‘’The Industrial Employment (Standing Orders) Act, 1946’
Learning Objectives
Understand
●
The objects , scope, definitions, and
application of the ‘’The Industrial Employment
(Standing Orders) Act, 1946’
●
The procedure for certification of draft
standing orders.
●
The penalties associated with failure to
follow the Act
‘’The Industrial Employment (Standing Orders) Act, 1946’
Structure
21.1
21.2
21.3
21.4
21.5
21.6
Introduction
Objectives of the Act
Scope and Application of the Act
Important Definitions
Submission of Draft Standing Orders
Certification of Standard Orders
‘’The Industrial Employment (Standing Orders) Act, 1946’
Structure
21.7
21.8
21.9
21.10
21.11
21.12
Appeal
Duration & Modification of
Standing Orders
Powers of Certifying Officers and
Appellate Authorities
Penalties & Procedures
Interpretation of Standing Orders
Summary
‘’The Industrial Employment (Standing Orders) Act, 1946’
Introduction
The absence of standing orders clearly
defining the rights and obligations of employer and
worker in respect of terms of employment was a major
cause for friction between management and workers
in India before Independence .
An industrial worker has a right to know the
terms and conditions under which he is employed,
otherwise unwritten rules are used to the convenience
of the employer.
‘’The Industrial Employment (Standing Orders) Act, 1946’
Introduction
The matter pertaining to terms and conditions
of industrial employment was first brought before
Indian Labour Conference in 1943.
The matter was further deliberated in in ILC’s
sessions in 1944 and 45. In order to remedy long
standing lacuna this Act was passed in 1946 and it
came into effect in 1946.
The Act was amended in 1982, to provide
subsistence allowance to workman under suspension
@ 50% of the wages for first 90 days and 75%
thereafter.
‘’The Industrial Employment (Standing Orders) Act, 1946’
Object of the Act
is to require employers in industrial
establishments to define with sufficient precision the
conditions of employment under them and to make
the said conditions known to workmen employed by
them.
The Act was enacted a] to bring about uniformity
in terms and conditions of employment; [b] to
minimize industrial conflicts ; [c] to foster
harmonious relations between
employers and
employees and ; [d] to provide statutory sanctity and
importance to the standing orders.
‘’The Industrial Employment (Standing Orders) Act, 1946’
Scope & Application of the Act
The Act applies to whole of India and to every
establishment employing 100 or more employees.
The Act was amended to empower Government
to apply it to other establishments , as a result in
Maharashtra it is applicable to all establishments
employing 50 or more employees.
Model standing orders framed by the
appropriate
governments
are
applicable
to
establishments covered by the Act until standing
orders framed by individual establishment are
certified.
‘’The Industrial Employment (Standing Orders) Act, 1946’
Important Definitions
“Appropriate Government” means in respect of
industrial establishments under the control of
Central Government or Railway administration or in
major port mine or oil field, the Central Government
and in all cases State Government.
“Certifying Officer” means a Labour
Commissioner or a Regional Labour Commissioner
and includes any officer appointed by the appropriate
Government.
‘’The Industrial Employment (Standing Orders) Act, 1946’
Important Definitions
“ Employer” means the owner of any industrial
establishment to which this Act applies and includes
[i] in a factory, any person named as
manager of the factory; [ii] in any industrial
establishment under the control of any department of
the Government of India, authority appointed by the
Government or Head of Department; [iii] in any
other establishment any person responsible to the
owner for supervision and control of the industrial
establishment.
‘’The Industrial Employment (Standing Orders) Act, 1946’
Submission of Draft Standing Orders
It is obligatory for an employer to file five copies of
the draft standing orders with the certifying Officer
within six months of the act becoming applicable to
him. This has to be accompanied by a prescribed
statement providing details of workmen employed
and their Union, if any.
The draft standing orders have to cover all
matters as set out in the Schedule to the Act and
more or less confirm to the Model Standing orders
prescribed by the Government.
‘’The Industrial Employment (Standing Orders) Act, 1946’
Submission of Draft Standing Orders
Schedule to the Act provides for
1. Classification of workmen, whether permanent,
temporary, apprentice etc.
2. Manner of intimating periods and hours of work,
holidays, pay days and wage rates to workers.
3. Shift working
4.Attendance and late coming
‘’The Industrial Employment (Standing Orders) Act, 1946’
Submission of Draft Standing Orders
5 Conditions of, procedure in applying for , and the
authority which may grant leave & holidays
6 Requirements to enter premises by certain gates &
liability to search.
