Industrial Employment Standing Orders Act 1946 114[1]

7/27/2019 Industrial Employment Standing Orders Act 1946 114[1]

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Object of the Act Scope and Application

Definitions

Submission of Draft Standing Orders Certification of Standing Orders

Appeal

Interpretation of Standing Orders


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Conditions of service of workers were not well defined No clarity of rights and obligations of the employer

in respect of terms of employment, friction/dispute betweenmanagement and worker

Emphasize on the workers right to know the terms &

conditions of employment


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To require employers to define the terms and conditions(discharge, holidays,tenure, leaves, disciplinary action,working hours,pay days etc. ) of employment and make itknown to workers

To bring about uniformity in terms and conditions ofemployment of employees belonging to same category

To minimize industrial conflicts

To foster harmonious relations between employers andemployees.

To provide statutory sanctity and importance to standingorders


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Extends to the whole of India

To every establishment wherein 100 or more workmen areemployed

Once applicable to the establishment then it continuous evenif the no. of workmen employed gets reduced to less than100

The central and state governments can apply the provisionsof act to any industrial establishment employing less than100 workmen also by giving 2 months prior noticfication.


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Appropriate Government: State Government, CentralGovernment.[sec2b]

Certifying Officer:[2c] means Labour Commissioner/RegionalLabour Commissioner and includes any other officer

appointed by the appropriate Government, by notification inthe Official Gazette to perform such duties.

Employer: owner of the establishment Appellate Authority : authority appointed by the appropriate

Government by notification in the official Gazette to exercisethe functions of an appellate authority under the act.


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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, 1936Standing Orders The term Standing Orders means rules relating to matters

set out in the Schedule of the Act.


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Matters to be contained in the Standing Orders Classification of the workmen : temporary, casual, apprentices

, probationers. Manner of intimating to workmen periods and hours ofwork,holidays,pay days and wages. Shift working Attendance and late coming


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Conditions of, procedure in applying for, and theauthority which may grant leave and holidays Requirements to enter premises by certain gates

and liability to search Closing and reopening of sections of theestablishments, temporary stoppages Termination of employment Suspension or dismissal for misconduct Acts and omissions which constitute misconduct


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It is not permissible for the employers toframe standing orders in respect of thematters not provided for in the schedule ofthe ACT.

Only the appropriate govt can by notificationadd matters

In 1983 added: age of retirement,

transfer,medical ex, exclusive service etc.


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The Central and State Govt have framed theirown rules on the matters stated in the ACT .

Classification of workers-permanent,probationer,badli,temporaryworkmen,casual,apprentice

Tickets to permanent workman

Cards-number of days etc.


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Publication of working time , holidays, wagerates,shift working

Read more


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Obligatory on the part of an employer or a group ofemployers to furnish 5 copies of the draft standing orders tothe certifying officer

Within 6 months of the applicablibity of the Act the employershall submit the draft standing orders proposed

5 Copies to be given to the certifying officer

Draft has to enclose the prescribed particulars of theworkmen

The status and name of the trade unions to be given.

It has to take all matters set out in the Schedule.


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Copy of draft standing orders to be sent to tradeunion/workmen by certifying officer

Opportunity of hearing to trade union/workmen tobe provided objection to be submitted within 15

days Certification

Within 7 days of certification ,send copies to all

Standing orders to be applicable to all present and

future workmen.


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Provision is therein made for every matter set out inthe schedule Standing orders are in conformity with theprovisions of the Act.


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AppealAny employer, workman, trade union aggrieved by the order of

the certifying officer may, with in 30 days from the date onwhich 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

Duration & modification of Standing OrderTo remain unmodified for span of 6 months. These provision of

modification do not apply in states of Mahrashtra and gujarat.


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Register of standing order: The certifyingofficer is required to file a copy in prescribedregister.

Display of standing orders: to be posted inEnglish language or local language near theentrance.


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Payment of subsistence allowance by an employer to aworkman who has been suspended by the employer and hisinvestigation is pending or inquiry into complaints or chargesof misconduct

the allowance shall be at the rate of 50% of thewage for the first 90 days of suspension

The allowance shall be 75% of the wage after 90days if the investigation is delayed due to employer


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Any employer fails to submit draft standingorders or modifies it without approval of theCertifying officer, shall be punishable withfine 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 further Rs25 aday.


