Industrial Employment (Standing Order) Act, 1946

Introduction
 • 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
 What is Standing Order
“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.

“an instruction or prescribed procedure in force

permanently or until changed or cancelled”-
Merriam-Webster Dictionary 
 Schedule I
•  Classification of workman (whether he is a temporary or permanent,
Badli workman)
• Working hours, holidays as well as wage rates
• Shift working
• Attendance and late coming 
• Procedure in applying leave and holidays 
• Requirement to enter premises by certain or specific gates and liability
to search
• Closing and opening up industrial establishment
• Termination of employment and procedure for serving the notice
• Suspension or dismissal for misconduct or any act or omission
• Remedies available for a workman in case of unfair labor practices
• Any other matter which may be prescribed.
 Objective of the Act
1. To regulate industrial relations.
2. To regulate the conditions of employment,
grievances, misconduct etc. of the workers
employed in industrial undertakings.
3. Unsolved grievances can become industrial
disputes.
 Applicability
• It applies to every industrial establishment wherein
one hundred or more workmen are employed, or were
employed on any day of the preceding twelve months
• Provided that the appropriate Government may, after
giving not less than two months’ notice of its intention
so to do, by notification in the Official Gazette, apply the
provisions of this Act to any industrial establishment
employing such number of persons less than one
hundred as may be specified in the notification
 Applicability under IR Code 2020
(1) The provisions of this Chapter shall apply to every industrial establishment
wherein three hundred or more than three hundred workers, are
employed, or were employed on any day of the preceding twelve months.
(2) Notwithstanding anything contained in sub-section (1), the provisions of
this Chapter shall not apply to an industrial establishment in so far as the
workers employed therein are persons to whom the Fundamental and
Supplementary Rules, Civil Services (Classification, Control and Appeal)
Rules, Civil Services (Temporary Service) Rules, Revised Leave Rules, Civil
Service Regulations, Civilians in Defence Service (Classification, Control and
Appeal) Rules or the Indian Railway Establishment Code or any other rules
or regulations that may be notified in this behalf by the appropriate
Government, apply.
 Definition
Appropriate Government 2(b)
Central Government is deemed to be the Appropriate
Government for following
• Any industry which is under the control of central government
• Railway administration
• Major port mine or oil filed
Only for above industries Central Government is Appropriate
Government in all other cases State Government is Appropriate
Government.
2(C): – Certifying Officer
Labour Commissioner
Regional labour Commissioner
Any other officer appointed by the appropriate government as a
certifying officer.
 
Procedure for the Approval of Standing Orders
• Procedure for the submission of Draft Standing Orders
[Section 3].
• Procedure for the Conditions for Certification of Standing
Orders [Section4].
• Procedure for Certification of Standing Orders (Procedure
for Adoption) [Section 5].
• Appeals [Section 6].
Submission of draft standing orders
Section (3)
Standing rder before approval is draft standing order
3(1): – every existing industry at the time of passing this enactment
within a span of 6 months from the date on passing of which the
enactment was passed they have to draft of a standing order and
that must be submit it to certifying officer
3(2):- the draft standing order should consist of or in connection with
every subject matter specified in the schedule of the Act
Model standing order – in case if the employer has made model
standing order so that MSO should be in conformity with that of draft
standing order
3(3): – draft so shall be accompanied by a statement giving all the
particulars of all the workmen who have been employed in an
industrial establishment and should be submit to certifying officer
3(4): – in case of more than one employer they should submit joint
standing order (in case of group of employers)
 Condition for certification of standing order

