The Industrial Employment (Standing Orders) Act, 1946 requires employers in industrial establishments with 100+ workers to formally define work conditions through certified standing orders. Standing orders cover matters like work classifications, working hours, leave rules, termination reasons. The Act aims to provide uniform service rules for all workers. Certified standing orders become part of statutory terms binding both employers and employees. The Act applies to all of India and establishments must submit draft standing orders to the certifying officer for approval based on fairness. Once certified, standing orders supersede any prior contractual terms of employment.
The Industrial Employment (Standing Orders) Act, 1946 requires employers in industrial establishments with 100+ workers to formally define work conditions through certified standing orders. Standing orders cover matters like work classifications, working hours, leave rules, termination reasons. The Act aims to provide uniform service rules for all workers. Certified standing orders become part of statutory terms binding both employers and employees. The Act applies to all of India and establishments must submit draft standing orders to the certifying officer for approval based on fairness. Once certified, standing orders supersede any prior contractual terms of employment.
The Industrial Employment (Standing Orders) Act, 1946 requires employers in industrial establishments with 100+ workers to formally define work conditions through certified standing orders. Standing orders cover matters like work classifications, working hours, leave rules, termination reasons. The Act aims to provide uniform service rules for all workers. Certified standing orders become part of statutory terms binding both employers and employees. The Act applies to all of India and establishments must submit draft standing orders to the certifying officer for approval based on fairness. Once certified, standing orders supersede any prior contractual terms of employment.
The Industrial Employment (Standing Orders) Act, 1946 requires employers in industrial establishments with 100+ workers to formally define work conditions through certified standing orders. Standing orders cover matters like work classifications, working hours, leave rules, termination reasons. The Act aims to provide uniform service rules for all workers. Certified standing orders become part of statutory terms binding both employers and employees. The Act applies to all of India and establishments must submit draft standing orders to the certifying officer for approval based on fairness. Once certified, standing orders supersede any prior contractual terms of employment.
Chapter – 17 Unit - 2 The Industrial Employment(Standing Orders) Act, 1946 List of Sections
Sections Particulars of Section
1 Extent and applicability 2 Definitions 2(a) Appellate authority 2(b) Appropriate Government 2(c) Certification officer 2(d) Employer 2(e) Industrial establishment 2(g) Standing orders 2(i) wages & workman 3 Submission of draft Standing order 4 Conditions for certification of S.O & Fairness or reasonableness of S.O. 5 Certification of standing order 6 Appeals 7 Date of operation of standing order 8 Register of standing order 9 Posting (Display) of standing order 10 Duration and modification of standing order 10A Subsistence allowance 12A Temporary application of model standing orders 13A Interpretation of standing order 13B Act not to apply to certain industrial establishments 14 Power to exempt
Introduction The Industrial Employment (Standing Orders) Act, 1946 is designed to provide service rules to workmen. The object of the Act is to require employers in industrial establishments to formally define conditions of employment under them.
CASE LAW Barauni Refinery Pragati Sheel Parishad vs. Indian Oil Corporation Ltd. (1991) The object of the Act is to have uniform standing orders in respect of matters enumerated in the Schedule to the Act, applicable to all workers irrespective of their time of appointment (Barauni Refinery Pragati Sheel Parishad vs. Indian Oil Corporation Ltd. (1991))
Unacademy Unlock/Discount Code AVC
70 The Industrial Employment Act, 1946 Chap. 17 Unit - 2
CASE LAW Derby Textiles Ltd. vs. Karamchari and Shramik union (1991) Certified standing orders become part of the statutory and not contractual terms and conditions of service and are binding on both the employer and the employees (Derby Textiles Ltd. vs. Karamchari and Shramik union (1991))
Quick Recap
Industrial Employment (Standing Orders) Act, 1946
[Section 1]Object
Provide service Barauni Refinery Derby textiles ltd.
rules to PragatisheelParishad Vs Act is Applicable Vs Karamchari and to whole of India workmen Indian Oil Corporation Shramik Union
Service rules are Standing Orders are
Formally defined applicable to statutory terms binding conditions of all workers on both employer and employment employees
Applicability: Establishment employing at least 100 workmen
may apply Act Appropriate Government Establishment by 2 months notice in (With less than 100 employees) NIOG
Definitions
[Section 2(a)] Appellate Authority
It means an authority appointed by the Appropriate Government by notification in the Official Gazette, to exercise in such area, as may be specified in the notification the functions of an appellate authority under this Act.
