THE BIHAR SHOPS AND ESTABLISHMENTS ACT, 19531

Bihar Act VIII of 1954

17.3.1954

JHARKHAND SHOPS AND ESTABLISHMENT LAWS S.O No. 2/SEA (LC) 501/2001 L&T-2870, dated 14th November, 2002. - In exercise of the powers conferred by Section 85 of the Bihar Reorganisation Act, 2000, the Government of Jharkhand do hereby adapt "The Bihar Shops and Establishment Act, 1953. The Bihar Shops and Establishment Rules, 1955" (hereinafter referred as the said Rules) with the following amendments:- 1. In the said Rules wherever the word "Bihar" is mentioned to the word "Jharkhand" shall be deemed to have been substituted. 2. Hereinafter the said Rules shall be known as "The Jharkhand Shops and Establishment Rules, 2001". Note.- Though the Act has been adapted vide Notification S.O. No. 2/SEA (LC) 501/2001-L&T 2870, dated 14th November, 2002 but the word "Bihar" and the year "1953" of the title of the Act have not seen changed. An Act to provide for the Regulation of conditi

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S.Chapter I Preliminary.

S.1 Short title, extent and commencement.

(1) This Act may be called the Bihar Shops and Establishments Act, 1953.

(2) It extends to the whole of the State of Bihar.

(3) It shall come into force on such date as the State Government may, by notification appoint and different dates may be appointed for different provisions of this Act or for different areas or for different classes of shops or establishments.

(4) It shall apply, in the first instance, to the local areas comprised within a municipality, notified area or a municipal corporation constituted and established under any law for the time being in force, relating to municipalities and to any mining settlement for which a Mines Board of Health has been established under section 5 of the Bihar and Orissa Mining Settlements Act, 1920 (B. & O. Act IV of 1920).

S.2 Definitions.

In this Act, unless there is anything repugnant in the subject or context –

• (1) "Apprentice" means a person, aged not less than twelve years, who is employed, whether on payment of wages or not, for the purpose of being trained in any trade, craft or employment in any establishment;
• (1A) "child" means a person who has not completed the age of fourteen years;
• (2) "closed" means not open for the service of any customer to any business connected with the establishment;
• (3) "day" means a period of twenty-four hours beginning at midnight: Provided that, in the case of an employee whose hours of work begins before and extend beyond midnight, day means a period of twenty-four hours beginning at the hour his work commences;
• 1[(4) "employee" means a person wholly or partially employed 2[whether directly or otherwise for hire, wages including salary, reward, or commission 3[payable on permanent, periodical, con
  

S.3 Reference to time of day.

References to the time of day in this Act are reference to the Indian Standard Time, which is five and a half hours ahead of Greenwich Mean Time.

S.4 Exceptions.

(1) The provisions of this Act shall not apply to any precinct or premises of a mine as defined in clause (j) of section 2 of the Mines Act, 1952 (XXV of 1952).

(2) Notwithstanding anything contained in this Act, the provisions thereof specified in the third column of the Schedule shall not apply to the establishment, employees and other persons referred to in the corresponding entry in the second column:

Provided that the State Government may, by notification, add to, omit or alter any of the entries in the Schedule in respect of one or more areas of the State and on the publication of such notification, the entries in either column of the Schedule shall be deemed to be amended accordingly.

S.5 Rights and privileges under other laws, etc. not affected.

Nothing in this Act shall affect any right or privilege to which an employee in any establishment is entitled, at the date on which this Act applies to such establishment, under any other law for the time being in force, or under award, agreement contract, custom or usage applicable to such establishment, if such right or privilege is more favourable to him than any right or privilege conferred upon him by this Act.

S.Chapter II Establishments

S.6 Registration of establishments and renewal thereof.

1[The State Government may make rules requiring the registration of establishment or any class of establishments or renewal thereof and prescribing manner and the fees payable for such registration or renewal.]

1. Subs. by Act 2 of 1975.

S.7 Opening and closing hours of establishments.

2(1) No establishment shall on any day be opened earlier than 8 A.M. and closed later than 10 p.m. :

Provided that any customer who was being served or was waiting to be served at such closing hour in any establishment may be served in such establishment during the quarter of an hour immediately following such hour.]

(2) The State Government may, by notification, after the opening or closing hours for different establishments or for different areas or for different periods of the year.

(3) When they are conducted in an establishment two or more trades or business, any or which is of such a character that, if it was sole trade or business, therein conducted, the provisions of this section would not apply to that establishment shall, so far the conduct of that trade or business is concerned, be exempt from the operation of this section.

