DRAFT STANDING ORDERS FOR ADOPTION OF

“HINDUSTAN CLOTHING AND MARKETING LTD.,”

1.0 SCOPE AND APPLICABILITY:

These Standing Orders shall apply to all employees of M/S Hindustan Clothing and
Marketing Ltd., and these standing orders/Service Rules and Regulations/Employee Manual
shall constitute the terms and conditions of Employment of all employees and workmen
employed in the Factory, unless and otherwise specifically excluded from the applicability of
these Standing Order. These Standing Order shall come in to force as provided in Section 7 of
the Industrial Employment (Standing Orders) Act 1946.

2.0 DEFINITIONS:

In these standing orders unless there is anything repugnant in the subject or context:

2.1.1 “Company” OR “Establishment” shall mean any of their Group of

Companies/Factories/Firms, Viz:

Companies Name and Address

Including their branches wherever located, and shall include such factory or office which may
come in to existence in future, under the same Management

2.2 “Management” shall mean and include the Directors, Partners or Proprietors of the
Companies, or the General Manager or such other Managers / Officers who have managerial or
administrative power to control the affairs of the company.

2.03 “Factory” means the factory of any of the Companies and includes its Administrative
Office or Branch Office, wherever located.

2.4.1 Manager” means any person appointed and duly designated as Manager of the
company, or any person, for the time being, is authorized to exercise the functions
as the Manager of the company, and includes such person who is designated as Factory
Manager in the returns filed under section 7 of factories Act 1948’

2.05 “Workman” Shall mean and include all persons who fall within the definition of workman as
defined under section 2(s) of the Industrial Dispute Act 1947.

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2.6 “Employee” means and includes all those employed by the company to do any skilled,
semi-skilled, un-skilled, manual, technical, administrative or supervisory work.

2.7 Premises” means all precincts of the company and other places of work where the
employees of the company are carrying out the work of the company such as Factory Head
Office, Branch Office etc.,

2.8 Medical Officer” means the medical officer of the company engaged as such, or a register
medical practitioner approved by the management from time to time.

2.9 Notice Board” means the notice board specifically maintained at conspicuous place close
to the entrance gate of the employees in the factory / office premises for the purpose of
displaying notices, circulars, orders, etc., meant for communicating to the employees,. And
includes any notice board maintained within a department also.

2.10 The masculine shall construe to include feminine gender also, and vice-versa.

2.11 Words imparting the singular number shall include the plural numbers and vice-versa.

2.12 Other phrases and words used in these Standing Orders all have the meaning as
assigned to them in the Factories Act 1948, and the Industrial Employment (Standing
Orders) Act 1946, provided that if different meanings as assigned to the same phrases or
words, the meaning assigned in the latter Act shall prevail.

2.13 Incase of any dispute over the interpretation of these rules and regulations, the decision
of the management shall be final.

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3.0 CLASIFICATION OF WORKMEN: -

3.01 All workmen shall be classified as: -

a. Permanent
b. Probationary
c. Badli / Substitute
d. Temporary
e. Apprentice Trainee
f. Non Apprentice Trainee
g. Casual

3.2.1 Permanent Workman: A Permanent Workman is a workman who has been appointed to fill a
permanent post for an un limited period and who has satisfactorily completed the initial
probation and any extension thereof, and whose appointment has been confirmed in writing by
the company

3.3 PROBATIONER:
A probationer is an employee who is provisionally employed to fill a permanent vacancy in a
post and has not completed the period of probation, which shall be six months for all categories
of workmen. Provided, in any particular case, the management may extend the period
equivalent to the period of probation prescribed, if they are not satisfied with the performance /
conduct of any workman during the initial period of probation. When the period of probation is
so extended, the workman concerned shall be informed in writing at least one week before the
normal date of completion of probation, and in the absence of any such intimation, the
workman shall be deemed to have satisfactorily completed his probation on the normal date.

3.4 If, after the initial or extended period of probation, a probationer is found suitable To the type
of job for which he is appointed, he may confirmed in service. If, after the initial or the
extended period of probation, as the case may be, the probationer workman’s performance and
conduct are not satisfactory to the management, he is liable to be terminated with 7 days notice
period or wages in lieu of notice.

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 3.5 If a permanent workman is employed as a probationer in a new post either by promotion
or otherwise, he may, at any time during the period of probation or on extension thereof
until his employment in the new post is confirmed in writing, be reverted to his original
permanent post.

3.6 Badli / Substitute:

A Badli is one who is appointed in the post of a permanent workman or a probationer who is
temporarily absent or on leave. But, such person would cease to be Badli on completion of a
continuous period of service of 240 days, and on such an event, the Badli would be deemed to
be a permanent workman.

3.7 Temporary:
A Temporary Workman is a workman who has been engaged for work, which is of an
essentially temporary nature likely to be finished within a limited period. The period within
which such work is likely to finish should be specified but it may be extended if necessary.

3.8 APPRENTICE/TRAINEES: Is one who is engaged for the purpose of leaning a trade on
terms of training as may be fixed by the Company for a period of six months subject to a
maximum period of not exceeding one year. This also includes “Apprentice” workman as
provided under Minimum Wages Notification read with Rule 2(b) of Karnataka Minimum
Wages Rules.

3.9 Non – apprentice Trainee: A Non Apprentice Trainee is one who is appointed for
Training under the company’s training scheme and not under the Apprenticeship Act.

3.10 Casual: A Casual Workman is one who is engaged on day to day basis on work
Which is of casual nature or which is of non-recurring or intermittent nature.

