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Amity law school, Centre-ii

LABOUR LAW project


On
CONCEPT OF STANDING ORDERS
UNDER THE INDUSTRIAL
EMPLOYMENT (STANDING
ORDERS) ACT, 1946

Submitted by:
Sarthak Gaur
Agrawal

Submitted to:
Mr. Amit Raj

Sem-4, Sec-B
Enl. No.-A11911112086
Centre-II

Asst. Professor
Amity Law School,
Amity University

Noida

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 Labour 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. There was no uniformity in the conditions of service of workers until this
Act was brought.

The demand for statutory service conditions was first raised by Bombay Cotton Textile workers
in 1927-28. The Bombay Industrial Disputes Act of 1938 provided, for the first time, for
statutory standing orders.
The Labour Investigation Committee 1944-46 observed: An industrial worker has the right to
know the terms & conditions under which he is expected to follow.
The Industrial Employment (Standing Orders) Bill, 1946 was passed by the legislature and it
received the assent on 23rd April, 1946.
It came on the statute book as the Industrial Employment (Standing Orders) Act, 1946 (20 of
1946).

Definition under the Act (Sec.2)


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.

SCOPE AND APPLICATION


The act 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. 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.

MATTERS TO BE CONTAINED IN THE STANDING ORDERS


Classification of the workmen : temporary, badly, casual, apprentices, skilled etc
Manner of intimating the workmen tperiods and hours of work, holidays, pay days and
wage rates.
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 of work
and right and the liabilities of the employer and workmen arising therefore.
Suspension or dismissal for misconduct Acts and omissions which constitute misconduct.
Means of redressal of workmen against unfair treatment or wrongful extractions by
employer or his agents or servants.
Termination of employment and the notice thereof to be given by employer and
workmen.
Any other matter which may be prescribed.

OTHER IMPORTANT DEFINITIONS


Appellate Authority means an authority appointed by the appropriate Government by
notification in the official Gazette to exercise the functions of an appellate authority
under this Act:
Provided that in relation to an appeal pending before an Industrial Court or other
authority immediately before the commencement of this Act, the Court or authority shall
be deemed to be the appellate authority [Section 2 (a)]
Appropriate Government means in respect of industrial establishments under the
control of Central Government or a Railway Administration or in a major port, mine or

oilfield, the Central Government, and in all other cases, the State Government. (Section
2(b))

Certifying Officer means a Labour Commissioner or a Regional Labour Commissioner,

and includes any other officer appointed by the appropriate Government, by notification
in the Official Gazette, to perform all or any of the functions of a Certifying Officer under
this Act (Section 2(c))
Employer means the owner of an individual establishment to which this act applies and
includes
In a factory, any person named as manager of the factory;
In any industrial establishment under the control of any department of any Government in
India, the authority appointed by such Government in this behalf;
In any other industrial establishment, any person responsible to the owner for the
supervision and control of the industrial establishment (Section 2(d))
Industrial Establishment meansAn industrial establishment as defined in Section 2(ii) of the Payment of Wages Act,
1936,
A factory as defined in section 2(m) of the Factories Act, 1948,
A railway as defined in Section 2 (4) of the Indian Railways Act, 1890,
The establishment of a person who, for the purpose of fulfilling a contract with the owner of
any industrial establishment employs workmen (Section 2 (e))
Workman means any person employed in any industrial establishment to do any

skilled or unskilled
manual, supervisory,
technical or clerical work
for hire or reward,
whether the terms of employment be expressed or implied. [Sec. 2(i)]

PROCEDURE FOR THE APPROVAL OF STANDING ORDERS


The main provision that deal for the approval of Standing Orders are:
1. Procedure for the submission of Draft Standing Orders [Section 3].

1. Procedure for the Conditions for Certification of Standing Orders [Section4].


2. Procedure for Certification of Standing Orders (Procedure for Adoption) [Section 5].

3. Appeals [Section 6].

PROCEDURE FOR THE SUBMISSION OF DRAFT STANDING


ORDERS
1. Every employer covered under the Act has to prepare Standing Orders, covering the

matters required in the Standing Orders. Obligatory on the part of an employer or a group
of employers to furnish of the draft standing orders
2. Within 6 months from the date on which this Act becomes applicable to industrial

establishment, the employer shall submit to the Certifying Officer 5 copies of the draft
standing orders proposed by him. Draft has to enclose the prescribed particulars of the
workmen
3. Subject to such conditions as may be prescribed, a group of employers in similar

