The Industrial Employment (Standing Orders) Act, 1946
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The Industrial Employment (Standing
Orders) Act, 1946
Object of the Act Scope and Application Definitions Submission of Draft Standing Orders Certification of Standing Orders Appeal Interpretation of Standing Orders
Importance
No uniform practice governing the conditions of service of workers
No clarity of rights and obligations of the employer in respect of terms of employment, friction/dispute between
management and worker Demand for statutory service conditions raised by Bombay
Cotton Textile workers in 1927-28 The Bombay Industrial Disputes Act of 1938 for the first time
provided for statutory standing orders. The Labour Investigation Committee emphasized the workers’
right to know the terms & conditions of employment
Object of the Act
To require employers to define the conditions of work
To brig about uniformity in terms and conditions of employment
To minimise industrial conflicts To foster harmonious relations between
employers and employees. To provide statutory sanctity and importance to
standing orders
Scope and Application
Extends to the whole of India To every establishment wherein 100 or more
workmen are employed On any day preceding twelve months Once applicable to the establishment then it
continuous if the no. of workmen employed gets reduced to less than 100
The appropriate Govt. can exempt any establishment from any of the provisions of the Act
Continuous…..
It applies to railways, factories, mines, quarries, oil-fields, tramways, motor services, docks, plantations, workshops, civil construction and maintenance works.
The Act has 15 sections and a schedule. It applies to all the skilled or unskilled, manual,
supervisory, technical, clerical work. The apprentices are also included. The persons employed mainly in a
managerial/administrative/supervisory capacity drawing wages exceeding Rs.1600 are not covered.
Important Definitions
Appropriate Government: State Government, Central Government.
Certifying Officer: means Labour Commissioner/Regional Labour Commissioner and includes any other officer appointed by the appropriate Government, by notification in the Official Gazette to perform such duties.
Employer: owner of the establishment
Industrial Establishment
A factory defined in Section-2 (m) of the Factories Act, 1948
A railway defined in Railways Act, 1939 Establishment defined in the Payment of
Wages Act, 1936
Standing Orders• The term ‘Standing Orders’ means rules
relating to matters set out in the Schedule of the Act.
ScheduleMatters to be contained in the Standing Orders
Classification of the workmen : temporary, casual, apprentices
Manner of intimating to workmen Shift working Attendance and late coming Conditions of, procedure in applying for, and the authority
which may grant leave and holidays Requirements to enter premises by certain gates and
liability to search Closing and reopening of sections of the establishments,
temporary stoppages Suspension or dismissal for misconduct Acts and omissions which constitute misconduct
Submission of Draft Standing Orders
Obligatory on the part of an employer or a group of employers to furnish 5 copies of the draft standing orders
Within 6 months of the application of the Act the employer shall submit the draft standing orders
Copies to be given to the certifying officer Draft has to enclose the prescribed particulars of the
workmen The status and name of the trade unions to be given. It has to take all matters set out in the Schedule.
Procedure for Certification of Standing Orders
Copy of draft standing orders to be sent to trade union/workmen
Opportunity of hearing to trade union/workmen to be provided
Certification Certified standing orders have the force of law and the
violation of any provision shall be taken action Standing orders to be applicable to all present and
future workmen Standing orders must confirm the model standing order
Conditions for certification of Standing Orders
Must compile as per the Model Standing Orders Fairness of the provisions shall be verified by the Certifying Officer
AppealAny employer, workman, trade union aggrieved by the order of the
certifying officer may, with in 30 days from the date on which copies of the certified standing orders sent to them
Date of Operation of the ActOn the expiry of 30 days of the certification given by certifying officer OrAfter the expiry of 7 days of the decision given by appellate authority.
Payment of Subsistence allowance
Payment of subsistence allowance by an employer to a workman who has been suspended by the employer and his investigation is pending
the allowance shall be at the rate of 50% of the wage for the first 90 days of suspension
The allowance shall be 75% of the wage after 90 days if the investigation is delayed due to employer
Penalty
Any employer fails to submit draft standing orders or modifies it, shall be punishable with fine which may extend to Rs. 5000.
In case of continuance of the above offence, fine up to Rs.200 per every day.
Any contravention of Standing Orders is punishable by Rs. 100 fine .
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