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STANDING ORDERS

IN RESPECT OF
M/S Lilly Fashions Pvt Ltd, Plot No 113, Udyog Vihar, Phase-4, Gurgaon

1. Scope and Application:- These Standing Orders shall come into force in
accordance with the provision of Section 7 of industrial employment (Standing Orders) Act
1946 read with Rule – 11 of Industrial Employment (Standing Order,) Punjab (Haryana First
Amendment, 1969) Rules, 1949 and shall apply to all workmen of M/S Lilly Fashions Pvt
Ltd, Plot No 113, Udyog Vihar, Phase-4,Gurgaon
including its registered office, Head Office, all office, sub offices, regional offices and
establishments (existing to-day or to be set up in future) anywhere in the State of Haryana.
2. Definitions: In these Standing Orders, unless there is anything repugnant to the
subject or context:

(1) “Act” means the Industrial employment (Standing Orders) Act 1946.

(2) “Rule” means Industrial Employment (Standing Orders), Punjab Rules 1949

(3) “Company” means M/S Lilly Fashions Pvt Ltd, Plot No 113, Udyog Vihar, Phase-
4,Gurgaon including it’s all offices, Head Office, Regd. office, Sub – Office,
Regional Offices, Branch Offices, and Establishment anywhere in the State of
Haryana existing to- day or to be setup in future.

(4) “Establishment” means all premises of the Company and its factory in particular.

(5) “Management” means the Proprietor, General Manager, Manager and any other
person who has been authorized in writing by the Company / Firm for the
purpose of these Standing Orders.

(6) “Manager” means the person designated as such under the Factories Act, 1948
and whose name has been notified to the Chief Inspector of Factories as a
Factory Manager or any other authorized representative(s) of the Management
declared in this behalf.

(7) “Habitual”: means an act or omission that is repeated three times or more within
a period of one month.

(8) The terms listed below will have the same meaning as provided in the Industrial
Disputes Act, 1947.
(a) Appellate Authority
(b) Appropriate Government
(c) Retrenchment
(d) Workmen
(e) Layoff
(f) Lockout
(g) Strike
(h) Closure

(9) “Words Importing” singular number and masculine gender shall include the
plural number and feminine gender, respectively, and vice-versa also.
All words and expressions used in these Standing Orders and which
have not been defined in any of the clauses above shall have the same
meaning as assigned to them in the Industrial Dispute Act, 1947 or the
Factories Act, 1948.

(10) "Employer" means the Managing Director or Director or Partner or the Manager
or any other person authorized by any of them.

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(11) “Muster Roll” means the Attendance Register or Records maintained under the
provisions of the Factories Act, 1948 for the time being in force

(12) “Work Premises” includes the precincts of the Company and other places of
work where a workman is deputed or posted to work and also includes factory
premises, factory compound, factory building, administrative and other buildings
situated inside the factory compound, and the precincts thereof. It also includes
vehicles, Company property whether owned and or managed and or hired and or
the places on which the Company activities either permanently or temporarily
may be carried on.

(13) "Attendance" means the presence of the workman concerned at the work-station
and actual working, after getting his attendance marked, in the manner
prescribed by the management from time to time.

(14) “Night Shift” means any shift, which commences after 10:00 PM.

(15) "Medical Certificate" means a certificate granted by a registered medical


practitioner having MBBS qualification or any other doctor specifically authorized
by the management in respect of workmen who are not covered under
Employees State Insurance Act,1948. In case of workmen covered under ESI Act
certificate may be granted by the Medical Officer of ESI Corporation or a Medical
Practitioner duly authorized by the Company.

(16) "Notice" means all notices issued in writing or to be posted for the purpose of
these Standing Orders and any other essential law for the purpose of information
or communication to the workmen.

(17) "Notice Board" means a board maintained in a conspicuous place, in the factory
premises or near the main gate, for the purpose of displaying notice required to
be posted or affixed under the Standing Orders or for exhibiting notices under
any law, and includes the notice board(s) maintained in Individual department(s).

(18) “Superior” means any persons who by nature of his duties exercises authority,
supervision or control over a workman.

(19) “Grievance” means individual complaint resulting in writing or verbally effecting


an individual workmen and submitted to a superior.

(20) “Month” means a calendar month consisting of the respective number of days in
a particular year for the purpose of a monthly rated worker and consisting of 26
days of a monthly rated worker.

(21) “Identity Card” means an identity card issued by the management signed by
authorized person.

3. Classification of Workmen: The classification of workmen will be as under:-

(1) Permanent
(2) Probationers
(3) Substitute or Badli
(4) Temporary
(5) Casual
(6) Trainees
(7) Apprentice

(1) “Permanent” means a workman who has been engaged on a permanent


basis in writing at the commencement of the employment or a workman who
has satisfactorily completed the prescribed /stipulated/extended probationary
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period of service in the same or another occupation and is therefore, borne on
the rolls of the permanent workmen by a specific order or direction of the
management in writing.

(2) “Probationer” A probationer is a workmen who is provisionally employed to


fill a vacancy in a permanent post and has not been confirmed as permanent
in accordance with these Standing Orders. Ordinarily the period of probation
shall be six months but it may be extended by a period of three months at a
time at the discretion of the Management, if the Management considers it
necessary in any case to further adjudge the work and merits of a workman.
The maximum probation period shall, however, in no case extend beyond one
year. The services of a probationer can be terminated at any time without
assigning any reason or / and notice at any time during the probationary
period.
(i) In computing the period of probation the days on which the workman was
absent due to authorized leave, sickness, maternity leave, accident lockout or
a strike (which is not illegal) or temporary closure of undertaking shall be
included.
(ii) If a workman continues in services on the expiry of the 13 (thirteenth) month
of service, he shall be deemed to have been automatically confirmed in his
appointment.
(iii) If a permanent workman is employed as a probationer in a new post or a
vacancy and his work during probation is not found satisfactory, he may at
any time during the probationary period be reverted to his sustentative post
and shall not lose his lien on his permanent on this account.

(3) “Substitute or Badli” is one who has been engaged for work in place of any
workman who is temporarily absent or leave on any day and whose name is
entered in the register of substitutes. He/She will not entitled to any wages or
compensation for the day on which he/she is not provided with work.

