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Industrial Employment (Standing Orders) Act, 1946: Section 3 To 13

Industrial Employment (standing orders) Act, 1946 which came into the force before the independence of our state. It was established for the purpose of a peaceful relationship between the employer and employee in industrial matters. This act brought uniformity in the condition, terms and duration of the employment, with this, they can minimize the conflicts between them with the aid of standing orders.

In this order, the workmen used to get the clear terms and conditions of their work. This order also provides some remedy for the workmen and also for the employers to deal with their industrial disputes. The preamble of this act compels the employer to provide sufficient terms and conditions for the employee in his employment.

So, basically a standing order is like a peaceful treaty between the employee and employer in an industrial relationship. We are going to discuss about the matters of providing the standing orders and certifying standing orders with the aid of the case laws. We are here going to talk about these Standing order matter.

Objectives:
  • This act, the Industrial Employment (Standing orders) Act, 1946 aims to provide the wages, duration of hours of work, attendance and holidays like these industrial oriented matters-which gives a clear and certain view of industrial terms and conditions.
     
  • It also provides facilities and act as a aid to the employee through the employer in the matters of medical and welfare schemes of the employee in employment.
     
  • This order provides the terms and conditions of the workmen as said previously in the intro and also tells the mode of payment through cash or cheque to the employee. The order consists of the adjudicating dispute regarding the breach of the terms and condition of the employee.

This act aims to ensure that all employees receive benefits such as:
  • A minimum wage should be provided for every hour of work
  • Payment of bonuses at certain intervals during the year
  • Paid days off
  • Provision of a peaceful environment in the workplace
To provide minimum security for the workers in their employment with this order.

The Standing order context of all the matters said in the points these all the provision which applies to the employee therein irrespective of their size.

These orders are created for the peaceful relationship between the employer and employee in their industrial premises.

Applicability Of This Act:
It was said under the Section 1 of the Industrial employment (standing orders) act, 1946 which says that when there are more than 100 workmen the industry then this act will be applicable there are some exceptions from this applicability of the act was under Section 1(4) and 13(b) of this Act.

Definition:
Schedule
The schedule of the Industrial Employment (Standing Orders) act, 1946 consists of:
  1. Type of employee  permanent, temporary or apprentices
  2. intimation to the workmen about the wages, duration of work, holidays, paid holidays, etc.
    Section 2 (g) of the Industrial employment (standing orders) Act, 1946 4 Schedule of the Industrial Employment (standing orders) Act, 1946
  3. Standing orders´┐Ż means the rules relating to matters which and all said in the schedule.
  4. The presence and late presence
  5. Conditions and procedures to apply for the leave and holidays and about the authorities
  6. About the essential requirements to enter the industrial premises and the employee liability during the search.
  7. Encloses about the temporary stoppages, closing and reopening in the industrial premises and also about the rights and liabilities of the employer and employee.
  8. About the tenure of employment and the notice should be issued to the workmen by the employer.
  9. Matters which all lead to suspension and dismissal for misconduct at work and also about the acts and omissions which amount to constituency misconduct.
  10. Redress for the workmen when there is unfair treatment or mistakenly laid off of the workmen by the employer or his agents or by his servants.
  11. Any other matters which is prescribed in the standing order.

Section 3 -13
Section 3: (Process For Submission Of Draft Standing Orders)
Earlier we dealt with the applicability of this act. So, as mentioned earlier once the company or industry attains the capacity of 100 workers or more, then they have to apply for the draft standing order within 6 months of the achievement of the minimum capacity of workers (100 or more).


After setting out the rules of their industry with the aid of schedule contents as per their industrial needs and wants. They have to send 5 copies of the draft standing to the certifying officer. When the order consists of all rules in order, then it will be considered as the model standing order. A rough sort of work is a draft stranding order and if the order consists, the rule of the schedule means it is called a model standing order.

Later on, this model, standing order copies of the industry will be sent to the workmen and trade union of the respective industry by the certifying officer. If they have any objection to the standing order, it means the workmen and trade union have to inform the certifying officer within 15 days, then the certified officer will modify the order by going through the objection of the workmen or trade union.

Case Laws:
61. S.K. Sheshardri v. H.A.L and others
Held:

In this case, the honourable KHCsaid that the standing orders should be within the scheduled context of the act. And the industry management can additionally add their provision in the model standing order which is not deemed to be invalid or ultra vires of the act.

72. Hindustan Lever v Workmen
Held:

The transfer of workmen from one department to another department within the industry. It does not affect the contract of employment. They just transferred the employee to the other department. So, the workmen who had the dispute had to prove that it's invalid. 83. Management of Continental Construction Ltd. V Workmen of Continental Construction

Held:
In this case, the court held that the probationer employee can be terminated at any time 6 ILR 1983 Kar 634 7AIR 1974 SC 17 8 ILR 2004 KAR 54

by the employer but that termination must be in the context of the principle of natural justice, then the termination will be held as a valid termination.

