THE BEEDI AND CIGAR WORKERS (CONDITIONS OF  

EMPLOYMENT)ACT, 1966                                                                                                                             

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ARRANGEMENT OF SECTIONS                                                                                                      

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SECTIONS 

1. Short title, extent and commencement. 

2. Definitions. 

3. Industrial premises to be licensed. 

4. Licences. 

5. Appeals. 

6. Inspectors. 

7. Powers of Inspectors. 

7A. Inspector not to disclose the source of any complaint, etc. 

8. Cleanliness. 

9. Ventilation. 

10. Overcrowding. 

11. Drinking water. 

12. Latrines and urinals. 

13. Washing facilities. 

14. Creches. 

15. First aid. 

16. Canteens. 

17. Working hours. 

18. Wages for overtime work. 

19. Interval for rest. 

20. Spread over. 

21. Weekly holidays. 

22. Notice of periods of work. 

23. Hours of work to correspond with notice under section 22. 

24. Prohibition of employment of children. 

25. Prohibition of employment of women or young persons during certain hours. 

26. Annual leave with wages. 

27. Wages during leave period. 

28. Application of the Payment of Wages Act, 1936 to industrial premises. 

29. Special provisions. 

30. Onus as to age. 

31. Notice of dismissal. 

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SECTIONS 

32. Penalty for obstructing Inspector. 

33. General penalty for offence. 

34. Offences by companies. 

35. Indemnity. 

36. Cognizance of offences. 

37. Application of the Industrial Employment (Standing Orders) Act, 1946 and the Maternity Benefit 

Act, 1961. 

38. Certain provisions not to apply to industrial premises. 

39. Application of the Industrial Disputes Act, 1947. 

40. Effect of laws and agreements inconsistent with this Act. 

41. Power to exempt. 

42. Powers of Central Government to give directions. 

43. Act not to apply to self-employed persons in private dwelling houses. 

44. Power to make rules. 

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THE BEEDI AND CIGAR WORKERS (CONDITIONS OF  
EMPLOYMENT) ACT, 1966 

ACT NO. 32 OF 1966 

[30th November, 1966.] 

An  Act  to  provide  for  the  welfare  of  the  workers  in  beedi  and  cigar  establishments  and  to 

regulate the conditions of their work and for matters connected therewith. 

BE it enacted by Parliament in the Seventeenth Year of the Republic of India as follows:— 

1.  Short  title,  extent  and  commencement.—(1)  This  Act  may  be  called  the  Beedi  and  Cigar 

Workers (Conditions of Employment) Act, 1966. 

(2) It extends to the whole of India except the State of Jammu and Kashmir*. 
(3) It shall come into force in a State on such date1 as the State Government may, by notification in 
the Official Gazette, appoint and different dates may be appointed by the State Government for different 
areas and for different provisions of this Act. 

2. Definitions.—In this Act, unless the context otherwise requires,— 

(a) “adult” means a person who has completed eighteen years of age; 

(b) “child” means a person who has not completed fourteen years of age; 

(c)  “competent  authority”  means  any  authority  authorised  by  the  State  Government  by 
notification in the Official Gazette to perform all or any of the functions of the competent authority 
under this Act and for such areas as may be specified therein; 

(d)  “contractor”  means  a  person  who,  in  relation  to  a  manufacturing  process,  undertakes  to 
produce a given result by executing the work through contract labour or who engages labour for any 
manufacturing  process  in  a  private  dwelling  house  and  includes  a sub-contractor,  agent,  munshi, 
thekedar; 

(e)  “contract  labour”  means  any  person  engaged  or  employed  in  any  premises  by  or  through 

contractor, with or without the knowledge of the employer, in any manufacturing process; 

(f) “employee” means a person employed directly or through any agency, whether for wages or 
not,  in  any  establishment 2[or  godown]  to  do  any  works  skilled,  unskilled,  manual  or  clerical,  and 
includes— 

(i) anylabour who is given raw materials by an employer or a contractor for being made into 

beedi or cigar or both at home (hereinafter referred to in this Act as “home worker”), and 

(ii) any person not employed by an employer or a contractor but working with the permission 

of, or under agreement with, the employer or contractor 2[or both]; 

(g) “employer” means,— 

(a) in relation to contract labour, the principal employer; and 

(b) in relation to other labour, the person who has the ultimate control over the affairs of any 
establishment  or  who  has,  by  reason  of  his  advancing  money,  supplying  goods  or  otherwise,  a 
substantial  interest  in  the  control  of  the  affairs  of  any  establishment,  and  includes  any  other 
person to whom the affairs of the establishment are entrusted, whether such other person is called 
the managing agent, manager, superintendent or by any other name; 

1.  10thFebruary,  1970,  vide  notification  No.IIE/2-1/70,  dated  the  9th  February,  1970,  in  respect  of  section  3,  in  the  State  of 

Orissa. 

2. Ins. by Act 41 of 1993, s. 2 (w.e.f. 22-5-1993). 
*.  Vide Notification No. S.O. 3912 (E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu 
and Kashmir and the Union territory of Ladakh. 