(4) “Temporary Workman” means a workman who is employed on work which is


of essentially temporary nature or who is employed temporarily as an
additional workman in connection with temporary increase in work of a
permanent nature or in the leave vacancy of another workman or to take care
of any exigencies. A temporary employment shall come to an end on
completion of the specified assignment, or at the end of leave vacancy, as the
case may be. Further, working temporarily for the company will not entitle the
workman to demand permanency in the post and he is liable to be terminated
at any time.

(5) “Apprentice” means a trainee who is governed by the provision of the


Apprentices Act 1961.

(6) “Trainee” means a person engaged with or without stipend/salary for learning
any work, operation or trade for any period but not exceeding one year,
subject to such terms and conditions as may be specified in the order of his
employment as a Trainee, including any Agreement Bond executed by him
with the Company. The provisions of these Standing Orders shall not apply to
any apprentice or stipendiary trainee in respect of whom the Company
undertakes with the Government or public or educational bodies, to provide
only practical training for a specified period. The trainee will not have any right
to employment in the company. In the event of unsatisfactory performance by
a trainee , of which the Management shall be the sole and binding judge,
traineeship may be curtailed or extended or terminated without assigning any
reason thereof. Trainees will be paid 75% of the wages applicable to the
category but it will not be less than the minimum wages for an unskilled
category of worker.

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(7) “Casual Workman” means someone who is engaged on day-to-day basis for
any work of a causal, occasional/ intermittent nature and is liable to be
terminated at any time without notice, irrespective of the type of job or the
period of employment. Working casually for the company will not entitle the
workman to demand permanency in the job.

4. Recruitment and Appointment Letter:

(1) Every workman shall be given an appointment letter.

(2) At the time of seeking employment all persons may be required to make an
application in writing and also to fill in and sign the prescribed form/forms of
employment of the company.

(3) All workmen will be deemed to have been appointed on the basis of the
applications / representations made and facts disclosed in their applications
for employment of / in the form/forms required to be filled at the time of
employment. The Manager may verify the antecedents of a workman made
false declaration in the establishment or in case the verification of
antecedents’ reveals any adverse remarks/reports against him/her which
would in the opinion of the manager make him/her unfit for employment in the
establishment, appointment is liable to be terminated without any
compensation or notice whatsoever.

5. Service Record:

(1) The management will maintain service record of every workman in which
concerned entries would be entered and it will be certified by authorized officer.
(2) At the time of appointment, all workmen shall register their residential address
with the company. In case of change of residential address, the workman shall
inform the Company of the change of address. If the workman does not inform
the Company of the change in address, then all the correspondence will be done
at his last given residential address.

(3) Every employee who leaves the service of the Company (retires, is dismissed
or discharged etc.) shall without avoidable delay be given a service Certificate
from the management. Service certificate will not be given when an employee
leaves the service of the Company for participation in illegal strike.

(4) All the workmen shall give authentic proof of their date of birth within two months
of the certification of these standing orders. The following proof shall be treated
as authentic proof of his/her age.

(5) Certificate of Matriculation, Higher Secondary examination or an equivalent


university/board certificate or.

(6) The School Leaving Certificate.

(7) A Certificate from Municipality/Panchayat or other statutory authority maintaining


records of births and deaths.

(8) In the absence of the above proofs, the Management may accept any other proof
age in its sole discretion.

(9) The date of birth of a workman once entered in the records of the establishment
shall be the sole evidence of his age in retention to all matters pertaining to his
service including fixation of his date of retirement/superannuation. The
Management will also have the right to verify the genuineness of the statement
as made in the employment form with regard to the date and year of birth at any
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time. If the date of birth is found to be incorrect, the date as ascertained by the
management shall be treated as final.

6. Attendance Cards, Muster Rolls, Identity Cards.

(1) The name for every workman shall be entered in the Muster Roll indicating
classification to which he belongs.

(2) Every workman shall be given an entered attendance card/token with


particulars of his/her employment.

(3) Every workman except causal Badli and apprentice/Trainee shall be provided
with Identity Card, which he shall pin on his/her shirt during working.

(4) Every workman shall, when entering the establishment deliver his/her
ticket/token/card at the notified place and shall show it whenever required
(Expert when it is not in his/her possession by reason of having been so
delivered) to any person authorized by the Manager in his/her behalf.

(5) The day on which a badli works in establishment in place of any workman
being on leave or otherwise it shall be entered on his/her ticket.
In case a workman loses his identity card given to him/her. It shall be
his/her duty to get duplicate card issued for which he/she shall be liable to
pay Rs.20/-(Twenty Only). The workman will return the identity card at the
time of him/her ceasing to be in the employment of the company in any
manner.

7. Entry, Exit & Search:

(1) No workman shall enter or leave the premises of the establishment expect by
gate or gates appointed for the purpose.

(2) Any workman may, when leaving the department of the premises of the
establishment are searched at the point of exit or in the department by the
Security Guard or by any other person so authorized by the Manager for this
purpose.

(3) Any female worker may be detained by the Security Guard or by any other
person so authorized by the Manager for the purpose of search by a female
searcher only, if acting without notice, he suspects that she is in wrongful
possession of property belonging to the establishment.

(4) No workman shall enter or try to enter the factory premises unless the
concerned employee is on his/her shift duty, or he/she has been specifically
asked or permitted by the Manager to come to the factory.

(5) On the day of duty, no workman shall enter the factory premises 15 minutes
before the commencement of his shift working. After the working hours must
leave the factory unless specifically required to overstay by the Manager.

(6) During the working hours no workman shall leave the factory before
completion of his duty hours unless the early leaving is permitted in writing by
an authorized officer of the company and upon obtaining a written gate pass
for the purpose.

(7) A workman who is off duty or who has been granted leave/ suspended or
discharged or has been declared to be suffering from any contagious

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infections/ disease shall leave the factory immediately and shall not come
back unless specifically authorized in writing by the Manager.

(8) No workman/employee is expected to bring with him/her or carry with him/her


any dangerous chemicals or articles, which may be injurious to the safety of
human lives and the property of the company.

