Vous êtes sur la page 1sur 25

GURU GHASIDAS VISHWAVIDYALAYA

(A CENTRAL UNIVERSITY ESTABLISHED BY CENTRAL


UNIVERSITIES ACT, 2009) BILASPUR (C.G.) 495009

SESSION: 2019-2020

DEPARTMENT OF MANAGEMENT STUDIES

M.B.A. THIRD SEMESTER

SUBJECT: “LEGAL FRAMEWORK GOVERNING HUMAN RELATIONS”

TOPIC: “THE INDUSTRIAL EMPLOYMENT (STANDING

ORDERS) ACT, 1946”

SUBMITTED TO: SUBMITTED BY:

MS. HARSHA SAHU SHWETA KHARE


ASST.PROF (ADHOC) SHIVENDRA PANDEY
M.B.A DEPARTMENT

1|Page
ACKNOWLEDGEMENT

I take this opportunity to express my feelings, gratitude and indebtedness

to officials and staffs who have helped me in completing this work. I am

thankful to all who extended the possible help and co-operation to

provide all necessary material and the relevant information to me as

when I needed them. I admit that without their help, I would not have

completed the work. I wish to record my sincerest gratitude to my

respected University professors for their valuable guidance, affectionate

encouragement, unabated inspiration, constructive criticisms, valuable

suggestions and most untiring help at all stages. Acknowledgement is

also due to the writers of standard texts and treaties on the subjects

covered in this volume. Now, I come to my family. I do not have

sufficient words to express my gratitude to my respected mother for her

mental and physical support. It is due to her blessings only that I could

complete this work. I will be failing in my duties if I do not thank my

father, for his cooperation, encouragement and inspiration that

lightened my way throughout. Above all, I am indebted to Almighty

‘God’ who enabled me to complete this work. I pray him to pour success

on my path.
2|Page
CONTENTS

S.NO INDEX PG. NO.

a) Acknowledgement 02

b) Contents 03

c) Introduction 04

d) Aim and Object of the Act 05

e) Scope and Application of the Act 06-07

f) Important definitions 08-09

g) Procedure for Submission of Draft Standing Orders 10

h) Procedure for Certification of Standing Orders 11-12

i) Other Provisions Relating to Standing Orders 14-17

j) Enforcement of the Act 18

k) Miscellaneous 19-21

l) Penalties 22

m) Schedule of the Act 23

n) Conclusion (Summary) 24

o) References (bibliography) 25

3|Page
THE INDUSTRIAL EMPLOYMENT (STANDING
ORDERS) ACT, 1946

Prior to the passing of the Industrial Employment (Standing


Orders) Act, 1946, conditions of employment obtaining in
several industrial establishments were governed by contract
between the employers and their employees. Sometimes these
conditions were reduced to writing.

But in many cases they were not reduced to writing and were
governed by oral agreements. Inevitably in many cases, the
conditions of service were not well-defined and there was
ambiguity or doubt in regard to their nature and scope.

That is why the Legislature took the view that in regard to


industrial establishments to which the Act applies, the
conditions of employment subject to which industrial labor is
employed should be well-defined and precisely known to both
the parties.

With this object, the Act has made relevant provisions for
making Standing Orders which, after they are certified,
constitute the statutory terms of employment between the
industrial establishments in question and their employees.

4|Page
AIM & OBJECTIVE OF THE ACT

The object of the Act is “to require employers in industrial


establishments to define with sufficient precision the conditions of
employment under them and to make the said conditions known to
workmen employed by them” (Preamble to the Act).

 The Conditions of Employment and Standing Orders: Conditions of


employment include, inter alia, the conditions of recruitment,
discharge, disciplinary action, holidays of the workmen employed in
industrial establishments, etc. The object of defining the conditions of
employment is to avoid disputes arising from uncertainty and
vagueness in the terms of employment. The rules made in this regard
are known as standing orders.

 The formal declaration of the terms and conditions of employment:


The Act was passed in 1946 and its main object is to require the
employers in industrial establishments, to which the Act applies, to
define formally the terms and conditions of employment in their
establishments. In imposing this obligation on the employers, the Act
intends that the terms and conditions of industrial employment should
be well-defined and should be known to the employees before they
accept the employment. Another object of the Act is to introduce
uniformity of terms and conditions of employment in respect of
workmen belonging to the same category and discharging the same or
similar work under an industrial establishment.
5|Page
SCOPE & APPLICATION OF THE ACT

The Act Extends To the Whole of India [SEC. 1 (2): It


applies to every industrial establishment wherein 100 or more
workmen are employed, or were employed on any day of the
preceding 12 months. The appropriate Government may also,
after giving not less than two months’ notice of its intention so
to do, by notification in the Official Gazette, apply the
provisions of the Act to any industrial establishment employing
such number of persons less than 100 as may be specified in the
notification [Sec. 1 (3)].