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(h) “establishment” means any place or premises including the precincts thereof in which or in 
any part of which any manufacturing process connected with the making of beedi or cigar or both is 
being, or is ordinarily, carried on and includes an industrial premises; 

1[(hh)  “godown”  means  any  warehouse  or  other  place,  by  whatever  name  called,  used  for  the 

storage of— 

(i) any article or substance required for any manufacturing process; or 

(ii) beedi or cigar or both;] 

(i)  “industrial  premises”  means  any  place  or  premises  (not  being  a  private  dwelling  house), 
including  the  precincts  thereof,  in  which  or  in  any  part  of  which  any  industry  or  manufacturing 
process connected with the making of beedi or cigar or both is being, or is ordinarily, carried on with 
or without the aid of power, 2[and includes a godown attached thereto]; 

(j) “Inspector” means an Inspector appointed under sub-section(1) of section 6; 

(k) “manufacturing process” means any process for, or incidental to, making, finishing or packing 
or  otherwise  treating  any  article  or  substance  with  a  view  to  its  use,  sale,  transport,  delivery  or 
disposal as beedi or cigar or both; 

(l) “prescribed” means prescribed by rules made by the State Government under this Act; 
(m)  “principal  employer”  means  a  person  for  whom  or  on  whose  behalf  any  contract  labour  is 

engaged or employed in an establishment; 

(n)  “private  dwelling  house”  means  a  house  in  which  persons  engaged  in  the  manufacture  of 

beedi or cigar or both reside; 

(o) “State Government”, in relation to a Union territory, means the Administrator thereof; 
(p) “week” means a period of seven days, beginning at midnight on Saturday; 
(q)  “young  person”  means  a  person  who  has  completed  fourteen  years  of  age  but  has  not 

completed eighteen years of age. 

3. Industrial premises to be licensed.—Save as otherwise provided in this Act, no employer shall 
use or allow to be used any place or premises as an industrial premises unless he holds a valid licence 
issued  under  this  Act  and  no  such  premises  shall  be  used  except  in  accordance  with  the  terms  and 
conditions of such licenced. 

4.  Licences.—(1)  Any  person  who  intends  to  use  or  allows  to  be  used  any  place  or  premises  as 
industrial  premises  shall  make  an  application  in  writing  to  the  competent  authority,  in  such  form  on 
payment of such fees as may be prescribed, for a licence to use, or allow to be used, such premises as an 
industrial premises. 

(2) The application shall specify the maximum number of employees proposed to be employed at any 
time  of  the  day  in  the  place  or  premises  and  shall  be  accompanied  by  a  plan  of  the  place  or  premises 
prepared in such manner as may be prescribed. 

(3) The competent authority shall, in deciding whether to grant or refuse a licence, have regard to the 

following matters:— 

(a) the suitability of the place or premises which is proposed to be used for the manufacture of 

beedi or cigar or both; 

(b) the previous experience of the applicant; 
(c) the financial resources of the applicant including his financial capacity to meet the demands 

arising out of the provisions of the laws for the time being in force relating to welfare of labour; 

(d) whether the application is made bonafide on behalf of the applicant himself or in benami of 

any other person; 

1. Ins. by Act 41 of 1993, s. 2 (w.e.f. 22-5-1993). 
2. Added by s. 2, ibid. (w.e.f. 22-5-1993). 

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(e) welfare of the labour in the locality, the interest of the public generally and such other matters 

as may be prescribed. 

(4) (a) A licence granted under this section shall not be valid beyond the financial year in which it is 

granted but may be renewed from financial year to financial year. 

(b)  An  application  for  the  renewal  of  a licence  granted  under this  Act  shall  be made  at  least  thirty 
days before the expiry of the period thereof, on payment of such fees as may be prescribed, and where 
such an application has been made, the licence shall be deemed to continue, notwithstanding the expiry of 
the period thereof, until the renewal of the licence, or, as the case may be, the rejection of the application 
for the renewal thereof. 

(c)  The  competent  authority  shall,  in  deciding  whether  to  renew  a  licence  or  to  refuse  a  renewal 

thereof, have regard to the matters specified in sub-section (3). 

(5) The competent authority shall not grant a renew a licence unless it is satisfied that the provisions 

of this Act and the rules made thereunder have been substantially complied with. 

(6) The competent authority may, after giving the holder of a licence an opportunity of being heard, 
cancel or suspend any licence granted or renewed under this Act if it appears to it that such licence has 
been obtained by misrepresentation or fraud or that the licensee has contravened or failed to comply with 
any  of the provisions  of  this  Act  or the  rules  made  thereunder  or  any  of the terms  or  conditions  of  the 
licence. 

(7) The State Government may issue in writing to a competent authority such directions of a general 
character  as  that  Government  may  consider  necessary  in  respect  of  any  matter  relating  to  the  grant  or 
renewal of licences under this section. 

(8) Subject to the foregoing provisions of this section, the competent authority may  grant or renew 
licences  under  this  Act  on  such  terms  and  conditions  as  it  may  determine  and  where  the  competent 
authority refuses to grant or renew any licence, it shall do so by an order communicated to the applicant, 
giving the reasons in writing for such refusal. 

5. Appeals.—Any person aggrieved by the decision of the competent authority refusing to grant or 
renew a licence or cancelling or suspending a licence may, within such time and on payment of such fees, 
not  exceeding  twenty  rupees,  as  may  be  prescribed,  appeal  to  such  authority  as  the  State  Government 
may,  by  notification  in  the  Official  Gazette,  specify  in  this  behalf,  and  such  authority  may  by  order 
confirm, modify or reverse any order refusing to grant or renew a licence or cancelling or suspending a 
licence. 

6. Inspectors.—(1) The State Government may, by notification in the Official Gazette, appoint such 
of its officers or such officers of any local authority as it thinks fit to be Inspectors for the purposes of this 
Act and may assign to them such local limits as it may think fit. 

(2)  The  State  Government  may,  by  notification  in  the  Official  Gazette,  appoint  any  person  to  be  a 

Chief Inspector who shall exercise the powers of an Inspector throughout the State. 

