LAW AND  JUDICIARY  DEPARTMENT 

MAHARASHTRA ACT No. XIV OF 1976. 

THE  MAHARASHTRA 
UNEMPLOYMENT 
ALLOWANCE  PAYMENT  TO 
WORKMEN  IN  FACTORIES 
(FOR  TEMPORARY  PERIOD) 
ACT,  1976. 

(As  mod/fled  upto  the  7th  Februaiy  2013) 

PRINTED  IN  INDIA  BY  THE  MANAGER.  YERDA  PRISON  Ppss. Pui  AND 
PUBLISHED  BY  THE  DIREcToR.  GOVERNMENT  PRINTING.  STATIONERY 
AND  PUBLICATIONS.  MAHABÀSHTBÀ  STATE.  MuìmAI-4OO  004. 

2013 

ftrice-Rs.  9 

1 

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THE  MAHARASHTRA  UNEMPLOYMENT  ALLOWANCE  TO  WORKMEN 
IN  FACTORIES  (FOR  TEMPORARY  PERIOD)  ACT,  1976. 

(i) 

CONTENTS 

PREAMBLE. 

SECTIONS. 

1.  Short  title,  extent,  commencement  and  operation. 

2.  Definitions. 

3. 

Payment of  Unemployment Allowance. 

4.  Workmen  not  entitled  to  Unemployment Allowance  in certain  cases. 

5  .  Recovery of  money  due  from  employer. 

6. 

Penalty. 

7.  Cognizance  of  offence. 

8.  Offences  by  companies. 

9. 

Savings. 

lo.  Repeal  of Mah.  Ord.  II  of  1976  and  savings. 

S  (J)  232-1 

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MAHARASHTRA ACT  No.  XIV OF  1976.1 

ITHE MAHARASHTRA  UNEMPLOYMENT ALLOWANCE PAYMENT  To WORKMEN 
Fc FACTORIES  (FOR TEMPORARY  PERIOD) Act, 1976J 

(This Act received the  assent ot  the President on the  17th April  1976;  assent was first 

published in the  Maharashtra Government Gazette, Part  iV,  on the 18th April 1976). 
AmendedbyMah. 22 of 1981 (171981)* 

An Act to require employers to pay unemployment allowance to certain workmen who, 
due to  short working of factories on account of shortage  of power,  cannot be given 
employment therein on certain days during a certain temporary period and to 
provide for matters connected therewith. 

WHEREAS both Houses  of the Legislature of the State were not in Session; 

AND  WHEREAS  the  Governor  of  Maharashtra  was  satisfied  that  circumstances 
existed which rendered it necessary for him to take  immediate action to require  employers 
to  pay  unemployment  allowance  to  certain  workmen  who,  due  to  short  working  of 
factories  on  account  of  shortage  of power,  could  not  be  given  employment  therein  on 
certain  days  during  a  temporary  period notified  either  in relation  to  the  whole  State  or 
any  part  thereof and  to  provide  for  matters  connected  therewith,  and  for  that  purpose 
Mah.  promulgated  the  Maharashtra  Unemployment  Allowance  Payment  to  Workmen  in 
Ord.  Factories (for Temporary Period) Ordinance,  1976,  on the 5th day of  February 1976 
II  of 
1976. 

AND  WHEREAS  it  is  expedient  to  replace  the said  Ordinance by an  Act of the  State 
Legislature;  It  is  hereby enacted  in the  Twenty-seventh Year  of  the  Republic  of  India 
asfollows :- 

1.  (1)  This  Act  may  be  called  the  Maharashtra Unemployment  Allowance  Payment  Short  title, 

extent, 
to Workmen in Factories (for Temporary Period) Act,  1976. 
C ommence - 
(2)  It extends to the whole ofthe  State ofMaharashtra. 
ment  and 
(3)  It shall  be  deemed  to  have  come  into  force  on  the  16th day  of  December  1975,  operation. 

but save  as provided  in section  9  shall  be in operation only during  the temporary periods 
notified, from time to time, under-clause (e) ofsection 2,  in the whole State or any part  thereof 
as may be specified in such notification. 

