The Nagaland Shop and Establishment Act 1982 Complete Act - Bare Act

(NAGALAND ACT NO. 5 OF 1985)

(Received assent of the Governor of Nagaland on the 18^th December, 1985)

An Act to

provide for and the regulations of conditions establishments and establishments for public entertainment or amusement in of India as follows : -

(1) This Act may be called the Nagaland shops and Establishments Act. 1982.

(2)

It extends to the State of Nagaland.

(3) It shall come into force on such date as

the State Government may, by notification in the official Gazette appoint.

(4) (i)

It shall apply, in the first instance to the Town Committees as declared or constituted under the provision of the Naga Hills District (constitution of Town Committee) Rules, 1954.

(ii) It shall apply to such other areas nr to such shops, commercial establishments

fir amusement in such other areas on such date or dates as the State Government may, by notification specify.

In this Act unless there is anything

repugnant in the subject of context :

(1) "apprentice" means in his service for training by himself or by any other person for any trade or calling ;

(2)

"child" means a person who completed his fourteenth year.

(3)

"closed" means a not open for the service of any customer or to any business connected with the establishment ;

(4) "commercial establishment" means an establishment in which there is conducted the business

of advertising, commission, forwarding or commercial agency, a department of a factory in which persons are employed in clerical capacity in any room or place where no manufacturing process is being carried on, a clerical department of any industrial or commercial undertaking including one of public transport, an insurance company, joint stock company, brokers, office or exchange, or such other establishment or class thereof as the State Government may, by notification, declare to be comrncrcia1 establishment for the purposes of all or any of the provision of lishment for public entertainment or amusement;

(5)

"day" means the period of twenty-four hours beginning at midnight

;

Provided that in

the case of an employee whose hour of work extend beyond midnight, day means the period of twenty four hours beginning when such employment commences ;

(6) "employee" means a person wholly or principally employed in and

in

connection with any establishment and includes an apprentice

;

(7)

"employer" means a person owing or

having ultimate control over the affairs of an establishment and includes the manager, agent or other person acting in the general management ;

(8) "

establishment" means a shop or an establishment for public entertainment or amusement ;

(9)

"establishment for public entertainment of amusement" means a restaurant, eating house, cafe, cinema theatre and such other

establishment or class thereof as the State Government may by notification, declare to be for the purposes of this Act, an establishment for public entertainment or amusement, but does not include a shop or a commercial establishment.

(10) "Factory" means a factory

as defined in or declared to be a factory under the factories Act. 1948 ;

(11) "half day" means a period of six consecutive hours between the hours of ;

(12) "Inspector" means an inspector appointed under this Act.

(13) "Leave" means leave provided for in

the Chapter III of this Act.

(14)

"notification" means a notification published in the official Gazette.

(15)

"opened" means opened for

the service of any customer or to any business connected with the establishment ;

(16)

"period of work" means the time during which an employee is at

the disposal of the employer.

(17) "prescribed" means prescribed by rules made under this Act.

(18)

"prescribed authority" means the authority prescribed by rules made under this Act.

(19)

"shop" means any premises where any trade or business is carried on or where services art: rendered to customers, and includes office, store rooms, godown of warehouse, whether in the same premises or otherwise used in connection with such trade the benefits provided for workers under the Factories entertainment for amusement.

(20)

"spread over" means

the period between the commencement and oi an employee on any day.

(21) "Wages" means payment whatever

intervals paid and includes dearness and such other allowances payable in terms of money and includes the value of loodging and such other amenities whose value is capable of being computed in terms of money.

(22)

"Week" means the period of seven days beginning at midnight on Saturday night or such other night as may be approved in writing for a particular area by the prescribed authority.

(23) "year" means a year commencing on the first day of January.

(1) nothing

contained in this Act. shall apply to : -

(a) person employed in any

establishment in a position of management ;

(b) person whose work mainly involves travelling and persons employed as canvassers and caretakers and whose n0061mes

do not appear in the master rolles ;

(c) establishment under the Central or any State Govern

ment local authorities, the Reserve Bank of India or any other Bank any Railway administration and Cantonment authorities ;

(d) any water transport service, or motor service or any system of public conservancy or 'sanitation, any industry business or undertaking which supply power, light or water to the public and such other public utility companies or associations or classes thereof as the State

Government may, by notification, exempt from the operation of this Act.

