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Industrial Employment (Standing Orders) Act, 1946

An act to require employers in industrial establishments formally to define conditions of employment under them

Importance
No uniform practice governing the conditions of service of workers No clarity of rights and obligations of the employer in respect of terms of employment, friction/dispute between management

and worker
Demand for statutory service conditions raised by Bombay Cotton Textile workers in 1927-28 The Bombay Industrial Disputes Act of 1938 for the first time provided for statutory standing orders. The Labour Investigation Committee emphasized the workers right to know the terms & conditions of employment & the rules of discipline

which he is expected to follow.

Object of the Act


To require employers to define the conditions of work To brig about uniformity in terms and conditions of employment

To minimize industrial conflicts


To foster harmonious relations between employers and employees. To specify the duties & responsibilities of both the employer & employee To provide statutory sanctity and importance to standing orders

Section 1

Short Title, Extent and Application

Title
This Act may be called as Industrial Employment (Standing Orders) Act, 1946

Extent
It extends to the whole of India.

Application
It applies to every industrial establishment wherein
one hundred or more workmen are employed, or were employed on any day of preceding twelve months Once the act becomes applicable to an industrial establishment , it does not cease to apply on account of a fall in the no. of workmen in that establishment below 100. Provided that the appropriate government , after giving not less than two months notice of its intention to do so, by notification in the Official Gazette, apply to the provision of this act to any industrial establishment employing such number of persons less than one hundred as may be specified in the notification.

Section 2

Interpretation

Definitions:
Appellate Authority Appropriate Government Certifying Officer Employer Industrial Establishment Prescribed Standing Orders Trade Union Wages and Workman

Definitions:
Appropriate Government: State Government, Central Government. Certifying Officer: means Labour Commissioner/Regional Labour Commissioner and includes any other officer appointed by the appropriate Government, by notification in the Official Gazette to perform such duties. Employer: owner of the establishment

Definitions:
Industrial Establishment A factory defined in Section-2 (m) of the Factories Act, 1948 A railway defined in Railways Act, 1939 Establishment defined in the Payment of Wages Act, 1936 The establishment of a person who, for the purpose of fulfilling a contract with the owner of any industrial establishment, employs workmen.

Standing Orders The term Standing Orders means rules relating to matters set out in the Schedule of the Act. The employer has to make a draft for submission to the certifying officer

Section 3

Submission of Draft Standing Orders

Schedule:
Matters to be contained in the Standing Orders Classification of the workmen : temporary, casual, apprentices Manner of intimating to workmen Shift working Attendance and late coming Conditions of, procedure in applying for, and the authority which may grant leave and holidays Requirements to enter premises by certain gates Closing and reopening of sections of the establishments, temporary stoppages Suspension or dismissal for misconduct Acts and omissions which constitute misconduct

Within 6 months of commencement of business, employer shall submit to the Certifying Officer 5 copies of the draft standing orders proposed by him for adoption in his industrial establishment. Such draft standing orders shall cover every matter set out in the Schedule to the Act which may be applicable to the industrial establishment. The draft standing orders shall conform to the model prescribed by the appropriate government . Standing orders binds on employer and all present and future employees. Standing orders to be accompanied by particulars of workmen. Employer having establishments of similar nature may submit a join draft.

Section 4

Conditions for Certification of Standing Orders

Standing Orders shall be certifiable under the Act if,


Provision is made therein for every matter set out in the schedule which is applicable to the industrial establishment. The standing orders are in conformity with the provision of the Act. They are fair & reasonable

Duties of Certifying Office or Appellate Authority


to see that standing orders are in conformity with the Act. to see that standing orders are fair and reasonable.

Section 5

Certification of Standing Orders

Copy of draft standing orders to be sent to trade union or workmen. Opportunity of hearing to trade union/workmen to be provided.

Certification.
Certified standing orders have the force of Law. Standing orders to be applicable to all present and future workmen.

Standing Orders become terms and conditions of employment.


Standing order must conform to the model standing orders.