2. Subs. by Amendment Act of 2013.

S.8 Prohibition of sales before opening and after closing hours

1 Save as otherwise provided in this Act, or under any other enactment, no person shall carry on the sale of any goods in any place, whether a shop or not, before the opening or after the closing hours fixed under section 7 :

Provided that nothing in this section shall apply to hawkers on footpath or market street upto 11 P.M.

Provided that nothing in this section shall apply to the hawking of the newspapers.]

1. Subs. by Act 2 of 1975.

S.9 Hours of work in establishments

2 No employee in any establishment shall be required or allowed to work in such establishment for more than 9 hours in a day and or more than 48 hours in a week, exclusive of interval allowed for rest or for meals which together shall not be less than one hour in any day :

3[ " Provided that during any period of stock taking or making of accounts or any other purpose as may be prescribed any person other than a child or a young person, may be allowed or required to work a such establishment for any period in excess of hours fixed under this section subject to payment of overtime wages at the rate fixed in section 21, but total hours of overtime work shall not exceed 50 hours of overtime in a month."

Provided further that advance intimation of at least 3 days in this respect has been given in the prescribed manner to the Chief Inspector or any other officer authorised by the State Government. ]

2. Subs. by Act 2 of 1975.

S.10 Interval for rest

4 No employee in any establishment shall be required or allowed to work in such establishment for more than five hours continuously in any day unless he has had an interval for rest of at least half an hour:

Provided that there shall not be more than one such interval for rest during the whole of the working period of any employee on any day.]

4. Subs. by Act 2 of 1975.

S.11 Spreading of periods of work

The periods of work and intervals of rest of an employee in an establishment shall not be together spread over more than —

• (i) in the case of child, eight hours in any day;
• (ii) in the case of a young person, ten hours in any day;
• 1[(iii) in the case of any other employee, twelve hours in any day. ]

1. Ins. by Act 2 of 1975.

S.12 Weekly holidays in establishments

2[xxx]

(4) Every employee in an establishment shall be allowed in each week holiday of one whole day:

2[xxx]

(5) No deduction shall be made from the wages of any employee in an establishment on account of any day on which it has remained closed as a holiday under sub-section (1) or on which an employee has been on his weekly holiday under sub-section (2) and if an employee is employed on daily wages, he shall nonetheless be paid the daily wages of the day on which such establishment remains closed or on which the employee is on his weekly holiday unless he is absent on the day preceding such day.)

2. Sub-Sections (1), (2), (3) and proviso of sub-section (4) of Section 12 repealed by Amendment Act of 2013.

S.12A Other holidays

3 Every employee in an establishment shall be allowed— (a) a holiday on full pay on the Independence Day, the Republic Day and Mahatma Gandhi’s Birthday each year; and

(b) such other holidays on full pay upto five days in a year, in connection with such festivals as the State Government may declare from time to time under this Act:

Provided that an employee required to work on any such holiday shall be paid remuneration at double rate of his normal wages calculated by the hour.

3. Ins. by Act 2 of 1975.

S.12B Every employee to be furnished with service card

4 Every employee in an establishment shall be furnished by his employer with a service card in such form as may be prescribed.

4. Renumbered by Act 2 of 1975.

S.Chapter III Employment of children and young persons

S.13 No child to work in an establishment

No children below the age of 1[fourteen years shall be required or allowed to work as an employee in any establishment to which this Act applies.

1. Subs. by the word “fourteen” in place of “twelve” by Amendment Act of 2013.

S.14 Young person and women

2 No young person or women shall be required or allowed to work whether as an employee or otherwise in any establishment to which this Act applies before 8 A.M. or after 10 P.M.

3[“ Provided that if the State Government is satisfied owing to the nature of work carried on or other circumstances, that it is unreasonable to regulate the periods of work of any women employee, it may by written order relax or modify the above provisions for particular establishment/category of establishments.

Provided further that before passing any order safety and welfare issues of women employee shall be kept in mind.”]

2. “Section 14” Subs. by ibid.

3. substituted by act of 2015.

S.15 Daily and weekly hours of work for young persons

(1) Notwithstanding anything contained in this Act—

(a) no 4[xxx] young person shall be allowed to work as an employee in any establishment to which this Act applies for more than —

(i) 5[xxx]

(ii) seven hours in any day or forty-two hours in any week in the case of a young person;

(b) no 4[xxx] young person shall be required or allowed to work in such establishment for more than four hours continuously in any day unless he has an interval for rest and meals of at least one hour.

(2) 5[xxx]

4. Words “child or” repealed by Amendment Act of 2013

5. Sub-Section (i) of Section 15(1)(a) and Sub-Section (2) repealed by ibid.

S.Chapter IV Leave with wages.

