Compiled by;

NAYINI NARASIMHA REDDY Room No. 119, Ground Floor,

Minister for Home, Jails, Fire Services, D-Block, Telangana Secretariat,
Sainik Welfare & Labour, Phones: 040-23451072(O)
Employment and Training 040-23451073

Hyderabad
 IMPORTANT LABOUR LAWS – AT A GLANCE
The industrial law in this country was developed vastly due to the increased
awakening of the workers of their rights particularly after the advent of independence.
Industrial relations embraced a complex of relationships between the workers,
employers and the Government. In this context, the Labour Department have made
significant contributions for settlement of the disputes and for maintenance of the
industrial peace and harmony.

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Labour law also known as employment law is the body of laws, administrative

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and judicial rulings, precedents which address the legal rights and restrictions on

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working people and their organizations. As such, it mediates many aspects of the

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relationship between trade unions, employers and employees. In other words, Labour
law defines the rights and obligations of workers, union members and employers in
the workplace. Generally, labour law covers:

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Industrial relations, collective bargaining and unfair labour practices, safety,
health and welfare amenities in Workplace, Employment standards, general holidays,

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annual leave, working hours, terminations, dismissals, minimum wage, strikes, lock

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outs, layoff procedures and severance pay, social security measures .etc.

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The labour legislations can be categorized as follows:

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1) Labour laws enacted by the Central Government, where the Central Government

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has the sole responsibility for enforcement.

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State Governments. N
2) Labour laws enacted by Central Government and enforced both by Central and

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3) Labour laws enacted by Central Government and enforced by the State

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Governments.

4) Labour laws enacted and enforced by the various State Governments which apply
to respective States.

The Constitution of India provides detailed provisions for the rights of the citizens and
also lays down the Directive Principles of State Policy which set an aim to which the
activities of the state are to be guided.

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Labour Laws may be further classified under the following heads:

A) Laws relating to Industrial Relations (B) Laws relating to Wages(C) Laws relating to
Working Hours, Conditions of Service and Employment (D) Laws relating to Equality and
Empowerment of Women (E) Laws relating to Deprived and Disadvantaged Sections of the
Society (F) Laws relating to Social Security.

1. THE SHOPS AND ESTABLISHMENTS ACT, 1988

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The act is applicable to IT and other associated establishments. Every shop and

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establishment has to apply for registration within 30 days of commencement of

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business to the Labour Department. The Registration certificate should be renewed

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for every calendar year on payment of required fees.

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The Act is for the benefit of the employees working in shops and Establishments
who are not covered by Factories Act. The act deals with regulating the condition of

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service of employees working in shops and the Offices of all kind of companies,

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hotels, cinema theaters, canteens, etc. The Act deals with the health, safety, working

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hours, holidays and paid leaves for employees. The Act also requires furnishing of
Appointment Letters to employees. It also contains the procedure for termination of

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employees and also a claim can be made by the employee for unpaid legal dues. The

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IT and Enabled Services industry enjoys certain exemptions from certain provisions of
the Shops and Establishment Act as per G.O.Ms.No.22, Dated: 21-06-2013.

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All the employees covered under the Act, whoever worked for a period of 240

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days or more during the continuous period of 12 months such an employee is entitled

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to leave with wages for a period of 15 days during the subsequent period of 12 months
with wages. Such earned leave may be accumulated for a maximum period of 60
days.

In addition to the same, an employee is also entitled to 12 sick leaves and

another 12 days as casual leave with wages per annum. The Employee is also entitled
for special casual leave not exceeding 6 days during entire service, if he/she
undergone vasectomy or tubectomy operation.

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SERVICE COMPENSATION NEED NOT BE PAID

As per High court and Supreme Court judgments, there is no obligation for the
management to pay any service compensation or payment of salary till the service
compensation is paid (Section 47(3) and section 47 (4)) to the employees who
completed one year of service. These provisions were struck down by the courts. In
view of the said judgments, the Employees who completes five years of service are
entitled for gratuity, if said act applies, but not otherwise.(2009, VOL (121) FLR 407
SC).

2. THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970.

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This Act is enacted to regulate and abolition of Contract Labour in certain areas. In the

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state of Telangana, it applies to every contractor who employs 5 or more workers as
contract labour. It has also provisions to empower Government to prohibit contract

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labour system in any process, operation or other work in any establishment.
However, Engagement of contract Labour is prohibited in the core activity.

contributes to main activity of the shop.