2.  In this Act unless the context requires otherwise, 

Definitions. 

i 4  of 
1947. 

(a)  " Bad/i workman  "  means a workman who is provided with a Bad/i card and who 
is  employed  in a  factory  in place of  another workman who  is  temporarily absent  and 
whose name  is borne  on the muster roll of the factory; 

(b)  " factory  "  means any premises including  precincts thereofwherein ten or more 
workers  are  working  or  were  working  on  any  day  of  the  preceding  twelve  months, 
and  in  any  part  of  which  a  manufacturing  process  is  being  carried  on  with 
the  aid  of power,  or  is  ordinarily  so  carried  on,  but  does  not  include  a  factory  in 
respect  of which  the  Central  Goverrment  is  the  appropriate  Government  in  relation 
to industral disputes concerning it under the Industrial Disputes Act,  1947 

(c) "  Manager "  means the person who is for the time being managing the factory, and 
includes  any  other  officer  duly  authorised  by  the  employer  to  act  as  Manager,  such 
authorisation being notified to the workmen by displaying it  on the notice board of the 
factory; 

i  For  Statement  of Objects  and  Reasons,  see  Maharashtra  Government Gazette,  Part  \Ç  1976,  page  80. 
*  This  indicates  the  date  of  commencement  of the  Act. 

S  (J) 232-2 

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Maharashtra  Unemployment Allowance  Payment  to  Workmen 
in  Factories  (for  Temporary  Period)  Act,  1976 

11976 :  Mah. XIV 
(d)  " permanent workman "  means a workman who has been employed on a 
permanent basis  or whose appointment  has been confirmed  in writing  by the 
Manager or  by  a  person  duly authorised  in this  behalf by  the  Manager,  and 
includes a workman who has completed a probationary period ofthree months in 
the  aggregate  in  the  same  or  another  occupation  in  the  factory,  and  an 
apprentice who  is asked or appointed to work  in a post or vacancy  of a perma- 
nent workman for the purposes  ofpayment ofwages to him during the period he 
works on  such post or  in such vacancy; 

(e)  "temporary period"  means  such period (including  its extension)  as  the 
State Government may for the whole  State or any part thereoffrom time to time 
by notification in the Official Gazette  specify in this behalf; and any notification 
under this  clause may be made so  as to be restrospective to  any date not  earlier 
than the  16th day of December  1975; 

(f) "temporary workman" means  a workman who  has been appointed  in a 
factory for a limited period for work which is ofan essentially temporary nature 
or who  is employed  temporarily as  an  additional workman in connection with 
temporary increase in work of a permanent nature; 

(g)  the  expression "workman"  and  any other  words or expressions used  in 
this  Act  but  not  defined  therein  shall  have  the  same  meanings  respectively 
assigned to them in the Industrial Disputes  Act,  1947, with this modification that  i 4  of 
the expression "workman" shall include a Badli workman,  a temporary workman,  i 947. 
and for avoidance ofdoubt, also a permanent workman. 

3.  (1) Where any workman, whose name is borne on the muster roll or, as the 
Payment 
of 
case may be,  Badli Register, ofa factory on, the first thy ofthe temporary period 
unemploy- 
not  provided,  with employment  therein on  any days  during the temporary 
allowance  period, due to short working of factories on  account of shortage of power or on 
account ofdiscontinuance or reduction ofthe supply ofpower to the factory for 
contravention  of any provisions  of the  *Bombay Electricity  (Special Powers)  Bom. 
Act,  1946,  or ofany orders  ofdirections issued thereunderj then notwithstand-  X  of 
ing anything contained in any law for the time being in force,  he shall,  subject to  1946. 
the provisions ofthis Act be paid by the employer an unemployment allowance 
at such rate per day and for such number of days in each calendar month during 
the temporary period  as is provided in  sub-section (2)  of this  section. 