4.0 APPOINTMENTS:

4.1 All appointments of employees, workmen will be made in writing by the

Management, manager or by any other person duly authorized by the management.

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4.2 Candidates seeking employment in the company shall make a written application to the
company. The management may also require any of such candidates to undergo a test to
determine technical knowledge and skill, beside personal interview.

4.3 After selection of candidates for employment, the management may, at any time,
Prior to or subsequent to his employment, require any workman to be medically examined by
the medical officer.

4.4 All candidates selected for employment shall furnish to the company attested or
Photo copies of their birth certificate, educational qualification certificate, experience
certificate, and passport size photographs.

4.5 Management may also verify the antecedents of the candidate from his previous employer and
references furnished by him.

5.0 HOURS OF WORK: -

5.01 The working hours of the factory and office of the establishment will be decided by the
management in accordance with the provision of the law application to the company. A
schedule of working hours and shifts shall be exhibited on a notice board in English as per
provision in Factories Act 1948.

5.02 If more than one shift is worked in the establishment workman shall be liable to be transferred
from one shift to another. Which will be done after ensuring a 24 hours rest to such workman.
The workman shall be liable to work in any shift indicated to them for as long a period as the
Company considers it necessary.

5.03 These working hours and shifts are subject to change from time to time at the direction of the
management subject to section 9A of the Industrial Disputes Act 1947. In case of exigency the
management reserves the right to call an employee for even without sufficient time.

6.0 ATTENDANCE: -

6.1 The starting and closing of work period, the starting and closing of interval period
Shall be from time to time and shall be signaled by a suitable device.

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6.2 Every workman shall record his daily attendance in the manner prescribed by the management
at the time fixed and notified.

6.03 Any workman who fails to record his attendance in the manner specified herein shall obtain a
duty regularization certification from the concerned department head and submit it to Personnel
Dept/Human Resource Department. for such regularization of attendance.

6.04 All workmen shall commence their work at the assigned place in accordance with the notified
working hours.

6.05 Workman attending late to the company shall have to be given proper sufficient reason to the
satisfaction of the company, he may be allowed to enter the establishment and the should
immediately report to the person authorized before commencing his work. He shall be liable
for the deduction in wages proportionate to his late attendance.

6.06 If a workman leaves his work place during his working hours without any satisfactory reason,
he shall be deemed to have committed an act of misconduct and shall be liable for disciplinary
action in accordance with these Standing Orders.

6.7 If a workman is late to work either at the commencement of his shift working hours or after
lunch interval for more than three times a month during two successive month or for more than
six times in a month, or 20 times in a year, he shall be declared as habitual later comer and shall
be liable for disciplinary action in accordance with these Standing Orders.

6.08 Workman shall leave the factory premises immediately on completion of shift duty, within 15
minutes from closing of the respective shifts. Workman who is not on duty shall leave the
factory premises immediately and completion of the purpose for which they visited the factory.

6.09 An employee may be allowed to leave the factory at any time other than the end of his shift
duty, with permission by way of obtaining an leave pass from the officer duly authorized in this
behalf, and produce such a pass at the exit gate.

6.10 All such early departure permissions on exit passes will be treated as half-a-day leave (if it is
more than two hours and less than 4 hours), and standard of two hours loss of pay (if
permission is for two hours or less).

6.11 IDENTITY CARD:

Every workman will be provided with an Identity Card, or other means of identification, which
the employee shall wear/display prominently while within the establishment
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 6.12 Any workman failing to comply with the above provision is liable for disciplinary
action.

6.13 The workmen shall, while leaving the service of the company surrender the Identity Card to the
Manager.

6.14 JOB TIME CARD:

Every workman shall whenever required by the Company punch and/or fill in his Job Time
Card. A workman who cannot write shall get his time card filled in by any one of his
colleagues.

7.0 ENTRY / EXIT / SEARCH: -

7.01 The employees shall enter and leave the premises of the factory or office, as the case may be,
only through the gates specified for such purposes.

7.02 All employees while entering or leaving the factory / office premises, or at any time while in
the premises of the establishment are liable to be searched by a member of the Security
Department or any other person authorized by the Manager / Management to do so. A female
employee shall be searched only by a female searcher.

7.03 The searcher has the right to remove from those searched as above, any articles considered to
belong to the company or to any other workman or visitors; or such articles which, in the
opinion of the company, are likely to endanger any person or property / business of the
Company. The Security staff / authorized officer shall be entitled to detain at the gate articles
belonging to the employee which are not required by him while at work within the premises of
the company.

7.04 No packages, parcels, articles, handbags, newspaper / magazines or any such personal
belongings, except a Tiffin carrier containing eatables only, shall be allowed to be taken by the
employee inside the Factory / Office. Such articles and personal belongings may be allowed to
be keeping at the entrance gate, or at such other place provided for the purpose, at their own
risk.

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7.05 At the time of exit, every workman shall open out his Tiffin box, handbag, or any other
packages in his possession, for inspection by the Security Staff.

8.0 WEEKLY, NATIONAL & FESTIVAL HOLIDAY:

8.01 Weekly holidays for the employees shall be regulated in accordance with the provision of the
Factories Act, 1948, and the rules prevailing there under from time to time.

8.02 National & Festival holidays shall be fixed and granted in accordance with the provisions of the
Karnataka Industrial Establishment (National & Festival Holidays) Act, 1963 and rules there
under.

8.03 The list of National & Festival Holidays declared as above shall contain Republic Day,
Independence Day, Mahatma Gandhi Jayanthi, May Day and Kannada Rajyothsava, without
option, the rest of the Festival holidays shall be fixed with the consent of the workmen.
Totaling to 10 holidays per annum

8.04 The Management however, reserves the right to change or alter the Weekly, National &
Festival Holidays under exceptional circumstances as per law.

