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A standing order is a financial arrangement that enables individuals or businesses to automate regular payments or
transfers from their bank account to another party. It provides a convenient and efficient method for ensuring timely and
consistent payments without the need for manual intervention for each transaction. By setting up a standing order, account
holders can streamline their financial obligations and maintain control over their recurring payments.
Concept:
The concept of a standing order revolves around the idea of establishing a predetermined payment schedule, which is
authorized by the account holder and executed by their bank or financial institution. This arrangement enables a fixed
amount of money to be transferred from the account holder's bank account to a specified recipient on a regular basis, such
as monthly, quarterly, or annually. The purpose is to simplify financial management by eliminating the need for individuals
or businesses to remember payment due dates and manually initiate transactions each time.
By providing instructions to their bank, the account holder authorizes the standing order and specifies the payment amount,
frequency, recipient details, and start date. The bank then carries out the payment automatically according to the
designated schedule. This automation reduces the administrative burden and ensures that payments are made consistently,
avoiding any potential delays or missed deadlines.
The concept of standing orders offers benefits to both the account holder and the recipient. For the account holder, it
provides convenience, control, and peace of mind by automating payments and reducing the risk of forgetting or
overlooking obligations. Recipients, on the other hand, benefit from the predictability and reliability of receiving regular
payments on time.

Nature of Standing Orders:

1. Regularity: Standing orders are characterized by their repetitive nature. They are intended for payments that occur
on a consistent basis, such as monthly, quarterly, or annually. Examples include rent payments, loan installments,
subscription fees, or charitable donations.
2. Authorization: Account holders initiate a standing order by providing instructions to their bank regarding the
payment amount, frequency, recipient details, and start date. The authorization can be given through written or
electronic means.
3. Automation: Once set up, standing orders operate automatically without requiring further action from the account
holder. The bank deducts the specified amount from the account and transfers it to the recipient as per the
designated schedule.
4. Flexibility: Account holders have control over their standing orders and can modify or cancel them as needed.
Changes to payment amounts, frequencies, or recipient details can be made by contacting the bank and providing
the updated instructions.
5. Recipient Options: Standing orders can be used to make payments to individuals, organizations, or companies. They
are widely used for various purposes, including utility bills, mortgage payments, employee salaries, insurance
premiums, or regular service fees.
6. Funds Availability: It is important to ensure that sufficient funds are available in the account on the payment date to
avoid potential issues such as failed payments, overdraft fees, or returned payments.
7. Distinction from Direct Debits: Standing orders should not be confused with direct debits. Unlike direct debits,
where the recipient initiates the payment request and can vary the payment amount, standing orders are controlled
solely by the account holder, who determines the payment details.
Features

 Comprehensive Employment Rules: Standing orders are comprehensive documents that define the terms and
conditions of employment within an industrial establishment.
 Clarity and Uniformity: They ensure clarity, consistency, and uniformity in employment conditions by providing clear
guidelines and standards for both employers and workers.
 Wide Coverage: Standing orders cover various aspects, including working hours, shifts, wage rates, leave
entitlements, holidays, disciplinary procedures, grievance redressal mechanisms, termination and suspension rules,
and other relevant matters.
 Legal Obligation: Employers are legally required to draft and certify standing orders, ensuring their compliance with
the Act's provisions.
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 Certification Process: The proposed standing orders are submitted to the certifying officer appointed by the
appropriate government for review and certification.
 Modifications and Additions: The certifying officer may suggest modifications or additions to the proposed standing
orders to ensure compliance with the Act.
 Legally Binding: Once the standing orders are certified, they become legally binding for the industrial establishment
and must be prominently displayed in the workplace.
 Awareness and Accessibility: Standing orders must be made accessible to all employees, ensuring that they are
aware of their rights, obligations, and the employment standards established.
 Dispute Resolution: Standing orders provide a framework for the resolution of disputes arising from the
interpretation or implementation of the employment terms and conditions.
