The Industrial Employment

(Standing Orders) Act, 1946

 Object of the Act

 Scope and Application
 Definitions
 Submission of Draft Standing Orders
 Certification of Standing Orders
 Appeal
 Interpretation of Standing Orders
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
Object of the Act

 To require employers to define the conditions of work

 To brig about uniformity in terms and conditions of
employment
 To minimise industrial conflicts
 To foster harmonious relations between employers
and employees.
 To provide statutory sanctity and importance to
standing orders
Scope and Application

 Extends to the whole of India

 To every establishment wherein 100 or more
workmen are employed
 On any day preceding twelve months
 Once applicable to the establishment then it
continuous if the no. of workmen employed gets
reduced to less than 100
 The appropriate Govt. can exempt any
establishment from any of the provisions of the Act
Continuous…..

 It applies to railways, factories, mines, quarries, oil-

fields, tramways, motor services, docks, plantations,
workshops, civil construction and maintenance
works.
 The Act has 15 sections and a schedule.
 It applies to all the skilled or unskilled, manual,
supervisory, technical, clerical work.
 The apprentices are also included.
 The persons employed mainly in a
managerial/administrative/supervisory capacity
drawing wages exceeding Rs.1600 are not covered.
Important Definitions

 Appropriate Government: State Government,

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

 A factory defined in Section-2 (m) of the

Factories Act, 1948
 A railway defined in Railways Act, 1939
 Establishment defined in the Payment of
Wages Act, 1936
Standing Orders
• The term ‘Standing Orders’ means rules
relating to matters set out in the Schedule of
the Act.
Schedule

Matters to be contained in the Standing Orders

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

 Obligatory on the part of an employer or a group of

employers to furnish 5 copies of the draft standing
orders
 Within 6 months of the application of the Act the
employer shall submit the draft standing orders
 Copies to be given to the certifying officer
 Draft has to enclose the prescribed particulars of the
workmen
 The status and name of the trade unions to be given.
 It has to take all matters set out in the Schedule.
Procedure for Certification of Standing
Orders

 Copy of draft standing orders to be sent to trade

union/workmen
 Opportunity of hearing to trade union/workmen to be
provided
 Certification
 Certified standing orders have the force of law and
the violation of any provision shall be taken action
 Standing orders to be applicable to all present and
future workmen
 Standing orders must confirm the model standing
order
Conditions for certification of Standing
Orders

 Must compile as per the Model Standing Orders

 Fairness of the provisions shall be verified by the Certifying
Officer
Appeal
Any employer, workman, trade union aggrieved by the order of the
certifying officer may, with in 30 days from the date on which
copies of the certified standing orders sent to them
Date of Operation of the Act
On the expiry of 30 days of the certification given by certifying
officer
Or
After the expiry of 7 days of the decision given by appellate
authority.
Payment of Subsistence allowance

 Payment of subsistence allowance by an

employer to a workman who has been
suspended by the employer and his
investigation is pending
 the allowance shall be at the rate of 50% of
the wage for the first 90 days of suspension
 The allowance shall be 75% of the wage
after 90 days if the investigation is delayed
due to employer
Penalty

 Any employer fails to submit draft standing

orders or modifies it, shall be punishable with
fine which may extend to Rs. 5000.
 In case of continuance of the above offence,
fine up to Rs.200 per every day.
 Any contravention of Standing Orders is
punishable by Rs. 100 fine .