The Industrial Employment (Standing Orders) Act, 1946

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 .