(e) clubs

; residential hotels and boarding houses ;

(f) stalls and refreshment rooms

at railway stations, docks, wharves and airports ;

(g) establishment for the treatment or care of

h e sick, infirm, destitute or mental unfit ;

(h) shops or classes of shops dealing mainly in vegetables, meat, fish, dairy products, bread, pastries, sweetmeat and flowers so far as the retail sales of these articles are

concerned ;

(i)

pharmacies or shops dealing mainly in medicines surgical appliances, bandages, or other medical requisites so far as sale of these articles are concerned;

(i) shops dealing in articles required for funerals, burials or cremations so far as the sales of those articles are concerned ;

(k) shops dealing in tobacco, cigrates, cherrols, cigarettes, biris, pan, liquid, refreshment sold in retail

for consumption on the premises, icc, newspaper, or periodicals so far as the sales these articles are concerned ;

(l) shops dealing in supplies, stores, or other articles necessary for shops so far as sales of these articles are concerned

;

(m) shops

or stalls in any public exhibition or show which is solely subsidiary or ancillary to the main purposes of such exhibition or show ;

(n) shops or stall in any public fair or ba.tar held

for charitable purposes ;

(o) barbers, and hair-dresser's shops

;

(p) shops dealing in petroleum products-or spare pans

for motors, vehicles or cycles ;

(q) excise shops

;

(r) establishments in mine and oil-field

;

(s) any person employed in a confidential capacity, messenger, watchman or exclusively in

connection with the collection, dispatch, delivery and conveyance or custom formalities of goods or such other persons or classes of persons as the State Government may, by notification exempt from the operation of an or any of the provisions

(t) such seasonal commercial establishment engaged in the purchase of jute or cotton ginning or cotton or jute pressing and the clerical department of such seasonal factories and 11(2) such other establishments as the State Government may by notification exempt from the operation of all or any of the provisions of this Act ;

Notwithstanding anything contained in section 3 the State Government may, by notification in the official Gazette apply all or any of

the provisions of this Act to any class of persons or establishment mentioned in that section other than those mentioned in clause (c) of sub-section (1) and modify or cancel any such notification.

The State Government

may, if they are satisfied that public interest or that the circumstances of the case are such that it would be just and proper to do so, having regard to the nature and capacity of the establishment, by notification in the omcia1 Gazette exempt either permanently or for any specified period, any establishment or clauses of establishments in any area or persons to which or to whom this Act applies, from all or any of its provisions subject to such restrictions and conditions as the State Government may deem fit.

No employee in any establishment shall be required or allowed to work for more than eight hours in any day and forty-eight hours in any week;

Provided that the total number of hours

of works including overtime, shall not exceed ten hours in any day except on days of stock taking and preparation of accounts and the total number of hours of overtime shall not exceed fifty for any quarter,

When: an employee works in any establishment for

more than eight hours in any day for more than forty-eight hours in any week, he shall in respect of such overtime work be entitled to wages at the rate of twice the ordinary rate of wages.

For the purpose of this Section "ordinary rate

of wages" means the basic wages plus such allowances, including the cash equivalent of the advantage accruing through the supply of meals and the concessional sale to employees of food grains and other articles as the employees is for the time being entitled to, but does not include bonus.

The period of work of an employee in an establishment each day shall be so fixed that no period shall exceed four hours and that no such person shall work for more that four hours before hc has had an interval for rest of at least one hour.

The period of work of an employee in an establishment shall be so fixed that, inclusive of his interval for rest, they shall not spread over more

than ten and half hours in any day.

(1) No establishment shall on any day

be opened earlier than and closed later than such hours as may be fixed by a general or special order of the State Government made under sub-section (2).

Provided

that any customer who was being served or was waiting to be served in any establishment at the hour fixed for its closing may be served during

(2)

The State Government may by general or special order, fix the time at which any establishment or class of establishment shall be opened or closed in any local area.

11. Closing of shops and grants of weekly holidays for religious purposes

(1) Every shop shall remain entirely closed for one day in each week.

(2) The State Government may, by notification

require that in addition to to in sub-section (1), every shop or any specified class or shops shall remain closed between such hours in the afternoon of such days in each week, as may be specified in the notification.

Provided that when there are conducted in a shop two

or more trades or business, any of which is or such character that, if it was the sole trade or business therein conducted, the provisions of this Act would not apply to that Shop, such shop-shall so far as the conduct of the trade or business is concerned be exempt from the operation of sub-section (1)

Provided further that, when in any establishment for which

the provision of this Act, applies two or more trades or business are conducted, one or more of which are usually conducted in a shop while the others are usually conducted in a commercial establishment, the provision of this Section shall not apply to the establishments so far as the conduct of the trades or business usually conducted in a commercial establishment are concerned.