8.05 The workman maybe required to work on a weekly holiday or any of the declared holidays
depending on the nature of exigency of work, the workman so worked shall be given a
substitute holiday as per the provisions of the Factories Act, 1948 or monetary compensation in
lieu thereof.

8.06 The above-mentioned holidays, along with the changes effected from time to time shall be
posted on the notice board. Such posting on the notice board shall be deemed to be sufficient
notice to all the workmen.

9.0 ALTERNATE WORK:

9.01 Depending upon the exigencies of work, all workmen shall agree to do any other kind of work
other than their usual work, when assigned to do so by their superior or head of department,
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 when situations arise due to insufficiency of their own work or for any other reason. However,
in such cases, their emoluments shall not be reduced.

9.02 It must be realized by all the workmen that every work, which is reasonable and lawful in
factory, is dignified, and no workman should consider such reasonable and lawful work given
to him as being his dignity.

10.0 OVERTIME:

10.01 Instructions to work overtime will be communicated to the workman by way of a notice on the
Notice Board. Overtime is Voluntary and no worker will be forced to work Overtime against
their wish

10.02 Workman working on overtime shall be entitled for overtime payment as per the provisions of
the Factories Act, 1948.

11.0 TRANSFER:
11.01 Every workman is liable for and shall be accept transfer at any time of temporary or permanent
basis, at the discretion of the Management, from one post to another, from one department to
another, within the factory or from one factory office to another owned, operated or managed
either by the Management or by other associates either in Bangalore

11.02 Consequent to such transfer the employment terms and conditions and the working procedures
of that department or the establishment to which the workman in transferred shall apply to him.
Any such change in his service conditions will not amount to change in service condition as per
Section – 9A of the Industrial Disputes Act, 1947. However, the total remuneration of that
workman shall not be reduced.

11.03 Reasonable period of notice shall be given to the workman upon transfer, to report at the new
place of work. Within in Bangalore Similarly, he shall also be paid, wherever required,
reasonable allowances to defray the expenses of journey, etc., but not the living allowances in
such new place of work.
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12.0 INCREMENT & PROMOTIONS:

12.01 Increments in the scales of wages, if any, are not automatic and it shall be earned by workmen,
which is based on their work attendance and conducts, No increment will be withheld without
giving the workmen a reasonable opportunity to represent against such actions. The
management reserves the right to give double increment in the same scale grade to any
employee for exceptional work merit in a year.

12.02 Subject to the Provisions of the payment of Wages Act 1936 the management, manager
reserves the right to withhold an employee’s increment if in his opinion his work, conduct or
attendance is not satisfactory.

12.03 Annual increment will be considered only when it falls due in respect of the workman
concerned on the basis of their date of appointment.

12.04 Promotions from a lower to higher post shall depend upon the availability of vacancy and
suitability. The suitability shall be decided by the management having regard to skill,
seniority, physical fitness, and educational qualifications. The Management / Manager has
the right to ask any workman for appearing at a trade test for determining the degree of skill for
the job. If all others qualifications and skill are identical, seniority will be given preference
provided there is nothing adverse in the past record to the workman concerned.

13.0 PAYMENT OF WAGES AND DEDUCTIONS FROM WAGES:

13.01 Payment of wages to the workman and the kinds of permissible deductions from wages shall be
governed by the Provisions of The Payment of Wages Act, 1936, and the rules there under.

13.02 Payment of wages of the workman shall be made on or before the 7 th day of every month in
respect of the previous calendar month. If the 7th day happens to be a holiday the wages shall
be paid on the previous working day.
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13.03 Any wages due to a worker, which the worker concerned has not received on the usual payday,
shall be treated as unclaimed wages. Such unclaimed wages shall be paid to the workman
concerned on a subsequent day with an intimation of the said day on the Notice Board.

13.04 All such unclaimed wages shall be claimed within a period of 12 months from the date on
which the wages become due.

14.0 LEAVE & WAGES:

14.01 The quantum of various kinds of leaves the workmen are entitled for (Namely, Privilege /
Annual, Casual and Sick leave) will be governed by the provisions of the Factories Act, 1948
rules there under, and the rules and the regulations claimed by the company in this regard, as in
force from time to time and applicable to the categories of the employees concerned.

However, workmen who are covered under the E S I Act are not entitled to claim any sick
leave. So also workmen who are presently not covered under the E SI Act and are so entitled to
sick leave will be cease to become entitled to sick leave as end, when they become covered
under the ESI Act in future.

14.02 The method of calculating the eligibility of the leave, the procedure of availing the earned leave
etc., are governed by the Factories Act, 1948, and the Karnataka Rules there under.

14.03 Subject to the provisions of the Factories Act, an employee seeking leave of absence should
apply for leave in the prescribed form and submit the same along with the leave book supplied
by the company to the manager of the person authorized to sanction leave. Application for
privilege leave should be made at least 8 working prior to the commencement of leave. Other
kinds of leave should be applied for at least one working day advance.

14.04 Leave applied for will not be granted as a matter of right, but will be granted only if the
working schedules allow grant of such leave. Leave will be granted to any workmen in case of
emergency.

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14.05 An employee who proceeds on leave and needs extension of leave and needs shall apply to the
sanctioning authority in writing for such extension well in time. If the extension of leave is not
granted (which will be communicated to the employee) he should report to duty on the expiry
of the sanctioned leave. If the employee does not receive a written intimation of grant of
extension of leave, the application for extension should be assumed as rejected.

