Section 81: Power to exempt

The Industrial Relations Code, 2020 (Act No. 35 of 2020) • Official Statutory Text & Plain English Practice Guide

Statutory Mandate
Chapter X: Special Provisions (300+ Workers)
Competent Labour Forum
Act No. 35 of 2020

Legal Commentary & Landmark Judgments: Section 81

Section 81 of the Industrial Relations Code, 2020 imposes an express statutory obligation on employers of Chapter X establishments to maintain muster rolls of workers and provide daily recording facilities for employees presenting themselves for work, creating foundational contemporary evidence to adjudicate lay-off claims and continuous service disputes.

  • Mandatory Maintenance of Muster Rolls: Every employer of an industrial establishment to which Chapter X applies is statutorily bound to maintain a comprehensive muster roll in the prescribed format, recording daily attendance, shift details, leave records, and employment categories of all workers.
  • Statutory Provision for Ingress and Attendance Recording: The employer must provide adequate, unhindered facilities for workers who present themselves for work at the establishment at the appointed time during normal working hours to record their presence on the muster roll, preventing artificial management pleas of unauthorized absence.
  • Evidentiary Primacy in Labor Adjudication: Muster rolls maintained under Section 81 constitute primary statutory records under Section 34 of the Indian Evidence Act / Section 32 of Bharatiya Sakshya Adhiniyam, 2023. In any dispute regarding the reality of lay-off, seniority for retrenchment under LIFO, or completion of 240 days of continuous service, the statutory muster roll operates as conclusive contemporary proof.
Key Landmark Precedents:
  • Workmen of Sudder Office, Cinnamara v. Management (1971) 2 SCC 38: The Supreme Court held that statutory muster rolls and contemporaneous attendance records are the definitive evidentiary benchmark in industrial adjudication; management's failure to produce muster rolls warrants adverse inferences.
  • State Bank of India v. N. Sundara Money (1976) 1 SCC 822: The Supreme Court highlighted that statutory muster rolls and employment registers reveal the factual reality of continuous employment under the 240-day rule, piercing formal contractual labels of temporary or casual engagement.
  • Bhikari Sharma v. Dhanbad Municipal Board (1987) Lab IC 1152 (Pat): The High Court ruled that where an employer deliberately withholds or fails to maintain the statutory muster roll, the tribunal must draw an adverse presumption under Section 114(g) of the Evidence Act in favor of the workman's attendance claim.
Courtroom Practice & Strategic Litigation Guidance:

Deploy biometric or digital time-attendance systems integrated with tamper-proof digital muster rolls complying with Section 81. Ensure physical attendance kiosks or registers are situated at factory gates and accessible to all shifts. If workers report for duty during periods of power cuts or production slowdowns, record their attendance specifically to document lay-off compensation eligibility. Never lock out workers or deny entry to prevent them from signing muster rolls, as this constitutes an unfair labour practice under Section 84.