(3) No deduction on account

of any closure of a shop under the provision of sub-section (1) or sub-section (2) shall be made from the wages of any employee of such Shop,

(4) The day on which shop shall be closed in each week under the provisions of sub-section (I) shall be such day as may be specified by the employer in a notice, which shall be displayed in a conspicuous place in

the shop.

Provided

that no employer shall, more often than once in every three months, alter the day so specified.

(5)

Every person employed in a commercial establishment shall be allowed as holidays at least one and a half day in each weck;

Provided [hat, when there are conducted in a commercial establishment two or more trades or business any of which is of such character that, if it was the sole trade or business therein conducted, the provisions of this Act would not apply to that commercial establishment, such commercial

establishment shall,

(6) No deduction on account of any holiday allowed under the provisions of sub-section

(5)

shall be made from the wag6 of any person employed in such commercial establishment.

(7) Notwithstanding anything contained in the Weekly Holidays Act, 1942, every person employed in an establishment for public entertainment or amusement shall be allowed as holidays at least one and a half day in each week. Provided that, when there are conducted in an

establishment far public entertainment or amusement two or more trade or business, any of which is of such a character that, if it was the sole trade or business therein conducted, not apply to that establishment, such establishment shall so far as he conduct of that trade or business is concerned be exempt from the operation of this sub-section.

(8) No deduction on

account of any holiday allowed under the provisions of sub-section the wages of any person employed in such establishment for public entertainment or amusement.

(9)

Every person employed in as hop commercial establishment for public entertainment or amusement

shall

be entitled to leave of absence

for any days, he may select, not exceeding thee in number in any one year for the purpose of attending ceremonies or performing functions or duties connected with or enjoined by his religion.

The provisions of this chapter shall not operate to the prejudice of any

right to which an employee be entitled under any other law or under the term of any award, agreement or contract of service.

Provided that where such award, agreement or contract or service provides for

a longer leave with wages or weekly holidays than provided in this chapter, the employee shall be entitled to such longer leave or weekly holidays as the case may be.

For the purpose

of this chapter, leave shall not except as provided in Section 12, include weekly holidays or holidays for festivals or other similar occasions.

(1) Every employee in an establishment shall be entitled after twelve months continuous service in that establishment to privilege leave with wages for a period of 16 days in the subsequent period of twelve months, provided that such privilege leave with wages may be accumulated up to maximum period of 30 days.

(2)

Every employee in an establishment shall also be entitled during every twelve months of continuous service to medical leave

with wages for a period not exceeding twelve days on the ground of any sickness incurred or accident sustained by him and to casual leave with wages, for a period not exceeding twelve days on any reasonable ground.

(3) If an employee entitled to any leave under sub-section (1) is discharged by

his employer before he has been allowed the leave, or if having applied for and been refused the leave, he quits his employment before he has been allowed the leave, the employer shall pay him the amount payable under this Act in respect of the leave.

(4) IT an employee entitled to any leave under sub-section (2) is discharged by his employer when he is sick

or suffering from the result of an accident, the employer shall pay him the amount payable under this Act, in respect of the period of the leave to which he is entitled at the time of his discharge, in addition to the amount, if any, payable to him under sub-section (3).

(5)

An employee shall be deemed to have completed a period of twelve months, continuous service within the meaning of this section, notwithstanding any interruption in

service, securing those twelve months brought about (a) by sickness, accident, or authorised leave (including authorised holidays and weekly holiday), not exceeding ninety days in be aggregate for all three, or (b) by a lock out, or (c) by a strike, which is not an illegal strike; or (d) by intermittent periods of involuntary unemployment not exceeding thirty days in the aggregate, and authorised leave shall be deemed not to include any weekly holidays allowed under this Act which occurs at the beginning or and of an interruption brought about by the leave.

For the leave allowed to him under section

l3, an employee shall be paid at [he rate equal to the daily average of his total full time earning exclusive of ay overtime earning and bonus, but inclusive of dearness allowance and the cash equivalent of any advantage accruing by the supply of meals and by the sale by the employer of food grains and other articles at concessional rates for

Any Inspector may institution proceedings on

behal0066 of any employee to recover any sum required to be paid an employee under this chapter

Where the Government are satisfied that the leave rules applicable to employees in an establishment provide benefits which in its opinion are not less favourable than those for which chapter makes provisions it may, by written order, exempt the establishment from all or any of the provisions of this chapter, subject to such conditions as may be specified in the order.

