The Act is applicable to motor transport undertaking employing 5 or more transport workers. The aims to provide for the welfare of Motor Transport undertaking, hours of work, split duty, spread over, compensatory day of rest/ Rest interval, Over Time Wages, Weekly rest, medical examination, Annual leave with wages etc.

The Act further stipulates the welfare facilities to be provided to the workmen such as canteen, Rest rooms, Uniforms, Medical and First Aid etc.

Also the Act provides necessary penalty provisions upto three month imprisonment and fine for the contravention of the Act.