THE INDUSTRIAL EMPLOYMENT (STANDING ORDERS) ACT, 1946

INTRODUCTION: The genesis of the Industrial Employment (Standing

Orders) Act, 1946 goes to the year 1944, when the question of framing Standing
Orders were considered by the Sixth Indian Labour Conference. The main
reason for the passage of The Industrial Employment (Standing Orders) Act on
23rd April, 1946, was the feeling that ―experience has shown that ‗Standing
Orders‘ defining the conditions of recruitment, discharge, disciplinary action,
holidays, leave etc., goes a long way towards minimizing friction between the
management and the workers in industrial undertaking‘. This Act came into
force from 1 st April, 1947.

PROVISIONS OF LAW:
The Preamble of the Act clearly says tat the ―Standing Orders shall deal with the
conditions of employment of workers in industrial establishment. It is
obligatory upon all employers covered by this Act to define precisely the
conditions of employment under them which will govern relations between the
employer and the employees and to make the said conditions known to the
workmen employed by them‖
This is a Central Act and as such extends to the whole of India. It applies to (1)
every industrial establishment wherein 100 or more workmen are employed or
(b) wherein 100 or more persons were employed on any day of the preceding 12
months and (c) the establishment of a contractor who employs workmen in order
to fulfill a contract with the owner of n industrial establishment.
The main features of the Act are:-
(a) Defining conditions of employment in industrial establishments and to make
these known to the workmen concerned.
(b) Regulating standards of conduct of employers and emplo yees to improve
workplace relations.
(c) Maintenance of proper discipline and detailing the principles and procedure.
(d) Provisions of grievance redressal arising out of unfair treatment or wrongful
exaction.
(e) Provision for sanctity to standing orders and
(f) Clarifying misconduct.
The Act has 15 sections in all and a schedule.
Section 1 deals with the title and applicability of the Act. Section 2 defines
various terms connected with industrial establishments, such as employer,
workman, Certifying Officers, Appellate Authority, Appropriate Government
Standing Orders etc. Sections 3 casts upon the employer a duty of drafting
within 6 months from the date on which the Act becomes applicable to an
industrial establishment, the Standing Orders and submitting them to the
Certifying Officer. Section 4 says that Standing Orders become certifiable if
every matter is included (as given in the Schedule) and is found by the
Certifying Officer to be in conformity with the provisions of the Act. Section 5
prescribes the procedure to be followed by the Certifying Officer before
certification and the procedure is intended to provide an opportunity to both the
employer and workmen, to be heard before the final order is passed. Section 6
provides for an appeal against the decision of the certifying officer. Section 7
lays down the date from which the Standing Order shall come into operation and
from that date they are binding upon the employer and the employees. Section 8
provides for the maintenance of a Register of all Standing Orders which are
finally certified by the Certifying Officer under the Act. Section 9 provides for
their passing in English and in a language understood by the majority of the
workers on a notice board. Section 10 deals with the duration a nd for the
modification of the Certifying Orders at the instance of either party after they
have been in force for 6 months, or upon an agreement between the employer
and the employee. Section 10 A deals with the payment of subsistence
allowance to the suspended employee pending investigation or inquiry into
complaints or charges of misconduct against him at rates specified in the said
section. Section 11 gives the Certifying Officer and the appellate authorities the
powers of a Civil Court. Section 12 specifies that no oral evidence shall be
admitted in any Court which has the effect of varying or contradicting the
standing orders finally certified. Section 12A states about the application of the
Model Standing Orders, pending certification of the Standing Orders. Section
13 provides for penalties and procedures to enforce them. Section 14 provides
that the employer may specify therein, the acts and omissions which will
constitute misconduct and which entails the employer to take disciplinary action
against an employee. Section 15 confers upon the appropriate government the
power to make rules to carry out the purposes of the Act.
The Schedule to the Act contains 11 items regarding matters to be provided in
the Standing Orders. Clause 1 to 10 specifies several topics in respect of which
the Standing Orders have to make provisions (Refer to Annexure I to this
lesson). Clause 11 authorises the government to make addition of any matter it
thinks necessary to do so.
Annexure I
THE SCHEDULE
[See Sections 2(g) and 3(2)]
Matters to be provided in standing Orders under the Act
1.Clasification of Workment, e.g., whether permanent, temporary, apprentices,
probationers, or badlies.
2. Manner of intimating to workmen periods and hours of work, holidays,
paydays and wage rates.
3. Shift working.
4. Attendance and late coming.
5. Conditions of procedure in applying for, and the authority, which may grant
leave and holidays.
6. Requirement to enter premises by certain gates, and liability to search.
7. Closing and reopening of sections of the industrial establishment, and
temporary stoppages of work and the rights and liabilities of the employer and
workmen arising there from.
8. Termination of employment, and the notice thereof to be given by employer
and workmen.
9. Suspension or dismissal for misconduct, and acts or omissions, which
constitute misconduct.
10. Means of redress for workmen against unfair treatment or wrongful
exactions by the employer or his agents or servants.
11. Any other matter which may be prescribed.