14.06 Accumulation of un-availed privilege leaves (Not other kinds of leave) is allowed up to a
maximum limit of 45 days. Leave in excess of the ceiling can be en-cashed by the employee.

14.07 Besides the above encashment, Privilege Leave is not en-cashable during the period of one’s
service, except at the time of discharge from service for whatever reason. Only Basic &
Dearness Allowance amounts of the employee’s salary will be taken in to account for the
purpose of encashment of privilege leave.

14.08 If an employee:

a. Proceeds on leave in spite of his leave being not sanctioned

b. Overstays the leave specifically granted.
c. Suddenly absents from work without any intimation to the sanctioning authority.
d. Fails or is unable to get is sudden absence ratified subsequently from the
sanctioning authority.
It shall be treated as unauthorized absence without pay.

15.0 VOLUNTARY ABANDONMENT / AUTOMATIC TERMINATION OF

SERVICE:

15.01 If an employee abstains from work without approval or without any intimation to the
sanctioning authority for 8 consecutive days, or if he abstains from work for 8 consecutive days
even after the leave, though applied for, is not granted, or if he overstays the leave originally
granted, or subsequently extended, for 8 consecutive days without further approval of leave, the
employee concerned will loose his lien on the job and the term of his employment
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 automatically comes to an end as having been voluntarily terminated by himself. Without any
notice / intimation to the company on such an event the employee will have contravened the
clause of notice period, if any, required to be given to the company before giving up his
employment.

15.2 The voluntary Abandonment / Automatic Termination of Service by the employees

does not amount to violation, on the part of the employer, of the provisions of Industrial
Disputes Act 1947.

16.0 TERMINATION OF EMPLOYMENT BY THE MANAGEMENT:

16.01 The employment of temporary, casual, Badli or trainee workman may be terminated by the
Management at any time during or on the expiry of order of appointment, without assigning
any reason and without giving any notice or compensation.

16.02 The employment of a probationer may terminated by the Management at any time during the
period of probation (both initial and extend) or on the expiry of the probationary period
specified in the order of appointment, if the employee’s performance, attendance and conduct
are found to be unsatisfactory.

16.03 The Employment of a permanent / confirmed workman shall not be terminated, other than by
the way of compliance of provisions of the Industrial Disputes Act, 1947 or Industrial
Employment (Standing orders) Act, 1946, or the rules of punishment provided in these Draft
Standing Orders.

16.04 The employment of any workman may also be terminated by the Management on reasonable
grounds as listed below, by giving one month’s notice in writing or salary in lieu of the notice.
(a) Insanity, physical deformity, contagious or infectious disease, continuous ill
– health, medical unfitness for employment with the company as declared by
a Medical Practitioner approved by the company.
(b) Declaration as an insolvent.
(c) Conviction by a court of law of any offense involving moral turpitude or any
criminal offence.
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 (d) Loss of confidence.

17.0 TERMINATION OF SERVICE BY THE EMPLOYEE:

17.01 A permanent workman desirous of leaving the company’s service shall give one month’s notice
to the company in writing of his intention to do so. The Management reserves the right to
accept the resignation and also to require the employee to remain in service till a replacement is
appointed. The Management also reserves the right to waive the notice period.
17.02 If the work man fails to give one month’s notice of his intention to leave the service, or, if the
company decides to waive the said notice period, the workman shall be liable to pay the
company one month’s salary in lieu of the notice. The workman shall deposit this amount with
the company before being relieved from service. The Management reserves the right to recover
such amount from the final payment due to the workman, if any.

17.03 A temporary, Probationary, Casual and a apprentice trainee desirous of leaving the company’s
service may do so by giving one week’s notice in writing to the company. The consequences
of not giving this notice period or same as applied to the permanent workman enumerated
above.

17.4.1 No leave of whatever kind due to the credit of the workman shall adjust against the
notice period as required to be given by the workman before leaving the company’s
service.

18.0 CLEARANCE CERTIFICATE:

In all cases of cessation of employment, the concerned workman shall obtain a clearance
certificate from the concerned departments in which he was working testifying that nothing
belonging to the company is due by him. If the workman fails to return any company’s /
factory material / property, the cost of such material / property shall be recovered by deducting
such cost from his wages. Any other money due by him to the company shall also be recovered
from the wages or other amounts payable by the company to the workman.

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19.0 COMPLAINTS AND REDRESSAL:

All complaints arising out of the employment including those relating to unfair treatment or
wrongful execution on the part of the employer or his agent shall be submitted to the manager
or other person specified in this behalf with the right of appeal to the employer.

20.0 SUPERANNUATION / RETIREMENT:

20.1 Any workman who has attained the age of 58 years shall retire from the company’s
service

20.2 Any of the following documents shall be deemed to be satisfactory proof of the age of
an employee at the time of entering the Company’s services.

(a) Birth certificate from competent / statutory authority.

(b) Matriculation or School Leaving Certificate.
(c) Certified extract from the School admission Register.

20.3 In the absence of any proof of age in the option of the registered medical practitioner
shall be conclusive with regards to the age of the workman concerned.

20.4 The age of the workman as recorded in the Company’s records at the time of
appointment, or later in case of already existing workmen, as detailed above shall be
final and no workman is entitled to get the same corrected or altered at any time during
his employment with the company under any circumstances.

