Question and answer on THE INDUSTRIAL EMPLOYMENT (STANDING ORDERS) ACT, 1946
THE
INDUSTRIAL EMPLOYMENT (STANDING ORDERS) ACT, 1946 ACT NO. 20 OF 19461 [23rd
April, 1946.][i]
Q. 1 (a) Discuss the reasons and objects of the Industrial Employment (Standing Orders)Act 1946?
Object
of the Act
(A) An
Act to require employers in industrial establishments formally to define
conditions of employment under them. The first objective
states that the act is to provide regular standing orders for factories,
workers and the main professional or working relationship.[ii]
(B (B) it
is expedient to require employers in industrial establishments to define with
sufficient precision the conditions of employment under them and the second aim is to ensure that all employees
recognize their employment terms and conditions they are expected to follow or
adhere to. This is to help minimize the exploitation of workers against their
will and knowledge.
(C (C) make
the said conditions known to workmen employed by them;
The third objective states that it also supports the promotion of industrial
peace and harmony by supporting fair industrial practices.[iii]
In an earlier era, India didn’t really
have as many laws connected with suitable employment and labour practices, as
it does now. As a result, workers did not have uniformity in their service
conditions as enforced by the standing orders act. This lead to a lot of
disruptions, friction and productivity loss between these workers and their
bosses – and this was seen mostly in the industrial undertakings involving
heavy workloads and multiple employees. Here, in Standing Order Act
topic, we take a closer look at every clause, various aspects of
this act.
The Industrial Employment (Standing orders) Act, was introduced for the
employers in industrial establishments to ensure the employment conditions
under the establishments. Standing Orders states the laws which govern the
relationship between the employer and a workman in an industrial establishment
with includes the elements such as classification of workers, working hours,
attendance, suspension, termination etc.[iv]
Introduction
The Labour Committee 1944- 1946 was
created and they immediately spotted the key cause of issues. There was a lack
of understanding, on part of the employees, about employment conditions. This the committee maintained that the workers had a right to know all terms and
conditions related to their work and employment.
They even wanted a distinct central law
that made it obligatory for employers to frame and approve an employment
conditions and get them enforceable by law. The Industrial Employment (Standing
Order) Act 1946 and this order act lists out laws governing the contract as
devised, duly signed and eventually terminated by either party.
Application
of The act
Section
1. Short title, extent and application.—(1) This Act may be
called the Industrial Employment (Standing Orders) Act, 1946.[v]
(2) It
extends to [the whole of India ].
(3) It applies to every industrial establishment
wherein
(a) one hundred or more workmen are employed,
(b) or were employed on any day of the preceding
twelve months:
Provided that the appropriate Government may, after
giving not less than two months’ notice of its intention so to do, by
notification in the Official Gazette, apply the provisions of this Act to any
industrial establishment employing such number of persons less than one hundred
as may be specified in the notification.
Q 1 (c) Can any industrial establishment be exempted from the preview of the Industrial Employment (Standing Orders)Act 1946?
Q1 (d) In which industrial establishment the Industrial Employment (Standing Orders)Act 1946 does not apply?
Exempted
Industries
[(4) Nothing
in this Act shall apply to —
(i) any industry to which the provisions of Chapter
VII of the Bombay Industrial Relations Act, 1946 (Bombay Act 11 of 1947) apply;
or
(ii) any industrial establishment to which the
provisions of the Madhya Pradesh Industrial Employment (Standing Orders) Act,
1961 (Madhya Pradesh Act 26 of 1961) apply: Provided that notwithstanding
anything contained in the Madhya Pradesh Industrial Employment (Standing
Orders) Act, 1961 (Madhya Pradesh Act 26 of 1961), the provisions of this Act
shall apply to all industrial establishments under the control of the Central
Government.]
Section
13B. provides that the Act not to apply to certain industrial establishments.—Nothing
in this Act shall apply to an industrial establishment in so far as the workmen
employed therein are persons to whom the
(i)
Fundamental and Supplementary Rules,
(ii)
Civil Services (Classification,
Control and Appeal) Rules,
(iii)
Civil Services (Temporary Services) Rules,
Revised Leave Rules,
(iv)
Civil Service Regulations,
(v)
Civilians in Defence Service (Classification,
Control and Appeal) Rules or the
(vi)
Indian Railway Establishment Code or any other
rules or regulations that may be notified in this behalf by the appropriate
Government in the Official Gazette, apply.] [vi]