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For example in a shop a salesman cannot be engaged on contract basis as he directly

A O
The principal employer has to register himself with Registering Officer under
this Act. This implies obtaining permission of employing contract labour in his

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premises and the principle employer in turn required to issue Form-V to the

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contractor, then only the contractor will be given Contract Labour license.

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The Act has provisions for welfare and health of contract labour. It has provision

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of canteen and rest room in certain conditions. It also provides facilities for drinking

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water, washing facilities, latrines and urinals for contract labour. Contractor is also

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made responsible for payment of wages to labour.

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In case, contractor does not provide facilities, principal employer is made
responsible for providing facilities to contract labour. The principal employer is
authorized to recover any expenses incurred by him for providing such facilities by
deducting from any amount payable to contractor. The Principal employer is also liable
for any violations resorted to by the contractor including payment of wage dues if any.

The contractor shall be responsible for payment of wages to each worker

employed by him as contract labour. However, every principal employer shall
nominate a representative duly authorized by him to be present at the time of

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disbursement of wages by the contractor and it shall be the duty of such
representative to certify the amounts paid as wages in such a manner as may be
prescribed.

In case of contractor fails to pay wages within a prescribed period or makes

short payment, then the principle employer shall be liable to make payment of wages
in full or unpaid balance due, as the case may be to the contract labour and recover
the amount so paid from the contractor.

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By various judgments of courts, it is clear that provisions of ESI and PF are also

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applicable on contract labour. After contract is completed contract labour has no right

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to seek employment in regular services with principal employer.

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3. THE BUILDING AND OTHER CONSTRUCTION WORKERS (REGULATION OF
EMPLOYMENT AND CONDITIONS OF SERVICE) ACT, 1996.

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The Act provides regulations for employment and condition of services of building

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and other construction workers. It provides provisions regarding their safety, health

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and welfare of the construction workers. It has come into force from first day of March
1996.

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It applies to every establishment where ten or more building workers are

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employed in any building or other construction works.

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It provides for registration of such establishments. It provides various provisions

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for the benefit of construction workers, regarding fixing hours for normal working day,

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overtime wages, drinking water, latrines and urinals, crèches, first-aid canteen etc.,
employers are also required to maintain certain registers and records. Safety

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provisions at work place are also to be provided.

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The act provides for “Building and Other Construction Workers Welfare Board”.
The worker has to contribute from their wages to this board. This board looks after
various welfare activities of workers including loan and pension to them.

4. The Building and Other Construction Workers Welfare Cess Act, 1996.

The Cess should be paid by the owner or contractor on cost of construction not
less than 1% and include all expenditure incurred by an employer ,but shall not
include – cost of land and the compensation paid or payable under Workmen's
Compensation Act.

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 Cess levied shall be paid within 30 days of completion of the project or if the
project work is more than one year, cess to be paid within 30 days of completion of one
year from the commencement of work or employer can pay estimated cess as
advance. However, in any particular state if similar cess is paid by an employer, such
employer can make an application to the Central Government for exemption from
payment of the cess under this Act.

However, the cess need not be paid if the construction is undertaken for the
purpose of construction of a factory. Building and Other Construction Workers Welfare

Hon'ble High Court of Andhra Pradesh.

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Cess Act does not apply to which Factories Act apply. This principle was upheld by the

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5. THE INDUSTRIAL DISPUTE ACT, 1947.

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The Industrial Disputes Act extends to whole of India and applies to every
industrial establishment carrying on any business, trade, manufacture or distribution

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of goods and services irrespective of the number of workmen employed therein.

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Every person employed in an establishment for hire or reward including part-
time employees to do any manual, clerical, skilled, unskilled, technical, operational or
supervisory work, is covered by the Act.

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This Act does not apply to persons mainly in managerial or administrative
capacity, or to the persons engaged in a supervisory capacity and drawing > 10,000

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p.m or executing managerial functions and persons subject to Army Act, Air Force and

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Navy Act.

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According to the Act, the term 'industrial dispute' means "any dispute or
difference between employers and employers, or between employers and workmen,

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or between workmen and workmen, which is connected with the employment or

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non-employment, or the terms of employment or with the conditions of labour, of
anyperson".

The basic objectives of the Act are:-

§ To provide a suitable machinery for the just, equitable and peaceful settlement
of industrial disputes.

§ To promote measures for securing and preserving amity and good relations
between employers and employees.

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 § To prevent illegal strikes and lockouts.

§ To provide relief to workers against layoffs, retrenchment, wrongful dismissal

and victimisation.