21.0 STOPPAGE OF WORK:

21.01 The employee may, at any time, in the event of fire, catastrophe, break down of machinery or
stoppage of power supply, epidemics, civil commotion or other cause beyond his control, stop
any section or any sections of the establishments, wholly or partially for any period or periods
without notice.
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21.02 In the event of such stoppage during working hours, the workmen affected shall be notified by
notices put up on the notice board in the departments concerned. I (and at the office of
employer and at the time keeper’s office, if any) as soon as practicable, when work will be
resumed and whether they are to remain or leave their place of work. The workmen shall not
ordinarily be required to remain for more than two hours after commencement of the stoppage.
If the period of detention does not exceed one hour, the workmen so detained shall not be paid
for the period of detention. If the period of detention exceeds one hour the workmen so
detained shall be entitled to receive wages for the whole of the time during which they are
detained as a result of stoppage. In case of piece rate workers, the average daily earnings for
the previous month shall be taken to be daily wage. No other compensation will be admissible
in case of such stoppages. Whenever practicable reasonable notice shall be given to resumption
of normal work.

21.03 In cases where workmen are laid – off for short period on account of failure of plant or a
temporary curtailment of production. The period of unemployment shall be treated as
compulsory leave either with or without pay, as the case maybe. When, however, workmen
have to be laid-off for an indefinitely long period, the services may be terminated after giving
them due notice or pay in lieu thereof.

21.4.1 The employer may, in the event of a strike, affecting either wholly or partially any
section or department of the establishment, close down either wholly or partially, such
section or department and any other section or department affected by such closing
down. The fact of such closure shall be notified by notices put up on the notice board in
the section or department concerned and in the time – keeper’s office if any, as soon as
practicable. The workmen concerned shall also be notified by a general notice, prior to
resumption of work, as to then work will be resumed

21.5 The company reserves the right that it may at any time for all the or for any of the
reason

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 Enumerated in the above paras layoff or retrench subject to the provisions of the Industrial
dispute act 1947
. For the propose of the eligibility and payment of compensation section –25B, 25C, 25D,
25E,and 25F of the industrial dispute act 1947 shall apply. The workman shall not strike for
work and
21.6 If during any period of 12 months a workman is laid –off for more than 45days, no
compensation is payable for subsequent periods of lay-off after the expiry of the first 45
days.

22.0 LAY-OFF AND RETRENCHMENT:

22.1 The management shall have the rights to lay –off all or any of the workman in the event
of
Shortage or breakdown of power or shortage of raw materials or accumulation stocks or
breakdown of machinery or for any other bonafide reasons whatsoever if it is not possible to
give employment to the workman.
22.2 The compensation payable and the procedure to be followed shall be in accordance with
the provisions of lay-off as laid down under the industrial dispute act 1947, and the
Karnataka rules there under
22.3 The management reserves the right to retrench any workman for bonafide reasons as
enumerated in the industrial disputes act, 1947,and the Karnataka rules there under.

23.0 STRIKE AND LOCKOUT:

23.1 Any workman, whether alone or in combination with another or others shall not strike
work and the management shall not declare lock-out

(a) Without giving 14 days notice to the other party of their intention to do so with reason
thereof

(b) During the pendency of any conciliation officer, board, Labour court or industrial tribunal.
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 23.2 the management shall not declare lock-out in contravention of the provisions of the
relevant provisions of the Industrial dispute act 1947
and the Karnataka rules there under
23.3 The management shall have the absolute right to declare lockout, if in the option of the
company such lockout is warranted.
23.4 The management shall also have the rights to close the down any section, department, a
part of the factory/company at any time for reasons as said down under the industrial
disputes act 1947 and the Karnataka rules the under

24.0 ESSENTIAL SERVICES:

24.01 The following personnel shall be considered as the employees of essential services and there
shall be on duty at all times of emergency, including occurrences of fire, catastrophe, epidemic,
civil commotion, strike, rioting, lock-out, etc., for the good of the company and its employees.
(a) Watch and ward and fire brigade personnel.
(b) Electrical and Mechanical maintenance personnel
(c) Medical and water supply personnel
(d) Telephone operator, Telex Operator
(e) Car/van driver.
(f) Time keeper and cashier

25. NOTICES AND COMMUNICATION TO EMPLOYEES:

25.1.1 Notices to be exhibited given or addressed to the workman, meant for conveying
company’s communication to them shall be in English as well as in local vernacular
language.
25.2 Ordinarily notices for communicating to the employees, as a whole shall be exhibited
on the notice board of the company maintained for such purposes.

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 25.3 Notices or Communication concerning individual workman shall be addressed /served
to the workman concerned as per the procedure in the following paras.
25.4 f the workman is available in the company premises for service of such notice or memo,
the same shall be served on him personally and he shall receive the same.
25.5 If the workman refuses to receive any notices or memo served on him ,the person
serving the notice shall make an endorsement in the said notice or memo, in the presence
of one witness ,with particulars of date ,time and place of refusal of the notice or the memo,
and put his signature and also obtained the signature of the witness .there after a copy of the
said notice / memo shall be exhibited on the notice board .A copy of such notice should
also be sent to the concerned workman by registered post acknowledgment due to his last
known address and this shall be deemed sufficient proof of the notice /memo being served
on him.
25.6 where a workman / employee is not available for service of any notice or memo, it shall
be deemed sufficient service of notice or memo, is sent to his last known address by
registered post acknowledgment due or if a copy of the notice / memo is exhibited on the
notice board.