8. Publication of Working Hours and Period of Work

Notice showing the period and hours of work for every class and group of
workman in the establishment and for each shift shall be displayed on notice board
maintained for the purpose in the establishment at the notice board or near the main
entrance to the establishment.

Subject to the provisions of Factories Act 1948, or other legislation for the time
being inforce, the establishment reserves the right to require all or any number of its
workman to work overtime or any weekly holidays and public holidays in accordance
with notice which may be issued from time to time. Such notice is displayed on the
notice board of concerned department and copy sent to the Factories Inspector.

9. Publication of Holidays and Pay Days:

Notice specifying (a) the days observed by the establishment as holidays and
(b) paydays shall be displayed on the notice board in English and Hindi.

10. Gate Pass:

During the shift working hours any workman desirous of going out of the
factory on personal/official business shall obtain a gate pass from the head of the
department or any authorized officer and shall surrender it at the security gate. The
security staff will not allow any workmen to go out without a valid gate pass.

11. Visitors:

Personal friends and relatives are not encouraged to visit to meet any
workmen during the working hours. However, in case of emergency if any relative or
friend visits the factory to meet an employee, in such eventuality, prior permission
shall be obtained from a senior officer of the department before meeting such friend
and relative. Such meetings shall be of the shortest possible time and shall only take
place at the security/gate office of the factory.

12. Register of Wage Rates:

Notice specifying the rates of wages payable to all classes and categories of
workers shall be displayed and maintained at notice board.

13. Shift Working:

More than one shift may be worked in a department or departments or any


such section of a department of the establishment at the discretion of the employer if
more than one shift is worked, the workmen shall be liable to be transferred from one
shift to another.
If a result of the discontinuance of the shift working, any workmen are to be
retrenched, such retrenchment shall be effected in accordance with the provisions of
the Industrial Dispute Act 1947 (XIV of 1947) and the rules made thereunder.
If shift working is re-started, the workmen shall be given notice and re-
employed in accordance with the provisions of the said Act and Rules framed as
thereunder.

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Shift workers shall leave the factory premises as soon as their shift duty is
over. However, where the work is continuous or where by the very nature of job it is
necessary that the shift worker cannot leave the job without handing over charge of
the duty position to the succeeding shift worker (reliever) he shall not leave his duty
place or position before being relieved by his reliever. In case of sudden absence of
the reliever, the department head or shift incharge should be informed to make
suitable arrangement for taking over the charge from him in such unexpected
exigencies if required, the concerned worker shall continue to work in the next shift
and he shall be paid for the same as per law.
Any notice of discontinuance or re-starting of a shift working required under
these standing orders shall be displayed conspicuously by the employer on a notice
board at the main entrance of the establishment.

14. Unauthorized Absence:

If ten or more workmen acting concert absent themselves without giving 15


days notice in writing and without reasonable cause, the manager shall be entitled to
deduct up to 8 days wages of the workman as per section 9(a) of the Payment
Wages Act 1936.
Workman who remains absent without authorization or overstays the period
of leave originally granted or subsequently extended for eight consecutive working
days excluding weekly off, leave and holidays, shall be deemed to have voluntarily
abandoned his employment, on his own accord or voluntarily terminated his contact
of employment. This will be subject to provision of law enforcing for the time being for
principles of natural justice.
A workman shall be deemed to be absent, if he fails to attend to his/her duty,
unless he does not obtained prior permission for such absence from the competent
authority and in case of unforeseen circumstances make an application to this effect
with 48 hours of the commencement of the absence.

15. Leave:

(a) Leave shall be granted only at the sole discretion of the Management or the
person so authorized, and nothing will limit the free discretion of the Management
/ delegate to refuse, revoke or curtail leave as the exigencies of the company’s
work may require. The management may as well recall a workman on duty before
the expiry of his sanctioned period of leave.

(b) No workman while on leave shall take-up any employment or any vocation for
profit or gain. If he does so, it shall be a deemed misconduct under these
Standing Orders.

(c) All holidays whether occurring during or at either end of the earned / privilege
leave shall not be counted as a part of the leave except when absent, or on leave
without pay.

(d) Apprentices shall be entitled to the leave facilities available to him either in their
appointment letter agreement or the Rules framed under the Apprentices Act,
1961.

(e) Annual Leave with pay shall be allowed as provided in Chapter VIII of the
Factories Act, 1948, amended upto date and other statutory as in force from time
to time.

(f) All leave applications must be sanctioned prior to proceeding on leave and he
must leave his address with the Company on which communication can be made
during the leave period.

16. Leave Procedure

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Leave with wages cannot be claimed as a matter of right.

(a) Privilege or earned leave

Leave with wages shall be allowed as provided for in Chapter VIII of the
Factories Act, 1948 and other holidays in accordance with Law and contract. A
workman who is desire to avail of his leave under the Factories Act, 1948 shall
apply to the Manager or any other officer authorized in this behalf in the prescribed
manner as under :-
(i) An application shall be made in writing in advance to the Manager or the
person authorized and notified for the purpose stating clearly the date
from which the leave is required, reasons warranting the grant of such
leave and duration for which it is required along with the address for
communication, during the period of leave, and it shall be submitted to the
officer notified for the purpose of Manager, at least 15 days in advance if
the leave is for a duration of more than three days when it is on
account of medical ground, death or serious illness in the family, accident
or fire in personal house or any such natural catastrophe in which case the
manager / person authorized may grant him leave ex post facto and the
application must have been received within two days of the first day of
absence.

(ii) Order on the leave shall be passed without delay and always before the
leave applied for is to commence, or within 24 hours of the receipt of
application, if it is received on the same day under the circumstances
mentioned above and it shall be presumed that the leave applied for has
been sanctioned to the workman.

(iii) In the event of a workman wants extension or the leave originally


sanctioned or subsequently extended and sanctioned leave he shall make
an application in writing to he Manager specially stating the reasons
warranting such an extension and shall submit it sufficiently in advance of
the expire of leave allowed. The Manager or any other officer authorised in
this behalf, shall as soon as possible, on receipt of such workman’s
application inform the workman on the address given by the applicant
whether the extension applied for has been sanctioned or refused. Reply
shall be sent without delay under U.P.C. if the workman desires a
telegraphic reply by the Management, he shall send a reply- paid telegram.
Provided further that if no communication is received by the workman in
reply to the application for extension of leave, he must presume that the
extension has been refused.

