Standing Orders

Procedure and Modification

Labour Law

THE UNIVERSITY INSTITUTE OF LAW

PANJAB UNIVERSITY

IN THE PARTIAL FULFILLMENT OF REQUIREMENT FOR THE DEGREE

OF BACHELOR OF LAWS

LLB 2nd SEMESTER 2023-2024

3rd May 2023

SUBMITTED TO- DR. MEENU PAUL

SUBMITTED BY: NAVROSE SINGH (Roll no. 44/22 - Ludhiana)

STANDING ORDERS WITH REGARD TO THE INDUSTRIAL EMPLOYMENT

(STANDING ORDERS) ACT, 1946

The Industrial Employment Standing Orders Act, 1946 (IESOA, hereinafter) is an act of the

Parliament of India that provides a framework for regulating conditions of employment in certain

industries. It was enacted as a part of the post-independence labor reform efforts. The Act applies

to establishments employing ten or more workers and defines an 'industrial establishment' as one

where at least 50 persons are employed at any time during the preceding 12 months.

Before the enactment of IESOA in 1946, employment contracts were negotiated in an unequal

power setting and such contracts did not contain fair and reasonable clauses vis-à-vis employees.

The Supreme Court spelt out why the IESO Act had become necessary in one of its judgements

(Rohtak Hissar District..v. State of Uttar Pradesh & Others, 1965). The court noted that prior to

the Act, in many industrial establishments, “the conditions of employment were not always

uniform, and sometimes, were not even reduced to writing, and that led to considerable

confusion which ultimately resulted in industrial disputes.”

“Standing Orders” means the terms and conditions of the employment, drafted by the employer.

A standing order is a rule made by an employer establishing a system or method of working or

regulating any aspect of employment in an industrial establishment. The standards ensure that

employees have access to safe working conditions, social security benefits, education facilities
etc. These agreements must be registered with a labour officer, who can enforce compliance with

them.

Prior to the enactment of the Industrial Employment (Standing Orders) Act 1946, Employments

were governed by the contracts between the Employee and Employer without the interference of

the state. The Non-interference of the state led to the exploitation of workmen by the employers.

The Industrial Employment Standing Orders Act seeks to improve the living and working

conditions of workers by providing better pay and benefits such as leave, health care etc. It also

aims to ensure that employers do not abuse their power by making unilateral decisions about

wages, benefits or other conditions of employment without consulting workers' representatives

(if any).

The Act provides for the establishment of a code of minimum wages and other conditions of

employment for workers in factories and commercial establishments that employ the workers.

The Code was originally enacted in 1946 by the Central Legislature as a result of the efforts of

the labour movement led by the leaders of our nation to improve the working conditions of

industrial workers in India.

The employer is required to prepare a draft standing order, which he proposes to adopt and

submit the same to the Certifying Officers for certification in accordance with the provisions of

Section 3 of the Act. The employer is required to act in conformity with the certified standing

orders in dealing with the day today affairs of the workmen. Certified standing orders have the

force of the law like any other enactment.

The Supreme Court appreciating the Industrial Employment Act 1946 in Glaxo Laboratories vs.

Presiding officer, Labour court observed that-

“Moving from the days when whims of the employer were supreme, The Industrial

Employment act 1946 took a modest step to compel through statute the employer to prescribe

minimum conditions of service subject to which employment is given.”1

This was the transformative phase in the industries after the independence which saw major

development of workers rights through different constitutional guarantees and bringing up of

statutes such as this.

EXTENT AND APPLICATION OF INDUSTRIAL EMPLOYMENT (STANDING

ORDERS) ACT 1946

Extent - Whole of India

Application -

According to Sec - 1 (3) - i. Every industrial establishment where one hundred or more

workmen are employed or were employed in the previous 12 months.

ii. Industrial establishment with less than 100 workmen but where appropriate government has

issued a notification for the implementation of the same.

1
Glaxo Laboratories vs. Presiding officer, Labour court, 1984 AIR 505
*Appropriate government here is defined under Section -2 (b) as the Central or State

government.

MAIN FEATURES OF THE ACT

1. Employers to draft standing orders

Employers of the industrial establishment by the statutory compulsion are required to draft

standing orders for their industrial establishment. Standing orders are the model terms and

conditions for the employment.

2. Certifying officer to certify the draft standing orders.

Certifying officers are appointed by the appropriate government. The officer certifies the draft

standing orders for their fairness and reasonableness of the draft standing orders.

3. Certified standing orders are binding in nature.

The certified standing orders have the statutory force and overrides the individual contract

between the employers and the workmen.

4. Duration and modification of certified standing orders.

Generally the certified standing orders are not subject to any modifications within 6 months of

their certification.

5. Model Standing orders.

The appropriate government may draft model standing orders for the purpose of industrial

employment (standing orders) act, 1946.

AUTHORITIES

The Industrial Employment (Standing Irders) Act, 1946 mentions two authorities -

1. Certifying Officer [ Sec-2 ( c ) ]

2. Appellate authority [Sec- 2 (a) ]

1. Certifying Officer

Certifying Officer includes

a) Labour Commissioner or

b) a Regional Labour Commissioner ,or,

c) any other officer appointed by the appropriate government.

The Function of the certifying officer is to adjudicate upon the fairness or reasonableness of the

provisions of the standing orders.

Powers of the Certifying Officer ( Sec- 11)

According to Section- 11(a) - Certifying officer to have the Powers of the Civil Courts. (Sec-

11.a) for the purpose of -

1. Receiving evidence

2. Administering oaths

3. Enforcing the attendance of the witnesses

4. Compelling the discovery and production of the documents

DEFINITION OF STANDING ORDERS

Section 2 (g) of the Industrial Employment (Standing Orders) Act, 1946 defines “standing

orders” as -

“Rules relating to matters set out in the Schedule of the Act”

In order to understand what belongs to the Standing orders, we need to look at the Schedule of

the act.