Section (4): –
• What are all the conditions to be fulfilled to get certification 
• Certifying officer will verify whether the provision has made by
employer for all the subject matter mentioned in the schedule
• Standing order should also in conformity with the provision of
this Act
• Certifying officer have the authority to decide whether to grant
the certification and he may also suggest for modification of
the standing order in the form of addition of rules in the draft
standing order and after it is fulfilled, he will certify.
 Preparation of draft standing orders by employer under IR
Code 2020
(1) The employer shall prepare draft standing orders, within a period of six
months from the date of commencement of this Code, based on the model
standing orders referred to in section 29 in respect of the matters specified in
the First Schedule and on any other matter considered necessary by him for
incorporation of necessary provisions in such standing orders for his industrial
establishment or undertaking, considering the nature of activity in his
industrial establishment or undertaking, provided such provision is not
inconsistent with any of the provision of this Code and covers every matters
set out in the First Schedule.
(2) The employer shall consult the Trade Unions or recognised negotiating
union or members of the negotiating council relating to the industrial
establishment or undertaking, as the case may be, in respect of the draft of
the standing order and thereafter forward the draft of the standing order
electronically or otherwise to the certifying officer for certification.
 Preparation of draft standing orders by employer under IR
Code 2020
(3) Where an employer adopts a model standing order of the Central
Government referred to in section 29 with respect to matters relevant to his
industrial establishment or undertaking, then, such model standing order
shall be deemed to have been certified under the provisions of this section
and employer shall forward the information in this regard to the concerned
certifying officer in such manner as may be prescribed: Provided that if the
certifying officer has any observation, he may direct such employer to
amend the standing order so adopted within such period as may be
prescribed.
(4) The employer shall prepare the draft of the modifications required in the
standing order, if any, in accordance with the provisions of this Code and
forward electronically or otherwise to the certifying officer for certification of
those modifications only within a period of six months from the date, the
provisions of this Chapter becomes applicable to his industrial establishment
 Procedure for certification

