such period or part, as the case may be.] 1. Inserted by Tamil Nadu Act, 44 of 2008, Section 2(With effect from 19th June, 2008). CHAPTER 8 APPOINTMENT, POWERS AND DUTIES OF INSPECTORS 42. Appointment Of Inspectors :- The1[State] Government may, by notification2, appoint such officers of the1[State] Government or of any local authority as they think fit to be Inspectors for the purposes of this Act, within such local limits as the1[State] Government may assign to them. 1. Substituted for "Provincial" by the Adaptation Order of 1950. 2. See Appendix. 43. Powers And Duties Of Inspectors :- Any Inspector may at all reasonable hours enter into any premises, which is, or which he has reason to believe is, an establishment, with such assistants and make such examination of the premises and of the prescribed registers, records or notices as may be prescribed. 44. Inspectors To Be Public Sevants :- Every Inspector shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code. CHAPTER 9 PENALTIES FOR OFFENCES 45. Penalties :- (1) Any employer who contravenes any of the provisions of sections 7,9 to 11, 13 to 23, 25, 26, 29 to 41 and 47 shall be punishable for a first offence, with fine which may extend to twenty-five rupees, and for a second or subsequent offence, with fine which may extend to two hundred and fifty rupees. ( 2 ) Whoever contravenes the provisions of section 8 shall be punishable, for a first offence, with fine which may extend to ten rupees, and for a second or subsequent offence, with fine which may extend to one hundred rupees. 45A. Penalty For Failure To Comply With The Provision Of Section 41-A :- Any employer who fails to comply with the provisions of Section 41-A shall be punishable with imprisonment for a team which may extend to six months, or with fine, or with both and where such failure is a continuing one, with a further fine which may extend to two hundred rupees for every day during which such failure continues after the conviction for the first and the court trying the offence, if it fines the offender, may direct that the whole or any part of the fine realised from him shall be paid, by way of compensation, to any person who, in its opinion has been injured by such failure. 1. Inserted by Tamil Nadu Act, 44 of 2008, Section 3 (With effect from 19th June, 2008). 46. Penalty For Obstructing Inspector, Etc :- Any person who wilfully obstructs an Inspector in the exercise of any power conferred on him under this Act or any person lawfully assisting an Inspector in the exercise of such power, or who fails to comply with any lawful direction made by an Inspector, shall be punishable with fine which may extend to two hundred and fifty rupees. 46A. Compounding Of Offences :- (1) Any offence punishable under section 45 or any rule made under section 49 may, either before or after the institution of the prosecution, be compounded by the Commissioner of Labour or such other officer as may be authorised in this behalf by the Commissioner of Labour, on payment, for credit to the State Government, of such sum as the Commissioner of Labour or such other officer may specify: Provided that such sum shall not, in any case, exceed the maximum amount of the fine which may be imposed under this Act for the offence so compounded. (2) Nothing contained in sub-section (1) shall apply to a person who commits the same or similar offence within a period of three years from the date on which the first offence, committed by him, was compounded. Explanation.-- For the purpose of this sub-section, any second or subsequent offence committed after the expiry of a period of three years from the date on which the offence was previously compounded, shall be deemed to be a first offence. (3) Where an offence has been compounded under sub-section (1), no proceeding or further proceeding, as the case may be, shall be taken against the offender, in respect of the offence so compounded and the offender, if in custody, shall be discharged forthwith. (4) No offence punishable under this Act shall be compounded except as provided by this section.] 1. Inserted by Act 18 of 1999, s. 2 (w.e.f. 10th August, 1999.) CHAPTER 10 MISCELLANEOUS 47. Maintenance Of Registers And Records And Display Of Notices :- Subject to the general or special orders of the1[State] Government, an employer shall maintain such register and records and display such notices as may be prescribed. 1. Substituted for "Provincial" by the Adaptation Order of 1950. 48. Delegation Of Powers :- (1) The1[State] Government may, by notification2, authorize any officer or authority subordinate to them, to exercise any one or more of the powers vested in them by or under this Act, except the power mentioned in section 49, subject to such restrictions and conditions, if any, as may be specified in the notification. (2) The exercise of the powers delegated under sub-section (1) shall be subject to control and revision by the1[State] Government or by such persons as may be empowered by them in that behalf. The1[State] Government shall also have power to control and revise the acts or proceedings of any person so empowered. 1. Substituted for "Provincial" by the Adaptation Order of 1950. 2. See Appendix. 49. Power To Make Rules :- (1) The1[State] Government may make rules to carry out the purposes of this Act. (2) In making a rule under sub-section (1), the1[State] Government may provide that a contravention thereof shall be punishable with fine which may extend to fifty rupees. (3) The power to make rules conferred by this section shall be subject to the condition of the rules being made after previous publication. (4) All rules made under this section shall be published in the Fort St. George Gazette and on such publication shall have effect as if enacted in this Act. 1. Substituted for Provincial "by the Adaptation Order of 1950. 50. Rights And Privileges Under Other Law, Etc., Not Affected :- Nothing contained in this Act shall affect any rights or privileges which any person employed in any establishment is entitled to on the date on which this Act comes into operation in respect of such establishment, under any other law, contract, custom or usage applicable to such establishment, if such rights or privileges are more favourable to him than those to which he would be entitled under this Act. 51. Commissioner Of Labour To Decide Certain Questions :- I f any question arises whether all or any of the provisions of this Act apply to an establishment or to a person employed therein or whether section 50 applies to any case or not, it shall be decided by the Commissioner of Labour and his decision thereon shall be final and shall not be liable to be questioned in any Court of Law. 52. Power Of Government To Suspend Provisions Of The Act During Fairs And Festivals :- On any special occasion in connection with a fair or festival or a succession of public holidays, the1[State] Government may, by notification, suspend for a specified period the operation of all or any of the provisions of this Act. 1. Substituted for Provincial "by the Adaptation Order of 1950. 53. Central Act Xviii Of 1942 Not To Apply To Establishments Governed By This Act :- On and from the date on which this Act comes into operation in respect of an establishment, the Weekly Holidays Act, 1942, shall cease to apply to such establishment.