Industrial Employment (Standing Orders) Act, 1946.

Session - 5&6

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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.

• Uniform conditions for workmen regardless of their time of

appointment.

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 Conditions of service

• The courts had observed that conditions of service includes

everything from the stage of appointment to termination.
The general conditions of service are regulated by :

• Express and implied terms of contract

• Certified Standing Orders
• Statutory provisions
• Rules and regulations framed by the employer from time to
time

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• “Conditions of Service” may be classified as salary or wages
including subsistence allowance, the periodical increments,
pay scale, leave, confirmation, promotion, seniority ,tenure or
termination of service, superannuation, deputation and
disciplinary proceedings.

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• Applies where 100 or more workmen are employed.(20 TN)
(300 workmen as per IR Code)
• Appropriate govt has powers to apply the Act to
establishments employing less than 100.
• Employer to get certification within 6 months from the date
on which the Act becomes applicable. (60 days)
• Existing Certified Standing Orders would continue.
• Option to follow Model Standing Orders .

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 Model Standing Orders

Where standing orders are not framed and certified by the

competent authority under the Industrial Employment (Standing
orders) Act, Model Standing Orders will be followed as given in the
Act.

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 Model standing orders form a basis for framing a
draft standing orders for certification.

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 Matters to be provided in the Standing Orders as per The
Schedule :-
• Classification of workmen
• Manner of intimating periods and hours of work, holidays,
pay- days and wage rates.
• Shift - working
• Attendance and late coming

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• Procedure for granting leave and holidays
• Entry and search
• Closing and reopening of sections and temporary stoppage
of work and the rights and responsibilities of the employer
and workmen.
• Termination of employment, and the notice thereof to be
given by employer and workmen

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• Suspension or dismissal for misconduct, and acts or
omissions which constitute misconduct.
• Means of redress for workmen against unfair treatment or
wrongful exactions by the employer or his representatives.
• Punishment for misconduct
• Retirement
• Issue of departmental cards to workmen.

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• Certifying officer : Labour commissioner or a Regional Labour
Commissioner and includes any other officer appointed by the
appropriate government.

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 Section 3 : submission of draft standing orders :

• Employer to submit to the Certifying officer five copies of the

draft standing orders proposed for adoption in the industrial
establishment.
• Draft in conformity with every matter set out in the schedule
and model standing orders along with the prescribed
particulars of the workmen and the union.

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 Section 4: Conditions for certification of standing orders.

• Provision made for all matters set out in the Schedule

• Standing orders are in conformity with the provisions of the
Act

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• Section 5 : Certification of standing orders.

Certifying officer shall forward a copy of the draft standing

orders to the union calling for objections if any, within 15
days

• Management and union will be heard adequately

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• Additions and modifications, if required, will be made by the
certifying officer and the certified standing orders will be
issued to the parties within 7 days after the close of the
hearing.

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 Section 6 - Appeals :

Aggrieved party can go in for appeal within 30 days of

certification.
The appellant authority with modification or confirmation
without amendment, will send copies to the certifying officer,
management and the union within seven days of his order.

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 Legal force

• Certified standing orders are binding on the

employers and employees.
• The draft standing orders need not copy
model standing orders verbatim but conform
to substance

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 Section 7 : Date of operation of standing Orders :

• Standing orders come in to operation on the expiry of 30 days

from the date on which authenticated copies are sent to
parties
• When appealed against, on the expiry of 7 days from the date
on which copies of the order of the appellate authority are
sent to parties.

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 Section 9 : Posting of standing orders :

• Text of the standing orders as certified, will be displayed in

English and vernacular at the entrance of the factory and in
all department Notice boards.

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 Section 10: Duration and modification of S.O.

• Certified Standing orders are not liable for modification,

except in the case of a mutual agreement, until the expiry of
six months from the date it has come in to operation.

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 Section 10A: Payment of subsistence allowance

Workman, under suspension pending enquiry will be paid

Subsistence allowance @ 50% of wages for the first 90 days ;
75% for the period up to 180 days, and 100% beyond 180
days, if the delay is not directly attributable to the workman,
in completing the enquiry.

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• In the case of delay on the part of the accused, subsistence be
restricted to 50 % of the wages.
• If the management proves that the suspended employee is
employed elsewhere , the subsistence allowance need not be
paid.

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 Section 13 A : Interpretation of standing orders

If any question arises as to the application or interpretation

of a certified standing order, any employer or workman or a
trade union may refer the question to any one of the Labour
courts, specified for the disposal of such proceedings, and
the decision of the court shall be final and binding on the
parties.

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