The Industrial Employment (Standing Orders) Act, 1946

1. 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

2. 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

3. 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

4. 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

5. 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.

6. 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

7. 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.

8. Schedule Matters 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

9. 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.

10. 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

11. 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 Appeal Any 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 Act On the expiry of 30 days of the certification given by certifying officer Or After the expiry of 7 days of the decision given by appellate authority.

12. 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

13. 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 .