S.16 Annual leave with wages

(1) Every employee who has worked for two hundred and forty days or more in an establishment during a calendar year and who has not been involved in an illegal strike, shall be allowed, during the subsequent calendar year, leave with wages for a number of days calculated at the rate of —

(i) 6[xxx]

(ii) 6[xxx] one day for every twenty days of work performed by him during the previous calendar year.

Explanation.—For the purpose of this sub-section—

(a) any day of lay off, by agreement or contract or as permissible under the standing orders and any days of lock-out;

(b) in the case of a female employee, maternity leave for any number of days not exceeding twelve weeks; and

(c) the leave earned in the year prior to that in which the leave is enjoyed;

shall be deemed to be days on which the employee has worked in an establishment for the purpose of computation of the period of 240 days or more, but he shall not earn

S.16A Other kinds of leave

2 (1) Every employee in an establishment shall in addition to the leave admissible under section 16, be entitled to —

(a) Casual leave with full pay for 12 days in a Calendar year; and

(b) Sick leave on half pay for 12 days in a Calendar year on production of a medical certificate :

Provided that the casual leave or the sick leave shall not be accumulative.

(2) Care-takers, guards and watch men, who have been in continuous employment of a period of 12 months or more shall, beside being entitled to leave provided for in section 16, and sub-section (1) of this section, be entitled to 45 days leave with full pay for every completed 12 months of continuous service.

2. Ins. by Act 2 of 1975.

S.17 Wages during leave period

(1) For the leave allowed to him under section 16, an employee shall be paid at a rate equal to the daily average of his total full time earnings, exclusive of any overtime earnings and the yearly bonus, but inclusive of attendance bonus, efficiency bonus and other incentive bonuses and dearness allowance and the cash equivalent of any advantage accruing by the sale of foodgrains and other articles at concessional rates, for the days on which he worked during the month immediately preceding his leave.]

(2) The State Government may prescribe —

(a) the manner in which the cash equivalent of the advantages accruing through the concessional sale to employees of foodgrains and other articles shall be calculated; and

(b) the registers that shall be maintained in an establishment for the purpose of securing compliance with the provisions of this section.

2[(3) An employee proceeding on earned leave shall on demand be given advance payment of the wage

S.18 Power to increase the amount of leave.

1 Notwithstanding anything contained in sections 16 and 16A, the State Government may by notification increase the total amount of leave and the minimum number of days up to which such leave may be accumulated in respect of such establishments or class of establishments as may be specified in the notification.

1. Subs. by ibid.

S.18A Power to exempt establishment.

Where the State Government is 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 this Chapter makes provision, it may by written order, exempt the establishment from all or any of the provisions of this Chapter subject to such conditions as may he specified in the order.

S.Chapter V Wages.

S.19 Responsibility for payments of wages.

Every employer shall be responsible for the payment to his employees of all wages required to be paid under this Act.

S.20 Fixation of wage period.

(1) Every employer shall fix period in respect of which such wages shall be payable.

(2) No wage period shall exceed one month.

S.21 Extra pay for overtime.

(1) Where an employee is required to work in an establishment for more than nine hours in any day or for more than forty-eight hours in any week, he shall be entitled in respect of the overtime to wages at the rate which shall be twice the ordinary rate of his wages.

Explanation.— For the purpose of this section, the expression "ordinary rate of wages", in relation to an employee means the basic rates of wages and such allowances as the employee is for the time being entitled to but does not include a bonus.

(2) The State Government may prescribe the registers that shall be maintained in an establishment for the purpose of securing compliance with the provision of this section.

S.22 Payment, when to be made.

An employee, who has been allowed leave for not less than five days in the case of a child and four days in any other case, shall before his leave begins, be paid the wages due for the period of the leave allowed.

S.23 Time of payment of wages.

(1) Wages of every employee shall be paid before the expiry of the seventh day after the last day of the wage period as respect of which the wages are payable :

Provided that if any employee be absent until the last day permissible under this sub- section the wages shall be paid before the expiry of three working days from the day on which he attends for work again or demands payment.

(2) Where the employment of an employee is terminated by or under the order of the employer, the wages earned by such employee shall be paid before the expiry of the second working day from the day on which his employment is terminated.

(3) All payments of wages shall be made on a working day at or near the place of work and during working hours.

(4) The State Government may by general or special order exempt an employer from the operation of this section in respect of the wages of any employee or class of employees, to such extent and subject to such conditions as may be s

S.24 Wages to be paid in current coins or currency notes.