§ To promote collective bargaining.

§ To ameliorate the conditions of workers.

§ To avoid unfair labour practices.

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Under the Act, a statutory machinery has been constituted for conciliation and

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adjudication of industrial disputes. It includes appointment of 'Conciliation Officers',

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by appropriate Government, charged with the duty of mediating in and promoting the

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settlement of industrial disputes. He/ she may be appointed for a specified area, or for
specified industries in a specified area, or for one or more specified industries, either

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permanently or for a limited period. It is the duty of these officers to bring both the
employees and employers together and help them to resolve their differences. If the

Government.
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dispute is settled, he/ she shall send a report, to that effect, to the appropriate

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While conducting conciliation, the conciliation officer may enforce attendance

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of any person for the purpose of examination or call for and inspect any document
which he has a ground for considering of relevancy to the industrial dispute. For the

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said purpose, the conciliation officer shall have the same power that are vested with
any civil court under code of civil procedure for enforcing of attendance of any person

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or examine him or for compelling the production of documents.

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AMENDMENTS (15.09.2010)

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* Section 2 (A) – Direct Access to Labour Court by an Employee.

* For coverage of supervisors the Wage limit was increased from Rs.1600/- to
Rs.10,000/- per month .

* Grievance Redressal Committee – Compulsory in the units having more than 20

workmen.

* Time limit for questioning dispute in case of discharge / dismissal / termination is

3 years.

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 * Powers given to labour courts to execute the awards, orders etc.

The Appropriate Government is central Govt., where the share capital is more than
51% in any company, in all other cases the state Govt. is the Appropriate
Government.

6. THE INTER-STATE MIGRANT WORKMEN (REGULATION OF EMPLOYMENT

AND CONDITIONS OF SERVICE) ACT, 1979.

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This Act defines “INTERSTATE MIGRANT WORKMEN” as any person who is
recruited by or through a Contractor in one State under an agreement or other

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arrangement for employment in an establishment in another State, whether with or

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without the knowledge of the principal employer in relation such establishment.

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This Act is to safeguard and regulate the conditions of such workers. It implies to
every Establishment/Contractor who employ 5 or more Inter-State Migrant Workers.

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It provides registration for principal employer and license for contractor to whom

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this Act is applicable. It also provides Registering/ licensing Officer for this purpose. It

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specifies duties/responsibilities of Contractor and liabilities of principal Employers.

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It also provides “Displacement Allowance” and “Journey Allowance” besides other
facilities to Inter-State Migrant Workers. Wages shall pay in cash to him. Section 21

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and 22 deals with other special provisions for their employment. In case the

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outsourcing agencies or security agencies are providing staff or security guards, from

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any other state, they must be insisted to register under the Act when such workmen
have been brought by a middle men/ contractor.

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7. THE MINIMUM WAGES ACT, 1948

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The minimum wages Act provides for payment of minimum statutory wages to
workers. It applies all industries given in Schedules of this Act. The Centre and State
Government is empowered to add any other industry in this Schedule. This Act is
applicable even if there is single employee.

The minimum wages are fixed by central and state Governments. The Employer
who pays wages less than minimum wages fixed by Govt. is punishable under this Act.
The employees are entitled to receive minimum wages as per the notification issued
by the Government for such employment in which the workers are engaged.

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 The Act also provides maximum hours, weekly rest days, and overtime-related
provisions. The Govt. AP revises the VDA Points once in every six months and every
employer is bound to pay the said wages with periodical increase.

Minimum wages includes all emoluments paid to an employee under the terms of
contract whether express or implied and no need of paying VDA if the minimum
amount of wages are paid by including all allowances. (Air Freight Vs state of
Karnataka. 1999-ll LLJ -705. SC.)

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8. THE PAYMENT OF BONUS ACT, 1965

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This Act makes bonus payment mandatory for every factory (employing ten or

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more employees) and other establishment employing twenty or more employees.

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Every employee who works for 30 days in an accounting year is entitled for Bonus.
Section-9 of Act deals with the conditions which disqualifies an employee to receive

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bonus. 8.33% of wages/salary is minimum bonus to be paid and Maximum limit is
20%. Bonus is to be paid within 8 months of closing the accounting year.

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New establishment are given relaxation in payment of bonus up to first Five
years of their operation. However, during the first five years also if the establishment

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earns profit, the Bonus is required to pay from that accounting year.

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THE PAYMENT OF BONUS (AMENDMENT) BILL, 2012.