(3) Every Chief Inspector and Inspector shall be deemed to be a public servant within the meaning of 

section 21 of the Indian Penal Code 1860 (45 of 1860). 

7. Powers of Inspectors.—(1) Subject to any rules made by the State Government in this behalf, an 

Inspector may, within the local limits for which he is appointed,— 

(a) make such examination and hold such inquiry as may be necessary for ascertaining whether 

the provisions of this Act have been or are being complied within any place or premises: 

Provided that no person shall be compelled under this section to answer any question or to give 

any evidence which may tend to incriminate himself; 

(b)  require  the  production  of  any  prescribed  register  and  any  other  document  relating  to  the 

manufacture of beedi or cigar or both; 

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(c)  enter,  with  such  assistants  as  he  thinks  fit,  at  all  times  any  place  or  premises  including  the 
residences of employees if he has reasonable grounds for suspecting that any manufacturing process 
is being carried on or is ordinarily carried on in any such place or premises; 

(d) exercise such other powers as may be prescribed. 

(2)  If  an  Inspector  has  reasonable  grounds  for  suspecting  that  any  manufacturing  process  is  being 
carried on in any establishment in contravention of the provisions of this Act, he may, after giving due 
notice to the employer or, in the absence of the employer, to the occupier, enter such establishment with 
such assistants, if any, as he may think fit. 

(3) Every employer or occupier shall accord to the Chief Inspector or the Inspector, as the case may 

be, all reasonable facilities in the discharge of his duties under this Act. 

1[7A. Inspector not to disclose the source of any complaint, etc.—(1) No Inspector shall disclose 
the source of any complaint made to him regarding the contravention of any of the provisions of this Act.  

(2)  No  Inspector  shall,  while  making  an  inspection  under  this  Act  in  pursuance  of  a  complaint 
received by him, disclose to the employer or contractor concerned or any of his representatives that the 
inspection is being made in pursuance of a complaint: Provided that nothing in this section shall apply to 
any case in which the person who has made the complaint has consented to disclose his name.] 

8. Cleanliness.—Every industrial premises shall be kept clean and free from effluvia arising from any 
drain,  privy  or  other  nuisance  and  shall  also  maintain  such  standard  of  cleanliness  including  white 
washing, colour washing, varnishing or painting, as may be prescribed. 

9. Ventilation.—(1) For the purpose of preventing injury to the health of the persons working therein, 
every industrial premises shall maintain such standards of lighting, ventilation and temperature, as may be 
prescribed. 

(2) Wherever dust or fume or other impurity of such a nature and to such an extent as is likely to be 
injurious  or  offensive  to  the  persons  employed  in  any  industrial  premises is  given  off  by  reason  of the 
manufacturing process carried on in such premises, the competent authority may require the employer to 
take  such  effective  measures  as  may  prevent  the  inhalation  of  such  dust,  fume  or  other  impurity  and 
accumulation thereof in any work room. 

10.  Overcrowding.—(1)  No  room  in  any  industrial  premises  shall  be  overcrowded  to  an  extent 

injurious to the health of the persons employed therein. 

(2) Without  prejudice  to  the  generality  of sub-section  (1),  there  shall  be  in  any work  room  of  such 
premises at least four and a quarter cubic metres of space for every person employed therein, and for the 
purposes  of  this  sub-section,  no  account  shall  be  taken  of  any  space  which  is  more  than  three  metres 
above the level of the floor of the work room. 

11.  Drinking  water.—(1)  The  employer  shall  make  in  every  industrial  premises  effective 
arrangements  to  provide  and  maintain  at  suitable  points  conveniently  situated  for  all  persons  employed 
therein, a sufficient supply of wholesome drinking water. 

(2) All such points shall be legibly marked “drinking water” in a language understood by the majority 
of the persons employed in the industrial premises and no such point shall be situated within six metres of 
any washing place, urinal or latrine except with the prior approval in writing of the competent authority. 

12.  Latrines  and  urinals.—(1)  In  every  industrial  premises,  sufficient  latrine  and  urinal 
accommodation  of  such  types  as  may  be  prescribed  shall  be  provided  and  shall  be  so  conveniently 
situated as may be accessible to the employees at all times while they are in the industrial premises: 

Provided that  it shall  not be  necessary  to provide  separate  urinals  in  industrial  premises  where less 

than fifty persons are employed or where the latrines are connected to a water-borne sewage system. 

1. Ins. by Act 41 of 1993, s. 3 (w.e.f. 22-5-1993). 

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(2) The State Government may specify the number of latrines and urinals which shall be provided in 
any industrial premises in proportion to any number of male and female employees ordinarily employed 
therein,  and  may  provide  for  such  further  matters in respect  of  sanitation  in  the  industrial  premises 
including  obligation  of  the  employees  in  this  regard  as  it  may  consider  necessary  in  the  interest  of  the 
health of the persons employed therein. 

13. Washing facilities.—In every industrial premises, where blending or sieving or both of tobacco 
or warming of beedi in hot ovens is carried on, the employer shall provide such washing facilities for the 
use of the employees, as may be prescribed. 

14.  Creches.—(1)In  every  industrial  premises  wherein  more  than  1[thirty]    female  employees  are 
ordinarily  employed,  there  shall  be  provided  and  maintained  a  suitable  room  or  rooms  for  the  use  of 
children under the age of six years of such female employees. 

(2) Such rooms shall— 

(a) provide adequate accommodation; 

(b) be adequately lighted and ventilated; 

(c) be maintained in a clean and sanitary condition; 

(d) be under the charge of women trained in the care of children and infants. 