Section
14. Power to exempt.—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 this Act.
Definitions
Section
2. Interpretation.—In
this Act, unless there is anything repugnant in the subject or context,—
[(a)
“appellate authority” means an authority appointed by the appropriate
Government by notification in the Official Gazette to exercise in such area as
may be specified in the notification the functions of an appellate authority
under this Act:
Provided that
in relation to an appeal pending before an Industrial Court or other authority
immediately before the commencement of the Industrial Employment (Standing
Orders) Amendment Act, 1963 (39 of 1963), that court or authority shall be
deemed to be the appellate authority;]
(b) “appropriate Government” means in respect of
industrial establishments under the control of the Central Government or a [Railway
administration] or in a major port, mine or oil-field, the Central Government,
and in all
other cases, the State Government:
[Provided
that where any question arises as to whether any industrial establishment is
under the control of the Central Government, that Government may, either on a
reference made to it by the employer or the workman or a trade union or other
representative body of the workmen, or on its own motion and after giving the
parties an opportunity of being heard, decide the question and such decision
shall be final and binding on the parties;]
Q1 (e) who can be appointed as certifying officer?
[(c) “Certifying Officer” means
(a) a Labour Commissioner or
(b) a Regional Labour Commissioner,
(c) and includes any other officer appointed by the
appropriate Government, by notification in the Official Gazette, to perform all
or any of the functions of a Certifying Officer under this Act;]
Q 1 (f) Define the term employers?
(d) “employer”
means the owner of an industrial establishment to which this Act for the time
being applies, and includes —
(i) in a factory, any person named under 5 [clause
(f) of sub-section (1) of section 7, of the Factories Act, 1948 (63 of 1948)],
as manager of the factory;
(ii) in any
industrial establishment under the control of any department of any Government
in India, the authority appointed by such Government in this behalf, or where
no authority is so appointed, the head of the department;
(iii) in any
other industrial establishment, any person responsible to the owner for the
supervision and control of the industrial establishment;
Q 1 (g) Define the term Industrial establishment?
(e) “industrial
establishment” means—
(i) an
industrial establishment as defined in clause
(ii) of
section 2 of the Payment of Wages Act, 1936 (4 of 1936), or
[(ii) a
factory as defined in clause (m) of section 2 of the Factories Act, 1948 (63 of
1948), or]
(iii) a railway as defined in clause (4) of section
2 of the Indian Railways Act; 1890 (9 of 1890), or
(iv) the establishment of a person who, for the
purpose of fulfilling a contract with the owner of any industrial
establishment, employs workmen;
(f) “prescribed”
means prescribed by rules made by the appropriate Government under this Act;
(g) “standing orders” means rules relating to
matters set out in the Schedule;
(h) “trade union” means a trade union for
the time being registered under the Indian Trade Unions Act, 1926 (16 of 1926);
[(i) “wages”
and “workman” have the meanings respectively assigned to them in clauses
(rr) and (s) of section 2 of the Industrial Disputes Act, 1947 (14 of 1947).]
Q 1 (h) What is the procedure for the submission of draft Standing order?
Rule relating to Submission of Standing order
(1(1) Section
3. provides the procedure for Submission of
draft standing orders.—
Duties
of Employer
(1) Within six months from the date on which this
Act becomes applicable 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.
(2) Provision
shall be made in such draft for every matter set out in the Schedule which may
be applicable to the industrial establishment, and where model standing orders
have been prescribed, shall be, so far as is practicable, in conformity with
such model.
(3) The draft standing orders submitted under this
section shall be accompanied by a statement giving prescribed particulars of
the workmen employed in the industrial establishment including the name of the
trade union, if any, to which they belong.
(4) Subject to such conditions as may be prescribed,
a group of employers in similar industrial establishments may submit a joint
draft of standing orders under this section.
(2)
Section 9. Posting of standing orders.—The text of the
standing orders as finally certified under this Act shall be
(a) prominently posted by the employer in English
and in the language understood by the majority of his workmen
(b) on special boards to be maintained for the
purpose at or near the entrance through which the majority of the workmen enter
the industrial establishment and in all departments thereof where the workmen
are employed.
Conditions
precedence for certification of Standing order
Section
4.
Conditions for certification of standing orders.—Standing orders shall be certifiable
under this Act if—
(a) provision
is made therein for every matter set out in the Schedule which is applicable to
the industrial establishment, For example rules relating to
(i)
procedure for the appointment of worker
(ii)
Classification of worker (regular worker,
temporary workers, casual workers, probationers, apprentice etc.)