industrial establishments may submit a join draft or standing orders under this section.
The status and name of the trade1 unions to be given.
4. Provision shall have to be made as such every matter set out in the Schedule which may
be applicable to the industrial establishment and were model standing orders have been
prescribed.
It was held in U.P. State Sugar Corporation & Authority Vs. Bipin Kumar Mishra 2 that there is
no requirement under the Act to frame standing order in respect of transfer, hence the employer
cannot be denied the normal right to transfer an employee from one place to another. The
employer cannot be denied the right to frame rules and regulations relating to transfer of
employees.
In S.K. Sheshadri Vs. H.A.L. and others 3, the validity of the standing order which made unduly
lending in the company premises a misconduct was challenged a violative of Art.14 of the
constitution. The said Standing Order was held not to be discriminatory. It was futher held that as
long as the Standing Orders fall within the schedule to the Act, they would not be invalid or
ultravirus because they contain additional provisions not provided for in the Model Standing
Orders.
1
2

(1994) I LLJ 1004 (All).

1983) II LLJ 410 (Karn.)

PROCEDURE FOR CERTIFICATION OF STANDING ORDERS


1. If provision is made therein for every matter set out in the schedule which is applicable to
the Industrial Establishment; and
2. If the standing orders are otherwise in conformity with the provision of this Act and it
shall be the function of the Certifying Officer or appellate authority to reasonableness of
the provision of any standing orders.
3. The Certifying officer receipt of the draft Standing Orders from the employer shall
forward a copy of the draft standing orders to the recognized trade union of the
establishment seeking submission of objection to draft standing orders if any.
4. If no such union exists, to three representatives of workmen in the establishment elected
at a meeting called for the purpose.
5. A notice in the prescribed form will be given inviting objections, if any, to the draft
standing orders within fifteen days of receipt of these orders.
6. After giving to the parties an opportunity of being heard, the certifying officer shall
decide whether or not any modification of the draft is necessary, and make an order in
writing accordingly.
7. In doing so, the certifying officer can adjudicate upon the fairness and reasonableness of
the provisions in the drafts.
8. The certifying officer shall thereupon certify the standing orders with or without
modifications and forward the authenticated copies thereof to the employer and to the
trade union or other prescribed representatives of the workmen within seven days from
the date of his orders.
9. The standing orders came into operation on the expiry of 30 days from the date on which
the authenticated copies of the standing orders are forwarded to the employer and the
workmen by the certifying officer.
10. The conditions of employment, which will be binding on the employer and the workmen
from the date when they become operational.

LEADING CASES LAWS REGARDING CERTIFICATION


OF STANDING ORDERS

Eicher Goodearth Ltd. Vs. R K Soni4


Once the Standing Orders are certified, they supersede any term and condition of
employment, contained in the appointment letter. If there is inconsistency between Standing
Order and Appointment Letter, the provisions of Standing Order prevail.

Rajasthan SRTC Vs. Krishna Kant5


Standing orders are binding on employer and employee. These are statutorily imposed conditions
of service. However, they are not statutory provisions themselves (meaning that 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)

APPEAL
An aggrieved party may appeal to the appellate authority within thirty days from the date on
which the copies of the standing orders were sent to it by the certifying officer. The order of the
authority shall be final.
Section 6(1) empowers the appellate authority to do only two things:
Confirm the standing orders in the form certified by the certifying officer
Confirm the standing orders after amending them by making the necessary modifications or
additions.
The certified standing orders become enforceable on the expiry of 30 days from the date on
which the authenticated copies of the same are sent to the parties by the certifying officer. If an
4

1993 LLR 524 (Raj HC)

AIR 1995 SC 1715

appeal has been filed, it 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 to the parties. (Section 7)

REGISTER OF STANDING ORDERS


A copy of all standing orders as finally certified under this Act shall be filed by the
Certifying Officer in a register in the prescribed form
It shall furnish a copy of it to any person on payment of the prescribed fees. [Section 8]

POSTING OF STANDING ORDERS


The text of the standing orders finally certified shall be prominently posted by the employer in
English and in language understood by the majority of the workmen on special board to be
maintained for that purpose at or near the entrance through which the majority of workmen enter
the industial establishment (Section 9)

DURATION AND MODIFICATION OF STANDING ORDERS,


(SECTION 10)
Standing orders, finally certified shall not except on agreement between the employer and the
workmen, be liable to modify until the expiry of 6 months from the date on which the standing
orders or last modification thereof came into operation.
An employer, workmen, trade union or any representative body of workmen may apply to the
certifying officer to have the Standing Orders modified and such applications shall be
accompanied by 5 copies of the modification proposed to be made and where such modification
are proposed to be made by agreement between employer and the workmen a certified copy of
that agreement shall be filed along with the application.
In Shahadra Saharanpur Light Railway Co. Vs. S.S. Railway Workers Union 6, the Standing
Orders relating to the termination of service of a permanent workman was modified requiring the
employer to give reasons and communicating the pay in lieu of notice. The modification held to
be fair and reasonable. But the modification of the Standing Orders requiring the giving of
second show cause notice at the stage of imposing punishment of removal cannot be considered
as fair and reasonable.
6