(3) The State Government may make rules,— 

(a)  prescribing  the  location  and  the  standards  in  respect  of  construction,  accommodation, 

furniture and other equipment of rooms to be provided under this section; 

(b) requiring the provision in any industrial premises to which this section applies, of additional 
facilities  for  the  care  of  children  belonging  to  female  employees,  including  suitable  provision  of 
facilities for washing and changing their clothing; 

(c) requiring the provision in any industrial premises of free milk or refreshment or both for such 

children; 

(d)  requiring  that  facilities  shall  be  given  in  any  industrial  premises  for  the  mothers  of  such 

children to feed them at necessary intervals. 

15. First aid.—Every industrial premises shall provide such first aid facilities as may be prescribed. 

16. Canteens.—The State Government may, by rules, require the employer to provide and maintain in 
every industrial premises wherein not less than two hundred and fifty employees are ordinarily employed, 
a canteen for the use of the employees. 

17. Working hours.—No employee shall be required or allowed to work in any industrial premises 

for more than nine hours in any day or for more than forty-eight hours in any week: 

Provided that any adult employee may be allowed to work in such industrial premises for any period 
in excess of the limit fixed under this section subject to the 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. 

18.  Wages  for  overtime  work.—(1)  Where  any  employee  employed  in  any  industrial  premises  is 
required to work overtime, he shall be entitled in respect of such overtime work, to wages at the rate of 
twice his ordinary rate of wages. 

(2)  Where  the employees  in  an  industrial  premises are  paid on a  piece-rate  basis,  the overtime  rate 
shall be calculated, for the purposes of this section, at the time rates which shall be as nearly as possible 
equivalent to the daily average of their full time earnings for the days on which they had actually worked 
during the week immediately preceding the week in which the overtime work has been done. 

1. Subs. by Act 41 of 1993, s. 4, for “fifty” (w.e.f. 22-5-1993). 

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1[Explanation.—Where an employee had not worked on any day of the week immediately preceding 
the  week  in  which  the  overtime  work  has  been  done,  any  week  preceding  such  week  in  which  he  had 
actually worked shall be taken into account in calculating the overtime rate for the purposes of this sub-
section.] 

(3)  For  the  purposes  of  this  section,  “ordinary  rates  of  wages”  means  the  basic  wages  plus  such 
allowance, including the cash equivalent of the advantage accruing through the concessional sale to the 
employees of food grains and other articles as the employee is for the time being entitled to but does not 
include bonus. 

(4) The cash equivalent of the advantage accruing through the concessional sale to an employee of 
food  grains  and  other  articles  shall  be  computed  as  often  as  may  be  prescribed  on  the  basis  of  the 
maximum quantity of food grains and other articles admissible to a standard family. 

ExplanationI.—“Standard family” means a family consisting of the employee, his or her spouse and 

two children requiring in all three adult consumption units. 

ExplanationII.—“Adult consumption units” means the consumption unit of a male above the age of 
fourteen years; and the consumption unit of a female above the age of fourteen years and that of a child 
shall be calculated at the rate of eight-tenths and six-tenths, respectively, of one adult consumption unit. 

19. Interval for rest.—The periods of work for employees in an industrial premises each day shall be 
so fixed that no period shall exceed five hours and that no employee shall work for more than five hours 
before he has had an interval for rest of at least half an hour. 

20. Spread over.—The periods of work of an employee in an industrial premises shall be so arranged 
that inclusive of his intervals for rest under section 19, they shall not spread over more than ten and a half 
hours in any day: 

Provided that the Chief Inspector may, for reasons to be specified in writing, increase the spread over 

to twelve hours. 

21. Weekly holidays.—(1) Every industrial premises shall remain entirely closed, except for wetting 
of  beedi  or  tobacco  leaves,  on  one  day  in  the  week  which  day  shall  be  specified  by  the  employer  in  a 
notice exhibited  in  a conspicuous  place  in the industrial  premises  and the  day  so  specified  shall  not be 
altered  by  the  employer  more  often  than  once  in  three  months  and  except  with  the  previous  written 
permission of the Chief Inspector. 

2[Provided that a copy of every such notice shall be sent to the Inspector having jurisdiction over the 
industrial  premises  within  two  weeks  from  the  date  on  which  such  notice  is  exhibited  in  the  industrial 
premises.] 

(2)  Notwithstanding  anything  contained  in  sub-section  (1),  an  employee  employed  in  the  said 
premises for wetting of beedi or tobacco leaves on the day on which it remains closed in pursuance of 
sub-section (1), shall be allowed a substituted holiday on one of the three days immediately before or after 
the said day. 

(3) For a holiday under this section, an employee shall be paid, notwithstanding any contract to the 
contrary, at the rate equal to the daily average of his total full time earnings for the days on which he had 
worked during the week immediately preceding the holiday exclusive of any overtime earnings and bonus 
but inclusive of dearness and other allowances. 

Explanation.—The  expression  “total  full  time  earnings”  shall  have  the  meaning  assigned  to  it  in 

section 27. 

22.  Notice  of  periods  of  work.—(1)  There  shall  be  displayed  and  correctly  maintained  in  every 
industrial premises a notice of periods of work in such form and in such manner as may be prescribed, 
showing clearly for every day the periods during which the employees may be required to work. 