Once the Act becomes applicable to an industrial establishment,


it does not cease to apply on account of fall in the number of
workmen in that establishment below 100.

The Act does not apply to—

a) Any industry to which the provisions of the Bombay


Industrial Relations Act, 1946 apply; OR

b) Any industrial establishment to which the provisions of the


Madhya Pradesh Industrial Employment (Standing Orders)
Act, 1961 apply. But notwithstanding anything contained

6|Page
in the Madhya Pradesh Industrial Employment (Standing
Orders) Act, 1961, the provisions of the Act shall apply to
all industrial establishments under the control of the
Central Government [Sec. 1 (4)].

Act Not to Apply to Certain Industrial Establishments


[SEC.13-B]: The Act does not apply to an industrial
establishment in so far as the workmen employed therein are
persons to whom the following rules apply, viz.

a) The Fundamental and Supplementary Rules,


b) The Civil Services (classification, control & appeal)
Rules,
c) The Civil Services (Temporary Service) Rules,
d) The Revised Leave Rules, The Civil Service
Regulations,
e) The Civilians in Defense Service (classification, control
& Appeal) Rules,
f) The Indian Railway Establishment Code, or
g) Any other rules or regulations that may be notified in
this behalf by the appropriate Government in the
Official Gazette.

The latest amendment to the Act was made in 1982.

7|Page
IMPORTANT DEFINITIONS

a. Appellate Authority [Sec. 2 (A)]: It means an authority appointed


by the appropriate Government by notification in the Official Gazette
to exercise the functions of an appellate authority under the Act. The
area of the appellate authority may be specified in the notification.
But in relation to an appeal pending before an Industrial Court or
other authority immediately before the commencement of the
Industrial Employment (Standing Orders) (Amendment) Act, 1963,
that Court or authority shall deemed to be the appellate authority.

b. Industrial establishment [sec. 2 (e)]: It Means: An industrial


establishment as defined in Sec. 2 of, The Payment of Wages Act,
1936, or A factory as defined in Sec. 2 (m) of Factories Act, 1948, A
railway as defined in Sec. 2 (39) of the Railways Act, 1989, The
establishment of a person who, for the purpose of fulfilling a contract
with the owner of any industrial establishment, employs

c. Employer [Sec. 2 (D)]: ‘Employer’ means the owner of an


industrial establishment to which this Act for the time being applies,
and includes— a) In a factory, any person named under Sec. 7 (1) (f)
of the Factories Act, 1948, as manager of the factory; b) In any
industrial establishment under the control of any department of any
Government in India, the Authority appointed by such Government in

8|Page
this behalf, or where no authority is so appointed, the head of the
department; and In any other industrial establishment, any person
responsible to the owner for the supervision and control of the
industrial establishment.

d. Appropriate Government [Sec. 2 (B)]: It means in respect of


industrial establishments under the control of the Central Government
or a railway administration or in a major port, mine or oilfield, the
Central Government. In all other cases, appropriate Government
means the State Government.

e. Certifying officer [sec. 2 (c)]: ‘Certifying Officer’ means a Labor


Commissioner, or a Regional Labor 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 the Act.

f. Wages and workman [sec. 2 (i)]: ‘Wages’ and ‘workman’ have


the meanings respectively assigned to them in Sec. 2 (rr) and Sec. 2
(s) of the Industrial Disputes Act, 1947.

g. Standing orders [sec. 2 (g)]: The term ‘standing orders’ means


rules relating to matters set out in schedule to the act.

h. Trade union [sec. 2 (h)]: it means a trade union for the time being
registered under the Trade Unions Act, 1926.
9|Page
PROCEDURE FOR SUBMISSION OF DRAFT
STANDING ORDERS (SEC. 3)

Within six months of the application of the Act to an industrial


establishment, the employer shall submit to the Certifying Officer five
copies of the draft standing orders proposed by him for adoption in
his industrial establishment. Such draft standing orders shall cover
every matter set out in the Schedule to the Act which may be
applicable to the industrial establishment. Where model standing
orders have been prescribed, the standing orders shall be, so far as is
practicable, in conformity with such model.