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The Bill proposes to amend definition of "employee" as given in sub-section (13)
of Section 2 of the Payment of Bonus Act, 1965 which at present entitles only those

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employees who are employed on a salary or wage not exceeding ten thousand rupees
per mensem. More so, section 12 prescribes the limit of three thousand five hundred

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rupees per mensem for calculation of bonus with respect to the employees.

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Therefore, the Bill proposing amendment to section 2 and section 12 of the Act
seeks to achieve the aforesaid objectives.

FURTHER PROPOSED AMENDMENTS

· Minimum Bonus is being enhanced from 8.33% to 11%.

· The effective year for Payment Bonus Accounting Year is 2009-2010.9 (Not
given effect).

Employees employed through contractors on building operations eligible for

payment of bonus under the Act.

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9. THE PAYMENT OF GRATUITY ACT, 1972

It is applicable to all industries/establishments employing ten or more persons.

The Act provides for payment of lum sum amount for employees who had worked for
more than five years at the time of leaving the service. The condition of five years
service is not applicable in case of employee's death.

The Gratuity has to be paid @ 15 days salary (Basic and DA) for every year of
service. The Maximum of Gratuity can be paid is Rs.10,00,000/-. In seasonal industry

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it is paid @ 7 days salary after every year of service. Government of AP have amended
Sec.4A of the Act and accordingly all the employees are required to be covered under

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Group Gratuity Scheme w e f 4 March 2011.

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Section-4 (6) of this Act deals with conditions regarding forfeiture of Gratuity of
an employee.

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PROPOSED PAYMENT OF GRATUITY (AMENDMENT) BILL, 2012

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The sub-section (2) of Section 4 of the Payment of Gratuity Act, 1972 provides
for payment of gratuity to the employees at the rate of fifteen days' wages based on

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the rate of wages last drawn for every completed year of service. In today's world of
high prices and inflation, the gratuity of fifteen days wages for every completed year is

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too meager. At such a small rate, a person cannot get enough amount for post

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retirement settlement. It should therefore be at least at the rate of thirty days' salary

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for every completed year of service.

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Therefore a new Bill was proposed with amendments to Section 4 of the Act
seeks to achieve the aforesaid objectives.

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10. THE PAYMENT OF WAGES ACT, 1936.

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The Payment of Wages Act is enacted for timely payment of wages to workers
and also describes the deductions can be effected from the wages of the workers. It is
applicable to all types of industrial establishments.

The Act fixes responsibility for Payment of Wages, Provisions of fixation of wage
period (wage period can be fixed for maximum one month).

Wages are to be paid within 7 days of expiry of wage period (in case of less than

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1000 employees) and within 10 days in other cases. The Act also describes about
various deductions, which can be made from wages. Maximum 15% of wages can be
deducted under various deductions. In case of payment to Housing Co-operative
Society, these deductions can go up to 75% of wages.
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AMENDMENT; MINISTRY OF LABOUR AND EMPLOYMENT NOTIFICATION Dated 11
September 2012.

S.O.No.2260(E)- In exercise of the powers conferred by sub-section (6) of

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Section 1 of Payment of Wages Act, 1936 (4 of 1936), the Central Government, on the
basis of figures of the Consumer Expenditure Survey, published by the National

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Sample Survey Organization, specifies Rupees eighteen thousand per month as

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the wages under said sub-section (6).

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* The Govt. of A.P. vide G.O.Rt.No.591, Dated: 31.3.2011 issued a direction to all
the employers to pay wages to all the employees either by cheque or by
crediting the wages in their Bank account.

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In view of the same the cash payment to the employees is now withdrawn.

11. THE TRADE UNIONS ACT, 1926.

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Any 7 persons working in a factory or establishment can form a Trade Union.
The union should always have to maintain 10% of the total strength as their

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members. Ministers are not allowed to become office bearers of any trade union.

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It describes about objects on which Trade Union fund can be spent. The Trade
Unions are also liable to file returns to Registrar. It also contains provisions regarding

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disqualification of office bearers of Trade Unions. This Act regulates the conditions of

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registration-dissolution and in case the Registrar of Trade union wants cancel the

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Registration of any trade union, he should give 60 days' notice.

The code of discipline will be followed for deciding the majority in case if more
than two unions are existing.