 Harmonious Industrial Relations: By establishing clear rules and guidelines, standing orders contribute to
maintaining harmonious industrial relations and promoting a fair and conducive work environment.

certifying officer refers to an individual designated by an employer or organization to verify and authenticate
certain actions or documents related to the implementation or enforcement of the standing orders. The role of a certifying
officer may vary depending on the specific regulations and procedures set forth by labor laws or internal policies. Here are
some key points regarding the role and responsibilities of a certifying officer in standing orders:

1. Verification of Compliance: The certifying officer ensures that the provisions mentioned in the standing orders
comply with applicable labor laws, regulations, and any collective bargaining agreements.
2. Authorization of Amendments: If there is a need to modify or update the standing orders, the certifying officer may
review and authorize such changes, ensuring that the amendments align with legal requirements and organizational
policies.
3. Authentication of Documents: The certifying officer may be responsible for verifying and signing important
documents related to the standing orders, such as copies of the standing orders, amendments, or notices to
employees.
4. Recordkeeping: The certifying officer maintains accurate records of the standing orders, including any amendments,
approvals, or related correspondence. These records may be required for legal compliance or dispute resolution
purposes.
5. Dispute Resolution: In the event of disputes or grievances arising from the interpretation or application of the
standing orders, the certifying officer may play a role in the resolution process, including reviewing the relevant
provisions and ensuring adherence to the established procedures.
6. Communication and Education: The certifying officer may have a responsibility to effectively communicate the
standing orders to employees, ensuring that they understand their rights, obligations, and any changes to the terms
and conditions of employment. This may involve conducting training sessions, disseminating written materials, or
addressing employees' queries.
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The Industrial Employment (Standing Orders) Act, 1946 is a significant piece of legislation enacted in India to
regulate and establish the conditions of employment in industrial establishments. With the aim of bringing uniformity and
clarity to the employment relationship, this Act provides a framework for the formulation, certification, and implementation
of standing orders. Standing orders are comprehensive documents that define the terms and conditions of employment,
ensuring consistency and fairness for both employers and workers. By establishing clear guidelines, the Act promotes
harmonious industrial relations and protects the rights and interests of workers.
Scope of the Industrial Employment (Standing Orders) Act, 1946:
The Act's scope encompasses the following areas:
1. Employment Conditions: The Act aims to regulate and establish uniform employment conditions in industrial
establishments. It covers aspects such as working hours, shifts, wage rates, leave entitlements, holidays, termination
procedures, disciplinary actions, and other related matters.
2. Standing Orders: The Act provides a framework for the formulation, certification, and implementation of standing
orders. These orders define the terms and conditions of employment, ensuring clarity, consistency, and fairness for
workers.
3. Dispute Resolution: The Act includes provisions for addressing disputes arising from the interpretation or application
of standing orders. It provides mechanisms for complaints, conciliation, and arbitration to resolve conflicts between
employers and workers.
Coverage of the Industrial Employment (Standing Orders) Act, 1946:
The Act's coverage includes the following aspects:
1. Industrial Establishments: The Act applies to industrial establishments, which include factories, mines, plantations,
and other organizations engaged in industries specified by the appropriate government. It covers establishments in
both the public and private sectors.
2. Employee Threshold: The Act applies to industrial establishments employing 100 or more workers on any day during
the preceding 12 months. However, the appropriate government has the power to extend the Act's provisions to
establishments employing fewer than 100 workers.
3. Geographical Applicability: The Industrial Employment (Standing Orders) Act, 1946 applies across India and is not
limited to any specific state or region. It is applicable to industrial establishments operating in different states and
union territories of the country.
4. Exclusions: The Act may exclude certain categories of employees from its coverage, such as those holding
managerial or supervisory positions, employees covered by civil services regulations, and those primarily engaged in
a managerial or administrative capacity.
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{syllabus} all
Standing order
Concept and Nature of Standing Orders
The Labour Investigation Committee, in its Report, at p. 113 (1946) had observed
"An industrial worker has the right to know the terms and conditions under which he is employed and the rules of discipline
which he is expected to follow.