26.0 DUTIES AND OBLIGATIONS OF EMPLOYEES:

26.01. Every workman / Employee shall devote his full time of work to the company and shall carry
out the job allotted /entrusted to him by his superiors diligently and faithfully to the best of his
ability and observe all the rules and regulations contained herein as well as other instructions
directions stipulations which are or will be issued from time to time by the management.
26.02.Workman shall not enter or pass through departments other than those in which they are
employed, unless doing so is necessary in the course of their duties and they have been
authorized to do so by their superiors
26.03. Workman shall not engage either singly or jointly with other workman or third parties in any
other employment or business directly or indirectly. Likewise workman shall not undertake
any assignment ,employment or business outside their employment ,nor shall they be engaged
in any trade or activity prejudicial to the interests of the company and its business.
26.04 All workmen /employees shall be courteous to their supervisors, colleagues, visitors on official
business and to the company associates.
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26.05 workmen shall not, at any time disclose use or sell to anyone information, know how
Procedures, secretes, plans, etc, of this organization, which workman may acquire during the
course of their employment with the company. They shall treat all such data and information in
strict confidence

26.06 Each workman is responsible for and shall take proper care of all machines, tools instruments,
drawings, documents, or such other materials or property of the company entrusted to him.
Workman shall not take out of the factory /office premises without proper authorization of an
out pass in the prescribed form issued by the management (or a person duly authorized in this
regard) Any machine, tool, instrument, drawing, document or any other material or property of
the company, other employees, suppliers, visitors or any other person associated with the
company. Neither shall they neither conceal nor attempt to conceal any such articles or
materials mentioned above.

26.07 Where the property of the company is in the custody or use of more than one workman, it shall
be deemed to have been entrusted to each one of them jointly and severally. Any loss/ damage
due to malafide intention will attracts strict disciplinary action on those who indulge in such
breakage.

26.08 All workmen shall take all precautions to safeguard the company’s property and to prevent
accident or damage to it. A Workman shall at once report to his superior any defect in the
machinery or equipment or any occurrence which he may notice and which might endanger
himself of any other person in the workplace or which might damage result to the property of
the company, or somebody else. It is the duty of every employee to keep his machine
equipment and place of work clean and tidy.

26.09 Strict observance of all safety instructions including fire precautions and protection is obligatory
on the part of every employee. No employee shall interfere, unless specifically authorized to do
so any safety device or any machine either running or idle. All protective clothing and
appliances provided for the safety of the workman shall be worn by them while on work.

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26.10 Workman working in shifts shall leave the place of work only after their reliever has taken
charge of their duties or otherwise to report to their superior for alternative arrangement in the
interest of uninterrupted working of machinery.

26.11 .If ten or more workmen acting in concert and without giving to the company 14 days notice
and without any reasonable cause absent themselves from work, or being at the spot, refuse to
work or resist to sit in strike, each one of them is liable for deduction of wages equivalent up to
8 days of his wages, in accordance with the provisions of the payment of the wages act 1936.

26.12 . The management reserves the right to call any workman according to exigency of work to work
on his weekly holiday or a declared holiday for which substitute holiday or overtime payment
will be given as per the factories act 1948

26.13. A workman is liable to perform ancillary or incidental to or connected with to his main duties

26.14 Every employee is required to strictly abide by the discipline of the factory. He must not involve
himself or force or cause other to indulge in any acts or activities directly or indirectly which
are prejudicial to the interest of the company or which are subversive of discipline. No
workmen shall defame the company his employer, or any superior officer for any reason
whatsoever.

26.15 No workmen shall publish or cause to be pub lished in any publication any articles written by
him having a bearing on the affairs of the company which directly of indirectly effect the
company, without the written permission of the management.

27.0 MISCONDUCTS:
Without prejudice to the generality of the term “MISCONDUCT” and without being
exhaustive, The following acts of commission on the part of a workman, whether alone or in
combination, shall be treated as misconduct and the employee shall be liable for the
disciplinary action and award of appropriate punishment.

27.1 Insubordination or Disobedience to any of lawful and reasonable orders of a superior.

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27.2 Theft, fraud or misappropriations of company’s fund, dishonesty in connection with the
employers business or property.
27.3 Theft of property of another workman / employee within the premises of the company.
27.4 Willful damage or loss of employer’s goods or property.
27.5 Taking or giving of any illegal gratification.
27.6 Habitual late attendance (i.e. Late attendance on more than 3 occasions in a month)
27.7 Habitual breach of any lawful order or rules or regulation or instructions from employer or a
superior.
27.8 Misbehavior towards customers and visitors
27.9 Riotous and disorderly behavior towards superior’s co-workers during working hours in the
premises of the company or an act subversive of discipline in connection with the work of the
establishment.
27.10 Habitual absence from work without sanction of leaves (i.e. abstaining from work on more than
3 occasions in a month)
27.11 Absence without sanction of leave for more than 8 consecutive days
27.12 Habitual negligence of work.
27.13 Fraudulent repetition of any act or omission attract strict disciplinary action Striking work either
singly or in combination with others or insisting others to strike work, in contravention of the
provision of any law or rule having the forces of law or of any contract including implied
contract of appointment to work.
27.14 Tampering with any records, evidence, threatening with falsifying or refusing to give testimony
when incident or other matters in the company being investigated, or being considered.
27.15 False statement made in the particulars given in his application form for appointment in
connection with any matter connected with the work or business of the company.
27.16 Sleeping while on duty
27.17 Absenting from work –spot without proper authority and permission during working hours.
27.18 Idling away during working hours
27.19 Restoring, participating instigating or abetting to go –slow tactics
27.20 Carrying lethal weapons, Fighting or attempting bodily injury to other employees of the
company
27.21 Drunkenness or conduct, which violates common decency or morality.