(2) The rate ofunemployment allowance payable shall be equal to 50 per cent. 
of the total  of the basic  wages  and  dearness  allowance that  would  have  been 
payable to  him had  he been provided  with employment  during the temporary 
period: 

2 

Provided that where the unemployment is on account of discontinuance or 
reduction of the  supply of power for  the reasons  stated in sub-section (1),  the 
rate of  allowance payable  shall  be  hundred  per cent.  of the total  of the basic 
wages and dearness allowance.J 

The  number of days  in each  calendar month for  which the unemployment 
allowance shall be paid at the rate aforesaid shall be equal to the average of the 
total number of days  in each month on which  a workman has actually worked 
during  a  period  of  one  year  immediately  before  the  commencement  of  the 
temporary period: 

1.  This  portion was  substituted  for  the  original  by  Mah.  22  of  1981,  s.  4. 
2.  This  proviso  was  added,  ibid. 
*  The  short  title  of this  Act  was  amended  as  "  the  Maharashtra  Electricity  (Special 

Powers)  Act"  by  Mah.  24  of  2012,  w.  e.  f.  1-5-1960. 

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Maharashtra  Unemployment  Allowance  Payment  to  Workmen 
in  Factories  (for  Temporary  Period)  Act,  1976 

1976:  Mah. XiV] 

3 

i 4  of 
1947. 

Provided that, such number ofdays in each calendar month shall not exceed the number 

of days in that month on which  he is not provided with unemloyment. 

Explanation. -Where the interval between two or more temporary periods is less  than 
one year, then for calculating the period of one year in relation to the last of such temporary 
periods for the purposes  of this  sub-section, the  temporary period or periods  immediately 
before such last temporary period shall be excluded. 

(3)  In computing  the amount  of unemployment allowance,  the  amount  payable  shall, 
where  neccssary,  be  rounded  off to  the  nearest  rupee,  fractions  of fifty  paise  and  over 
being  counted as  one,  and less than fifty paise being disregarded. 

(4)  Where  a  workman  does  not  actually  work  for  the  full  number  of  hours  on  any 
day,  then  in  counting  the  number  of  days  on  which  he  has  actually  worked  on  such 
days,  the  number  of  hours  during  which  a  workman  has  worked  on  each  such  day 
shall be added  together to  ascertain the number of days. 

4.  No unemployment allowance shall be paid to any workman- 

(a)  if he is entitled to any lay-off compensation under the provisions ofthe Industrial 

DisputesAct,  1947 

(b)  ifhe refuses to accept any alternative employment in the same factory in which  he 
has been provided with his usual employment,  or in any other  factory belonging to the 
same employer in the same town or village or situated within a radius of  8 kilometres from 
the  factory  to  which  he  belongs,  if,  in the  opinion  of the  employer,  such  alternative 
employment does  not call for any special skill or previous experience and can be done by 
the workman,  provided  that  the  wages  which  would  normally  have  been paid  to  the 
workman are offered for the alternative employment also; 

(c)  if such non-provision for employment  on any day  is due to any strike  or slowing 

down of production on the part of the workmen in another part of the factory. 
5.  (1)  Where any money by way ofunemployment allowance  is due to a workman from 
an  employer under  the provisions  of this  Act,  the  workman himself or any  other  person 
authorised by him in writing in this behalf,  or in the case  of the death of the  workman, his 
assignee or heirs may, without prejudice to any other mode of recovery, make an application 
to the State Government or one or more officers authorised by it for any area or areas, for the 
recovery of money  due to  him,  and  subject  to  provisions  of sub-section  (2),  if the  State 
Government or the authorised officer is  satisfied that any money is so due, it or  such authorised 
officer shall issue a certificate for that amount to the Collector, who shall proceed to recover 
the same  in the same manner as  an arrear of land revenue 

Provided that,  every  such application  shall  be  made within  one year  from the  date  on 

which the money became due to the workman from the employer: 

Provided further that, any such application may be entertained afler the expiry ofthe said 
period of one year,  if the  State  Government  or the  authorised officer  is  satisfied that  the 
applicant had sufficient cause for not making the application within the said period. 

(2)  No  certificate  under  sub-section  (1)  shall  be  issued unless  the  employer has  been 
given  an  opportunity  to  represent  his  case  as  to  why  he  did  not  pay the  unemployment 
allowance to the workman in accordance  with the provisions of section 3, and his represen- 
tation or any evidence  produced by  him is  duly considered,  if necessary,  afler hearing the 
employer. 