12. THE EMPLOYEE'S COMPENSATION ACT, 1926.

A. Workmen Compensation Act is amended as “Employee Compensation Act”.(23rd

Dec 2009)

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B. The minimum compensation limits on no-fault basis are increased to Rs.1,20,000
& 1,40,000 (erstwhile limits being Rs. 80,000 & 90,000).

C. The wage for the purpose of calculation is revised as Rs.8,000/- per month from
Rs.4000/- (WEF 31.05.2010)

This Act provides compensation to workers or their dependants in case of

accident or injuries during their employment. This accident should cause disablement

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or death to worker. The Act is also applicable in case of occupational diseases (which

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are due to certain conditions of some works).

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This Act is applicable to Establishments given in Schedule-II and III of this Act.

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However, it is not applicable to factories and Establishments which are governed by

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“Employees State Insurance Act”. All the employees without any salary limit and

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designation are covered under the act.

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Any accident arising out of willful disobedience of Safety Rules, disregard of
safety device or under influence of drinks, drugs, the compensation is not payable. In

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case of Death of any workman, the compensation should be deposited with Labour
Department under this Act who disburses the compensation.

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An employee also entitled for compensation, in case he met with an accident

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accident and his employment.N
while coming to the work or going from work, provided there is a nexus between the

13.
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A.P LABOUR WELFARE FUND ACT; 1987.

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All the employees has to worked for the period of 30 days in a year are covered

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under this act, except those who exercise managerial power and enjoying powers of
appointment and are in ultimate control of all affairs. All the factories and
establishment are covered under this act. Every employer is required to contribute
Rs.5/- per year, and every employees is required to contribute Rs.2/- per year to the
fund.

The fund will be utilized for the Welfare, Health of the workers through Labour
department.

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14. THE CHILD LABOUR (PROHIBITION & REGULATION) ACT, 1986.

This Act prohibits the employment of any child below the age of 14 years. It
prohibits their employment totally in hazardous operations and employment of
domestic child labour is punishable under the Act with a fine of Rs.10,000/- or
imprisonment for 3 years.

The Shops & Establishment Act totally prohibits child labour under Sec.20 of the
Act and as such is punishable under the Act.

15. THE EMPLOYEES PROVIDENT FUND AND

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PROVISIONS ACT, 1952.

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This Act is applicable to all establishments mentioned in the schedule and

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applies to all industries and establishments employing 20 or more employees. The Act

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has three schemes:-

1. Employee's Provident Fund Scheme.

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2. Employee's Family Pension Scheme.
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3. Employee's Deposit Linked Insurance Scheme.

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It is a contributory fund for the future of employee after his retirement.
Employee and Employer both contribute in this fund@12 % on Basic wages, employee

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has to pay 12% of their wages towards this contribution. At present all the employees
drawing the basic wages upto the limit of Rs.6500/- per month are entitled to be

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Rs.15000/- per month.
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covered under the Act. However, there is a proposal to increase the said salary limit to

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Provident fund is payable to employee after his retirement. In case of its early

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death, it is payable to person nominated by him or his legal heirs. Some part of
Provident Fund can be withdrawn before retirement for construction of House,
Children Marriage, etc.

Employee's Family Pension Scheme:- If contribution is made to this scheme for

minimum period of 10 years, the employee becomes eligible for pension after
retirement. In case of his early death, heirs are eligible for pension (only one time
contribution is sufficient for pension in case of death - 10 years contribution is not
necessary - subject to certain conditions.)

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Employee's Deposit Linked Insurance Scheme:- Under this Scheme employee's get
benefit of Insurance for his/her Life. The contribution towards this fund is made by
Employer @ .5% of Employee's wages.

16. THE EMPLOYEES STATE INSURANCE ACT, 1948.

This Act is applicable to all the factories which fall under Factories Act. Other
Establishments which have 10 or more employees are covered by this Act. Any
employee who receives wages up to Rs. 15,000/- p.m. is eligible to take benefits

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under this Act and an employee who draws more than Rs.15,000/- is exempted from

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the applicability of the Act. However, This Act at present not applicable for

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construction works or sites, but the administrative offices are covered under the act.

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Contribution by both Employee and Employer are made to this Corporation. The

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rate of contribution for employees is 1.75% while in case of Employer it is 4.75% of

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Employee's wages.

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The Workman Compensation Act is not applicable where this Act is
implemented. Similarly a woman employee exceeding wages up to Rs. 15,000/- p.m.