All wages shall be paid in current coins or currency notes or in both.

S.25 Deductions which may be made from wages.

No deductions other than those which may be prescribed shall be made by the employer from the wages of this employee.

S.26 Notice of the dismissal or discharge.

1[(1) No employer shall dismiss or discharge or otherwise terminate the employment of any employee who has been in his employment continuously for a period of not less than six months, except for a reasonable cause and after giving such employee at least one month's notice or one month's wages in lieu of such notice :

Provided that such notice shall not be necessary where the services of such employee are dispensed with on a charge of such misconduct as may be prescribed by the State Government, supported by satisfactory evidence recorded at an enquiry held for the purpose:

Provided further that an employee who has been in continuous employment for a year or more and whose services are dispensed with otherwise than on a charge of misconduct shall also be paid compensation equivalent to fifteen days average wages for every completed year of service and any part thereof in excess of six months before his discharge in addition to the notice or pay in lieu of n

S.27 Notice of termination of employment by employee.

(1) No employee shall terminate his employment unless he has given to his employer a notice of at least one month.

(2) Where an employee contravenes the provision of sub-section (1), his employer may forfeit any unpaid wages for a period not exceeding fifteen days.

S.28 Claims arising out of deductions from wages or delay in payment of wages and penalty for malicious or vexatious claims.

(1) Where contrary to the provisions of this Act any deduction has been made from the wages of an employee, or any payment of wages has been delayed, or any sum is otherwise due from the employer to the employee, such employee, or any legal practitioner or any authorised agent or any officer of a registered trade union or any Inspecting Officer may make an application in such manner, within such time, and to such authority as may be prescribed for a direction under sub-section (2).

(2) When an application under sub-section (1) is entertained, the prescribed authority shall hear the application in the prescribed manner and may, without prejudice to any other penalty to which an employer is liable under this Act, direct the refund of the amount deducted, or payment of the delayed wages or any sum to the employee together with the payment of a compensation not exceeding ten times the amount deducted in the first case and not exceeding ten rupees in other case.

Provided t

S.28A Appearance by legal practitioner.

A legal practitioner may, in any proceeding under this Act, appear, plead or act on behalf of any party on such conditions as may be prescribed.

S.28B Power of the State Government to make rules for regulation of business and transfer of case.

Where the authority prescribed under sub-section (2) of section 26, or sub-section(1) or sub-section (7) of section 28, is more than one, the State Government may make rules — (i) to regulate the distribution of business between them; and (ii) for the transfer of a case or an appeal, from one authority to the other.

S.Chapter VI Inspection and Penalties.

S.29 Appointment of Inspecting Officer.

(1) The State Government may, by notification in the Official Gazette, appoint such persons on such class of persons as it thinks fit to be Inspecting Officers for the purposes of this Act within such local limits as it may assign to them respectively.

(2) The State Government may, by notification in the Official Gazette, appoint any person to be the Chief Inspecting Officer who shall, in addition to such powers as may be prescribed for the Chief Inspecting Officer, exercise the powers of an Inspecting Officer throughout the State.

(3) Every District Magistrate, the Additional District Magistrate of Saharsa, the Additional Deputy Commissioners of Dhanbad and Singhbhum and every Subdivisional Magistrate shall be an ex-officio Inspecting Officer within the limits of his respective jurisdiction.

(4) The State Government may also, by notification as aforesaid, appoint such public officers as it thinks fit to be additional Inspecting Officers for all or any of the p

S.30 Powers and jurisdiction of an Inspecting Officer.

(1) Subject to any rules made by the State Government in this behalf, an Inspecting Officer may within the limits of his jurisdiction —

• enter, during such hours as may be prescribed and with such assistance, if any, as may be necessary, any premises which is, or which he has reasons to believe is, an establishment;
• inspect, or take extracts from any prescribed registers, records and notices maintained under this Act or the rules made thereunder or seize such records, registers or notices as he may consider relevant in respect of an offence under this Act which he has reason to believe to have been committed by an employer;1
• take on the spot or otherwise the statement of any person which he may consider necessary for carrying out the purposes of this Act :
  Provided that no person shall be compelled to answer any question or give any evidence tending to incriminate himself; and
  
• exercise such other power as may be pre
  

S.31 Inspecting Officers to be public servant.

Every Inspecting Officer appointed under section 29 shall be deemed to be public servant within the meaning of section 21 of the Indian Penal Code, 1860 (XLV of 1860).

S.32 Penalty for obstructing Inspecting Officer, etc.