(i) Notwithstanding anything contained in the payment of wages Act, 1936, referred to as the said Act, he State Government may by notification in the official Gazette, direct that, subject to the provision of sub-section, (2) the said Act or any of the provisions thereof

or the rules made thereunder shall apply to all or any class of employees in establishment to which this Act applies.

(ii) On the application of the provisions of the said Act to any establishment under sub-section (2) the Inspector appointed under this Act shall be deemed to be the Inspector for the purpose of the enforcement of the provisions of

the said Act within the local limits of his jurisdictions.

(i) No employer shall dispense with the service of an employee employed continuously for a period of not less than six months, except for

a reasonable cause and without giving such employee at least one month's notice or wages in lieu of such notice, provided however that such notice shall not be necessary where the services of such employee are dispensed with on a charge of misconduct supported by .satisfactory evidence recorded at an inquiry held for the purpose.

(ii) Any employee whose services are

dispensed with, 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 has not been guilty of misconduct as held by the employer.

(iii) The appellate authority may, after giving notice in the prescribed manner to the employer and the employee, dismise the appeal or direct the rein-statement

of the employee with or without wages for the period he was b p i out of employment or direct payment of compensation without rein-statement or grant such other relief as it may fit in the circumstances of the case.

(iv) In

directing the reinstatement of an employee the appellate authority shall also direct !he payment of such amount of compensation as may be specified by him in case the employer fails with the directions.

(v) The decisions of the appellate authority shall be final and binding on both the parties, not be liable to be questioned in any court of law, and be given effect to

within such be specified in the order of the appellate authority.

(vi) Any compensation required to be paid by the employer under sub-sections (3) and (4) but

not paid him, shall be recoverable as arrears of land revenue under the provisions of the Revenue Recovery ACL 1990 (Act 1 of 18W) for

No

child shall be required or allowed to work in any establishment except as an apprentice in such employment as may be specified by the State Government.

No women or any person who has not attained the age of

seventeen, shall be required or allowed to work whether as or otherwise in any establishment before 6 A.M. or after 7 F.M.

(i)

The premises of every establishment shall be kept clean and free from a fluvial arising from any drain or opivy

or other nuisance and shall be cleaned at such times and by methods as may be prescribed and these methods may include time washing, colour, washing, painting, varnishing, disinfection and deodorising.

(ii) The premises of every

establishment shall be ventilated and sufficiently lighted during all working hours, with such standards and by such methods as may

(iii) If it appears

to an Inspector that the premises of any establishment within his jurisdiction arc not sufficiently kept clean or lighted or ventilated, he may serve on the employer, an order in writing specifying the measures which in his opinion, should be adopted and resuiring him to be carried out before a specified date.

Every employer shall takc proper precaution against fire in such manner as may be prescribed.

Against any order of the Inspector under this chapter, an appeal shall lie to such authority and within such time as may be prescribed.

Apportionment of expenses under preceding

If any

person, being either the owner or the occupier of an establishment who has incurred or is about to incurred any expenses for or any part of the expenses ought or their appointment as it appears to the court, having regard the circumstances of the case, including the terms of any contract between the parties, to be just and equitable, and any order made under this section may direct that any such contract as aforesaid shall cease to have effect in so far it is inconsistent with

(i) The State Government may, by notification in made under this section may direct that any such the official Gazette, appoint such officer or such persons or class of persons as they think fit

to be inspectors for the purposes of this Act within such local limits as they may assign to hem respectively.

(ii)

The State Government may, by

notification in the official Gazette, appoint the Labour Commissioner, or Deputy Labour Commissioner Assistant Labour Commissioner of Nagaland as Chief Inspector for the purposes of this Act.

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) enter at all reasonable times and

with such assistants, if any being persons in the

(b) make such inspection of the premises and

of any prescribed registers/records and notice and take on the spot or otherwise evidence of any person as he may deem necessary, for carrying out the purposes of this Act., and

(c) exercise such other powers as may be necessary for carrying out the purpose of this Act.

Provided that no one shall be required under t

his section to answer any question or give any evidence tending to incriminate himself.

Every Inspector appointed under sub-section (1) of section 25 shall be deemed to be a public servant within

the meaning of section 12 OF

Every employer shall,

on demand produce for inspection of an Inspector all registers, records and notice required to be kept under and for the purposes of this Act

(1) Whoever contravenes any of the provisions of Sections 6,8,9, 10, 11, 13, 14, 18, 21, and 22 shall on

conviction be punishable with fine which for a first offence may extend to two hundred and fifty rupees and for a second

(2) Whoever

contravenes any of the provisions of Sections 7, 19, 20, 28 and 30 shall, on conviction be punishable with fine which may exceed to fifty rupees.

