The Central Government has framed model rules under the Industrial Employment (Standing Orders) Act, 1946 for adoption by industrial establishments, employing one hundred or more workers.
This has been done to ensure industrial peace. An amendment of the Act in 1961 empowered (authorised) the Government to extend it to establishments employing less than 100 workers.
Another amendment in 1963 made the Model Standing Orders, framed by the appropriate government, applicable in all industrial establishments until the Standing Orders framed by the industrial establishments are certified.
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The Act now applies to all establishments in:
(1) Andhra Pradesh,
(2) Gujarat,
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(3) Maharashtra and
(4) West Bengal employing 50 or more workers.
In Assam, it covers establishments (except mines, quarries, oil-fields and railways) which employ ten workers or more. In Tamil Nadu all factories registered under the Factories Act, 1948 are covered by the Industrial Employment Standing Order.
Procedure for Submission of Draft of Standing Orders:
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Employer of an establishment has to submit 5 copies of the Draft Standing Orders to the Certifying Officers for adoption in his industrial establishment. He should do this within 6 months from the date on which this Act becomes applicable to his establishment.
The Draft Standing Orders must provide for every item contained in the schedule, which may be applicable to the industrial establishment.
The object of the Act is to have uniform Standing Orders to regulate the conditions of recruitment, discharge, disciplinary action, holidays, leave, etc
The Draft Standing Orders should be accompanied by a statement giving prescribed particulars of the workmen employed in the industrial establishment. If the workmen are attached to any Trade Union, its name should also be given.
Similar industrial establishments may form a group and submit a joint draft of Standing Orders.
Main provisions under the Industrial Employment (Standing Order) Act:
Before 1946, employment in industries was given on contract basis. Employers used to have different terms of employment with different employers. There used to be frequent disputes between the employers and employees.
In order to avoid these disputes in 1946, this Act was enacted. Its main features are :
1. Posting of Standing Orders:
When the text of Standing Orders is finally certified under this Act, it should be prominently posted by the employer in English and in the language that is understood by the majority of the workmen, in a special board which is maintained near the entrance gate of the factory so that each and every factory workman can read it.
A copy of the Standing Order should also be posted in all departments of the factory.
If an employer does not comply with the above provision of the Act it may create a bad impression in the minds of the workers. Moreover, the Tribunal keeps all this into view while coming to a decision.
2. Procedure for Modification of Standing Orders:
(a) The Standing Orders finally certified under the Act, cannot be modified before six months from the date of operation of last modification.
(b) The application for modification of the Standing Orders should be accompanied with five copies of the modifications proposed to be made.
(c) If the employer and the workmen have agreed to the proposed modification to the Standing Orders a copy of such agreement should be enclosed.
(d) Any modification of the Standing Order shall be certified in the same manner as the first standing orders.
3. Certification of Standing Orders
4. Temporary Application of Model Standing Orders and Interpretation
5. Penalties, procedure and miscellaneous provisions:
Industrial establishments on which the Industrial Employment (Standing Orders) Act, 1946, does not apply.
The Industrial Employment (Standing Orders) Act, 1946 does not apply to the following industrial establishments which are covered by the following rules and regulations:
(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;
(e) The Civil Service Regulations;
(f) The Civilians in Defence;
(g) The Indian Railway Establishment Code; or
(h) Any other Rules or Regulations that may be notified in this behalf by the appropriate Government in the Official Gazette.
The above rules do not apply to the industrial establishment under the private management or under the management of a statutory Corporation.