(b) Sick leave:


All workmen shall be entitled to seven days sick leave with full pay in a
calendar year for all the days of sickness for which he is not getting any benefit from
ESI. The sick leave for more than two days will be granted on production of Medical
Certificate from a Registered M.B.B.S. Doctor or ESIC.

(c) Casual leave:

(i) Every worker shall be entitled to seven days casual leave with wages
during one calendar year. During the year, a workman may be allowed
not more than 2 days casual leave for every three months of actual
work. Application for such casual leave must be made in writing to the
department head at least one day in advance except in emergent
circumstances for which full proof must be produced to the satisfaction
of the Department Head.

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(ii) Casual leave will not be ordinarily given for more than two consecutive
days at a time and will not allowed to be combined with any kind of
leave / holiday except with the express permission of the Manager.

(iii) Ordinarily, the prior permission of the Manager or Head of the


Department shall be obtained before taking such leave, but when this is not possible
the Manager shall as soon as possible be informed in writing of the absence from
work and of probable duration of such absence of a workman together with the
reasons for taking such leave

17. Payment of Wages

(1) All workmen shall be paid wages on a working day before the expiry of the
seventh day of the wage period in respect of which wages are payable. If the
number of workmen exceeds one thousand the wage shall be paid to all
workmen on or before the expiry of tenth day of the succeeding month.

(2) Any wages due to a workman, but not paid on the usual pay day on account
of being unclaimed, shall be paid by the Management on any working day
before the expiry of the second working day after the day on which a demand
is made by the workman or on his / her behalf by his / her legal representative
in accordance with the provisions of the Payment Of Wages Act, 1936
applicable to the industrial establishment. If the workman is unable to present
himself / herself the employer shall send his/her pay by money order at
his/her cost, if requested by him so to do and if the necessary amount has
been sent by the workman to the employer in advance to defray the cost
of money order commission.

(3) Unclaimed wages of a deceased workman shall be paid to his/her nominee of


legal heir before the expiry of the third working day on which a substantial
claim is presented by his/her nominee or heir. Provided further, that such
claim is submitted within two years of the death of that workman. For this
purpose, a claim shall be considered to be substantiated, if it is certified by a
Municipal Commissioner, M.L.A. or Sarpanch of that village of the deceased
workman. However, where a deceased workman had already declared
his/her nominee, the same will be considered as rightful claimant and legal
heir for the unclaimed Wages also.

(4) All unclaimed wages shall be kept for payment to the workmen or the legal
heirs or nominees for two years from the period they are due to paid, these
shall be disposed off in accordance with the provisions of law for the time
being in force, in this regard.

(5) Where the employment of any workman is terminated, the wages earned by
him/her and other dues payable subject to the deductions under law, shall be
paid before the expiry of the second working day, from the day on which
he/she ceases to be in employment of the Company, provided the workman
has obtained his/her "Clearance Certificate" from the Manager and has
handed over the possession of the accommodation, tools, fixtures, records
and other properties of the Company entrusted to him/her, failing which the
Management shall reserve the right to deduct the dues from his/her full & final
settlement of wages.

(6) If a workman fails to collect his/her final dues within a period of two years
from the date of separation from the service of the Company, the Company
will not be responsible for non-payment of final dues by due date.

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Wage Slip

(1) Every workmen employed in the industrial establishment will be provided a


registration card and a wage slip will also be provided to the every workman
consisting of following information :-

(a) No. of working days


(b) Due wage
(c) Total earned basic wage
(d) Dearness allowance
(e) Gross salary
(f) Deductions
(g) Net pay
Every workman will be allowed to keep this wage slip for his/her
record.

(2) Where the pay is distributed in the morning session, the wage slip will be
given to workers one day before and where the pay is distributed afternoon,
the wage slip will be given to the workers before lunch. All the workers will be
given the pay slips before distribution of pay.

(3) If any workman has any objection about pay, he may be allowed to rectify the
same so that the distribution of pay may not suffer.

(4) If any enquiry about distribution of pay is not necessary, then the objection
will be entered and the pay as per pay slip will be distributed. If the objection
raised by the workman found correct, the same would be settled within 6 days
from the date of objection raised.

Provided that the objection raised and there is a trend to take receipt, final receipt of
payment will not be taken until the completion of enquiry.
18. Confidentiality

(1) Every workman shall observe strict secrecy regarding all company’s matters
and shall not reveal or communicate to public or to anybody any matter which
may come to his knowledge in the course of discharge of his duties or
otherwise, except when required to do so specially in writing from the
management.

(2) No workmen shall take any papers, books drawing, photographs, instruments,
apparatus, documents , or any other property of the industrial establishment
out of the factory/establishment premises except with written permission of
the management nor shall he pass any information regarding manufacturing
process , trade secrets and confidential documents to any unauthorized
person, corporation or company without the written permission of the
management.

19. Essential Service

No workmen will do any act contrary to the interest of the company and will
not disclose any information or pass on any document, drawing, photograph etc to
any outsider which jeopardize the interest of the company. The following will be
included in essential service in the company:-

(1) Transport
(2) Sanitary
(3) Water Supply
(4) Medical supply
(5) Supply of Electricity which includes TG/DG, Generator Sets, Biolar and
lighting.
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(6) Communication System
(7) Safety and Fire workmen
(8) Guest House/Canteen workmen
(9) Workmen, Manager or superior officer and their personal staff.
(10) Maintenance and Repair workmen.

20. Transfers:

All workmen are subject to be transferred from the one department to another
or from one factory/ office/ place of business to another, anywhere in the state of
Haryana where the company has its factory/ office/ place or business or may have at
any time. However the wages of the workman concerned shall not be adversely
affected by such transfer. Workmen can be transferred from one workplace to
another workplace depending on his work performance. When the transfer is from
one City to another City, then his eagerness will also be considered or where the
appointment letter provides for –

(1) Proper Notice be served to the workmen.

