Are Medical Representatives Included in the Sales Promotion Employees Act? Seeking Insights and Resources

Dear member, please update me on whether medical representatives are covered under the Sales Promotion Employees Act. If anyone has the information, kindly provide PDF files on the same.

Thank you.

Overview of the Sales Promotion Employees (Conditions of Service) Act

The basic objective of the Sales Promotion Employees (Conditions of Service) Act was to ensure the service conditions of medical representatives, i.e., sales promotion employees of pharmaceutical companies. It was later on that salespersons of other industries also came into the purview of the said Act. This was following the Supreme Court decision in May & Baker (India) Ltd vs. Workmen, in which the court stated that salespeople would not fall under the definition of a workman in the Industrial Disputes Act. As a result, a separate Act was introduced to take care of their service conditions. Therefore, medical representatives are covered under the said Act.

Regards,
Madhu.T.K

First of all, I am very thankful to you for your answer. Can you provide me with some legal or official files that clearly state that a Medical Representative, or whatever designation is used, is protected under the SPE Act?

You are referring to the Act which clearly states that it applies to sales promotion employees of pharmaceutical companies. In the definition of employees, similar to the Industrial Disputes (ID) Act, managers and those with supervisory powers are excluded.

Regards,
Madhu.T.K

Sir, are promoters and marketing employees/members of a sales team of a mobile phone distributor for a mobile phone manufacturer covered under this act? For them, will the leave policy have to be adjusted as per this act? Otherwise, the Shops and Commercial Establishment Act will be applicable, if I'm not wrong. Please, sir, it's urgent.

The Sales Promotion Employees (Conditions of Service) Act

The Sales Promotion Employees (Conditions of Service) Act was originally enacted for sales promotion employees of the pharma industry. Later, in 2011, 10 more industries were also included in the coverage list. The industries covered include:

• Cosmetics, soaps, household cleaners, and disinfectants
• Ready-made garments
• Soft drink manufacturing industries
• Biscuits and confectioneries
• Ayurvedic, Unani, and Homeopathic Medicines
• Automobiles, including accessories and spare parts
• Surgical equipment, artificial prosthesis, and diagnostics
• Electronics, computers including accessories and spares
• Electrical appliances
• Paints and varnishes

Mobile salespersons of phone distributors do not currently fall under the purview of the Act. However, the provisions of the Shops and Commercial Establishments Act will be applicable to them. Please refer to specific sections to determine if they apply only to establishments with a specified number of employees. In some states, certain provisions, such as holidays to be given in a year with reference to the State Industrial Establishment (National and Festival Holidays) Act, apply only to establishments with at least 20 employees.

Regards,
Madhu.T.K

Dear Sir,

Kindly guide me, is it necessary for a medical representative to join unions, even if he is not willing to do so? I am working as a manager in a pharmaceutical company, and unions are forcing my team representative to join the union to avail the benefits of labor laws. Is this the case?

Thanks,
Pankaj Gupta.

Dear ma'am/sir,

Recently, our company, MNC, closed one of its sales divisions. The employees are being placed in some way or another. Their managers have been given new designations with no role clarity, and they have no direct reports. They are made to feel ignorant and outcast.

The project they are working on is said to last for 4 months. I would like to inquire whether the company can terminate us after this period. Are we now covered under the SPE Act and protected by labor laws?

Please guide us. We are in a very tragic state.

Not all the salespersons will come under the purview of the Sales Promotion Employees Act. However, salespersons who have no reportees under them and who have been in service for the last one year will have to be given notice (which is already given) and compensation as per the ID Act. For better treatment and settlement of dues, you have to initiate a discussion now itself.

Madhu.T.K