Standing orders to be accompanied by particulars of


workmen: The draft standing orders submitted under Sec. 3
shall be accompanied by a statement giving prescribed
particulars of the workmen employed in the industrial
establishment. They shall also give the name of the trade union,
if any, to which the workmen belong.

Employers in similar establishments may submit a joint


draft: for the convenience of a group of employers in similar
industrial establishments, they may submit a joint draft of
standing orders under Sec. 3. But this is subject to the conditions
as may be prescribed.
10 | P a g e
PROCEDURE FOR CERTIFICATION OF
STANDING ORDERS (SEC. 5)

Stage I:
Copy of Draft Standing Orders to Be Sent To Trade
Union or Workmen: Receipt of the draft standing orders
under Sec. 3, the Certifying Officer shall forward a copy thereof
to the trade union, if any, of the workmen. Where there is no
trade union, the copy of the draft standing orders shall be sent to
the workmen in such manner as may be prescribed. The
Certifying Officer will also send along with a copy of the draft
notice in the prescribed form requiring objections, if any, which
the workmen may desire to, make in draft standing orders. The
objections shall be submitted to him within 15 days from the
receipt of the notice.

Stage II:
Opportunity of Hearing to Trade Union or Workmen to
Be Provided: The Certifying Officer shall give an opportunity
to the employer and the trade union or such other representatives
of the workmen as may be prescribed of being heard if any
modification or addition to standing orders is to be made. After

11 | P a g e
this formality is over he shall decide whether or not any
modification or addition to the draft submitted by the employer
is necessary to render the draft standing orders certifiable under
this Act, and shall make an order in writing accordingly.

Stage III:
Certification: The Certifying Officer shall thereupon certify
the draft standing orders with the modifications, if any. He shall
then within seven days send copies of the certified standing
orders authenticated in the prescribed manner to employer the
trade union or other prescribed representatives of the workmen.

Conditions for Certification of Standing Orders (Sec. 4)

In certifying the standing orders, the Certifying Officer shall see the
conditions as laid down in Sec.4 are complied with. According to Sec
4, standing orders shall be certifiable under the Act if—

a. Provision is made therein for every matter set out in the


Schedule which is applicable to the industrial establishment,

b. The standing orders are otherwise in conformity with the


provisions of the Act. It is the function of the Certifying Officer
or appellate authority to adjudicate upon the fairness or
reasonableness of the provision of any standing order.
12 | P a g e
APPEALS (SEC. 6)

Any employer, workman, trade union or other


prescribed representatives of the workmen aggrieved
by the order of the Certifying Officer may, within 30
days from the date on which copies are sent under Sec.
5 (3), appeal to the appellate authority. The appellate
authority shall by order in writing confirm the standing
orders either in the form certified by the Certifying
Officer or after amending the said standing orders. It
may amend the standing orders by making such
modifications thereof or additions thereto as it think
necessary to render the standing orders certifiable
under the Act. The decision of the appellate authority
shall be final.

Further, Sec. 6 lies down that the appellate authority


shall, within seven days of its order, send copies
thereof to the Certifying Officer, to the employer and to
the trade union or other prescribed representatives of
the workmen. The order shall be accompanied by the
copies of the standing orders as certified by it and
authenticated in the prescribed manner.

13 | P a g e
OTHER PROVISIONS RELATING TO
STANDING ORDERS

Date of Operation of Standing Orders (SEC. 7):

Standing orders shall, unless an appeal is preferred, come into


operation on the expiry of 30 days from the date on which
authenticated copies thereof are sent under Sec. 5 (3). Where an
appeal is preferred, standing orders shall come into operation on
the expiry of seven days from date on which copies of order of
appellate authority are sent under Sec.6 (2).

Register of Standing Orders (SEC. 8):

A copy of all standing orders as finally certified under the Act


shall be filed by the Certifying Officer in a register in the
prescribed form maintained for the purpose. The Certifying
Officer shall furnish a copy thereof to any person applying
therefore on payment of the prescribed fee.

Posting of Standing Orders (SEC. 9):

The text of the standing orders as finally certified under the Act
shall be prominently displayed by the employer in English and

14 | P a g e
in the language understood by the majority of his workmen. The
display shall be on special boards to be maintained for the
purpose—

a. At or near the entrance through which the majority of the


workmen enter the industrial establishment, and

b. In all departments thereof where the workmen are


employed.