7 Closing and reopening of sections of the industrial
establishment , temporary stoppages of work, and
the rights and liabilities to the employer and
workmen arising there from.
‘’The Industrial Employment (Standing Orders) Act, 1946’
Submission of Draft Standing Orders
8. Termination of employment and the notice thereof
to be given by employer and workmen
9. Suspension or dismissal for misconduct and acts
or omissions which constitute misconduct.
10. Means of redress for workmen against unfair
treatment or wrongful exactions by the employer,
his agents or servants.
11. Any other matter which may be prescribed.
‘’The Industrial Employment (Standing Orders) Act, 1946’
Certification of standing Orders
On receipt draft standing orders from employer, the
certifying officer shall
[i] forward a copy to workers’ union, and if union is
not formed to three elected members of the workmen
for their comments and objections, if any;
[ii] on receipt of above decide and issue order, if any
modifications required;
[iii] adjudicate on the fairness & reasonableness of
the draft standing orders .
‘’The Industrial Employment (Standing Orders) Act, 1946’
Certification of standing Orders
He shall then certify the standing orders with or
without any modifications and forward
authenticated copies to the employer and trade
union or workers’ representatives.
Standing orders when finally certified under the
Act, are binding on the employer and the workman
and govern their relations and it is not open to
them to contract themselves out of the rights and
obligations created by the standing orders.
‘’The Industrial Employment (Standing Orders) Act, 1946’
Appeal
An aggrieved party can appeal to the Appellate
Authority within 30 days of receipt of the certified
standing orders, The Appellate Authority shall
confirm the orders or make necessary amendments
or additions.
Certified Standing orders come into operation on 30
days after receipt from Certifying officer. He shall
enter them in the Register and make them
available when requested. Employer shall display
certified standing orders in English and local
language understood by workmen, at a prominent
place
‘’The Industrial Employment (Standing Orders) Act, 1946’
Duration & Modification of Standing Orders.
Certified Standing Orders shall not be modified
until expiry of six months from the date they
came into operation.
Workmen or employer may apply to the certifying
Officer to have orders modified. Five copies of
modified standing orders are to be sent to the
certifying Officer with the application.
If the modifications are required with the consent of
employer and workmen, a copy of their agreement
has to be attached with the application.
‘The Industrial Employment (Standing Orders) Act, 1946’
Powers of Certifying Officers and Appellate Authorities
Certifying Officers and Appellate Authorities have
powers of the Civil Court for the purpose of
● receiving evidence
● administering oaths
● enforcing attendance of witnesses and
● compelling the discovery and production of
documents.
‘The Industrial Employment (Standing Orders) Act, 1946’
Penalties & Procedures
Failure to submit draft orders
or modifying certified orders
without following procedure
Act in contravention of the
Orders
Fine up to Rs 5000
plus up to Rs 200
per day for
continuing offence
Fine up to Rs 100
plus up to Rs 25
per day for continuing offence.
For prosecution for an offence under the Act prior approval of
appropriate govt. required and no court below Metropolitan
or Judicial {II} Magistrate shall try the offence.
‘The Industrial Employment (Standing Orders) Act, 1946’
Interpretation of Standing Orders
The
appropriate
government
can
exempt
conditionally
or
unconditionally,
any
establishment from a part or all provisions of the
Act.
The Act further allows appropriate governments to
delegate power as well make rules - to include
additional matters in the Schedule, set out in
Model Standing Orders for the purposes of the Act ,
to prescribe fees for copies of the orders and to
provide any other matter to be prescribed.
‘The Industrial Employment (Standing Orders) Act, 1946’
Summary
The basic role of standing orders is to eliminate any
ambiguity in employment conditions and thereby
reduce possible friction between the employer and
his employees.
The object of the Act is to require employers to define
precisely the conditions of service of workmen
employed in the industrial establishments & to
make such conditions known to the workmen
employed & to regulate the conditions of
recruitment , discharge, disciplinary action ,
holidays, shift working of the workers.
‘The Industrial Employment (Standing Orders) Act, 1946’
Summary
The Act extends to the whole of India . In the central
sphere, it applies to the industrial establishments
employing 100 or more workmen.
As regards establishments in the State sphere, the
Act empowers the appropriate government to extend
the Act to other establishments.
All Regional Labour Commissioners are certifying
officers in relation to industrial establishments
throughout the country under the control of the
Central Government.
‘’The Industrial Employment (Standing Orders) Act, 1946’
The End!
In the next session we cover chapter twenty two on
‘’The Maternity Benefit Act, 1961’
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