Workmen 
not  entitled 
to 
unemploy- 
ment 
allowance 
in  certain 
cases. 

Recovery 
of  money 
due  from 
employer. 

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4 

Maharashtra  Unemployment Allowance  Payment  to  Workmen 

Penalty. 

Cogni- 

Offences 
by 
compa- 

Savings 

Repeal  of 
Malt  Ord. 

and 
savings. 

in  Factories  (for  Temporary  Period)  Act,  1976  11976 :  Mah. XIV 
6.  Any  person who  commits  a  breach  of any  of  the  provisions  of this 
Act,  shall, on conviction, be punished with imprisonment for a term which may 
extend  to  six  months,  or  with  fine,  or  with  both,  and  where  the  breach  is 
a continuing one, with a further fine which may extend to two hundred rupees for 
every day during  which the  breach continues afler the  conviction for the first 
and the Court trying the offence, ifit fines the offender,  may direct that the whole 
or any part ofthe line realised from him shall be paid by way of unemployment 
allowance to any person who, in its opinion,  has been injured by such breach. 
7  (1) No  Court shall take  cognizance or any offence punishable  under the 
Act,  or ofthe abetment ofany such offence, save  on complaint made by or under 
the authority of  the State Government. 

(2) No  Court inferior to that of a Metropolitan Magistrate or a Magistrate of 

the first class  shall try any offence punishable under this Act. 

8. 

(1) Where an offence under this Act has been committed by a company, 
every person who  at the time the offence was committed,  was in charge of,  and 
was  responsible  to,  the  company  for  the  conduct  of the  business  of  the 
company,  as  well  as  the  company shall  be deemed  to be  gulity of the  offence; 
and shall be liable  to be proceeded against  and punished accordingly; 

Provided that,  nothing contained  in this  sub-section shall  render any  such 
person  liable  to  any  punishment provided  in  this  Act,  if he  proves  that  the 
offence  was  committed  without  his  knowledge,  or  that  he  exercised  all  due 
diligence to prevent the commission of such offence. 

(2)  Notwithstanding anything contained in sub-section  (1) where an offence 
under  this  Act  has  been  committed  by  a  company  and  it  is  proved  that  the 
offence has been committed with the consent or connivance  of or is attributable 
to, any neglect on the part ofany director, manager,  secretary or other officer of 
the  company,  such director,  manager,  secretary  or  other  officer  shall  also  be 
deemed to be guilty of that offence, and  shall be liable  to be proceeded against 
and punished accordingly. 

Explanation. -For the purpose  of this section,- 

(a)  "  company  " means any body corporate,  and includes a firm or other 

association of individuals,  and 

(b) "  director "  in relation to a firm, means a partner in the firm. 

9  (1) Notwithstanding the expiry of any temporary period, notified under 
clause (e) ofsection 2,  the provisions of  this Act shall continue to  have effect for 
the  purposes  of  recovery of  any  money  by  way  of unemployment  allowance 
due, or for the purpose  of any penalty incurred on  or before the expiry of such 
period,  or for  any other  purposes  connected with,  or  incidental to,  any of the 
purposes  aforesaid. 

(2)  Nothing under this Act shall  render any person liable to be convicted of 
any offence in respect ofanything done or omitted  to be done by him, before the 
5th  day of February  1976.  or as  the  case  may  be, before  the first  day  of any 
temporary period if such act or omission was not an offence before such date or 
day. 

lo. 

(1) The Maharashtra Unemployment Allowance Payment to Workmen 

in Factories (for Temporary Period) Ordinance,  1976 is hereby, repealed. 

(2)  Notwithstanding  such  repeal,  anything  done  or  any  action  taken  Mah 
including any notification or order issued under the Ordinance so repealed shall  o rd. 
be  deemed  to  have been made,  done or issued,  as  the  case  may be,  under the  I  I  o  f 
1976. 
corresponding provisions  of this  Act. 

YERAVDA PRISON  PRESS,  Puì-6. 

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Maharashtra  Government  Publications 
can  be  obtained  from 

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Maharashtra  State 
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.  THE  MANAGER 

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Civil  Lines 
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