1. Ins. by Act 41 of 1993, s. 5 (w.e.f. 22-5-1993). 
2. The proviso added by s. 6, ibid. (w.e.f. 22-5-1993). 

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(2) (a) A copy of the notice referred to in sub-section (1) shall be sent in triplicate to the Inspector 
having jurisdiction over the industrial premises within two weeks from the date of the grant of a licence 
for  the  first  time  under  this  Act,  in  the  case  of  any  industrial  premises  carrying  on  work  at  the 
commencement  of  this  Act,  and  in  the  case  of  any  industrial  premises  beginning  work  after  such 
commencement, before the day on which the work is begun in the industrial premises. 

(b) Any proposed change in the system of work which will necessitate a change in the notice referred 
to in sub-section (1) shall be notified to the Inspector in triplicate before the change is made and except 
with  the  previous  sanction  of  the  Inspector,  no  such  change  shall  be  made  until  one  week  has  elapsed 
since the last change. 

23. Hours of work to correspond with notice under section 22.—No employee shall be employed 
in any industrial premises otherwise than in accordance with the notice of work displayed in the premises 
under section 22. 

24. Prohibition of employment of children.—No child shall be required or allowed to work in any 

industrial premises. 

25. Prohibition of employment of women or young persons during certain hours.—No woman or 
young person shall be required or allowed to work in any industrial premises except between 6 a.m. and 7 
p.m. 

26.  Annual  leave  with  wages.—(1)  Every  employee  in  an  establishment  shall  be  allowed  in  a 

calendar year leave with wages— 

(i) in the case of an adult, at the rate of one day for every twenty days of work performed by him 

during the previous calendar year; 

(ii) in the case of a young person at the rate of one day for every fifteen days of work performed 

by him during the previous calendar year. 
Explanation.—The leave admissible under this sub-section shall be exclusive of all holidays whether 

occurring during, or at the beginning or at the end of, the period of leave. 

(2) If an employee is discharged or dismissed from service or quits employment during the course of 

the year, he shall be entitled to leave with wages at the rate laid down in sub-section (1). 

(3) In calculating leave under this section, any fraction of leave of half a day or more shall be treated 

as one full day’s leave and any fraction of less than half a day shall be omitted. 

(4) If any employee does not, in any calendar year take the whole of the leave allowed to him under 
sub-section  (1),  the  leave  not  taken  by  him  shall  be  added  to  the  leave  to  be  allowed  to  him  in  the 
succeeding calendar year: 

Provided that the total number of days of leave that may be carried forward to a succeeding year shall 

not exceed thirty in the case of an adult or forty in the case of a young person. 

(5) An application of an employee for the whole or any portion of the leave allowed under sub-section 
(1) shall be in writing and ordinarily shall have to be made sufficiently in advance of the day on which he 
wishes the leave to begin. 

(6) If the employment of an employee who is entitled to leave under sub-section (1) is terminated by 
the employer before he has taken the entire leave to which he is entitled, or if having applied for leave, he 
has not been granted such leave, or if the employee quits his employment before he has taken the leave, 
the employer shall pay him the amount payable under section 27 in respect of leave not taken and such 
payment shall be made, where the employment of the employee is terminated by the employer, before the 
expiry of the second working day after such termination and where the employee quits his employment, 
on or before the next pay day. 

(7) The leave not availed of by an employee shall not be taken into consideration in computing the 

period of any notice required to be given before discharge or dismissal. 

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27. Wages during leave period.—(1) For the leave allowed to him under section 26, an employee 
shall be paid at the rate equal to the daily average of his total full time earnings for the days on which he 
had  worked  during  the  month  immediately  preceding  his  leave  exclusive  of  any  overtime  earnings  and 
bonus but inclusive of dearness and other allowances. 

Explanation  I.—In  this  sub-section,  the  expression  “total  full  time  earnings”  includes  the  cash 
equivalent of the advantage accruing through the concessional sale to employees of foodgrains and other 
articles, as the employee is for the time being entitled to, but does not include bonus. 

ExplanationII.—For the purposes of determining the wages payable to a home worker during leave 
period or for the purpose of payment of maternity benefit to a woman home worker, “day” shall mean any 
period during which such home worker was employed, during a period of twenty-four hours commencing 
at midnight, for making beedi or cigar or both. 

(2) An employee who has been allowed leave for not less than four days in the case of an adult and 
five days in the case of a young person, shall, before his leave begins, be paid wages due for the period of 
the leave allowed. 

28. Application of the Payment of Wages Act, 1936 to industrial premises.—(1) Notwithstanding 
anything contained in the Payment of Wages Act, 1936 (4 of 1936) (hereinafter referred to in this section 
as the said Act), the State Government may, by notification in the Official Gazette, direct that all or any of 
the provisions of the said Act or the rules made thereunder shall apply to all or any class of employees in 
establishment  or  class  of  establishments  to  which  this  Act  applies  and  on  such  application  of  the 
provisions of the said Act, an Inspector appointed under this Act shall be deemed to be the Inspector for 
the  purposes  of  the  enforcement  of  such  provisions  of  the  said  Act  within  the  local  limits  of  his 
jurisdiction. 

(2) The  State  Government  may,  by  a  like  notification,  cancel  or  vary  any  notification  issued  under 

sub-section (1). 

29.  Special  provisions.—(1)  The  State  Government  may  permit  the  wetting  or  cutting  of  beedi  or 
tobacco leaves by employees outside the industrial permises on an application made to it by the employer 
on behalf of such employees. 

(2)  The  employer  shall  maintain  in  the  prescribed  form  a  record  of  the  work  permitted  under  sub-

section (1) to be carried on outside the industrial premises. 