(2) Sufficient time be given for joining duty in case of transfers from one state to
another state.

(3) Workmen will be paid travelling allowance which is inclusive of conveyance


allowance and 50% of this will be payable as casual allowance.

21. Superannuation (Retirement):

Every workman will compulsory retire when he attains the age of 58 years as
per the Date of birth in company records. If a workman becomes medically unfit for
the job on which he is employed, then he will lose his right on the job and will be
given superannuation. Retirement from job will not be termed as retrenchment,
where no retrenchment compensation as per provision of Industrial Disputes Act,
1947 will be payable, which as follows:

(1) The workmen who are layed off, shall be entitled to lay-off compensation
under the provisions of industrial dispute Act, 1947.

(2) After considering the facts and circumstances and report of the inquiring
officer, proper disciplinary action (like suspension / retrenchment etc.) will be
taken against the concerned worker. The officer will issue a report in this
regard, a copy of the same will be made available to the concerned workman.

(3) Lockout in any department of the company will be declared as per the
provisions of Industrial Disputes Act, 1947.

(4) Before going on strike the workers will have to give advance notice before 15
days as per rule to the management.

22. Resignation

(1) If a regular workman intends to leave the service of the company he shall give
one month’s notice of his intention to do so in writing, to the management or
may, he wants to be relieved earlier, surrender in lieu thereof wages
equivalent to the days for which the notice falls short of one month nut if the
exigencies of work so require the management may refuse to receive him
earlier then the entire period of notice has run out. The management shall
have the right to condone the notice period and relieve the workman earlier.
The workman shall have nor right to demand payment for remaining days
under such circumstances.

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(2) No workman shall leave service unless his resignation is accepted. If a
workman leaves without the acceptance of registration or without being
relived of his charge, he shall be liable to be sued by the company for the
damages. The management shall be entitled to recover the cost of company’s
property and the case expenses from his dues.

(3) If the workman leaves the place without handling over quarter to the company
he shall be treated, as trespasser and the company shall be entitled to take
possession of the quarter without any notice. The company shall be
responsible for any loss to workman concerned under such circumstances.

23. Medical Check-up:

(1) Before joining the organization every workman shall have to necessarily submit
for a thorough medical check up by a Doctor of the Company or by a medical
practitioner specifically nominated for the said purpose.

(2) Subject to the certification by the Doctor that the employee is physically and
mentally fit to take up employment with the organization, the prospective
employee shall be permitted to join his/her duties in the organization without
which the offer of employment shall be Company may require its employees to
undergo general or specific medical check up at its cost by a physician
nominated by it and the services of an employee may be terminated or he may
be given alternative less or job with reduced pay if he/she is found
unfit/incapable of performing or continuing on his existing job.

(3) If during the continuation of employment, anyone becomes physical or mentally


unfit which may hamper his/her working efficiency, in such event, giving one
month’s notice or salary in lieu of thereof shall terminate the services of the
employee.

24. Display of Notices:


(1) Any matter required to be notified under the Standing Orders or under Act or
under specific request and/or instructions of the Government or any other
authority will be posted on the Notice Boards kept in a conspicuous place in
the factory.
(2) A Notice Board will be provided, if required, at the Main Gate of the factory
during periods of lay-off, suspension of work, lock out, closures and general
retrenchment, and all general notices meant for communication to the
workman will be posted on it.
(3) A copy of the Standing Orders shall be displayed on the Notice Board and
shall be kept in legible conditions.
(4) Any notice, communication or intimation including charge sheet, which is
personally meant for an individual workman under these Standing Orders,
shall be in English and if he so desires, will be explained to him in Hindi.

25. Safety

The workmen shall comply with all of the safety rules, regulations and
instructions displayed at various places through out the premises of the factory, in
accordance with the Factories Act, 1948. Safety Guards and safety devices which
are provided shall always be used by every workman. They shall not tamper with it
nor make it ineffective, excepts while making repairs to the machine or equipment,
and that too, with the express permission of their in-charge. When repair are
completed safety devices must be always be replaced back in its original position
before the machine or equipment is put into operation. Failure to comply with any
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safety regulations shall be deemed as misconduct and shall be liable for disciplinary
action as provided in these Standing Orders.

Safety Precautions:

(a) Workmen shall engage themselves only in operations at the machine or the
duties to which they have been posted. The execution or their duties must be
in safe manner laid down for the operation, etc. of the machine or duty
concerned.

(b) Removal of any safety devices or guards, cleaning of machine while they are
running etc. are expressly forbidden.

(c) Safety instruction orally given or posted on the notice board are to be
followed.

(d) Workmen shall use the safety equipment and appliances provided for the
respective jobs by the company.
(e) Safety equipment and protective equipment provided by the company are
intended for use inside the establishment premises only and shall not be
taken out without written permission. Violation of this rule shall be treated as
theft of company property.
(f) In the event of an emergency or accident involving injury, workman shall
notify it to the supervisor immediately.
(g) The wearing of wristwatches, jewellery, necklaces or long sleeves is
prohibited while working on any operation where doing so may constitute a
hazard.
(h) Finger ring will not be worn at any time by employees whose normal and
regular work assignment is in the manufacturing area. Other employee will
not wear finger rings while handling material or equipment or operation
machinery or equipment.
(i) Smoking is not permitted in prohibited areas which are indicated by “NO
SMOKING” sign and or red lines painted on floor.
(j) Safety eye protection (Certified Industrial lenses and frames) must be worn
on all company property except in offices, training center, and canteen
(k) Safety guard must be in place before operation of a machine. Only authorized
personnel may remove guards for repair and must replace them immediately
following the repair.
(l) Electrical disconnection of switch is a must, where possible, be padlocked
while repairing equipment.
(m) Electrical and hydraulic switches must be shut off, and air pressure released
while making changes, repairs, cleaning oiling in or around any moving part
that is hazardous. In the event that power must be turned on to check your
work, extreme care should be exercised.
(n) Machinery and equipment shut down for major repairs, tool or die changes
must be equipped with safety locks to prevent accidental operation. The
decision to lock out for tool changes or adjustments must be made on
divisional lock out procedure.
(o) Only authorized electricians are permitted to make changes or repairs on
electrical equipment unless authorized by supervisor.
(p) All machines, except those specified by Supervisor, must be shut off while
unattended.
(q) Machinery or equipment may be operated only after thoroughly following
instructions in its safe operation.
(r) The use of compressed air to blow off clothing or cool the body is strictly
prohibited.
(s) The air hose shall be used only for the purpose for which it is intended and
shall never be directed at another employee.

