News Ticker

The Sales Promotion Employees (Conditions of Service) Act, 1976

The 11th Act of 1976 i.e. The Sales Promotion Employees (Conditions of Service) Act, 1976, dated 25th January, 1976 was enacted with the aim and object to provide for regulation of certain conditions of service of sales promotion employees in certain establishments. The extension of this Act is provided over all Indian territory and the same was brought into force on 6th May of 1987 by the notification of the Central Government. The Act under its first provision specifies that the provision thereof, should be at the first, make applicable to the establishments engaged in Pharmaceutical Industry and for the other establishments, the Central Government is empowered to provide for its applicability by notifying in the Official Gazette.

Section 3 is important so far as it is empowering the Central Government to declare any industry to be notified for the purpose of this Act. Such declaration can be made by that Government after having regard to the nature of industry, number of employees employed in such industry engaged in work of promotion of sales or business or both, etc. Provisions as to leave have been provided by section 4 of the Act, where it is provided that, every such sales promotion employees should be entitled to holidays, casual leaves and other leaves as prescribed and also to the earned leave on full wages of the period equivalent to the 1/11th of the period spent on duty by him and to the leave on medical certificate on one half of wages for the period equivalent to 1/18th of the period spent on duty. Also such sales promotion employees should be entitled to cash compensation in respect of the remained earned leave, for the both voluntarily relinquishment of his post or retirement as such from service and services are terminated for any other reason except by way of punishment. Section 5 makes provision to the issuance of the appointment letter by every employer to the sales promotion employee.

Section 6 is important as it is connected with the applicability of provisions of certain other enactments like Workmen’s Compensation Act, 1923 (Now Employees Compensation Act, 1923), in relation to sales promotion employees as the same is applicable to the workmen within the meaning of that Act. Moreover, the provisions of the Industrial Disputes Act, 1947, the Minimum Wages Act, 1948, the Maternity Benefit Act, 1961 and the Payment of Bonus Act, 1965 are also made applicable by this section in case of sales promotion employees.

The section 7 of the Act says that, all employer in relation to such establishments should maintain registers and other documents. And the section 8 makes provisions for the appointment of Inspectors under this Act. Such Inspectors are to be appointed by the State Government by notifying in the Official Gazette for exercising jurisdiction within the local limits ascertained to them. It is the duty of the Inspectors concerned to require furnishing of necessary information from the concerned establishment. Even such Inspectors can enter the premises for inspections and also such Inspector to do all the concerned and prescribed acts which are provided under this provision.

Further, the provision of section 9 of the Act deals with penal provision under the Act. It is provided that, the breach of provisions of section 4, 5 or 7 or even the rules made under this Act, by the employer concerned should be liable to punishment under this Act. The punishment provided is fine maximum upto 1000 rupees. Section 10 specifies the offences by companies and also explains the persons or official liable therein. The court taking cognizance under this Act should not be inferior to the Metropolitan Magistrate of First Class judicial Magistrate and before taking cognizance, it should be made clear that the complaint is made within the period of limitation i.e. 6 months, as required under section 11 of the Act. The provision of this Act is having overriding effect in relation to the other laws. Lastly, section 12 of the Act empowers the Central Government to make rules inconsistent with the provisions of this Act. Similarly, such rules should also be provided on the matters provided under this section more specifically on the matter of kinds of leave, format of letter of appointment, etc. And all such rules are required to be tabled before each House of Parliament while in session for given period and other given provision are also to be followed.

by Faim Khalilkhan Pathan.