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is not entitled to receive maternity benefit from her Employer. These benefits will be
extended by E.S.I. Corporation to insured persons. Conveyance Allowance is

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excluded for the purpose of wage and hence no contributions are payable in the state

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of A.P, and the ESI Corporation cannot claim contributions and cannot insist for

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production of Previous Records for inspection beyond five years.

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17. THE EQUAL REMUNERATION ACT, 1976.

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This Act is enacted to prohibit discrimination of women in the matter of

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remuneration (Pay/Wages) with men. It provides equal pay to men and women for

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same work or work of similar nature. It also prohibits discrimination while recruiting
men and women workers (except where the employment of women in such work is
prohibited or restricted by any law).

The Labour Department enforces the above act and launches action against the
employer when there is a difference of wages between men and women employee
performing the same nature of work.

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18. THE MATERNITY BENEFIT ACT, 1961.

This Act made provisions for payment of wages to a woman during leave period
for giving birth to child, miscarriage, illness arising out of pregnancy, delivery and pre-
mature birth of child or miscarriage.

The Maternity Benefit Act, amended to enhance the medical bonus from
Rs. 250/- to Rs. 2,500/-and also empowering the Central Government to increase it
from time to time before every three years, by way of notification in the Official

pre-natal confinement care or post-natal care to a woman.

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Gazette, subject to a maximum of Rs.20,000/-, where the employer has not provided

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A woman employee is entitled for full wages during leave for aforesaid reasons.

6 weeks. For other reasons, it is one month.

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The leave period for delivery of child is 12 weeks while in case of miscarriage, it is

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This Act does not apply to any factory or establishment to which “Employees State

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Insurance Act” is applicable. Any women employee drawing salary of more than
Rs. 15,000/- is also not entitled for this maternity benefit.

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A notice for claim of this benefit is to be given by women to employer. Employer is
prohibited to dismiss the women employee during the entitlement of this benefit.

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Section 18 of this Act described the conditions when this benefit can be forfeited.

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Provisions for Inspectors to implement this law are also made. Inspectors are

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given to power to direct employer to make payment under this Act.

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19. Sexual Harassment of women at Workplace (Prevention, prohibition
and redressal Act) 2013, came in to effect from 9-12-2013.

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The Act is to ensure safe environment for women at workplaces in public and

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private organizations as well as unorganized sectors.

This Act also provides protection not only to the women employees who are
employed but also to all the women who enters into the workplace as a client,
customer etc., Every employer is required to constitute an internal complaints
committee.

The Act makes it mandatory for all establishments with 10 or more employees
to have an internal complaints committee to address the grievances in a stipulated

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time or face penalty. It should consist of A Presiding Officer who shall be a woman
employed at senior level. In case not available, to be nominated from any other offices
or administrative units of the workplace. Similarly not less than two members who are
committed to the cause of woman or had experience in social work or having legal
knowledge. One member to be appointed from NGOs or any other association
committed to the cause of women or a person familiar with the issues relating to
sexual harassment.

One half of the total members so nominated shall be women. A Complaint should

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be disposed within three months from the date of incident. Conciliation is also

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provided for settlement. During the pendency of the enquiry, the victim will be given

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option to seek interim relief.

20. INDUSTRIAL EMPLOYMENT STANDING ORDERS 1946

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This act is made requiring employers in industrial establishments firmly to
define conditions of employment under them. It applies to every industrial

day in the preceding 12 months.

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employment wherein 50 or more workmen are employed or were employed on any

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Every employer within six months from the date on which the Act becomes
applicable shall submit five copies of draft standing orders proposed by him to the

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certifying officer. Such draft standing orders as far as practicable should be in

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conformity with model standing orders. The standing orders which are finally certified
be liable for modification only after expiry of six months from the date on which the

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standing orders are last modifications came into operation.

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The model standing orders will temporarily apply to the industrial

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establishments till the standing orders are finally certified under the Act. The above

21. N I
standing orders as on date are applicable to the IT sector and allied units in the state.

MOTOR TRANSPORT WORKERS ACT 1961.

This Act was made with an intent to provide welfare to the motor transport
workers and to regulate the conditions of their work. It applies to every to every motor
transport undertaking employed five or more transport workers.

All the persons who are employed in a motor transport undertaking directly or
indirectly whether for wages or not are to work in a professional capacity on transport

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vehicle or to attend the duties in connection with arrivals, departures, loading or
unloading of such transport vehicles and includes driver, conductor, cleaner, station
staff, line checking staff, booking clerk, cash clerk, depot clerk, time keeper,
watchman or attendant were covered under the Act and they will be considered as
motor transport workers.