Broadly speaking, in Indian Industry the rules of service are not definitely set out and like all unwritten laws, where they exist,
they have been very elastic to suit the convenience of employers.
No doubt, several large-scale industrial establishments have adopted standing orders and rules to govern the day to day relations
between the employers and workers, but such standing orders or rules are clearly one sided. Neither workers organisations nor
Government are generally consulted before these orders are drawn up and more often than not they have given the employers
the upper hand in respect of all disputable points."
It was to ameliorate these evils that the Industrial Employment (Standing Orders) Act, 1946 was passed to require the employers
in industrial establishment to define with sufficient precision the conditions of employment under them and to make the said
conditions known to workmen employed by them. •
Before this Act, there was no law to prevent the employer from having different contracts of employment with workmen
that led to confusion and discriminatory treatment.
. The Tripartite Labour Conference pleaded for defining the conditions of employment so as to create harmonious relations
between employer and workmen.
Before this Act, victimisation and unfair labour practices were quite frequent. The industrial worker had no right to know the
terms and conditions and rules of discipline of his employment.
To avoid friction amongst the employers and workmen employed in an industry is the principal aim of Indian Legislation in India.•
It was considered that the society had a vital interest in the settlement of terms of employment of Industrial Labor and also
settlement of Labor problems.• Therefore, the steps were taken by the Central Government to enact Industrial Employment
(Standing Orders) Act, 1946 with a view to afford protection to the workmen with regard to conditions of employment.•
Definition under the Act (Sec.2) “Standing Orders” mean rules relating to matters set out in the Schedule to the Act
[Sec.2(g)] to be covered and in respect of which the employer has to draft for submission to the
Certifying Officer, are matters specified in the Schedule
Objective of the Act
1. The purpose of having Standing Orders at the plant level and other commercial establishments is to regulate industrial
relations.
2. . This Orders regulate the conditions of employment, grievances, misconduct etc. of the workers employed in industrial
undertakings.
3. 3. Unsolved grievances can become industrial disputes.
Scope and Coverage of the Industrial Employment (Standing Orders) Act, 1946 •
i) Establishments Covered (Sec. 1(3) ii) • The Act applies to every industrial establishment wherein one hundred or
more workmen are employed, or were employed on any day of preceding twelve months. (the appropriate govt can include other
establishments also) •
iii) ii) Industrial Establishment •
Section 2(e) defines "industrial establishment" to mean •
(a) an industrial establishment as defined in clause (ii) of Section 2 of the Payment, of Wages Act which defines "industrial
establishment" to mean any: •
i) tramway service or motor transport service engaged in carrying passenger, goods or both by road for hire or
reward. •
ii) air transport service other than such service belonging to, or exclusively employed in the Military, Naval or Air
Forces of the Union or Civil Aviation, umartment of the Government of India- • iii.Dock wharf or Jetty; •
iv) inland vessel, mechanically propelled • v) mine, quarry or oil field; • vi) plantation; • vii) vii) workshop or other
establishment in which articles are produced adapted or manufactured with a view to their use, to transport and sales; •
viii) viii) establishment in which any work relating to construction development or maintenance of buildings, roads, bridges or
canals, or relating to operations connected with navigation, irrigation or the supply of water or relating to the generation,
transmission and distribution of electricity or any other form of power is being carried on.
ix) • ix) Industrial and any other establishments as mentioned u/s 2(ii) of Payment of Wages Act.
136., as defined in Clause (ii) of Section 2 of the Payment of Wages Act, 1963; •
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x) or • a factory as defined in Clause (m) of Section 2 of the Factories Act, 1948 or; •xi) a railway as defined in Clause (4) of
Section 2 of the. Indian Railways Act 1890; or • xii) the establishment of a person who, for the purpose of
fulfilling a contract with the owner of any industrial establishment, employs workmen.