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(t) Do not cause any unsanitary condition in drinking fountains, water coolers or
elsewhere in the plant.
(u) Employees must wear prescribed safety clothing, if any, and equipment.
(v) Employees other than operators must not ride on electric or gasoline driven
trucks, or transports unless a seat is authorized.
(w) Always use the pedestrian doors when they are specifically provided.
(x) Attempting to un-jam equipment with the power sources on is prohibited.
Wherever and whenever possible body members, such as hands and fingers
shall not be used to un-jam the equipment.
(y) Blocking stretchers or fire equipment is prohibited.
(z) Employees with long hair must wear protective hair covering when exposed to
equipment that would create a safety hazard.
(aa) Employees must use the hearing protection required by their job assignment
in the manufacturing and test areas.
(ab) Operating any powered equipment that has had any safety plugs or limit
switches rendered ineffective is prohibited.
(ac) Crossing over assembly lines, transfer machine, or conveyors at other than
designated positions is prohibited.

26. Duty of Employer or Other Responsible Persons in Work Places and Other
Institutions against sexual harassment.

It shall be the duty of the employer or other responsible persons in work


places or other institutions to prevent or deter the commission of acts of sexual
harassment and to provide the procedures for the resolution, settlement or
prosecution of acts of sexual harassment by taking all steps required.

(1) Definition:-

For this purpose, sexual harassment includes such unwelcome sexually


determined behaviors (whether directly or by implication).
(i) Physical contact and advances;
(ii) A demand or request for sexual favors;
(iii) Sexually colored remarks;
(iv) Showing pornography;
(v) Any other unwelcome physical, verbal or non-verbal conduct of
sexual nature.

Where any of these acts is committed in circumstances where-under the


victim of such conduct has victim’s employment or work whether she is drawing
salary, or honorarium or voluntary, whether in government, public or private
enterprise such conduct can be humiliating and may constitute a health and safety
problem. It is discriminatory for instance, when the woman has reasonable grounds
to believe that her objection would disadvantage her in condition with her
employment or work including recruiting or promotion or when it creates a hostile
work environment. Adverse consequences might be visited if the victim does not
consent to the conduct in question or raises any problem thereto.

(2) Preventive Steps:-

The employer or person in charge of work place should take the following
steps:-
(a) Express prohibition of sexual harassment as defined above at the
work place should be notified, published and circulate in appropriate
ways.
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(b) If any one is found guilty of the above act the same may be taken into
account and the penalty imposed on the offender as per conduct
rules.
(c) Where such conduct amounts to a specific offence under the Indian
Penal Code or under any other law, the employer shall initiate
appropriate action in accordance with law by making complaint with
the appropriate authority.

(3) Complaint Mechanism:-

Whether or not such conduct constitutes an offence under law or a breach of


the service rules, an appropriate complaint mechanism should be created in the
organization for redress of the complaint made by victim.

(4) Complaint Committee:

The complaints committee should be headed by a woman and not less than
half of its member should be women. Further to prevent the possibility of any undue
pressure or influence from senior levels, such complaint committee should involve a
third party, either NGO or other body who is familiar with the issue of sexual
harassment.

The complaint committee must make an annual report to the management concerned of
the complaints and action taken by them.

27. Misconduct

These are divided in the parts:

(1) Minor misconduct.


(2) Major misconduct.

(1) Minor misconduct

The following acts and omissions on the part of the workman shall amount
to minor misconduct.

Note : The list is illustrative and exhaustive:-

(i) Late attendance, which is not habitual.

(ii) Absence from duty without leave for two delays or les for any reason
whatsoever.

(iii) Ordinary negligence of work or neglect of work, which not amount to


gross negligence or gross neglect.

(iv) Non-achievement of estimated or expected production as approved by the


management for less than 3 occasions during the period last 6 months.

(v) Loitering or leaving the place of work without any proper reason or without
the permissions of the supervisions.

(vi) Refusal to undergo training in first aid and air-aid precautions without
sufficient reasons.

(vii) Chitchatting and wasting of time.

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(viii) Spitting at a place other the meant for the purpose with in the premises of
the company.

(ix) Committing any act prejudicial to the sanitation and hygiene of the
company or establishment.

(x) Lending to or borrowing money from employees.

(xi) Failure to wear the uniform/dress as prescribed or tight fitting clothing


provided to the employees in accordance with Factories Rules.

(xii) Any other offence of minor nature.

(2) Major misconduct:

Without prejudice to the general meaning of the term major-misconduct,


the following are some of the Acts and omissions, which shall be, treated as
major misconducts:-

Note: The list is illustrative and not exhaustive:

(i) Willful insubordination or instigation there of or disobedience or instigation


thereof whether alone or in combination with another or others of any law full and
reasonable order of a supervisor.

(ii) Striking work either singly or with others without giving due notice prescribed by
law or rule shaving the force of law or adoption of go-slow tactics.

(iii) Inciting any other workman to strike were or to adopt go-slow tactics.

(iv) Theft, fraud or dishonestly in connection with the company’s business or property
or a theft of any other employee’s property within the establishment/company.

(v) Demanding, taking or giving bribes or any illegal gratification whatsoever.

(vi) Habitual absence without leave or absence without leaves for more than three
consecutive days in a month.

(vii) Late attendance repeated on for more than three occasions within one month.

(viii) Habitual non-achievement of estimated or expected production as approved by


the management on not less than three occasions within a period of one months.

(ix) Any habitual breach of the minor misconduct as defined above.

(x) Drunkenness, intoxication fighting, riotous, disorderly, indecent or disrespectful


behavior or conduct, or use of abusive language or any act subversive to
discipline and efficiency within the factory/establishment.

(xi) Threatening or intimidation, warning any other employee or wrongfully interfering


with the work or any other employee, assault or treat of assault, either provoked
or otherwise within the factory/establishment.