The employers are required to maintain canteen, rest rooms and also required
to provide uniforms and medical facilities, first aid facilities as per requirement and as
per State rules any establishment employing more than 100 workers they have to

S
provide canteen facilities and rest rooms where there is a need of night halt.

E
T
The Act also deals with the working hours, daily intervals of rest, spread over,
split duty and weekly rest.

IA
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All the adult motor transport workers are entitled for extra wages in case they
works more than 8 hours in a day at the rate of twice their ordinary rate of wages.

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Such workers are also entitled for annual leave with wages.

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The workers governed by the provisions of A.P. Shops & Establishment Act and
Factories Act are not governed Motor Transport Workers Act.

22. EMPLOYMENT EXCHANGES

A O
(COMPULSORY NOTIFICATION OF

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VACANCIES) ACT, 1959.

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The object of the Act is to provide for the compulsory notification of vacancies of

A
employment exchanges:

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Establishment in private sector” means an establishment which is not an

A
establishment in public sector and where ordinarily twenty-five or more persons are

R
employed to work for remuneration.

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The employer in every establishment in public and private sector in that state or
area shall furnish such information or return as may be prescribed in relation to
vacancies that have occurred or are about to occur in that establishment, to such
employment exchanges as may be prescribed. Similarly, at least 15 days before
the applicants will be interviewed, a notification should be given to the concerned
employment exchange about the vacancies and thereafter the result of selection
should also be intimated within 15 days after the selection.

16
 The Act does not apply to any employment in agriculture, horticulture, any
employment in domestic service, any employment in which the total duration is less
than three months, any employment to do unskilled office work and any employment
connected with the staff of parliament. similarly, vacancies in any employment which
carries a remuneration of less than sixty rupees in a month.

Nothing in sub-sections (1) and (2) shall be deemed to impose any obligation
upon any employer to recruit any person through the employment exchange to fill any

section.
E S
vacancy merely because that vacancy has been notified under any of those sub-

AT
I
Every employer should also submit quarterly returns in Form ER-I and biannual
return in Form ER-II within 30 days by 30th June, 31st March, 30th September and 31st
December.

OC
and no imprisonment is prescribed under the Law.
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If any employer contravenes the provisions of the Act, only fine will be imposed

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A O
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A N
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R A
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17
 GOVERNMENT OF ANDHRA PRADESH
ABSTRACT

Andhra Pradesh Shops and Establishments Act, 1988 – Exemption from the
provisions of Sections 15 ,16,21,23,31 and in respects of section 47 (1) (2) (3) and
(4) of the Andhra Pradesh Shops and Establishments Act, 1988 to all Information
Technology Enabled Services (ITES) and Information Technology Establishment
in the State of Andhra Pradesh – Extension of exemption for a further period of
five years with effect from 30.05.2013 – Orders –Issued.
LABOUR EMPLOYMENT TRAINING AND FACTORIES (LAB.IV) DEPARTMENT

G.O.Ms.No. 22
E SDated: 21.06.2013

T
Read the following :-

IA
1. G.O.Ms.No.16, LET&F (Lab.II) Department, dated: 30.05.2002.

C
2. G.O.Rt.No.1840, LET&F (Lab.II) Department, dated: 05.8.2002.

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3. G.O.Rt.No.2513, LET&F (Lab.II) Department, dated: 02.12.2002.
4. G.O.Rt.No.1648, LET&F (Lab.II) Department, dated: 31.07.2006.

No.I1/6260/2007, dated: 15.05.2007.

SS
5. From the Commissioner of Labour, Andhra Pradesh, Hyderabad, Letter

A
6. G.O.Ms.No.53, LETF Department, dated: 20th June, 2007
7. From the Addl. Commissioner of Labour (FAC), Hyderabad,

O
Lr.No.N/2230/2012, dated: 18.4.2012

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8. G.O.Ms.No.62, LETF Department, dated: 30.05.2012.
9. From the COL Lr.No.N2/2230/2012, dated 22.05.2013

R ***

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ORDER:

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st
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In the G.O. 1 read above, Information Technology Enabled Services and

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Information Technology Establishments were granted exemption from the

A
provisions of sections 15, 16, 21, 23, 31, and 47 (1) (2) (3) and (4) of the Andhra
Pradesh Shops and Establishments Act, 1988 (Andhra Pradesh Act 20 of 1988)

IR
for a period of (5) years from 30.05.2002 and also granted exemption in GO 6 th

N
read above for further period of 5 years with effect from 30.05.2007 subject to the
conditions laid down therein and further amendments issued subsequently.