(iii)
Wages and mode of payment of wages.
(iv)
Leave – casual leave, leave with pay
etc.
(v)
Promotion and trainings.
(vi)
Shift of workers.
(vii)
Working hour of worker and over time.
(viii)
Attendance and late coming.
(ix)
Penalties (major and minor penalties)
(x)
Disciplinary actions.
(xi)
Suspension.
(xii)
Superannuation & Termination of
employment
(xiii)
Standing order should be followed in
practice and in case of any dispute the certifying officer or appellate
authority has been empowered to adjudicate of the issue.
And (b) the
standing orders are otherwise in conformity with the provisions of this Act;
and it [shall be the function] of the
Certifying Officer or appellate authority to adjudicate upon the fairness or
reasonableness of the provisions of any standing orders.
THE
SCHEDULE
[See
sections 2(g) and 3(2)]
MATTERS
TO BE PROVIDED IN STANDING ORDER UNDER THIS ACT
1. Classification of
workmen, e.g., whether permanent, temporary, apprentices, probationers, or
badlis.
2. Manner of intimating
to workmen periods and hours of work, holidays, pay-days 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 re-opening of sections of the
industrial establishment, and temporary stoppages of work and the rights and
liabilities of the employer and workmen arising therefrom.
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
Q1 (I) State the law relating to certification of standing order?
Power
& Duties of Certifying officer
( 1)
Section
5. Certification of standing orders.—
Step-(1)
On receipt of the draft under section 3, the Certifying Officer shall forward a
copy thereof to the
(a (a) trade
union, if any, of the workmen,
(b) or where there is no such trade union, to the
workmen in such manner as may be prescribed,
together with a notice in the prescribed form
requiring objections, if any, which the workmen may desire to make to the draft
standing orders to be submitted to him within fifteen days from the receipt of
the notice.
Step- (2) After giving the employer and the trade
union or such other representatives of the workmen as may be prescribed an
opportunity of being heard, the Certifying Officer shall decide whether or not
any modification of 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.
Step-(3) The
Certifying Officer shall thereupon certify the draft standing orders, after
making any modifications therein which his order under sub-section (2) may
require, and shall within seven days thereafter send copies of the certified
standing orders authenticated in the prescribed manner and of his order under
sub-section (2) to the employer and to the trade union or other prescribed
representatives of the workmen. [vii]
(2)
Section 8. Register of standing orders.—A copy of all
standing orders as finally certified under this Act shall be filed by the
Certifying Officer
(a) in a register in the prescribed form
maintained for the purpose,
( (b) and
the Certifying Officer shall furnish a copy thereof to any person applying
therefore on payment of the prescribed fee.
(3)Section 11. Certifying Officers and appellate
authorities to have powers of civil court.— [(1)] Every
Certifying Officer and appellate authority shall have all the powers of a Civil
Court for the purposes of
(i) receiving
evidence,
(ii)
administering oaths,
(iii) enforcing the attendance of witnesses, and
(iv) compelling the discovery and production of
documents,
and shall be deemed to be a civil court within the
meaning of [sections 345 and 346 of the
Code of Criminal Procedure, 1973 (2 of 1974).]
[(2) 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.]
Appeals
Section
6 provides provision for the appeal against the order of certifying
officer
Who can file an appeal
(a) Any
employer
(b) Any
workman
(c) Any
trade union
(d) Or
representative of workman
Time
Limit for filling appeal
Within 30 days from the
order of certifying officer under sub-section (2) of section 5
(2)
The appellate authority shall, within seven days of its order under sub-section (1),
(a) send
copies thereof to the Certifying Officer,
(b) to the
employer and to
(c )the trade union or
(d)other prescribed representatives of the workmen,
accompanied, unless it has confirmed without
amendment the standing orders as certified by the Certifying Officer, by copies
of the standing orders as certified by it and authenticated in the prescribed
manner.
Q 1 (k) write a short note on the Date
of operation of Standing Order?
Section
7. Date of operation of standing
orders.—Standing orders shall come in to operation
(a) where an appeal is preferred under section 6, on
the expiry of seven days from the date on which copies of the order of the
appellate authority are sent under sub-section (2) of section 6.
(b)
Where no appeal is preferred come into operation on the expiry of thirty
days from the date on which authenticated copies thereof are sent under
sub-section (3) of section 5,
Q 1 (L) Write a short note on Duration
and modification of standing orders?