Section 6

Appeals

Any trade union, nominated representatives, aggrieved by the order of the certifying officer, may appeal to the Appellate authority:within 30 days from the date on which copies of the certified standing orders are sent to them.

Section 7

Date of Operation of Standing Orders

Standing Orders shall come into operation on the expiry of 30 days From the date on which its authenticated copies are sent to certifying officer
Where an appeal is preferred, standing orders shall come into operation on the expiry of 7 days from the date on which copies of the order of the appellate authority are sent under Sec. 6 Once the Standing orders come into operation after being certified, they become binding on the employer and all the employees presently employed and to be employed thereafter.

Section 8

Register of Standing Orders

A copy of Standing orders as finally certified under the Act shall be filed by the Certifying Officer in a register in the prescribed form maintained for the purpose. The Certifying Officer shall furnish a copy thereof to any person applying therefore on payment of the prescribed fees

Section 9

Posting of Standing Orders

The display of the standing orders shall be in English and in the language understood by the majority of workmen. The display shall be 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

Section 1o

Duration and Modification of Standing Orders

DURATION :
Standing Orders shall not be liable for modification until the expiry of 6 months from the date on which the Standing Orders or last modification came into operation.

MODIFICATION : An application of modification would ordinarily made where : a change of circumstances has occurred, where the experience of the working standing orders last certified results in inconvenience, hardship, anomaly, etc. where some fact was lost sight of at the time of certification, where the applicant feels that the modification will be more beneficial.

Section 11

Certifying Officers and Appellate Authorities to have Powers of Civil Court

Powers of Civil Court for the purpose of : receiving evidence, enforcing the attendance of witnesses compelling the discovery and production of documents

Duty of CO or appellate authority to : verify that the draft S.O contains every matter as

required by the act


Consider whether draft S.O are in conformity with the provisions of model SO. If any deviations are noticed, he may refuse to certify

Section 12

Oral Evidence in Contradiction of Standing Orders not Admissible

No oral Evidence having the effect of addition to or otherwise varying or contradicting standing orders finally certified under the ACT shall be admitted in any Court.

Section 12 A

Temporary Application of Model Standing Orders

Till the standing orders as finally certified under the Act come into operation under sec 7 in that establishment, the prescribed model standing orders shall be deemed to be adopted in that establishment. Not applicable when appropriate government is Government of Gujarat or Government of Maharashtra.

Section 13

Penalties and Procedures

An employer who fails to submit draft standing orders as per Sec 3 or who modifies the standing orders otherwise than in accordance with Sec 10 punishable with fine extend to Rs. 5000/ In case of continuing offence further fine of Rs. 200/- each day. An employer who does any contravention act extend to Rs. 100/ In case of continuing offence further fine of Rs. 25/- each day.

Section 13 A

Interpretation etc. of Standing Orders

Sec 13 A of the act provides that if any dispute arises regarding application or interpretation of the certified SO , such matters shall be referred to a Labour Court by the employer or workmen or trade union Labor court is limited only to the decision of the question as to application or interpretation of the standing orders which is referred to it. It cannot decide disputed question. the court under this section can only express views but cannot give any consequential relief of reinstatement to a dismissed workman

Section 14

Power to Exempt

The appropriate Government may, by notification in the official Gazette, exempt, conditionally or unconditionally, any industrial establishment or class of industrial establishments, from all or any of the provisions of the Act

Section 14 A

Delegation of Powers

The appropriate Government, by notification in the Official Gazette, direct that any power exercisable by it shall be exercisable also where the appropriate Government is the Central Government, by such officer or authority subordinate to the Central Government or by the State Government or by such officer or authority subordinate to the State Government, as may be specified in the notification; where the appropriate Government is a State Government, by such officer or authority subordinate to the State Government as may be specified in the notification.

Section 15

Power to Make Rules

The appropriate Government may, by notification in the Official Gazette, make rules to carry out the purpose of the Act. Prescribe additional matters to be included in the schedule Procedure to be followed in modifying SO Set out model SO for the purpose of the act Prescribe the procedure for CO & appellate authority Prescribe fees Provide for any other matter which is to be or may be prescribed

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