The draft standing orders or draft of the modifications proposed in

the standing orders shall be accompanied by a statement giving
such particulars, as may be prescribed, of the workers
employed in the industrial establishment, the Trade Union to
which they belong, and the negotiating union or negotiating
council, if any.
The standing orders relating to an industrial establishment or
undertaking existing on the date of commencement of the
relevant provisions of this Code, shall, in so far as is not
inconsistent with the provisions of this Code or rules made
there under, continue and be deemed to be the standing orders
certified
 Procedure for certification under IR Code 2020
(5) On receipt of the drafts referred to in sub-section (1) and sub-section (4), the certifying
officer shall issue notice to—
(i) the Trade Union or negotiating union of the industrial establishment or undertaking, or
members of the negotiating council; or
(ii) where there is no Trade Union operating, to such representatives of the workers of the
industrial establishment or undertaking
for seeking their comments in the matter and after receipt of their comments give an
opportunity of being heard to the negotiating union or negotiating council, or as the case
may be, to the Trade Unions or the representatives of the workers and decide as to whether
or not any modification or addition to such draft standing order is necessary to render the
draft standing order certifiable, and shall make an order in writing in this regard:
• Provided that the certifying officer shall complete such procedure for certification referred
to in sub-sections (4) and (5) in respect of—
(a) the draft standing order so received within a period of sixty days from the date of the
receipt of it; and
(b) the draft modifications in the standing order so received within a period of sixty days
from the date of the receipt of such modifications, failing which such draft standing orders
or, as the case may be, the modifications in the standing order shall be deemed to have
been certified on the expiry of the said period.
 Condition for certification
• The standing orders shall be certifiable under this Code, if—
(a) provision is made therein for every matter set out in the First Schedule
which is applicable to the industrial establishment; and
(b) such orders are otherwise in conformity with the provisions of this Code.
• It shall be the function of the certifying officer or the appellate authority to
adjudicate upon the fairness or reasonableness of the provisions of any
standing orders keeping in view the provisions of the model standing order.
• The certifying officer shall certify the draft standing orders or the
modifications in the standing orders referred to in sub-section (5), and shall
within seven days send copies of the certified standing orders or the
modifications in the standing orders, authenticated in such manner as may be
prescribed, to the employer and to the negotiating union or negotiating
council or the Trade Union or other representatives of the workers
 Certification of standing order
Section (5)
• When the draft standing order is submitted, he shall forward it a copy to trade union or
workman representative.
• If certifying order is satisfied by fulfilling all the conditions u/s -4 then it shall send to
trade union or workman representative after certifying it will sent to trade union
• Inviting objections as for the standing order is the purpose to send to workman
representatives. They will have 15 days’ time to send objections from the date on which it
is served to workman representative.
• In case if the objectives are sent then certifying officer, he provides opportunities for both
the employer and employee
• After opportunity of being heard he will decide whether to grant or not and pass an order.
• In case if he feels any modifications, he can suggest and certify it.
• That certification order shall be sent within a span of 7 days after approval is given that
order should be sent to trade union or workman representative
• Once standing order is certified then condition of the service of employment of the
workman,
• Standing order will be bind on employees as well as employer it includes successors, legal
heirs.
 Appeals
• Section 6 Industrial Employment (Standing Order)Act 1946
• Any employer, trade union, representation of the workman who may be
aggrieved by the order of certifying officer may make an appeal to the
appellant authority within a span of 30 days from the date of certifying
order is received by trade union
• The decision of appellant authority shall be final binding on all the
parties
• Appellant authority has the power to modify or suggest for any
additional information
• The appellant authority shall send the final copy or order copy within a
span of 7 days to the certifying officer 
• In case if the appellant authority suggests the modification, it shall send
back copy along with draft standing order with the parties
• Appellant authority has the power to modify on its own if it modifies
then that copy shall send back to the parties.
 Appeal under IR Code 2020
• An employer or Trade Union or the negotiating union or
negotiating council, or where there is no negotiating union
or negotiating council in an industrial establishment or
undertaking, any union or such representative body of the
workers of the industrial establishment or undertaking, if not
satisfied with the order of the certifying officer given under
sub-section (5) of section 30, may file an appeal within sixty
days of receipt of the order of the certifying officer to the
appellate authority appointed by the appropriate
Government, by notification, and such authority shall
dispose of the appeal in such manner as may be prescribed.
 Certifying Officers and Appellate Authorities to have
powers of civil court
• Every Certifying Officer and appellate authority shall have all the powers of a
Civil Court for the purposes of receiving evidence, administering oaths,
enforcing the attendance of witnesses, and compelling the discovery and
production of documents, and shall be deemed to be a civil court within the
meaning of 2 [sections 345 and 346 of the Code of Criminal Procedure, 1973
• Clerical or arithmetical mistakes in any order passed by a Certifying Officer or
appellate authority, or errors arising therein from any accidental slip or
omission may, at any time, be corrected by that Officer or authority or the
successor in office of such Officer or authority, as the case may be.]
• Oral evidence in contradiction of standing orders not admissible.—No oral
evidence having the effect of adding to or otherwise varying or contradicting
standing orders as finally certified under this Act shall be admitted in any
Court.
 Date of operation of standing order
• Section 7 Industrial Employment (Standing Order)Act 1946
• Every certified standing order shall come in to operation
after the expiry of 30 days from the date of passing order 
• If no appeal is preferred from the date of expiry of 30 days it
comes in to force
• If any appeal is preferred after the expiry of 7 days it shall
come in to operation from the date of appeal order is passed.
• The text of a standing order as finally certified under this
Code shall be maintained by the employer in such language
and in such manner for the information of the concerned
workers as may be prescribed.
 Register of standing order
• Section 8 Industrial Employment (Standing
Order)Act 1946
• A copy of all standing orders as finally certified
under this Code shall be filed by the certifying officer
in a register maintained for the purpose or uploaded
in electronic form or such other form as may be
prescribed.
• The certifying officer shall furnish a copy to any
person applying on payment of such fee as may be
prescribed.
 Posting of standing orders
• Section 9 Industrial Employment (Standing Order)Act
1946
• 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.
 Duration and modification of standing orders