Duration And Modification Of Standing Orders


(SEC.10):

Standing orders finally certified under the 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.

Any employer, workman, trade union or other representative


body of workmen, may apply to the Certifying Officer to have
the standing orders modified. Such an application shall be
accompanied by five copies of the modifications proposed to be
made. Where modifications are proposed to be made by
agreement between the employer and the workmen or a trade

15 | P a g e
union or other representative body of the workmen, a certified
copy of that agreement shall be filed along with application.

The provisions as contained in Sec’s- 3 to 9 of the Act shall


apply in respect of an application under Sec. 10 as they apply to
the certification of the first standing orders.

The provisions as contained in Sec. 10 shall not apply to an


industrial establishment in respect of which the appropriate
Government is the Government of State of Gujarat or the
Government of the State of Maharashtra.

Payment of Subsistence Allowance (SEC. 10-A)

i. Subsistence allowance at 50/75%: Sec. 10-A makes


provision for payment of subsistence allowance by an
employer to a workman who has been suspended by the
employer pending investigation or inquiry into complaints 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

16 | P a g e
 At the rate of 75%, 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.

ii. Dispute regarding subsistence allowance to be


referred to Labor Court: If any dispute arises regarding
the subsistence allowance payable to a workman, the
workman or the employer concerned may refer the dispute to
the Labor Court, constituted under the Industrial Disputes Act,
1947, within the local limits of whose jurisdiction the
industrial establishment wherein such workman is employed
is situated. The Labor 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.

iii. If subsistence allowance more beneficial under any


other law, provisions of that law to apply: Where
provisions relating to payment of subsistence allowance under
any other law for time being in force in any State are more
beneficial than the provisions of Sec. 10-A, provisions of such
other law shall be applicable to payment of subsistence
allowance in that State.

17 | P a g e
ENFORCEMENT OF THE ACT

Powers of certifying officers and appellate authorities (sec. 11):

Powers of Civil Court: Every Certifying Officer and


appellate authority shall have all the powers of Civil Court for
the purposes of—receiving evidence, administering oaths,
enforcing attendance of witnesses, and Compelling the
discovery and production of documents. Every Certifying
Officer and appellate authority shall be deemed to be a Civil
Court within the meaning of Secs.345 and 346 of the Code of
Criminal Procedure, 1973.

Correction of the clerical or arithmetical mistakes:


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: No oral evidence having effect of addition to


or otherwise varying or contradicting standing orders finally
certified under Act shall admitted in any Court (Sec. 12).

18 | P a g e
MISCELLANEOUS

Temporary application of Model Standing Orders


(Sec. 12-A): When the Act becomes applicable to an
industrial establishment for the first time, till the standing
orders as finally certified under the Act come into
operation under Sec. 7 in that establishment, the
prescribed model standing orders shall be deemed to be
adopted in that establishment.

The provisions of Sec. 12-A (1) shall not apply to an


industrial establishment in respect of which the
appropriate Government is the Government of the State
of Gujarat or the Government of the State of
Maharashtra.

Interpretation of Standing Orders (Sec. 13-A):


Sometimes a question may arise as to the application or
interpretation of a standing order certified under the Act.
In such case any employer, workman, trade union or
other representative body of workmen may refer the
question to any one of Labor Courts constituted under
Industrial Disputes Act, 1947 specified for disposal of

19 | P a g e
such proceedings by appropriate Government by
notification in Official Gazette. The Labor Court to which
the question is so referred shall, after giving the parties
the opportunity of being heard, decide the question. The
decision of Labor Court shall be final and binding on the
parties.

Delegation of powers (Sec. 14-A): The matters in


relation to which the powers are delegated and the
conditions under which such delegation is made shall be
specified in the direction. The appropriate Government
may, be notification in the Official Gazette, direct that
any power exercisable by it shall be exercisable also—

 Where the appropriate Government is the Central


Government, by such officer or authority
subordinate to the Central Government or by the
State Government or by such officer or authority
subordinate to the State Government, as may be
specified in the notification;

 Where the appropriate Government is a State


Government, by such officer or authority
subordinate to the State Government as may be
specified in the notification.