Any person who voluntarily obstructs an Inspecting Officer in the exercise of any power conferred on him by or under this Act or any person lawfully assisting an Inspecting Officer in the exercise of such power or who fails without sufficient cause to comply with any lawful direction made by an Inspecting Officer shall be punishable with imprisonment which may extend to six months or with fine which may extend to 1[ five thousand rupees, or with both.

1. Substituted by words “five thousand rupees” by Amendment Act of 2013.

S.33 Maintenance of registers and records and display of notices.

Every employer of an establishment shall maintain such records and registers and display such notices and in such manner as may he prescribed.

(2) Every employer shall on demand produce for inspection of Inspecting Officer all registers, records and notices required to be kept under and for the purposes of this Act.

S.34 Penalties.

Any employer who contravenes any provisions of this Act or any rule or order made thereunder shall, if no other penalty is provided for the offence, be punishable with fine which may extend to 2[ five thousand rupees for the first offence and to ten thousand rupees for every subsequent offence after the first conviction.

2. Substituted by words “five thousand rupees” and “ Ten thousand rupees” by Amendment Act of 2013.

S.35 Penalty whether the employer is a firm or company.

If the person contravening any provision of this Act or a rule or order made thereunder is a company or a partnership firm every director, partner, manager or secretary thereof shall, unless he proves that the contravention took place without his knowledge or that he exercised all due diligence to prevent such contravention, be deemed to be guilty of such contravention.

S.36 Cognizance of offences.

1[No court shall take cognizance of any offence punishable under this Act or any rule or order made there under except on a complaint in writing of the facts constituting such offence made by Inspecting Officer or any person authorised in this behalf by the State Government within six months of the date on which the offence is alleged to have been committed:

Provided that the court may by reasons to be recorded in writing take cognizance of the offences for the breach of the provisions of sections 16, 16A, 26 and 28 after the expiry of the said period of six months, if it is satisfied that the complainant was prevented by sufficient cause from filling the complaint within the said period.

(2) No court inferior to that of a Magistrate of the first class shall take cognizance or try an offence punishable under the Act.]

1. Subs. by Act 2 of 1975.

S.Chapter VII Miscellaneous.

S.37 Protection of persons acting under this Act.

No suit, prosecution or other legal proceeding shall lie against any person for anything in good faith done or intended to be done under this Act or any rule or order made thereunder.

S.37A Presumption.

2[Whenever an establishment is found open it shall be presumed that it is open for the service of customers or for the business, trade or profession normally carried on the establishment.]

2. Ins. by ibid.

S.38 Power of Government to suspend provision of this Act during public holidays.

The State Government may by notification, suspend in any area, in respect of all establishments or any class of establishments the operation of all or any of the provisions of this Act for such period and subject to such conditions as may be prescribed on account of public holidays or occasions or for any other reason of whatever kind.

S.39 Workmen's Compensation Act, 1923 to apply to an employer and an employee to whom this Act applies.

1[The provisions of the Workmen's Compensation Act, 1923 (VIII of 1923), and of rules made thereunder, shall mutatis mutandis, apply to every employer or employee to whom the provisions of this Act apply.]

1. Subs. by Act 2 of 1975.

S.39A Maternity Benefits Act, 1961 (53 of 1961) to apply to establishment and persons to whom this Act applies.

1[The provisions of the Maternity Benefits Act, 1961 (53 of 1961), and of rules made thereunder shall mutatis mutandis, apply to every establishment and every person to whom the provisions of this Act apply.]

1. Subs. by Act 2 of 1975.

S.40 Power to make rules.

(1) The State Government may make rules to carry out the purposes of this Act.

(2) In particular and without prejudice to the generality of the forgoing power, such rules may provide for all or any of the following matters, namely —

• 1[(a) the registration and renewal of establishments and the amount, and manner of payment of fees under section 6;]
• (b) the registers to be maintained in an establishment under section (2) of section 17 or sub-section (2) of section 21;
• (c) the misconduct of an employee for which his services may be dispensed with without a notice under sub-section (1) of section 26; and the authority to which and time within which appeals under sub-section (2) of that section may be filed;
• (d) the authority before whom, the time within which and the manner in which the employee or any legal practitioner or authorised agent or an officer of a registered trade union or an Inspecting Officer shall make an applicat
  

S.41 Weekly Holidays Act, 1942, not to apply to establishment on commencement of this Act.

On and from the date on which any of the provisions of this Act comes into operation in any area or in respect of a shop or establishment, the Weekly Holidays Act, 1942 (XVIII of 1942), shall cease to apply to such area or shop or establishment:

Provided that anything done under the said enactment which could have been done under this Act if it had then been in force shall be deemed to have been done under this Act.