Section
10. provides provisions for Duration and
modification of standing orders.—(1) Standing orders
finally certified under this Act shall not, ], 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.
except on
agreement between the employer and the workmen [or a trade union or other representative body
of the workmen
[(2) Subject to the provisions of sub-section (1),
an employer or workman [or a trade union
or other representative body of the workmen] may apply to the Certifying
Officer to have the standing orders modified, and such application shall be
accompanied by five copies of the
modifications proposed to be made, and where such modifications are proposed to
be made by agreement between the employer and the workmen [or a trade union or other representative body
of the workmen], a certified copy of that agreement shall be filed along with
the application.]
(3) The foregoing provisions of this Act shall apply
in respect of an application under sub-section (2) as they apply to the
certification of the first standing orders.
[(4) Nothing
contained in sub-section (2) shall 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.]
Q 1 (m) What are the provisions for payment of subsistence allowance under Industrial Employment( standing order) Act?
Section
10A. provides provision for Payment of subsistence allowance.—
(1) In
case of Suspension
Where any workmen is
suspended by the employer pending investigation or inquiry into complaints or
charges of misconduct against him, the employer shall pay to such workman
subsistence allowance—
(a) at the rate of fifty per cent. of the
wages which the workman was entitled to immediately preceding the date of such
suspension, for the first ninety days of suspension; and
(b) at the rate of
seventy-five per cent. 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.
(2) If any dispute arises regarding the subsistence
allowance payable to a workman under sub-section (1) the workman or the
employer concerned may refer the dispute to the Labour Court, constituted under
the Industrial Disputes Act, 1947 (14 of 1947), within the local limits of
whose jurisdiction the industrial establishment wherein such workman is
employed is situate and the Labour 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.
(3)
Notwithstanding anything contained in the foregoing provisions of this section,
where provisions relating to payment of subsistence allowance under any other
law for the time being in force in any State are more beneficial than the
provisions of this section, the provisions of such other law shall be
applicable to the payment of subsistence allowance in that State.]
Q 1 (n) write a short note on Evidentiary value of Oral
Evidence underIndustrial Employment (standing order) Act
Section
12. provides that Oral evidence in
contradiction of standing orders not admissible.—No
oral evidence having the effect of adding to or otherwise varying or
contradicting standing orders as finally certified under this Act shall be
admitted in any Court.
Section
[12A. Temporary application of model
standing orders.—(1) Notwithstanding anything contained in
sections 3 to 12, for the period commencing on the date on which this Act
becomes applicable to an industrial establishment and ending with the date on
which the standing orders as finally certified under this Act come into
operation under section 7 in that establishment, the prescribed model standing
orders shall be deemed to be adopted in that establishment, and the provisions
of section 9, sub-section (2) of section 13 and section 13A shall apply to such
model standing orders as they apply to the standing orders so certified.
(2) Nothing
contained in sub-section (1) shall 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.]
Q 1 (o) write a short note on provision relating to penalties &
Procedure
Section
13. Penalties and procedure.—(1) An employer who fails to
submit draft standing orders as required by section 3, or who modifies his
standing orders otherwise than in accordance with section 10, shall be
punishable with fine which may extend to
(i)
five thousand rupees,
(ii)
and in the case of a continuing offence
with a further fine which may extend to two hundred rupees for every day after
the first during which the offence continues.
(iii)
(2) An employer who does any act in
contravention of the standing orders finally certified under this Act or his
industrial establishment shall be punishable with fine which may extend to one
hundred rupees,
(iv)
and in the case of a continuing offence
with a further fine which may extend to twenty-five rupees for every day after
the first during which the offence continues.
(3) No prosecution for an offence punishable
under this section shall be instituted except with the previous sanction of the
appropriate Government.
(4) No Court inferior
to that of [a Metropolitan Magistrate or
Judicial Magistrate of the second class] class] shall try any offence under
this section.
.References
[i] https://indiacode.nic.in/bitstream/123456 ...
[ii] https://www.toppr.com/guides/legal-aptitu ...
[iii] https://www.toppr.com/guides/legal-aptitu ...
[iv] https://www.toppr.com/guides/legal-aptitu ...
[v] https://www.ilo.org/dyn/natlex/docs/ELECT ...
[vi] https://lawsisto.com/Read-Central-Act/115 ...
[vii] https://www.lawyersclubindia.com/section/
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