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27.22 Assaulting abusing threatening or intimidating, gheraoing any superior or any other employees
of the company. Where inside or outside the factory in connection with the work or business of
the company.
27.23 Cohesion or wrongful confinement of employees
27.24 Playing cards and gambling within the premises
27.25 Smoking or spitting within the premises of the company other than at the place where permitted.
27.26 Refusing to sign a statement or declaration given by himself to the company, or refusing to
receive or acknowledge and notices, memos warning etc, issued by the manager or any superior
27.27 Conviction for any offense by a court of law involving moral turpitude or any criminal offence
27.28 Obtaining approval of leave on false pretext
27.29 Working else where during leave/ absence period or attempting to obtain work elsewhere during
leave or absence period
27.30 Obstructing or preventing or intimidating any person from attending to his normal work in the
company
27.31 Engaging in activities or giving false statements before any person or authority with the
intention to defame the company.
27.32 Refusal to submit himself for search, on suspicion of theft of the company property.
27.33 Collection of any money within the company premises for purposes not authorized by the
management
27.34 Handling any machines or apparatus not entrusted to his charge.
27.35 Unauthorized disclosure to any person of information about the process knows how or any
matter of the company, which may come in the possession or knowledge of employees in the
course of his work.
27.36 Canvassing, canvassing for union membership or for the collection of union funds inside the
premises of the company or during working hours of the company.
27.37 Holding meetings or shouting slogans or leading procession / demonstration inside the premises
of the company or distributing or accepting inside the premises hand bills notices or pasting
posters, inside the premises of the company
27.38 Engaging in private work or trade within the premises of the company
27.39 Refusal to submit for medical examinations when directed by the manager to do so
27.40 Failure to observe safety instructions or interference with any safety device install within the
premises of the company
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27.41 Recording attendance of the other employee or falsifying the records in any manner in respect
of attendance or payment of salary.
27.42 Falsifying or tampering with any official records
27.43 Failure to notify the company of the change of his address
27.44 Refusal to accept any order of transfer or to work in any shift
27.45 Entering the company premises without the permission outside the duty hours
27.46 Remaining within the premises or on official business outside the authorized duty hours
27.47 Unauthorized use of a vehicle of the company
27.48 Doing any act prejudicial to the interest or reputation of the company
27.49 Loitering or leaving place of work without a sufficient or reasonable cause and permission
during duty hours
27.50 Conduct which endangers the lives and safety of other employees
27.51 Willfully allowing any authorized persons to enter the premises of the company
27.52 Deliberate misuse of any concessions or benefits or privilege enforce from time to time
27.53 Trespassing or forcible occupation of the companies land or building
27.54 Threatening or intimidating or abusing or fighting or assaulting or exerting pressure by
surrounding or otherwise any employee of the company or any one else or attempting to do so
within the premises of the company or outside in connection with any matter having any bearing
on the discipline and or work of the company ,interest and the reputation of the company
27.55 Inability /incapacity/inefficiency to perform a job for which the workman was appointed
27.56 Purposeful slowing down of one’s own work or instigating /influencing others to slowdown
work or collectively indulging in slow work lesser production output etc
27.57 Shouting or disrupting the quietness of the factory
27.58 Consuming or in possession of any narcotic drugs
27.59 Possession of any lethal weapons in the company premises
27.60 Participation in any illegal strike
27.61 Collection of any money within the company premises for purposes not authorized by the
management
27.62 Holding meetings or shouting slogans or leading procession /demonstration inside the premises
of the company or distributing or accepting hand bills, notices or pasting posters, inside the
premises of the company without the written permission of the manager.
27.63 Unauthorized divulging to others information regarding the business and affairs of the company.
27.64 Manufacturing or attempting to manufacture unauthorized articles within the factory premises.
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27.65 Poor or unsatisfactory workmanship.
27.66 Making false representations to the management knowing the same to the false.
27.67 Sexual harassment which includes unwelcome sexually determined behavior (whether directly
or by implication) as: -
(a) Physical contact and advances :or
(b) A demand or request for sexual favour: or
(c) Sexually coloured remarks: or
(d) Showing pornography: or
(e) Any other unwelcome physical, verbal or non-verbal conduct of sexual nature.
27.68 Violating any one or more of the provisions of these standing orders
27.69 Attending or attempt at any of the above misconduct
27.70 Insolvency.
27.71 Failure to report to the management of occurrence of contagious or notifiable diseases either to
himself or to anybody in his household
27.72 Cessation from work or absence from work or absence from duty after exhausting the leave at
his credit and the leave applied for without a proper genuine reason has been refused by the
management
27.73 Refusal or failure to wear uniforms /work –dress provided by the company
27.74 Lending or borrowing money from workmen during working hours within the premises
27.75 Failure to report to the management of occurrence of contagious or notifiable diseases either to
himself or to anybody in his household

28.0 PUNISHMENT FOR MISCONDUCT

28.1 The following punishment may be imposed on a workman who is found guilty of misconduct.
28.2 Censure or warning
28.3 Fine subject to the provisions of the payment of wages act
28.4 Strict warning.
28.5 Cancellation or withholding of increment.
28.6 Demotion / reduction to a lower grade or post or scale of wages.
28.7 Suspension for a period not exceeding 4 days without wages

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28.8 Dismissal or discharge from service without notice.as per provision in Industrial Dispute Act
1947 and Karnataka Rules 1957