20 | P a g e
Rules to be laid before Parliament: Every rule made
by the Central Government under Sec. 15 shall be laid as
soon as may be after it is made, before each House of
Parliament while it is in session for a total period of 30
days. This period of 30 days may be comprised in one
session or in two or more successive sessions. If both the
Houses agree in making any modification in the rule, the
rule shall thereafter have effect only in such modified
form. If both the Houses agree that the rule should not be
made, the rule shall thereafter be of no effect. However,
any such modification or annulment shall be without
prejudice to the validity of anything previously done
under that rule.

Power to exempt (Sec. 14): The appropriate


Government may, by notification in the Official Gazette,
exempt, conditionally or unconditionally, any industrial
establishment or class of industrial establishments, from
all or any of the provisions of the Act.

Power to make rules (Sec. 15): The appropriate


Government may, after previous publication, and by
notification in Official Gazette, make rules to carry out
the purposes of the Act.

21 | P a g e
PENALTIES

An employer who fails to submit draft standing orders as


required by Sec. 3 or who modifies the standing orders
otherwise than in accordance with Sec. 10, shall be punishable
with fine which may extend to `5,000. In the case of a
continuing offence, he shall be punishable with a further fine
which may extend to `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 the Act for his industrial
establishment shall be punishable with fine which may extend to
`100. In the case of a continuing offence, he shall be punishable
with a further fine which may extend to `25 for every day after
the first during which the offence continues.

Prosecution for an offence punishable under Sec. 13 shall not be


instituted except with the previous sanction of the appropriate
Government. No Court inferior to that of a Presidency
Magistrate or Magistrate of the Second Class shall try any
offence under Sec. 13.

22 | P a g e
SCHEDULE OF THE ACT

“Matters to Be Provided In Standing Orders under This Act”

a. Classification of workmen, e.g., whether permanent,


temporary, apprentices, probationers, Or BADLIS.
b. Manner of intimating to workmen periods and
hours of work, holidays, pay-days and wage rates.
c. Shift working.
d. Attendance and late coming
e. Conditions of, procedure in applying for, and the
authority which may grant leave and holidays
f. Requirement to enter premises by certain gates, a
liability to search
g. Closing and reporting of sections of the industrial
establishment, temporary stoppages of work and the
rights and liabilities of the employer and workmen
arising there from
h. Termination of employment, and the notice thereof
to be given by employer and workmen
i. Suspension or dismissal for misconduct, and acts or
omissions which constitute misconduct
j. Means of redress for workmen against unfair
treatment or wrongful exactions by the employer or
his agents or servants
k. Any other matter which may be prescribed

23 | P a g e
CONCLUSION

In case of permanent employment, the Management has a grievance that,

it does not have a free hand to hire and fire. In case of contract jobs the

workers have a grievance that the pay and working conditions are poor.

The fixed term employment proposes a compromise between permanent

employment and contract jobs. Skilled and highly skilled workers will be

immensely benefited by the fixed term employment as they are always on

demand. But the unskilled and semiskilled workers are vulnerable to

unfair practices by the employer. The government should take care of them

using its law enforcement machinery. For the industries involved in

seasonal production and for those firms who are engaged in project based

assignments, fixed tem employment would be very beneficial. But the Small

and Medium Enterprises who operate at thin profits would not prefer the

fixed term workmen. They would rather continue with contract workmen

who are available for lesser wages and benefits. Further how the state

governments take forward this initiative by bringing changes in their state

rules is to be waited and watched. To conclude, if implemented by the

employer ethically, the Fixed Term Employment will satisfy all

stakeholders and provide competitive advantage to the Indian Industry.


24 | P a g e
REFERENCES

N. D. KAPOOR’S ---- {Elements Of Mercantile Law}


‘The Industrial Employment (Standing Orders) Act, 1946’

The Industrial Employment (Standing Orders) Central


Rules, 1946 [3]. The Industrial Employment (Standing
Orders) Central (Amendment) Rules, 2018

ETHURAM,S, An Empirical Study on Employment and


Wage Structure prevailing in Printing Industry
International Journal of Printing, Packaging & Allied
Sciences, December 2016, Vol.4, No.2, pp.1169-1174.

MARIYAALEKSYNSKA and Angelika Muller, „Nothing


more permanent than temporary Understanding fixed-term
contracts‟, in work and Governance Policy Brief No. 6,
International Labor Office, Geneva, March 2015.

25 | P a g e

Vous aimerez peut-être aussi