(3) Save as otherwise provided in this section, no employer shall require or allow any manufacturing 
process  connected  with  the  making  of  beedi  or  cigar  or  both  to  be  carried  on  outside  the  industrial 
premises: 

Provided that nothing in this sub-section shall apply to any labour who is given raw material by an 

employer or a contractor for being made into beedi or cigar or both at home. 

30. Onus as to age.—(1) When any act or omission would, if a person were under a certain age, be 
an  offence  punishable  under this  Act  and such  person  is,  in the  opinion  of  the court, prima facie under 
such age, the burden shall be on the accused to prove that such person is not under such age. 

(2)  A  declaration  in  writing  by  a  medical  officer  not  below  the  rank  of  a  Civil  Assistant  Surgeon 
relating to an employee that he has personally examined him and believes him to be under the age stated 
in  such  declaration,  shall, for the purposes  of  this  Act  and  the rules  made  thereunder,  be  admissible  as 
evidence of the age of that employee. 

31. Notice of dismissal.—(1) No employer shall dispense with the services of an employee who has 
been employed for a period of six months or more, except for a reasonable cause, and without giving such 
employee at least one month’s notice or wages in lieu of such notice: 

Provided that such notice shall not be necessary if the services of such employee are dispensed with 
on a charge of misconduct supported by satisfactory evidence recorded at an inquiry held by the employer 
for the purpose. 

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(2) (a) The employee  discharged,  dismissed or retrenched  may  appeal  to  such  authority  and  within 
such time as may be prescribed either on the ground that there was no reasonable cause for dispensing 
with his services or on the ground that he had not been guilty of misconduct as held by the employer or on 
the ground that such punishment of discharge or dismissal was severe. 

(b) The appellate authority may, after giving notice in the prescribed manner to the employer and the 
employee, dismiss the appeal or direct the reinstatement of the employee with or without wages for the 
period  during  which  he  was  kept  out  of  employment  or  direct  payment  of  compensation  without 
reinstatement or grant such other relief as it deems fit in the circumstances of the case. 

1[(2A)  The  appellate  authority  shall  have  the  same  powers  as  are  vested  in  a  civil  court  under  the 
Code  of  Civil  Procedure,  1908  (5  of  1908),  when  trying  a  suit,  in  respect  of  the  following  matters, 
namely:— (a) enforcing the attendance of any person and examining him on oath; and (b) compelling the 
production of documents and material objects.] (3) The decision of the appellate authority shall be final 
and binding on both the parties and be given effect to within such time as may be specified in the order of 
the appellate authority. 

(3) The decision of the appellate authority shall be final and binding on both the parties and be given 

effect to within such time as may be specified in the order of the appellate authority. 

32. Penalty for obstructing Inspector.—Whoever obstructs the Chief Inspector or an Inspector in 
the exercise of any powers conferred on him by or under this Act, or fails to produce on demand by the 
Chief Inspector or an Inspector any register or other document kept in his custody in pursuance of this Act 
or  of  any  rules  made  thereunder,  or  conceals  or  prevents  any  employee  in  an  industrial  premises  from 
appearing  before  or  being  examined  by  the  Chief  Inspector  or  an  Inspector,  shall  be  punishable  with 
imprisonment  for  a  term  which  may  extend  to  2[six  months],  which  may  extend  to  3[five  thousand 
rupees], or with both. 

33. General penalty for offence.—(1)Save as otherwise expressly provided in this Act, any person 
who contravenes any of the provisions of this Act or of any rule made thereunder, or fails to wages or 
compensation  in  accordance  with  any  order  of  the  appellate  authority  passed  under  clause  (b)  of  sub-
section (2) of section 31, shall, be punishable, for the first offence, with fine which may extend to two 
hundred and fifty rupees and for a second or any subsequent offence with imprisonment for a term which 
shall not be less than one month or more than six months or with fine which shall not be less than one 
hundred rupees or more than five hundred rupees or with both. 

(2)  (a)  Any  employer  who  fails  to  reinstate  any  employee  in  accordance  with  the  order  of  the 
appellate authority passed under clause (b) of sub-section (2) of section 31, shall be punishable with fine 
which may extend to two hundred and fifty rupees. 

(b) Any employer, who, after having been convicted under clause (a), continues, after the date of such 
conviction, to fail to reinstate an employee in accordance with the order mentioned in that clause, shall be 
punishable, for each day of such default, with fine which may extend to twenty rupees. 

(c) Any Court trying an offence punishable under this sub-section may direct that the whole or any 
part of the fine, if realised, shall be paid, by way of compensation, to the person, who, in its opinion, has 
been injured by such failure. 

(3) Notwithstanding anything contained in the Payment of Wages Act, 1936 (4 of 1936), with regard 
to the definition of wages, any compensation required to be paid by an employer under clause (b) of sub-
section (2) of section 31 but not paid by him shall be recoverable as delayed wages under the provisions 
of that Act. 

(4)  It  shall  be  no  defence  in  a  prosecution  of  any  person  for the  contravention of  the  provisions  of 
section 3 that any manufacturing process connected with the making of beedi or cigar or both was carried 
on  by  such  person  himself  of  by  any  member  of  his  family  or  by  any  other  person  living  with  or 
dependent on such person. 

1. Ins. by Act 41 of 1993, s. 7 (w.e.f. 22-5-1993) 
2 . Subs. by s. 8, ibid., for “three months” (w.e.f. 22-5-1993) 
3 . Subs. by s. 8, ibid., for “five hundred rupees” (w.e.f. 22-5-1993). 