[Section 2(b)] Appropriate Government
“Appropriate Government” means in respect of industrial establishments under the control of the Central Government or a Railway administration or in a major port, mine or oilfield, the Central Government, and in allother cases the State Government.
[Section 2(c)] Certifying Officer
“Certifying Officer” means a Labour Commissioner or a Regional Labour Commissioner, and includes any otherofficer appointed by the Appropriate Government by notification in the Official Gazette, to perform all or any ofthe functions of a Certifying Officer under this Act.
[Section 2(d)] Employer
“Employer” means the owner of an industrial establishment to which this Act applies and also includes the following persons: i. A manager so named under [Section 7(1) (f)] of the Factories Act, 1948. ii. The head of the department or any authority appointed by the Government in any industrial establishment Unacademy Unlock/Discount Code AVC 71 The Industrial Employment Act, 1946 Chap. 17 Unit - 2
under its control.
iii. Any person responsible to the owner for the supervision and control of any other industrial establishmentwhich is not under the control of Government. [(Section 2(d)].
[(Section 2(e)] Industrial Establishment
It means: i. An industrial establishment defined by [Section 2(ii)] of the Payment of Wages Act, 1936, or ii. A factory as defined by [Section 2(m)] of the Factories Act, 1948, or iii. A railway as defined by [Section 2(4)] of the Indian Railways Act, 1890, or iv. The establishment of a person who, for the purpose of fulfilling a contract with the owner of any industrialestablishment, employs workmen.
[(Section 2(g)] Standing Orders
“Standing orders” means rules relating to matters set out in the schedule to the Act.
[(Section 2(f)] Wages & workman:
Have the meaning respective, assigned to them in clause (rr) & (s) of section 2 of Industrial Disputes Act, 1947.
Quick Recap
Unacademy Unlock/Discount Code AVC
72 The Industrial Employment Act, 1946 Chap. 17 Unit - 2
Meaning of Standing Orders
Standing Orders mean rules of conduct for workmen employed in an industrial establishment. As per the Act, thestanding orders must specify for the following: 1) Classification of workmen i.e., temporary, casual, skilled, etc. 2) Manner of intimating working hours, shift change, transfers, etc. to workmen 3) Holidays 4) Attendance and late coming rules 5) Leave rules 6) Termination of employment, suspension, dismissal, etc. for misconduct 7) Retirement age 8) Means of redressal of workmen against unfair treatment 9) Any other matter as may be prescribed.
Applicability of the Act
The Act is applicable to all industrial establishments employing 100 or more workmen. The term industrial establishment includes factory, transport service, construction work, mines, plantation, workshop, building activity, transmission of power, etc.
[Section 3] Approval of Standing Orders
Every employer covered under the Act has to prepare standing orders covering the matters required under the Act. Five copies of the standing orders shall be sent to Certifying Officer (Labour Commissioner) for approval within sixmonths of Act becoming applicable
[Section 4] Fairness or reasonableness of Standing Orders
The Act, has imposed a duty on the Certifying Officer, to consider the reasonableness and fairness of the Standing Orders before certifying the same. The Certifying Officer is under a legal duty to consider that the Standing Orders are in conformity with the Act. If the Certifying Officer finds that some provisions, as proposed by the employer relate to matters which are not included in the Schedule, or if he finds some provisions are unreasonable he must refuse to certify the same. Certification of any such Standing Order would be without jurisdiction.
[Section 5] Certification of Standing Order
The Certifying Officer will inform the workman and shall hear their objections within 15 days of receipt of notice. After that, he will certify the standing orders for industrial establishment. Until the standing orders are certified, Model Standing Orders prepared by the Government shall automatically apply.
Unacademy Unlock/Discount Code AVC
73 The Industrial Employment Act, 1946 Chap. 17 Unit - 2
A copy of the certified Standing Orders will be sent by him to both the employer and the employees associationwithin seven days of the certification.
CASE LAW Eicher Good earth Ltd. vs. R.K. Soni
Once the standing orders are specified, they supersede any terms and conditions of employment contained in the employment letter.If there is any inconsistency between standing orders and appointment letter, provisions of standing orders shall prevail.