Certification Process
Procedure for certification
Section 5:- Certification of Standing Orders
(1) On receipt of the draft under Sec. 3, Certifying Officer shall forward a copy thereof to the trade union, if any, of the
workmen, or where is no such trade union, to the workmen in such manner as may be prescribed, together with a notice in the
prescribed form requiring objections, if any, which the workmen may desire to make to the draft standing orders to be submitted
to him within fifteen days from the receipt of the notice
(2) After giving the employer and the trade union or such other representatives of the workmen as may be prescribed an
opportunity of being heard, the Certifying officer shall decide whether or not any modification of or addition to the draft
submitted by the employer is necessary orders certifiable under this Act, and shall make an order in writing accordingly
(3) The Certifying officer shall thereupon certify the draft standing orders, after making any modifications therein which his
order under sub-section (2) of the certified may require, and shall within seven days thereafter send copies of the certified
standing orders authenticated in the prescribed manner and of his order under sub-section (2) to the employer and to the trade
union or other prescribed representatives of the workmen.
Appeals against Certification:-
Section 6:- Appeals
(1) 1[Any employer, workman, trade union or other prescribed representatives of any workman] aggrieved by the order of
the Certifying Officer under sub-section (2) of Sec. 5 may, within 2[thirty days] from the date on which copies are sent under sub-
section (3) of that section, appeal to the appellate authority, and the appellate authority, whose decision shall be final, shall by
order in writing confirm the standing orders either in the form certified by the Certifying Officer or after amending the said
standing orders by making such modifications thereof or additions thereto as it thinks necessary to render the standing orders
certifiable under this Act.
(2) The appellate authority shall, within seven days of its order under sub-section (1), send copies thereof to the Certifying
Officer, to the employer and to the trade union or other prescribed representatives of the workmen, accompanied, unless it has
confirmed without amendment the standing orders as certified by the Certifying Officer, by copies of the standing orders as
certified by it and authenticated in the prescribed manner.
Condition for Certification:-
Section 4:- Conditions for certification of Standing Orders
Standing orders shall be certifiable under this Act, if-
(a) Provision is made therein for every matter set out in the Schedule which is applicable to the industrial establishment, and
(b) The standing orders are otherwise in conformity with the provisions of this Act;
And it 1[shall be the function] of the Certifying Officer or appellate authority to adjudicate upon the fairness or reasonableness of
the provisions of any standing orders.
Date of Operation of Standing Orders
Section 7:- Date of operation of Standing Orders
Standing orders shall, unless an appeal is preferred under Sec. 6, come into operation on the expiry of thirty days from the date
on which authenticated copies thereof are sent under subsection (3) of Sec. 5, or where an appeal as aforesaid is preferred, on
the expiry of seven days from the date on which copies of the order of the appellate authority are sent under sub-section (2) of
Sec. 6.
Building Nature and Effect of Certified Standing Orders:- •
Nature of the Standing Order
• The Supreme Court in Bagalkot Cement Company Ltd. v. Pathan (K.K.). (1962) 1 L.L.J. 203)], held that certified standing
orders, have statutory force and after they are certified, constitute the statutory terms of employment between the industrial
establishment in question and their employees.
• Again in Western Indian Match Co. v. Workmen, AIR 1964 • S.C. 1458 the Supreme Court spoke in similar terms:
• "The terms of employment specified in the Standing Order would prevail over the corresponding terms in the contract of
service in existence at the time of the enforcement of the Standing Order."
CERTIFICATION PROCESS-ITS OPERATION A BINDING EFFECT
• Submission of Draft Standing Orders by Employers
• Section 3 of the Industrial Employment (Standing Orders) Act (hereinafter referred to IESOA) requires every employer of an
"industrial establishment" to submit draft standing orders, i.e., "rules relating to matters set out in the Schedule" proposed by
him for adoption in his industrial establishment.
• Such a draft should be submitted within six months of the commencement of the Act to the CertifyingOfficer.
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• Failure to do so is punishable and is further made a continuing offence.