29.0. PROCEDURE OF DISCIPLINARY ACTION:

29.01 An Order Of punishment including dismissal shall be made only after the workmen concerned
is informed in writing of the alleged misconduct and is given an opportunity to explain the
circumstances alleged against him .For this purpose, the manager or any other person duly
authorized shall issue a charge sheet to the workman concerned clearly setting forth the
allegations and the alleged misconduct .he shall be given a time of at least 48 hours duration
either to furnish his explanation in writing in reply to the charges against him or to appear for
domestic enquiry.
29.02 If the workman admits the alleged misconduct in writing the manager may decide on the kind
of gravity of the misconduct.
29.03 If the explanation given by the workmen is unsatisfactory or on expiry of time limit given to the
employee whichever is earlier .The management shall constitute an enquiry committee
consisting one or more persons. The decision of the management shall be final in appointing a
person / officer as enquiry officer to hold the enquiry.
29.04 An officer /person appointed by the management as presenting officer shall represent the
management and present the case before the enquiry officer.
29.05 The workman shall be informed in writing about the enquiry directing to appear at the enquiry,
given him sufficient time.
29.06 At the time of enquiry, the workman shall be permitted to examine witness in his defense and to
cross examine the witnesses examined on the behalf of the management the witnesses
examined by the workman in his defense are liable to cross-examined by the management.
29.07 At the enquiry the workman shall be given an opportunity of examining the relevant documents,
if any .The workman shall also be permitted if he so desires, to take assistance of a
Co-workman working in the factory at the enquiry. An outsider shall not be allowed to
represent a workman in the enquiry. The evidence led on either side shall be recorded. A copy
of the enquiry proceedings shall be furnished to the concerned workman.
29.08 The enquiry proceedings shall be typed in English script, which the enquiry officer shall
translate and explain in Kannada to the parties present at the enquiry. The tasks / conversation
however shall be in Kannada at the enquiry.
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29.09 After due notice, if the workman refuses or fails to attend the or participate in the enquiry, it may
be conducted ex-parte and orders passed on the available material.
29.10 On conclusion of the enquiry, if the workman has been found guilty of any or all the
charges against him and it is considered that the punishment as provided in the standing orders
would meet the ends of justice the management shall pass an order accordingly.
29.11 The procedure for serving notices or orders to the workman under this clause shall be
same as explained in the clauses under paragraphs 25 and 30
29.12 In awarding the punishment under these rules the management shall take into account the
gravity of the misconduct and at the same time consider the previous record of the workman
and by extenuating or aggravating circumstances if any
30.0 SUSPENSION PENDING ENQUIRY:
30.01 It is here by made clear that the misconducts set out above are not exhaustive but only
illustrative in character and the company shall have the power /right to take cognizance of any
other act having nexus with the companies employment which is ordinarily considered as a
misconduct in industrial employments which or not specifically covered by the above list of
misconducts.
30.02 It is further clarified that the management clarified that the management shall have the power /
right to take disciplinary action against an employee not only in respect of misconducts which
take place within the premises of the company, but also those outside the premises of the
company, but having nexus with the employment of the company or is unbecoming of an
employee of the company
30.3 Any workman who is apprehended while committing or attempting any of the misconducts or
on whom act or acts of misconducts are alleged may be suspended even before the issue of the
charge sheet or suspended from work pending enquiry into the charges alleged against him
30.4 All orders of suspension shall be in writing and signed by the manager or any other officer
authorized in this behalf .The same shall be served to the workman concerned if personally
present or put up on the notice board if absent .In case of his absence or his refusal to accept the
said order may be sent to through registered post acknowledgement due or under certificate of
posting to the last available address of the workman in his personal record.
30.5 The suspension made shall cease to have effect ,in case the workman is dismissed ,discharged or
otherwise terminated from service .It shall also cease to have in case the workman himself
chooses to terminate his employment by either voluntarily abandon service for any other reason
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30.6 If on the conclusion of the enquiry or the criminal proceedings, as the case may be, the
workman has been found guilty of the charges framed against him and a disciplinary action
under clause 28.01 of these standing orders would meet the end of justice, the employer shall
pass an order accordingly. Provided also that when an order to that effect of stoppage of annual
increment or reduction in rank is passed under this clause, the workman shall be deemed to have
been on duty during the period of suspension and shall be entitled to the same wages as he
would have received if he had not been placed under suspension after deduction of the
subsistence allowances paid to him for such period.
30.7 If after enquiry such employee is adjudged guilty of the misconduct alleged against him and is
awarded with suitable disciplinary action under these standing orders the
employee shall be deemed to be absent from duty for the period of suspension and shall not be
entitle to any remuneration for such period and the subsistence allowance already paid to him
shall not be recovered
30.8 If on conclusion of the enquiry the workman has been found to be not guilty of the charge
framed against him he shall be declared to have been on duty during the period of suspension
and shall be entitled to the same wages as he would have receive if he had not been placed
under suspension after deducting the subsistence allowance paid to him for such period
30.9 The subsistence allowance shall be for the first 90 days from the date of suspension equal to one
half basic wages and dearness allowance
30.10 If the enquiry prolongs and the workman continues to be under suspension for a period
exceeding 90 days, the subsistence allowance shall be for prolonged period beyond 90 days be
equal s to three -quarter of such basic wages and dearness allowances
30.11 Provide that where such enquiry is prolonged beyond a period of 90 days for reasons directly
attributed to the workman, the subsistence allowance shall for a period exceeding 90 days be
reduced to one fourth of such basic wages and dearness allowance
30.12 The payment of subsistence allowance under this standing order shall be subject to the workman
not taking up any employment during the period of suspension.

31.0 EXHIBITION OF STANDING ORDERS:

31.01 The copy these orders in English and a regional language which is understood by majority of the
employees shall be posted on a notice board

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31.02 A copy of the standing orders shall be supplied to workmen on application and payment of a
reasonable price.

32.0 INTERPRETATION:
32.01 If there is any conflict of meaning between the English and Kannada version of these standing
orders the English version of these standing orders shall be deemed to be authentic and the
same will prevail

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