11 

 
                                                           
34.  Offences  by  companies.—(1)  Where  an  offence  under  this  Act  has  been  committed  by  a 
company, every person who, at the time the offence was committed, was incharge of, and was responsible 
to, the company for conduct of the business of the company, as well as the company, shall be deemed to 
be guilty 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 of any 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 purposes of this section— 

(a)  “company”  means  any  body  corporate  and  includes  a  firm,  and  other  association  of 

individuals; and 

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

35. Indemnity.—(1) No suit, prosecution or other legal proceedings shall lie against any person for 
anything  which  is  in  good  faith  done  or  intended  to  be  done  under  this  Act  or  any  rule  or  order  made 
thereunder. 

(2)  No  suit  or  other  legal  proceedings  shall  lie  against  the  Government  for  any  damage  caused  or 
likely to be caused by anything which is in good faith done or intended to be done in pursuance of this 
Act or any rule or order made thereunder. 

36. Cognizance of offences.—(1) No Court shall take cognizance of any offence punishable under 
this Act except upon a complaint made by, or with the previous sanction in writing of the Chief Inspector 
or an Inspector within three months of the date on which the alleged commission of the offence came to 
the knowledge of the Inspector: 

Provided  that  where  the  offence  consists  of  disobeying  a  written  order  made  by  the  competent 
authority, the Chief Inspector or an Inspector, complaint thereof may be made within six months of the 
date on which the offence is alleged to have been committed. 

(2) No Court inferior to that of a presidency magistrate or a magistrate of the first class shall try any 

offence punishable under this Act. 

37. Application of the Industrial Employment (Standing Orders) Act, 1946 and the Maternity 
Benefit Act, 1961.—(1) The provisions of the Industrial Employment (Standing Orders) Act, 1946 (20 of 
1946)  shall  apply  to  every  industrial  premises  wherein  fifty  or  more  persons  are  employed  or  were 
employed on any one day of the preceding twelve months as if such industrial premises were an industrial 
establishment  to  which  that  Act  has  been  applied  by  a  notification  under  sub-section  (3)  of  section  1 
thereof, and as if the employee in the said premises were a workman within the meaning of that Act. 

(2)  Notwithstanding  anything  contained  in  sub-section  (1),  the  State  Government  may,  after  giving 
not less than two months’ notice of its intention so to do, by notification in the Official Gazette, apply all 
or any of the provisions of the Industrial Employment (Standing Orders), Act, 1946 (20 of 1946), to any 
industrial premises wherein less than fifty employees are employed or were employed on any one day of 
the preceding twelve months as if such industrial premises were an industrial establishment to which Act 
has been applied by a notification under sub-section (3) of section 1 thereof, and as if the employee in the 
said premises were a workman within the meaning of that Act. 

(3)  Notwithstanding  anything  contained  in  the  Maternity  Benefit  Act,  1961  (53  of  1961),  the 
provisions of that Act shall apply to every establishment as if such establishment were an establishment to 
which that Act has been applied by a notification under sub-section (1) of section 2 thereof: 

12 

 
Provided that the said Act shall, in its application to a home worker, apply subject to the following 

modifications, namely:— 

(a) in section 5, in the Explanation to sub-section (1), the words “or one rupee a day, whichever is 

higher” shall be omitted; and 

(b) sections 8 and 10 shall be omitted. 

38. Certain provisions not to apply to industrial premises.—(1) Chapter IV and section 85 of the 
Factories Act, 1948 (62 of 1948) shall apply to an industrial premises and the rest of the provisions in that 
Act shall not apply to any industrial premises. 

(2) Nothing contained in any law relating to the regulation of the conditions of work of workers in 

shops or commercial establishments shall apply to any establishment to which this Act applies. 

39. Application of the Industrial Disputes Act, 1947.—(1) The provisions of the Industrial Disputes 

Act, 1947 (14 of 1947), shall apply to matters arising in respect of every industrial premises. 

(2)  Notwithstanding  anything  contained  in  sub-section  (1),  a  dispute  between  an  employer  and 

employee relating to— 

(a) the issue by the employer of raw materials to the employees, 

(b) the rejection by the employer of beedi or cigar or both made by an employee, 

(c) the payment of wages for the beedi or cigar or both rejected by the employer, 

1[shall  be  referred  for  settlement  within  such  time  and  by  such  authority  as  the  State  Government 
may, by rules, specify in this behalf and such rules may also provide for the summary manner in which 
such dispute shall be settled].  

(3) Any person aggrieved by a settlement made by the authority specified under sub-section (2) may 
prefer an appeal to such authority and within such time as the State Government may, by notification in 
the Official Gazette, specify in this behalf. 

(4) The decision of the authority specified under sub-section (3) shall be final. 

40. Effect of laws and agreements inconsistent with this Act.—(1) The provisions of this Act shall 
have effect notwithstanding anything inconsistent therewith contained in any other law for the time being 
in force or in the terms of any award, agreement, or contract of service whether made before or after the 
commencement of this Act: 

Provided that where under any such award, agreement, contract of service or otherwise an employee 
is entitled to benefits in respect of any matters which are more favourable to him than those to which he 
will  be  entitled  to  under  this  Act,  the  employee  shall  continue  to  be  entitled  to  the  more  favourable 
benefits  in  respect  of  that  matter  notwithstanding  that  he  receives  benefits  in  respect  of  other  matters 
under this Act. 

(2) Nothing contained in this Act shall be construed as precluding any employee from entering into an 
agreement with an employer for granting him rights or privileges in respect of any matter which are more 
favourable to him than those to which he would be entitled under this Act. 