In the G.O. 8 th read above Govt., have extended the exemption for a further
period of one year with effect from 30.05.2012 and also requested to furnish
proposals for constitution of a Tripartite Committee. In the meanwhile the IT&C
Department has requested not to conduct surprise checks on IT & ITEC Industry in
the State of Andhra Pradesh and requested for exemption.

3. On the request of the Information Technology & Communications

Department, and the report thereon of the Commissioner of Labour, Andhra

18
Pradesh, Hyderabad Government have decided to extend the exemption for a
further period of five years with effect from 30.05.2013.

Accordingly, the following notification will be published in the Andhra

Pradesh Gazette:
NOTIFICATION

In exercise of the power conferred by sub-section (4) of section 73 of the

Andhra Pradesh Shops and Establishments Act, 1988 (Andhra Pradesh Act 20 of
1988), the Government of Andhra Pradesh hereby exempts from the provisions of

E S
sections 15, 16, 21, 23, 31 and sub-sections (1) (2) (3) and (4) of section 47 of the
Andhra Pradesh Shops and Establishments Act, 1988 to all Information

T
Technology Enabled Services (ITES) and Information Technology Establishments

A
in the State of Andhra Pradesh that are defined in G.O.Ms.No.5, Information

C I
Technology and Communication Department dated;28.1.2002, for a further period
of five years with effect from 30.05.2013 subject to the following conditions

O
namely:-

SS
a) Weekly working hours for an employee shall be 48 hours. For the work
done beyond 48 hours, employee is entitled for overtime wages.

A
b) Every employee shall be given a weekly off.

A O
c) The management is permitted to engage young and women employees
during the night shift subject to provision of adequate security during the

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course of employment and to and fro transport from their respective
residences.

A N
d) Every employee shall be provided with identity cards and all other welfare
measures to which they are eligible as per the rules in force.

N J
e) Every employee shall be given a compensatory holiday in lieu of notified
holidays, with wages under the proviso to sub-section (2) of section 31 of

A
the Andhra Pradesh Shops and Establishments Act 1988 if they work on

R
notified holidays.

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f) The companies shall obtain Bio-data of each driver and conduct pre-
employment screening of the antecedents of all drivers employed on their
own or through outsourcing. The details such as driving license,
photographs, address, telephone No/Mobile No. etc. of drivers shall be
available with the respective companies.
g) The schedule and route of the pick up and drop shall be decided by the
supervisory officer of the company on every Monday (if Monday is holiday
the next working day in a week). In case of exigencies change of
drivers/routes/shifts shall be allowed only with the prior knowledge of
supervisory officers/employees.

19
 h) The telephone number particularly mobile phone numbers and addresses of
the women employee shall not be disclosed to unauthorized persons.
i) Careful selection of routes shall be made in such a way that no women
employees shall be picked up first and dropped last.
j) It is desirable that the company shall provide security guards for night shit
vehicles.
k) The designated supervisors of the company shall randomly check the
vehicle on various routes.

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l) Company shall have a control room/ travel desk for monitoring vehicle
movements; and

TE
m) The exemption granted in these orders may be revoked at any time without

A
any prior notice.

C I
n) The time after / before which security should be provided to women
employees for cab drop offs / pic ups should be specified. Suggested as

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before 6 am and after 8 pm.

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o) General exemption from maintenance of various statutory registers in hard
copies and recognition of soft copy of Registers as sufficient compliance.

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(BY ORDER AND IN THE NAME OF TH E GOVERNOR OF ANDHRA PRADESH)

A O J.C. SHARMA
PRINCIPAL SECRETARY TO GOVERNMENT

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To
The Commissioner of Printing, Stationery & Stores Purchase, Andhra Pradesh,

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Hyderabad with a request to publish in the A.P. Gazettee and furnish 10
copies to Government and 25 copies to Commissioner of Labour, Andhra

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Pradesh, Hyderabad.

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The Commissioner of Labour, Andhra Pradesh, Hyderabad.
Copy to:

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The Information Technology and Communications Department,

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Andhra Pradesh, Hyderabad.
The Law (B) Department
SF/SC
//FORWARDED:: BY ORDER//

SECTION OFFICER

20
MINIMUM RATES OF WAGES UNDER A.P. SHOPS & ESTABLISHMENT ACT.
with effect from 01.04.2014 to 30.09.2014

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NOTES

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