• The draft standing orders must be accompanied by particulars of workmen employed in the, establishment as also the name of
the trade union, if any, to which they belong.
• Under sub-section 4, of Section 3, if the industrial establishments, are of similar nature, the group of employers owning those
industrial establishments may submit a joint draft of standing orders.
Posting of Standing Orders:-
Section 9:- Posting of Standing Orders
The text of the standing orders as finally certified under this Act shall be prominently posted by the employer in English and in the
language understood by the majority of his workmen on special boards to be maintained for the purpose at or near the entrance
through which the majority of the workmen enter the industrial establishment and in all departments thereof where the
workmen are employed.
Modification and Temporary Application of Model Standing Orders:-
Section 10:- Duration and modification of Standing Orders
(1) Standing orders finally certified under this Act shall not, except on agreement between the employerand the workmen
l[or a trade union or other representative body of the workmen] be liable to modification until the expiry of six months from the
date on which the standing orders or the last modifications thereof came into operation.
(2) Subject to the provisions of sub-section (1), an employer or workman 3[or a trade union or other representative body of
the workmen) may apply to the Certifying Officer to have the standing orders modified, and such application shall be
accompanied by five Copies of 4[* * *] the modifications proposed to be made, and where such modifications are proposed to be
made by agreement between the employer and the workmen 3[or a trade union or other representative body of the workmen] a
certified copy of that agreement shall be filed along with the application.]
(3) The foregoing provisions of this Act shall apply in respect of an application under subsection (1) as they apply to the
certification of the first standing orders.
(4) Nothing contained in sub-section (2) shall apply to an industrial establishment in respect of which theappropriate
Government is the Government of the State of Gujarat or the Government of the State of Maharashtra.
Section 12A:- Temporary application of Model Standing Orders
12-A. Temporary application of Model Standing Orders.
(1) Notwithstanding anything contained in Sees. 3 to 12, for the period commencing on the date on which this Act becomes
applicable to an industrial establishment and ending with the date on which the
9’t5nding orders as finally certified under this Act come into operation under Sec. 7 in that establishment, the prescribed model
standing orders shall be deemed to be adopted in that establishment, and the provisions of See. 9, sub- section (2) of Sec. 13 and
Sec. 13-A shall apply to such model standing orders as they apply to the standing orders so certified.
(2) Nothing contained in sub-section (1) shall apply to an industrial establishment in respect of which theappropriate
Government is the Government of the State of Gujarat or ‘the Government of the State of Maharashtra.]
Interpretation and Enforcement of Standing Orders:-
Section 13A:- Interpretation, etc. of Standing Orders
13-A. Interpretation, etc. of Standing Orders . If any question arises as to the application or interpretation of a standing order
certified under this Act, any employer or workmen 2[or a trade union or other representative body of the workmen] may refer the
question to any one of the labour Courts constituted under the Industrial Disputes Act, 1947 (14 of 1947), and specified for the
disposal of such proceedings by the appropriate Government by notification in the official Gazette, and the Labour Court to which
the question is so referred shall, after giving the parties an opportunity of being heard, decide the question and such Decision
shall be final and binding on the parties.]
Penalties and Procedure:-
Section 13:- Penalties and procedure
(1) An employer who fails to submit draft standing orders as required by Sec. 3, or who modifies his standing orders
otherwise than in accordance with Sec. 10, shall be punishable with fine which may extend to five thousand rupees, and in the
case of a continuing offence with a further fine which may extend to two hundred rupees for every day after the first during which
the offence continues.
(2) An employer who does any act in contravention of the standing orders finally certified under this Actfor his industrial
establishment shall be punishable with fine which may extend to one hundred rupees, and in the case of a continuing offence
with a further fine which may extend to twenty-five rupees for every day after the first during which the offence continues
. (3) No prosecution for an offence punishable under this section shall be instituted except with the previous sanction of the
appropriate Government.
(4) No Court inferior to that of 1[a Metropolitan Magistrate or Judicial Magistrate of the second class] shall try any offence under
this section.