• Modification within six months on an

agreement between Employer and workmen
• Modification after the expiry of Six Months
• Conditions for Modification of Certified SO
• Who can make the Application
• Penalty for contravening Section 10
 Duration and modification of standing orders
• Section 10
• 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 into operation.
• An employer or workman [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 the modifications proposed to be made, and where such modifications
are proposed to be made by agreement between the employer and the
workmen [or a trade union or other representative body of the workmen],
a certified copy of that agreement shall be filed along with the
application.
 Temporary application of model standing
order 
• Section 12 A
• Notwithstanding anything contained in sections 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 standing
orders as finally certified under this Act come into operation under section 7
in that establishment, the prescribed model standing orders shall be
deemed to be adopted in that establishment, and the provisions of section
9, sub-section (2) of section 13 and section 13A shall apply to such model
standing orders as they apply to the standing orders so certified.
• The prescribed model standing order till they get the certification of standing
order they should apply model standing order prescribed by the Act
 Subsistence Allowance
Section 10 A Industrial Employment (Standing Order)Act 1946

(1) Where any workmen is suspended by the employer pending

investigation or inquiry into complaints or charges of
misconduct against him, the employer shall pay to such
workman subsistence allowance—
(a) at the rate of fifty per cent. of the wages which the workman
was entitled to immediately preceding the date of such
suspension, for the first ninety days of suspension; and
(b) at the rate of seventy-five per cent. of such wages for the
remaining period of suspension if the delay in the completion
of disciplinary proceedings against such workman is not directly
attributable to the conduct of such workman
 Subsistence Allowance
• (2) If any dispute arises regarding the subsistence allowance payable to a
workman, the workman or the employer concerned may refer the dispute to
the Labour Court, constituted under the Industrial Disputes Act, 1947 within
the local limits of whose jurisdiction the industrial establishment wherein
such workman is employed is situate and the Labour Court to which the
dispute is so referred shall, after giving the parties an opportunity of being
heard, decide the dispute and such decision shall be final and binding on the
parties.
• (3) Notwithstanding anything contained in the foregoing provisions of this
section, where provisions relating to payment of subsistence allowance
under any other law for the time being in force in any State are more
beneficial than the provisions of this section, the provisions of such other
law shall be applicable to the payment of subsistence allowance in that
State.]
 Liability of the Employer

• To prepare a standing order based on the provisions of the act

• Submit the standing orders for certification within six months of the act becoming
applicable, and follow the stipulations of the certifying officer to get the standing
orders certified. Penalty for non-compliance I a fine of Rs 5000/- plus Rs 200/- for every
day of continuing offence.
• Display the certified standing orders (or the model standing orders as the case may be)
in English and local language on special notice boards at or near entrance of the
establishment. [section 9].
• Rajasthan SRTC v. Krishna Kant (1995): Standing orders are statutorily imposed
conditions of service, and binding on employer and employee. However, the ‘Standing
Orders’ even when approved, do not become ‘law’ in the sense in which Rules and
Notifications issued under delegated legislation become after they are published as
prescribed) -
• Rothak & Hissar Electric Supply Co V State of UP (1966): SC held if both parties
(management and union) agree the proposed standing orders are fair and reasonable,
the appropriate authority must take that into account. Consent6 of the workmen,
though a relevant factor, is not an essential condition for certification.
 Offences and Penalties
• Section 13 Industrial Employment (Standing Order)Act 1946

An employer fails to submit the draft Standing Orders as required by Section 3

or who modified his standing orders otherwise with sec.10 shall be
punishable with fine which may extend to Rs.5000 and in case of continuing
offence with a further fine of Rs.200 for every day after the first during
which the offence continues.
• An employer who does any act in contravention of the standing orders finally
certified under this act for industrial establishment shall be punishable with
fine which may extend to Rs.100 and in case of continuous offence with
further fine of Rs.25 every day after the first during which the offence
continues.
• No persecution for any offence punishable under this section 13 shall be
instituted except with the previous sanction of the appropriate government.
It can be tried only in the Court of a presidency magistrate or the second
class magistrate.
 Interpretation of Standing Order
• Section 13 A
• Sabhapati Singh v. UP State Road Transport
Corporation 1994 LLJ
• Ram Asrey v. Labour Court Kanpur 1991 LLJ