AIR 1969 SC 513

PAYMENT OF SUBSISTENCE ALLOWANCE (SECTION 10-A)


Where the employer suspend the workman pending investigation or inquiry into
complaint or charges of misconduct against the workman the subsistence allowance
shall be payable:
At the rate of 50% of the wages which the workman was entitled to immediately
preceding the date of such suspension for the first 90 days of suspension; and
At the rate of 75% of such wages for the remaining period of suspension if the delay
in completion of disciplinary proceedings against such workman is not directly
attributable to the conduct of such workman.
If any dispute arises regarding the subsistence allowance payable to a workman, it
may be referred to the Labour Court constituted under I.D. Act, 1947.

PENALTIES AND PROCEDURE (SECTION 13)


An employer who fails to submit draft standing orders as required by section 3 or who
modifies standing orders otherwise than in accordance with Sec.10,shall be punishable
with fine which may extend to 5000 rupees and in case of a continuing offence with a
further fine which may extend to 200 rupees 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 his industrial establishment shall be punishable with fine which may
extend to 100 rupees, in case of continuing offence with a further fine which may extend
to 25 rupees for every day after the first, during which the offence continues.
No prosecution for an offence punishable under this section shall be instituted except
with the previous sanction of the appropriate Government.
No Court, inferior to that of a Presidency Magistrate or Magistrate of Second Class shall,
try any offence under this Section.

INTERPRETATION OF STANDING ORDERS (SECTION 13 A)


If any question arises as to the interpretation of a Standing Order certified under this Act, any
employer, workman or trade union may refer the question to any of the Labour Courts
constituted under the Industrial Disputes Act, 1947, and specified for the disposal of such
proceedings by the App. Govt. by notification in the Official Gazette and the L. Court to which is
referred to, shall after giving the parties an opportunity of being heard, decide the question and
such decision shall be final and binding on the parties. (Section 13 A)

ACTS OF MISCONDUCT
The following acts or omissions on the part of a workman shall amount to misconduct;
Going on an illegal strike
Wilfully slowing down in performance of work
Theft, fraud or dishonesty in connection with the employers business or property or the
theft of property of another workman within the premises of the establishment
Taking or giving bribes
Habitual absence without leave or absence without leave for more than ten consecutive
days
Collection without the permission of the manager of any money within the premises of
the establishment except as sanctioned by any law for the law for the time being in force
Engaging in trade within the premises of the establishment
Drunkenness, riotous, disorderly or indecent behaviour on the premises of the
establishment
Habitual neglect of work
Habitual breach of any rules or instructions
Wilful damage to work in process or to any property of the establishment.

Holding meeting inside the premises of the establishment without the previous
permission of the manager or except in accordance with the provisions of any law for the
time being in force.
Disclosing to any unauthorised person any information
Smoking and spitting on the premises of the establishment where it is prohibited by the
employer
Unauthorised possession of any lethal weapon in the establishment

SPECIAL FEATURE OF THE ACT


1. The employer of every industrial establishment to which the Act applies is required to
frame draft standing orders and to submit them to the certifying officer, who is generally
the Labour Commissioner;
2. The definition of workman under this Act includes a Supervisory Technical Personnel
under certain conditions;
3. The certifying officer is empowered to modify or add the draft standing orders so as to
render them certifiable under the Act;
4. A Group of employers of similar industrial establishments may submit joint standing
order;
5. The Government set out model standing orders, the draft standing order framed by an
employer should as far as practicable be in conformity with the Model Standing Orders.
6. The Act normally applies to every industrial establishment wherein 100 or more
workmen are employed.
7. The certifying officer and appellate authorities shall have all the powers of a Civil Court
8. The employers can be penalised for faliure to submit draft Standing Order for
certification or contravention of any provision of the standing order finally certified.
9.

The appropriate Government may by a Gazette notification exempt any establishment or


class of establishment from any of the provisions of the Act.

10. The appropriate Government may after previous publication by notification in the
Official Gazette, make rules to carry out the purpose of the Act.

BIBLIOGRAPHY

Dr. S.N Mishra, Labour and Industrial Law, Pg.No.329, 330, 333, 338, 342, 346.
http://www.indiankanoon.org/doc/1376794/ visited on 18/09/2014.
http://www.manupatra.com visited on 18/09/2014.
http://hrylabour.gov.in/docs/labourActpdfdocs/Industrial_Employment_Act.pdf visited on 20/09/2014.

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