Industrial Employment (Standing Orders) Act, 1946

Objective

Protection of labour by providing uniform and stable conditions of service.

Scope and coverage

Extends to whole of India and applies to every industrial establishment wherein 100 or more workmen are employed or were employed in the preceding 12 months. If the govt wants, this Act can be applied to industrial establishments with less than 100 workmen. Once applied, the Act cannot be recalled if the number of employees falls below the minimum.

Industrial establishment
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2.

3.

4.

An industrial establishment as defined under the Payment of wages Act, 1936. A factory as defined under the Factories Act, 1948. A railway as defined under the Indian Railways Act, 1890. The establishment of a person who, for the purpose of fulfilling a contract with the owner of any industrial establishment, employs workmen. 4

This Act does not apply to establishments covered by

Bombay Industrial Relations Act Madhya Pradesh Industrial Employment (Standing Orders) Act Government Service Rules.

Employees entitled

1.

2.

3.

Applies to every worker employed in the industrial establishment, engaged in any class of work skilled, unskilled, manual, clerical or supervisory, but excluding Workers in managerial or administrative capacity Workers in supervisory capacity earning more than Rs. 1600 p.m. Workers in Army, Air Force, Navy, Police force and Prison
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Administrative Authority

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2.

Central legislation enforced by both central and State govts. Powers: To appoint Certifying Officers and appellate authority. To exempt certain establishments from this Act.

Standing Orders
The rules of conduct for workmen employed in industrial establishments, related to matters enumerated in the schedule such as classification of workmen, working hours, holidays, attendance, leave, termination of employment, suspension or dismissal, misconduct, etc.

Every establishment should have its own certified standing orders which shall be binding on both employer and employees.
Purpose: to ensure suitable and uniform conditions of service in place of chaotic, arbitrary and uncertain conditions. Model standing orders are prescribed which can be followed as it is or amended as per the requirements of the organisation.
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Contents of the Schedule

Classification of workmen. Manner of intimating to workmen periods and hours of work, holidays, paydays and wage rates. Shift working Attendance and late coming Conditions of, procedure in applying for, and the authority which may grant, leave and holidays. Requirement to enter premises by certain gates, and liability to search.
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Closing and reopening of sections of the industrial establishment, and temporary stoppages of work and the right and liabilities of the employer and workmen arising therefrom. Termination of employment, and the notice thereof to be given by the employer to the workmen. Suspension or dismissal for misconduct, and acts or omissions which constitute misconduct. Means of redress for workmen against unfair practices of the employer. Any other matter which may be prescribed.
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Certification Process
1.

Submission of the Draft Standing Orders by the employer. - cover all matters specified in the schedule and conform to the model standing orders. - submit 5 copies of the draft to the Certifying officer alongwith the application form and details of workmen employed in the establishment and their trade union, if any. - application should be made within 6 months from the date the Act becomes applicable to the establishment.
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2. Conditions for Certification of Standing orders: 1. every matter in the schedule is include. 2. conformity with the Act 3. fair and reasonable.

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3. Procedure for Certification of Standing Orders: - Certifying Officer sends a copy of the Draft to the trade union to file objections, if any, within 15 Days of the notice. - chance of being heard to the union. - Certifying officer may carry out modifications if any. - Certified copy of the standing Orders will be sent to the employer, trade union or other representatives within 7 days. - Appeal can be made by the employer or employees to the appellate authority if they are not satisfied with the certifying officer within 30 days 14 of receiving the certified copy.

Date of operation of Standing Orders

With effect from the 30th day from the date on which the certified copies were sent to all the parties Or from the 7th day from the day on which the appellate order is served on the parties. In the meantime, the Model Standing Orders is applicable to that establishment.

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Display of the Standing Orders

The employer shall display the Certified standing orders, in English and in the local language, at or near the entrance of the establishment and in all the departments where the workmen are employed.

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Modification of Standing Orders

Standing Orders cannot be modified until the expiry of 6 months from the date of certifying. The employer or the employees can apply to the Certifying Officer to have the standing orders modified, accompanied by 5 copies of the modifications to be made. If there is an agreement between the employer and employees about the modifications to be made, then 1 copy of the certified agreement should be attached with the application.

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Powers of the Certifying Officer and the Appellate Authority

All the powers of the Civil Court receiving evidence, examining witnesses, production of documents. To correct mistakes and omissions or errors in the order.

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Interpretation of Standing Orders

If any question arises on the application or interpretation of the certified standing orders, it can be referred by the employer or workman or the union, to the Labour Court constituted under the Industrial Disputes Act for disposal. The Labour Court will give an opportunity to all parties to be heard and the decision of the Court will be final and binding on all.
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Offences and Penalties

1.(a) Failure to submit the draft standing orders. (b) Modifying he standing orders without prior approval of the Certifying Officer. 2. Contravention of the certified standing orders of the establishment Fine: up to Rs. 5000. Continuing offence: fine of Rs. 200 per day.

Same as above

Fine: Rs. 100. Continuing offence: Fine: Rs. 25 per day.

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