(xii) Taking leave privileged or concessions or benefits for the time being in force on
false pretext.

(xiii) Refusal to offer himself for interrogation by the head of the department or any
other person authorized by the manager or not to furnish any statement requiring
his answer.

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(xiv) Refusal to accept any communication or charge sheet or any communication or
order from the company is to refuse to put signatures or thumb impressions on
the enquiry proceedings.

(xv) Doing private or personal work during the working hours within the premises of
the company without the prior permission of the manager in writing.

(xvi) The collection or canvassing for collection or any money whatsoever for purpose
not authorized by the manager within the premises of industrial establishment.

(xvii) Exhibition and distribution within the company/establishment, handbills, pamphlet,


posters or causing to be displayed by means of signs or writing or visible
representation of any matter without the previous sanction of the manager.

(xviii) Wrongfully interfering with the record of attendance of himself or any other
workman.

(xix) Willful, negligence of gross carelessness in the work of company.

(xx) Allowing unauthorized persons or helpers to operate the machine without the
permission of the head of the section/department.

(xxi) Tampering with any safely device installed within the company/establishment and
failure to observe duly notified safety instructions.

(xxii) Sabotage in any form.

(xxiii) Damage whether willful or due to irresponsible action to work in process or to any
other property of the establishment.

(xxiv) Tampering with office records or documents or property of the company.

(xxv) Attempting to have an access to office record of the company without the
permission of the manager or collection of data or secrets of the company.

(xxvi) Willful falsification, defacement or destruction of personnel records, or any other


record of the establishment/company.

(xxvii) Material miss-statement of fact made in employment application or any other


record.

(xxviii) Submission of false TA Bills or other expenses.

(xxix) Spreading malicious rumors prejudicial to the interest of company.

(xxx) Sleeping whilst on duty in the company/establishment.

(xxxi) Anywhere within and even outside the limits of the company committing or
inciting other to commit any breach of the law or rule of the company.

(xxxii) Writing of anonymous or other letters criticizing superiors or the management


affecting the interest of the company.

(xxxiii) Alone or in combination with other anywhere within the establishment causing or
threatening to cause mental and/or physical pains or injury to any other employee
and/or workman.

(xxxiv) Being found in possession of or attempting to punch another employee’s card or


workman’s attendance said.

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(xxxv) Conviction for any criminal offense involving moral turpitude in any Court of law.

(xxxvi) Gambling, or drinking alcoholic or intoxication drink within the


factory/establishment.

(xxxvii) Smoking within the premises of the Industrial Establishment except in place
where smoking is permitted.

(xxxviii) The sale of conversing for the sale of tickets, coupons or other tokens in
connection with any scheme fort the sale of my commodity or article within the
premises of the Industrial Establishment.

(xxxix) Unauthorized occupation of the company’s establishment residential quarter if


any or any unauthorized sub-letting or permitting use of the same by another
person, or printing any unauthorized structure on any vacant place of the
Company/Establishment or making any addition, alteration in the quarters or
using the company’s/establishment land for keeping cattle, goat, poultry, etc.
without obtaining proper sanction of the president/a manager for committing any
nuisance for creating disorder in the company’s establishment quarters or line or
workers colony or any breaches of any terms and conditions of allotment in this
respect.

(xl) Engaging in other employment or business while still in the service of the
establishment/company without the written permission of the
Management/Manager.

(xli) Refusal to work on another job or on another machine if so directed by the


manager.

(xlii) Holdings, organizing or attending or taking part in any meeting within the
establishment/company without the prior permission of the management or
except in accordance with the provisions of any law time being in force.

(xliii) Disclosing to any unauthorized person any information relating to the secret of
the trade of business of the company/establishment or process, which may come
to the knowledge/possession of the workman in the course of his work or
otherwise.

(xliv) Any act involving molestation or abeyant to molestation and rape or abetment to
rape, indulging or abetment to indulge in an act of homosexuality within factory
premises and precinct thereof including the housing colony.

27. Penalties for Minor Misconduct

A workman guilty of minor misconduct may be punished,

(i) By warning in writing.


(ii) By suspending, for the period not exceeding 7 days, no payment will
be made for the suspended period.
(iii) By stopping of annual increment, for maximum of two years.
(iv) Fine on Monthly wages, not exceeding two percent for two months.

28. Penalties for major misconducts:


A workman guilty of major misconducts may be punished.

(i) By reduction in rank or position.

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(ii) By dismissal, discharge or removal from services without notice or
compensation.

29. Procedure for Enquiry:

29.1 Charge Sheet & Explanation: A Charge sheet setting out briefly the facts of the
charge and circumstances alleged against him specifying the nature of his
misconduct shall be given to the employee concerned and the employee shall be
bound to receive it. The charge sheet may specify the period within which the
employee shall give a written explanation.
29.2 If the employee refuses or dodges or evades to receive a charge sheet or any
order or other communication, an endorsement to that effect in the copy of
this communication by the person who attempted to serve the same and
duly signed by witness, if any, will amount to communication of the
contents to the workman to whom the communication is made.

29.3 In case of refusal or evasion or dodging of communication by post, the


communication shall be deemed to have been completed by affixing a copy
of the same on the Notice Board of the Company. Postal communication
shall be deemed to be proper if it is posted under "Registered Post" to the
last known address of the workman or address as given by the workman.

29.4 If the explanation in reply to the charge sheet / show cause memo is not
found satisfactory or no reply to show cause is received even after sufficient
time has been given, and it is considered necessary to take further
proceedings under these Standing Orders, the Management may order an
enquiry to be held. Such an enquiry may be held for a workman
individually or several workmen where act of misconduct alleged relates to
several workmen

29.5 Enquiry can be conducted by an Officer of the Company or an outsider


at the discretion of the Management

29.6 No outsider will be permitted to take part or help the person charged in
the enquiry. However if the workman charged with misconduct desires and
makes a request in this regard to the Enquiry Officer he may be permitted
to have the assistance of any other workman working in the same
department as himself.