The Schedule of the Act stands as follows-

1. Classification of workmen, e.g., whether permanent, temporary, apprentices, probationers, or

badlis.

2. Manner of intimating to workmen periods and hours of work, holidays, pay-days and wage

rates.

3. Shift working.

4. Attendance and late coming.

5. Conditions of, procedure in applying for, and the authority which may grant leave

and holidays.
 6. Requirement to enter premises by certain gates, an liability to search.

7. Closing and reporting of sections of the industrial establishment, temporary stoppages of

work and the rights and liabilities of he employer and workmen arising there from.

8. Termination of employment, and the notice thereof to be given by employer and workmen.

9. Suspension or dismissal for misconduct, and acts or omissions which constitute misconduct.

10. Means of redress for workmen against unfair treatment or wrongful exactions by the

employer or his agents or servants.

11. Any other matter which may be prescribed.

Standing Orders to contain only matters enumerated in The Schedule of the Act.

In Rohtak and Hissar Districts Electric Supply Company v. State of Uttar Pradesh2 - The

Supreme Court held that Standing ORders cannot provide for a matter not listed in the Schedule

to the Industrial Employment (Standing Orders) Act, 1946.

PROCEDURE FOR CERTIFICATION OF STANDING ORDERS

1. Section - 3 - Submission of draft standing orders

a. Sec- 3 (1) - Within six months from the date on which this Act becomes applicable to an

industrial establishment, the employer shall submit to the Certifying Officer five copies

of the draft standing orders proposed by him for adoption in this industrial establishment.

2
Rohtak and Hissar Districts Electric Supply Company v. State of Uttar Pradesh, AIR 1996 SC
1471
 b. Draft Standing Orders to include matters specified in the Schedule of the Act.

c. Draft Standing orders to be accompanied with the Statement.

2. Conditions for Certification of the Standing Orders.

a. Provision must be made therein for every matter set out in the Schedule which is

applicable to the industrial establishment, and,

b. the standing orders must be in conformity with the provisions of this Act.

3. Certifying Officer to adjudicate on the Reasonableness and Fairness of the

draft Standing Order

4. Procedure to be followed by the Certifying Officer to certify the draft Standing

Orders submitted to him by the employer.

a. Forwarding of draft standing orders to the trade union or the workmen for receiving the

consent

b. Receiving Objections from the workmen or the trade union

c. Opportunity of being heard to the workmen and the employer; if the objection arises.

d. Certification of the draft standing orders.

e. Finally, Copies of the certified Standing Orders are sent to the employer and the

workmen

MODIFICATION AND DURATION OF CERTIFIED STANDING ORDERS

Geep Industrial Syndicate ltd v. Industrial Syndicate Employee Union3- Karnataka High Court

held that modification under Section 10 of the act includes modification of the already certified

Standing orders.

Modifications to the standing orders could be classified into two categories-

1. Modification within six months on an agreement between the employer and

workmen.

Modification within six months of the existing standing order is permissible only in case when

there’s an agreement between the employer and the workmen.

Section 10 (1) explains-

“Standing orders finally certified under this Act shall not, except on agreement between the

employer and the workmen [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 in to operation.”

IN “ Management shahdara (Delhi) Saharanpur Light Railway v. SS Railway Workers Union4-

Supreme Court held that the modification before the completion of 6 months should not be

allowed unless there’s an agreement to it, because any changes brought in the previous standing

order should be given appropriate time to see whether they work properly or not.

3
Geep Industrial Syndicate ltd v. Industrial Syndicate Employee Union, AIR 1999
4
Management shahdara (Delhi) Saharanpur Light Railway v. SS Railway Workers Union AIR
1969
 2. MODIFICATIONS AFTER THE EXPIRY OF THE SIX MONTHS [Sec- 10 (2) ]

Generally this is the preferred rule that Certified Standing Orders are subject to any

modifications only after the expiry of the 6 months from the date on which the Standing Orders

or last modification came into operation.

For the modifications, an employer, or workmen or trade union may apply to Certifying officer

to have the standing orders modified.

Such application shall be accompanied with five copies of modifications proposed to be made.

CONDITIONS FOR THE MODIFICATION OF CERTIFIED STANDING ORDERS

The act does not provide for any conditions for the modifications to be satisfied for making an

application to modify the certified standing order.

However, in S.S Railway co. vs Workers Union5 - The Supreme court observed that-

“An application for modification can arise when-

a. A change of circumstances has occurred

b. Where experience of the last certified standing orders results in - hardship,

inconvenience, anomaly etc.

c. Where some fact was a lost sight at the time of certification and which arises later on,

d. Where the applicant feels the modification will be more beneficial

5
S.S Railway co. vs Workers Union AIR 1969
Who can make the Application for the modification?

Section 10 (2) explains that-

The application for the modification to the certifying officer may be made by-

a. An employer,

b. Workmen, or,

c. A trade union, or,

d. Other representative body of the workmen

BIBLIOGRAPHY

1. Paul, M. (2017). Labour and Industrial Laws

2. S.S Railway co. vs Workers Union AIR 1969

3. Management shahdara (Delhi) Saharanpur Light Railway v. SS Railway Workers Union

AIR 1969

4. Geep Industrial Syndicate ltd v. Industrial Syndicate Employee Union, AIR 1999

5. Glaxo Laboratories vs. Presiding officer, Labour court, 1984 AIR 505

6. Rohtak and Hissar Districts Electric Supply Company v. State of Uttar Pradesh, AIR
1996 SC 1471