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An Act to regulate the employment ofcontract labour in certain establishments andto provide for its abolition in certaincircumstances and for matters connected

therewith.


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A workman is deemed to be employed as Contract Labourwhen he is hired in connection with the work of an

establishment by or through a contractor.

Contract workmen are indirect employees;persons who arehired, supervised and remunerated by a contractor who, in

turn, iscompensated by the establishment. Contract labour has to be

employed for work which is specific and for definite duration.


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Contract labour should not be employedwhere:

(a) The work is perennial and must go on from day to day;

(b) The work is incidental to and necessary for the work of thefactory;

(c) The work is sufficient to employ considerable number ofwhole time workmen


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It applies-- (a) To every establishment in which twenty or

more workmen are employed or wereemployed on any day of the preceding twelvemonths as contract labour

(b) to every contractor who employees or whoemployed on any day of the preceding twelve

months twenty or more workmen


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Who is a Principal employer

In a factory, the owner or the occupier of the factory & where a person has beennamed as Manager under the Factories Act, 1948

Who is a Contractor

A person who undertakes to produce a given result for the establishment through

contract labour or who supplies contract labour for any work of establishment &

includes a sub contractor.

Who is a Contract labor

Any worker will be a contract labour when he is hired for work of establishment

through a contractor, with or without the knowledge of the principal employer


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Sr. No. Provision Conditions

1 Canteen Where 100 or more contract labour employed &

employment of contract worker continue more than 6

months

2 Rest rooms If contract labour is required to halt at night &

employment of contract worker continue for 3 or more

months

3 Crche Where 20 or more female contract labor are employed.

4 Drinking Water Sufficient supply at convenient place.

5 Latrines & Urinals At least one latrine for every 25 male & female contract

labor separately

6 Washing Facilities Separate for female & male contract labor

7 First aid Facilities At least one First aid box for every 150 contract labor


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Ensure timely disbursement of wages Pay the rate of wages as fixed in agreement

Maintain rolls and registers of wages,overtime, deductions, fines etc.

Issue wage slips

Display notice of wage rates , hours of worketc.


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Responsibility for payment of wages: -A contractor shall be responsible for the

payment of wages

Wages shall be paid in the presence of authorized person nominated by the

Principal employer.

No wage period shall exceed one month.

Wages of terminated worker shall be paid before the expiry of second working

day from the day on which his services were terminated.

Wages to every worker shall be paid directly or to any person authorized by him.

The wages paid to the contract workers shall be authenticated by the

representative of the Principal employer at the end of the wage sheet.


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Register & records to be maintained: Sr. No. Register to be maintained Form No.

1

Register of Contractor

12

2

Register of Person employed

13

3

Employment card

14

4

Service Certificate

15

5

Muster Roll

16

6

Register of wages

17

7

Wages cum Muster roll register where is fortnightly or less

18

8

Register of Deductions

20

9

Register of Fines

21

10

Register of Advances

22

11

Register of Overtime

23

12

Wages slip where wage period is more than one week

29


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Prohibition of employment of contract labor

The State govt can prohibit the employment of Contract Labor by a notification in the following areas:

The process, operation is the main business of the establishment

Continuous Manufacturing

Perennial nature of work

Where the work should be done by whole time workmen.

Employment permitted by the State Govt for employment of Contract Labor

Housekeeping

Horticulture

Loading & Unloading

Material Movements

Canteen Employment

Security & Vigilance


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Registration of Establishment

The Principal employer if employing 20 or more workers through the contractor, he is obliged to get

himself registered through FORM No. 1.

Licensing of Contractors

The Contractor has to obtain License if employing more than 20 workers & deposit the required fees on

FORM No. 4 along with the Principal Employer Certificate on FORM No. 5.

Validity & Renewal

The License will be valid for one year and can be renewed thereafter before 30 days of its expiry

Revocation, suspension & amendment of license

If the license is obtained by misrepresentation or suppression of material facts.

Security DepositThe Contractor has to deposit the Security amount as prescribed by the State Govt.

Industrial Employment Standing Orders Act 1946 114[1]

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