29.7 The employee shall be permitted to examine any witness to substantiate his
explanation or disprove the charge. He shall be given opportunity to cross
examine any witness on whose statements and evidence the charge rests or
peruse any document relied upon in support of the charge, unless the Officer
holding the enquiry, for reasons to be recorded in writing, considers such request
is frivolous or will cause undue delay and not necessary in the circumstances of
the case.

29.8 Provided that where in the opinion of the Manager such document is of a
confidential nature, he may permit the employee to peruse only that portion of the
document which is relevant to the charge or may merely inform him of the
contents of the document or that portion of the document as may be relevant to
charge.

29.9 If the employee against whom the enquiry is held, misbehaves with the Enquiry
Officer or with the witnesses or with any other person present during the enquiry or
does any act which hinders the smooth conduct of the enquiry, such fact shall be
recorded by the Enquiry Officer in addition to such act or conduct being taken
cognizance of by the Management as a misconduct and disciplinary action
thereof and this will be taken into account in awarding the punishment.

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29.10 If the employee fails to attend the enquiry despite notice served or against
whom an enquiry is held leaves the enquiry during the course of the enquiry
proceedings without the permission of the Enquiry Officer, the Enquiry Officer may,
at his discretion, proceed with the enquiry ex-parte, after recording such fact.

29.11 The Enquiry Officer shall make a brief and faithful record of the statements made
and the evidence laid before him.

29.12 The charge sheet, explanation and record of enquiry with such recommendation as
the Enquiry Officer may make, shall be submitted to the Manager or other person
appointed for the purpose of decision. The decision & punishment if any shall be
communicated in writing to the employee concerned as early as possible.

29.13 Where after such examination of the records the charge against the workman
is found unsustainable or disproved he shall be informed of the said fact
and suspension if any ordered shall be treated as cancelled and the
employee will be treated as if he was on duty & shall be entitled to full
wages for the period less the subsistence allowed paid already, if any.

29.14 A copy of the enquiry proceedings shall be given to the workman


concerned at the conclusion of the enquiry on request by the workman.

29.15 The proceedings of the enquiry shall be recorded in English or Hindi.


The recording shall be either by an Officer or his Assistant .

29.16 A copy of the findings shall be given to the workman concerned inviting his remarks
in writing to the findings of the Enquiry Officer. The workman in such case is
required to submit his remarks in writing within 3 days.

29.17 However, no enquiry or proceedings as detailed above may be held in respect of


charges admitted by the charge sheeted workman and based on the admission of
the workman, orders will be passed by the disciplinary authority.

30. Grievance Procedure:

(1) Objectives: The main objective of the grievance, procedure is to ensure


removal of friction of any individual in the shortest possible time & promote
harmonious relations between the workman and the management. However, a
settlement at the first line supervisory level may always not be mutually
acceptable and therefore throughout this procedure Grievance Handling
Machinery is being established so as to create avenues to readdress of a
grievance at a higher level.

(2) Operation of Grievance procedure:

An individual workman who feels to have grievance can make use of this
Grievance procedure. The workman can also avail of the grievance machinery
on receipt of an order or instructions to him causing a grievance. However, the
aggrieved workman must comply with the said order or instructions before
having recourse to the grievance procedure. The operation of the order will not
beheld up till the grievance machinery is completely exhausted.

(3) Steps to be followed:

(Step – 1) In the interest of harmonious employer-employee relations and in


the interest of efficient operations of the plant, workman shall be free to discuss
and is encouraged to discuss with his first line supervisor any complaint he may
have concerning his work. He will present in person verbally to his immediate

20
supervisor all facts and evidence (verbal) or (Documentary). If the complaint is
not resolved in the discussion with the supervisor, the workman may request a
meeting to present his grievance to his departmental in charge. The said
meeting will be scheduled as soon as possible. The departmental in charge
shall give a verbal answer within 2 days after the date of the meeting.

(Step – 2) If the workman concerned is not satisfied with the decision of his
immediate supervisor/department in charge or he fails to receive the reply
within the stipulated period, the workman shall either in person or accompanied
by his departmental coworker, present his grievance to his divisional manager
in writing. A copy of the written grievance will also be endorsed to the manager
personnel. The divisional manager shall give his written answer within four
days after the presentation of the grievance by the aggrieved workman.

(Step – 3) Should the decision of the divisional manager be not


satisfactory to the workman, what workman shall have the right to make
request for consideration of his case by the grievance committee which shall be
constituted as under:
(a) Two members to be nominated by the management.
(b) Two coworker to act as the representatives of the workman to be
nominated by the concerned workman.
(c) The manager or any other officer of the establishment notified in this
behalf shall be the Chairman of this Committee but he will not vote in
case of a division.
(d) The committee shall be constituted by the Management in the presence
and with the approval of Labour Officer of conciliation officer of the area.

31. Liability of Management:


The management of the Establishment shall personally be held responsible
for the proper and faithfully observance of the Standing Orders.

32. Exhibition of Standing Orders:

A copy of these Standing Order in English and in such other vernacular language(s),
Hindi and other vernacular Language(s) as is or are understood and spoken by the labour
employed shall be posted at the manager’s office as well as on the notice board maintained
at or near the main entrance to the Establishment and shall be kept in a legible condition. In
case of conflict between the interpretations of the Standing Order, the English Version shall
be treated as correct and authentic.

The Company may formulate its rules and regulations to elucidate any matter
contained in these Standing Order and post such notice as its may deem necessary for
running of the factory. These rules, regulation or notice may pertain to the while or to any
section or sections of the factory and every workman shall obey such rules and regulations
applying to his section. Provided however, no rules and regulations made shall be
repugnant to these Standing Orders.

CERTIFICATION

In exercise of the powers confirmed on me under Section 2(c) read with Section 5(2)
of the Industrial Employment ( Standing Orders ) Act, 1946 ( Act of XX of 1946). I, Anupam
Malik, Certifying Officer and Joint Labour Commissioner, Haryana do hereby certify the
foregoing Standing Orders of M/S Lilly Fashions Pvt Ltd, 113, Udyog VIhar, Phase-4
Gurgaon on this day ___________at _______under my hand and seal of office.

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(Anupam Malik)
Joint Labour Commissioner- Cum-
Certifying Officer, Haryana, Chandigarh.

22