The Industrial Employmnet (Standing Orders) Act, 1946
π The Industrial Employment (Standing Orders) Act, 1946
1. Introduction
The Industrial Employment (Standing Orders) Act, 1946 was enacted to require employers in industrial establishments to clearly define the terms and conditions of employment.
Before this Act, conditions of service were often uncertain, unwritten, and arbitrary, leading to frequent disputes between employers and workers.
2. Objective of the Act
To bring uniformity and fairness in employment conditions
To require employers to define with precision the service conditions
To reduce industrial disputes arising out of ambiguous or unfair labor practices
To promote transparency and accountability in industrial employment
3. Scope and Applicability
Applies to all industrial establishments with 100 or more workers (can be reduced to 50 by state government notification).
Applies to both public and private sector industrial undertakings.
Excludes those already covered under other similar standing orders or agreements approved by appropriate authorities.
π§Ύ Key Provisions of the Act
Section 2 β Definitions
Important terms:
Standing Orders: Rules related to matters like classification of workers, holidays, working hours, leave, termination, etc.
Certifying Officer: A Labour Commissioner or Regional Labour Commissioner authorized to certify standing orders.
Section 3 β Submission of Draft Standing Orders
Employer must submit draft standing orders to the Certifying Officer within 6 months of the Act becoming applicable.
The draft must cover all matters listed in the Schedule to the Act, such as:
Classification of workmen
Work hours, holidays, shifts
Conditions of leave
Termination, suspension, misconduct, etc.
Section 4 β Certification of Standing Orders
Certifying Officer checks if the draft:
Covers all necessary matters
Is fair and reasonable
Workers (through union or representatives) can file objections.
Certifying Officer can modify or approve the draft and issue certified standing orders.
Section 5 β Appeals
Either the employer or the workers can appeal the decision to the Appellate Authority within 30 days.
Section 6 β Date of Operation
Certified standing orders come into operation after 30 days of certification (or after appellate order).
Section 7 β Posting of Standing Orders
The employer must display the certified standing orders in English and the local language on notice boards at or near the main entrance.
Section 8 β Register of Standing Orders
A register of all certified standing orders is maintained by the Certifying Officer.
Section 9 β Duration and Modification
Standing orders remain in force for 6 months and continue unless modified.
Modification allowed only after 6 months, with proper procedure.
Section 13 β Penalties
Penalty for failure to submit or follow standing orders: Fine up to βΉ5000, and βΉ200 per day for continuing offence.
βοΈ Key Case Laws on the Standing Orders Act
1. Bangalore Woollen, Cotton and Silk Mills Co. Ltd. v. B.D. Bajpai (AIR 1955 SC 568)
Facts: An employee was dismissed under company rules which were not part of certified standing orders.
Held: The Supreme Court held that only the certified standing orders are binding, and any other service rules not forming part of them cannot be enforced.
β Principle: The employer cannot act outside the certified standing orders. No parallel or private rules are valid.
2. Western India Match Company Ltd. v. Workmen (AIR 1973 SC 2650)
Issue: Whether matters not covered under standing orders can be dealt with under other agreements or rules.
Held: Certified standing orders are statutorily binding, and matters not covered can be governed by industrial agreements or contractual terms, provided they do not contradict the standing orders.
β Principle: Certified standing orders prevail, but contractual terms can supplement them when there's no conflict.
3. Air Gases Mazdoor Sangh v. Indian Air Gases Ltd. (1999 SC)
Held: If an act of misconduct is not listed in the certified standing orders, the employer cannot punish an employee for that act.
β Principle: Misconducts must be specifically mentioned in standing orders to attract disciplinary action.
4. Glaxo Laboratories (I) Ltd. v. Labour Court, Meerut (1984)
Held: Standing orders become statutorily imposed conditions of service, and cannot be unilaterally changed by either employer or employee.
β Principle: Standing orders are law between the parties, and compliance is mandatory.
π Matters to Be Covered in Standing Orders (Schedule of the Act)
Classification of workmen (permanent, temporary, apprentice, etc.)
Working hours and shifts
Attendance and late coming
Leave and holidays
Entry, exit, and gate timings
Conditions for suspension or dismissal
Misconduct and penalties
Termination of employment
Grievance redressal
βοΈ Role of the Certifying Officer
Acts as a quasi-judicial authority
Balances the interests of employer and employee
Can hold hearings, call witnesses, and decide on fairness
Final authority unless appealed to the Appellate Authority
β Legal Impact of the Act
Standing orders have statutory force
Binding on both employer and workmen
Provides legal clarity and reduces disputes
Prevents arbitrary actions by management
Allows workers to know their rights and obligations
π§ Key Principles from the Act
Certainty over employment terms
Due process in disciplinary actions
Legal recognition of service conditions
Fairness in employment policies
Limitation on employer's discretion
π Conclusion
The Industrial Employment (Standing Orders) Act, 1946 is a progressive labor law that seeks to ensure transparency, fairness, and accountability in industrial employment. By requiring employers to define and certify standing orders, it reduces ambiguity in service conditions and acts as a safeguard against arbitrary actions.
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