(3) No court shall take cognizance

of any offence punishable under this Act or any rule or order made thereunder unless the complaint is made

(a) by the employee of an establishment either by himself or through the union of which he is a member within three months from the dare on which the offence is alleged to have been committed; or

(b) by the inspection within six months from the date , on which the alleged offence comes to his knowledge.

(4) No

court inferior to that of Judicial Magistrate he first class shall try my offence punishable under this Act or any rules or orders made thereunder.

Subject to the general or special orders of the State Government, an employer shall maintain such registers and records and display on

the premises of his establishment such notices as may be prescribed. All such registers and records shall be kept in the premises of the establishment to which they relate.

Nothing in this Act shall effect any right

or privilege which an employee in any establishment is entitled to on the date this Act comes into force, under any other law, contract, custom or usage applicable to such establishment or any award, settlement and the employee in such establishment if such rights or privileges are more favourable to him than those to which he would be entitled under this Act.

No suit prosecution or other legal proceeding shall lie against my person for anything which is in good faith done or intended to be done under this Act.

(1) The State Government may

by notification in the official Gazette authorise any officer or authority subordinate to them to exercise all or any of the powers vested in them by or under this Act, except the power mentioned in section 34, subject to such restrictions and conditions, if any, as may be specified in the notification.

(2)

The exercise of the powers

delegated under sub-section (1) shall be subject to control and revision by the State Government or by such persons, as may be empowered by them in that behalf. The State Government shall also have power to control and revise the

(1) The State Government may subject to the condition of previous publication

by notification in the official Gazette, make rule for carrying out the purpose of this Act.

(2) In particular and without prejudice In the

generality of the foregoing power, such following matters, namely:

(a)

Wealth, Safety, Welfare of

employees, holiday for occasions;

(b) the from and date for application of registration or renewal of certificate and fees payable for such a registration of renewal.

(c)

the particulars with respect of certificate of registration of renewal thereof ;

(d) the manner of taking

precaution against fire;

(e) t

he setting up an appellate authority, the limitation

for filing appeal and manner of giving notice;

(f) any other matter which has to be or may be prescribed.

(3)

The State Government may provide in the rules that a contravention of any of the rules shall be punishable with fine which may extend to fifty rupees and where the breach is a continuing one with a further line which may extend to ten rupees for every day, after the first during wh the breach continues.

(4)

All rules made under this section shall be laid as soon as may be made, before the Nagaland Legislative Assembly while it is in session for a total period of fourteen days which may be comprised in one session or in two successive sessions and if before the expiry of that session in which it is so laid or the session immediately following, the Nagaland Legislative Assembly agree in making any modification in the rules or the Nagaland Legislative Assembly agree that no rules should be made, the rules 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 Lo the validity of anything previously done under the rules.

The State Government may, by notification on account of such holiday of other occasions as may be prescribed, suspend the operation of all or any of the provisions of this Act in respect of any shop or commercial establishment or establishment for public

entertainment or amusement or for any class of shops or establishments as aforesaid for such period and subject to such conditions as

(1) Every employer shall have his establishment registered under this Act. The registration shall be renewed every twelve months.

(2)

The application for registration or for renewal of registration shall be made to the Chief Inspector or to such other officer as the Chief Inspector may authorise in this behalf in such forms and within such date and containing such particulars as may be prescribed.

(3) The fees payable for registration or for renewal of registration shall be such as may be prescribed by the State Government.

(4) Where an establishment is registered under

this Act or when the registration of any establishment is renewed there shall be issued to the employer a certificate of registration, or a renewal certificate of registration as the case may be by containing such particulars as may be prescribed.

(5) T

he certificate or the renewal certificate as the case may be, shall be kept prominently displayed at some conspicuous place of the establishment.

(6)

If any employer carriers on business without a valid registration

certificate after the expiry of the last date for submission of application for registration or for renewal, he shall be liable to pay a penalty equal to the fee prescribed for registration or renewal of registration, as be, plus an additional penalty at rupees two per day for each day of continued default after the be, and the said penalty shall be realised by the Collector as a public demand under the Bengal Public Demands Recovery Act, 1913 on certificate being issued to that effect by the Chief Inspector appointed under this Act.

Provided

that no employer shall be liable for any penalty under this section if he has submitted a valid application for n certificate of registration or renewal thereof within the period prescribed to the proper Authority.