41. Power to exempt.—The State Government may, by notification in the Official Gazette, exempt, 
subject to such conditions and restrictions as it may impose, any class of industrial premises or class of 
employers or employees from all or any of the provisions of this Act or of any rules made thereunder: 

Provided  that  nothing  in  this  section  shall  be  constructed  as  empowering  the  State  Government  to 
grant  any  exemption in  respect  of  any  woman  employee  from  any  of  the  provisions  of  this  Act  or  any 
rules made thereunder relating to annual leave with wages, maternity benefits, creches, wages, rejection 
of beedi or cigar and night work. 

1. Subs. by Act 41 of 1993, s. 9, for certain words (w.e.f. 22-5-1993). 

13 

 
                                                           
42.  Powers  of  Central  Government  to  give  directions.—The  Central  Government  may  give 

directions to a State Government as to the carrying into execution of the provisions of this Act. 

43. Act not to apply to self-employed persons in private dwelling houses.—Nothing contained in 
this  Act  shall  apply  to  the  owner  or  occupier  of  a  private  dwelling  house  who  carries  on  any 
manufacturing process in such private dwelling house with the assistance of the members of his family 
living with him in such dwelling house and dependent on him: 

Provided  that  the  owner  or  occupier  thereof  is  not  an  employee  of  an  employer  to  whom  this  Act 

applies. 

Explanation.—For the purposes of this section, “family” means the spouse and children of the owner 

or occupier. 

44. Power to make rules.—(1) The State Government may, by notification in the Official Gazette, 

make rules for carrying out the purposes of this Act. 

(2)  In  particular,  and  without  prejudice  to  the  generality  of  the  foregoing  power,  such  rules  may 

provide for all or any of the following matters, namely:— 

(a) the terms and conditions subject to which a licence may be granted or renewed under this Act 

and the fees to be paid in respect of such licence; 

(b)  the  form  of  application  for  a  licence  under  this  Act  and  the  documents  and  plans  to  be 

submitted together with such application; 

(c) other matters which are to be taken into consideration by the competent authority for granting 

or refusing a licence; 

(d) the time within which, the fees on payment of which and the authority to which, appeals may 

be preferred against any order granting or refusing to grant a licence; 

(e) the submission of a monthly return by an employer to the competent authority specifying the 
quantity of tobacco released by the Central Excise Department and the number of beedi or cigar or 
both manufactured by him; 

(f) the powers which may be conferred on the Inspectors under this Act; 

(g) the standards of cleanliness required to be maintained under this Act; 

(h)  the  standards  of  lighting,  ventilation  and  temperature  required  to  be  maintained  under  this 

Act; 

(i) the types of urinals and latrines required to be provided under this Act; 

(j) the washing facilities which are to be provided under this Act; 

(k) canteens; 

(1) the form and manner of notice regarding the periods of work; 

(m) the form in which records of work done outside an establishment shall be maintained; 

(n)  the  authority  to  which  and  the  time  within  which  an  appeal  may  be  filed  by  a  dismissed, 

discharged or retrenched employee; 

(o) the manner in which the cash equivalent of the advantage accruing through the concessional 

sale to an employee of foodgrainsand other articles shall be computed; 

(p)  the  records  and  registers  that  shall  be  maintained  in  an  establishment  for  the  purpose  of 

securing compliance with the provisions of this Act and the rules made thereunder; 

(q) the maintenance of first aid boxes or cupboards and the contents thereof and the persons in 

whose charge such boxes shall be placed; 

(r)  the  manner  in  which  sorting  or  rejection  of  beedi  or  cigar  or  both  and  disposal  of  rejected 

beedi or cigar or both shall be carried out; 

14 

 
(s)  the  fixation  of  maximum  limit  of  the  percentage  of  rejection  of  beedi  or  cigar  or  both 

manufactured by an employee; 

(t) specifying the place at which wages shall be paid to persons who receive directly or through 

an agent raw materials for the manufacture of beedi or cigar or both at home; 

(u) supervision by the Inspectors over distribution of raw materials including beedi and tobacco 

leaves to the employees; 

(v) precautions to be taken against fire for the safety of workers; 
(w) 1[the time within which a dispute specified section-section (2) of section 39 shall be referred 
for settlement, the authority by which and the summary manner in which such dispute shall be settled] 
and  the  authority  to  which  an  appeal  shall  lie  from  the  settlement  made  by  the  first-mentioned 
authority; 

(x) any matter which is required to be, or may be, prescribed. 

(3) All rules made under this Act shall be published in the Official Gazette and shall be subject to the 
condition  of  previous  publication;  and  the  dates  to  be  specified  under  clause  (3)  of  section23  of  the 
General Clauses Act, 1897 (10 of 1897), shall not be less than three months from the date on which draft 
of the proposed rules was published. 

(4) Every rule made under this section shall be laid as soon as may be after it is made, before each 
House of the State Legislature, where it consists of two Houses, or where such Legislature consists of one 
House, before that House, while it is in session for a total period of thirty days which may be comprised 
in one session or in two successive sessions, and if, before the expiry of the session in which it is so laid 
or the session immediately following the Legislatures agree in making any modification in the rule or the 
Legislatures  agree  that  the  rule  should  not  be  made,  the  rule  shall  thereafter  have  effect  only  in  such 
modified  form  or  be  of  no  effect,  as  the  case  may  be;  so  however,  that  any  such  modification  or 
annulment, shall be without prejudice to the validity of anything previously done under that rule. 

1. Subs. by Act 41 of 1993, s. 10, for certain words (w.e.f. 22-5-1993). 

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