The Sales Promotion Employees (Conditions of Service) Act, 1976, was enacted to regulate the terms of employment and to provide for certain conditions for the sales promotion employees in certain establishments.


Initially, the act applied to only sales promotion employees working in pharmaceutical industry but vide Ministry of Labour & Employment Notification No. S. O. 217 (E), dated January 31, 2011, the applicability has expanded and now applies to the following industries: –

Paints and Varnishes

Medical and surgical appliance manufacturers Manufacturers of toiletry, cosmetics, and perfumery Distributors of such products Readymade garments Soft drink manufacturing industries
Biscuits and confectionaries Ayurvedic, Unani and homeopathic medicines Automobiles including accessories and spare parts Surgical equipment’s, artificial prosthesis, and diagnostics Electronics, computers including accessories and spares

Electrical Appliances

Pharmaceutical companies


Key Terminologies:

Terminology Section Reference Definition
Establishment Section 2(a) “Establishment” means an establishment engaged in pharmaceutical industry or in any notified industry.
Sales Promotion Employees Section 2(d) “Sales Promotion Employees” means any person by whatever name called (including an apprentice) employed or engaged in any establishment for hire or reward to do any work relating to promotion of sales or business, or both, but does not include any such person—

(i) who, being employed or engaged in a supervisory capacity, draws wages exceeding sixteen hundred rupees per mensem; or

(ii) who is employed or engaged mainly in a managerial or administrative capacity.


Key Provisions:

Section Reference Brief Description
Section 3 This section empowers the Central Government to declare any industry to be notified for the purpose of this Act. The Government can make such declaration after having regard to the nature of industry, number of employees employed in such industry engaged in work of promotion of sales or business or both, etc.
Section 4 It is provided that, every such sales promotion employees should be entitled to holidays, casual leaves, and other leaves as prescribed and to the:

1.     Earned leave on full wages of the period equivalent to the 1/11th of the period spent on duty by him and to the leave on medical certificate on one half of wages for the period equivalent to 1/18th of the period spent on duty.

2.     Cash compensation in respect of the remained earned leave, for both voluntarily relinquishment of his post or retirement and services are terminated for any other reason except by way of punishment.

Section 6 This section provides for applicability of provisions of certain other enactments as mentioned below to the sales promotion employees as if they are eligible under those acts. But if any employee is not eligible only due to wage ceiling limit, then they will be excluded.

i. Employees’ Compensation Act, 1923

ii. Industrial Disputes Act, 1947

iii. Minimum Wages Act, 1948

iv. Maternity Benefit Act, 1961

v. Payment of Bonus Act, 1965

vi. Payment of Gratuity Act, 1972

Section 9 and Section 10 These provide the penalties against the breach of provisions under the act, or the rules made under this Act. The punishment provided is fine maximum up to 1000 rupees. Whereas Section 10 specifies the offences by companies and explains the persons or official liable therein.


In essence, the Act empowers sales promotion employees by recognizing their contribution and granting them basic employment rights. It fosters a fairer and more dignified work environment, allowing them to excel in their roles without exploitation or fear. Nonetheless, it represents a significant step towards protecting the rights of these often-overlooked individuals.


Disclaimer:  This is an effort by, to contribute towards improving compliance management regime. User is advised not to construe this service as legal opinion and is advisable to take a view of subject experts.

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