[Section 6] Appeals According to Section 6 of the Act, the order of the Certifying Officer can be challenged by any employer, workman, trade union or any other prescribed representatives of the workman, who can file an appeal before the appellate authority within 30 days from the date on which copies are sent to employer and the workers representatives. The appellate authority, whose decision shall be final, has the power to confirm the Standing Orders as certified by t he Certifying Officer or to amends them. The appellate authority is required to send copies of the Standing Orders as confirmed or modified by it, to the employer or workers representatives within 7 days of its order.
CASE LAW Khadi Gram Udyog Sangh Vs Jeet Ram
The appellate authority has no power to set aside the order of certifying officer. It can confirm or amend standing orders.
CASE LAW Re - Kerala Agro Machinery Corporation (1998)
The appelate authority cannot remand the matter for fresh consideration. (Only Disputed matter).
[Section 7] Date of Operation of Standing Orders
Standing Orders shall come into operation on the expiry of 30 days from the date of which the authenticated copies are sent to employer and workers, representatives or where an appeal has been performed, they will become effective on the expiry of 7 days from the date on which copies of the order of the appellate authority are sent toemployer and workers representatives.
Quick Recap
Unacademy Unlock/Discount Code AVC
74 The Industrial Employment Act, 1946 Chap. 17 Unit - 2
[Section 8] Maintaining of Register
Empowers Certifying Officer to file a copy of Standing Orders as Certified by him in a Register maintained for this purpose. He shall furnish a copy to anyone applying thereof on payment of prescribed fees.
[Section 10] Application for Modification
An application for modification of standing order can be made only after expiry of 6 months from the date of applicability or last modification.
[Section 10A] Subsistence Allowance
Where workman is suspended by employer pending investigation or enquiry into complaints or charge of misconduct against him, the workman shall be paid subsistence allowance equal to 50% of wages for the first 90 days of suspension and 75% for the remaining period until completion of disciplinary proceedings. Here ‘Wages’ has the same meaning as given under the Industrial Disputes Act, 1947.
Quick Recap
[Section 10A] Subsistence Allowance
Up to 90 days Exceed 90 days
50% 75% for excessive period
• BPCL Vs Petroleum Employees Union • Held- Right to subsistence allowance is unconditional right.
[Section 13A] Interpretation of Standing Orders
Section 13-A of the Act provides that the question relating to application or interpretation of a Standing Order certified under this Act, can be referred to any Labour Court constituted under the Industrial Disputes Act, 1947 by any employer or workman or a trade union or other representative body of the workmen. The Labour Court, to which the question is so referred, shall decide it after giving the parties an opportunity of being heard. Such decision shall be final and binding on the parties.
Unacademy Unlock/Discount Code AVC
75 The Industrial Employment Act, 1946 Chap. 17 Unit - 2
Quick Recap
[Section 13A] Interpretation of Standing orders
Order of Labour Court shall be Final and Binding
• [Section - 13B] Exemption of certain Industrial Establishment from the purview of this Act • [Section 14]
Exempt from all or
Appropriate Government Industrial Establishment Any of the provisions of this Act by notice in NIOG
[Section 13B] Exempt Certain Industrial establishment from the purview of this Act where Fundamental and Supplementary Rules, Civil Services Rules, Civil Services Regulations, Civil in Defence Services Rules or Indian Railway Establishment Code or any other rules or regulations that may be notified by Appropriate Government in NIOG applies.
[Section 14] Appropriate Government may exempt any Industrial establishment from all or any of the provisions of this Act bygiving notification in NIOG.
Relevant Judgements
CASE LAW Indian Iron and Steel Co. Ltd. vs. Ninth Industrial Tribunal 1. Where there are two categories of workers, daily rated and monthly rated but the certified Standing Orders are in respect of dailyrated workmen only, the Model Standing Orders can be applied to monthly rated workmen. CASE LAW Derby Textiles Ltd. vs. Karamchari and Shramik Union 2. Certified Standing Orders are a part of the statutory and not contractual terms and conditions of service and are binding on boththe employer and the employees. In case where there are no certified Standing Orders applicable to an industrial establishment, the prescribed Model StandingOrders shall be deemed to be adopted and applicable. CASE LAW Indian Express Employees Union vs. Indian Express (Madurai) Ltd. 3. Workmen are entitled to apply for modification of the Standing Orders. Modification Application can be made at any time but notwithin 6 months of certification or last amendments. CASE LAW BPCL vs. Petroleum Employees Union 4. It was held that right to get the subsistence allowance during the period of suspension is an unconditional right and it cannot beaffected by requiring the suspended workman to mark his attendance to get the subsistence allowance.
