Mentoassociates.com – Legal Articles

Section 27 of INDIAN CONTRACT ACT, 1872, declares agreements by which any one is restrained from exercising a lawful profession, trade or business of any kind as void.
An exception is provided while selling of goodwill of a business. Accordingly one who sells the good-will of a business may agree with the buyer to refrain from carrying on a similar business, within specified local limits; so long as the buyer, or any person deriving title to the good-will from him, carries on a like business therein, provided that such limits appear to the Court reasonable, regard being had to the nature of the business.
The Supreme court has in Superintendence Company of India ( P ) Ltd . vs . Sh . Krishan Murgai reported in AIR 1980 SC 1717, held that post service restraints are void under section 27 of the Indian Contract Act. In the given case there was a negative covenant not to serve anywhere else or enter into competitive business in similar lines. Supreme Court held that restriction contained is restraint of trade and therefore illegal and unenforceable under Section 27.
In Niranjan Shankar Golikari vs. The Century Spinning and Mfg . Co . Ltd , reported in AIR 1967 SC 1098, Supreme court has held that negative covenants which are operative during period of contract do not fall under Section 27.
In VV Sivaram and Ors . vs . Foseco India Limited reported in 2006(1)Kar LJ 386, Karnataka high court held that disclosure of confidential information after cessation of employment by an employee can be restrained and the same is not hit by section 27 of the Indian Contract Act..

THE EQUAL REMUNERATION ACT, 1976

Objective:The Act aims to provide for the payment of equal remuneration to men and women workers and for the prevention of discrimination, on the ground of sex, against women in the matter of employment and for matters connected therewith or incidental thereto.

Important Definitions:

a. Employer: has the meaning assigned to it in the Payment of Gratuity Act, 1972.

b. Worker: means a worker in any establishment or employment in respect of which, this Act has come into force.

Application:The act applies to various establishments and occupations as notified by the Central government from time to time. The act prohibits payment by an employer to any worker, employed by him in an establishment or employment, remuneration, at rates less favourable than those at which remuneration is paid by him to the workers of the opposite sex in such establishment or employment for performing the same work or work of a similar nature. Further, no employer shall, while making recruitment for the same work or work of a similar nature, (or in any condition of service subsequent to recruitment such as promotions, training or transfer,) make any discrimination against women except where the employment of women in such work is prohibited or restricted by or under any law.

Authorities under the act:

a. Advisory Committees: These are constituted by the appropriate government for the purpose of providing increasing employment opportunities for women.

b. Labour officers: The appropriate Government may, appoint such officers, not below the rank of a Labour Officer, as it thinks fit to be the authorities for the purpose of hearing and deciding claims and complaints under the Act.

c. Inspectors: Appointed by the appropriate government for the purpose of making investigations as to whether the provisions of this Act, or the rules made there under, are being complied with by employers.

Penalties:1. If any employer:(a)   omits or fails to maintain any register or other document in relation to workers employed by him, or(b)  omits or fails to produce any register, muster-roll or other document relating to the employment of workers, or(c)  omits or refuses to give any evidence or prevents his agent, servant, or any other person in charge of the establishment, or any worker, from giving evidence, or(d)  omits or refuses to give any information,he shall be punishable  with simple imprisonment for a term which may extend to one month or with fine which may extend to ten thousand rupees or with both.

2. If   any employer:(a)   makes any recruitment in contravention of the provisions of this Act, or(b)  makes any payment of remuneration at unequal rates to men and women workers, for the same work or work of a similar nature, or(c)   makes any discrimination between men and women workers in contravention of the provisions of this Act, or(d)  Omits or fails to carry out any direction made by the appropriate Government under sub-section (5) of section 6,he shall be punishable with fine which shall not be less than ten thousand rupees, but which may extend to twenty thousand rupees or with imprisonment for a term which shall be not less than three months but which may extend to one year or with both for the first offence, and with imprisonment which may extend to two years for the second and subsequent offences.

3. If any person being required so to do, omits or refuses to produce to an Inspector any register or other document or to give any information, he shall be punishable with fine which may extend to five hundred rupees.

Exemptions:Nothing in this Act shall apply:

(a)   to cases affecting the terms and conditions of a women’s employment in complying with the requirements of any law giving special treatment to women, or

(b)  to any special treatment accorded to women in connection with (i)  the birth or expected birth of a child, or(ii)  The terms and conditions relating to retirement, marriage or death or to any provision made in connection with the retirement, marriage or death.

THE EQUAL REMUNERATION ACT RULES, 1976

A complaint or claim under the Act may be made by the worker himself or herself or by any legal practitioner, or by any official of a registered Trade Union, authorized in writing to appear and act on his or her behalf or by any Inspector appointed or any other person acting with the permission of the Authority.

Every employer shall maintain up-to-date a register in relation to the workers employed by him, in Form D, at the place where workers are employed.