Section 4: (Conditions for certifying of standing orders)
A Standing order shall certify when it consists of the set-out context of the schedule and it should also prevail with the provision of the act. Basically, this provision says that the standing order must be in context with the schedule and provision of this act, then it will only be considered a valid one.

Section 5: (Certification of standing orders)
The certified officer used to reasonable opportunity to the workmen and the trade union. They can make their objection or something like that to the certified officer within 15 days later. He will consider it if it is a reasonable objection made by them. If there is no objection or anything from them, it means the certified officer has to certify the standing order within 7 days.

Section 6: (Appeals)
The appeal should be made within 30 days from the date on which the copies are sent under Section 5 of this act. The aggrieved party only has to go for the appeal. This appeal will be made to the appropriate government. They will appoint the appellant authority to decide the dispute or object which is in the standing order. This authority has to conduct a fair trial and has to decide the case within 7 days from the appeal made before him.

Section 7:( Date of operation of standing orders)
When the appeal was preferred for the certified standing orders then the operation or enforcement of the standing orders will not take place. If suppose appeal is not made means within 30 days of the certification of the standing orders it will come into force. And later copies of the standing order will be issued to both the employer and employee.

Section 8: (Register of standing orders)
The certified authority used to maintain all the copied of the certified standing orders with him for the maintenance purpose and he will also issue the copies to the person who is applying for the copy of the standing order by paying prescribed fee.

Section 9: (Posting of standing orders)
The text of the finalised standing order will be attached in the notice board of the industrial premises. The notice should be in the near of the entrance of the industry by which the majority of workmen can easily read it. Those finalised standing order should be in English and in any language by which majority of the workmen understand it.

Section 10: (Duration and modification)
In general, we cannot modify a standing order unless there is an agreement between the parties (employer and workmen) about the modification of the standing orders. This modification is also done by a certified officer.

Section 11: (Certifying officers and appellate authority have the powers of civil court)
This provision says that every certifying officer and appellate authority shall have all the powers of the civil court, like they can ask for evidence, administer oaths, production of documents, etc. They will fall under Sections 345 and 346 of the Code of Criminal Procedure, 1973.

Section 12: (Oral Evidence)
This provision says that the oral evidence didn't has any effects of adding or varying something in the certified standing orders. In any court the certified final standing order only admissible.

Section 13: (Penalty and procedure)
When a standing order is incompetent with the set out of Section 3 or modifies a standing order as mentioned in Section 10 of this act by the employer. When an employer does act according to the standing order, then he will be liable for a fine. The fine amount can be extended to about one hundred rupees. If the defects continue to prevail with the certified standing order, then he will be liable to a fine of twenty-five rupees every day from the date of the first offence.

Section 13-A: (Interpretation)
When there is an issue or question in the certified standing order, the Labour court will interpret those standing orders and settle the case. As of now we dealt with the provisions and now we are going to see some general case laws of the standing orders.

Case Laws:
91.Punjab National Bank v All India Punjab National Bank Employees Federation and Others

Held:
The honourable supreme court held that the certified standing orders are has the binding effect not only on the employer and employee of the industry but also has the effect with the trade union of the employees.

102. Delhi Transport Corporation v Dal Chand Yadav & Ors
Held:
The supreme court that the standing orders are consider as a part of the contract of the employment between the employee and employer. So, if any are going take place in the 9 (1960) 2 LLJ 684 10 (1992) 1 SCC 381

standing it should be done with the mutual consent of both the employer and employee and those changes should be in accordance with the employment standing orders act, 1946.

113.Hindustan Steel Ltd. V. The Presiding Officer, Labour Court
Held: The courts said that the Industrial employment standing orders act, 1946 which prescribed the standard format to the standing orders so, all the standing order should prevail with the prescribed format of the act. If not means it will be held as invalid standing order. 11 1977 AIR 31, 1977 SCR (1) 586

Conclusion:
In this project we have seen lots of information's and significant of the Certified standing orders. Earlier of this project we saw the objectives, purpose and some features of the standing order. In this project we dealt only with the provision 1-13 of the Industrial employment (standing orders) Act, 1946.

Firstly, we discussed about the applicability of the standing orders and also seen the definition of the standing orders. Later came to the important of the point of the assignment we seen the conditions and procedures to apply for the standing order.

We also dealt with the appeal of the standing orders and the jurisdiction of the appeal to be made. My suggestion about the standing order is both the employer and employee should make the order in favour of both with mutual consent. And the contents of standing orders should be in practice strictly without any partiality.

Reference:
Primary Sources:
  • Dr, V.G. Goswami, Labour and Industrial Laws, 11th Edition, 2019
  • Commercials, Bare Act of Labour & Industrial Laws, 2023
Secondary Sources:
  • https://labour.gov.in/sites/default/files/Industrial-Employment-Standing-Orders-Act-1946.pdf
  • https://blog.ipleaders.in/industrial-employment-standing-orders-act-1946/
  • https://www.deskera.com/blog/industrial-employment-standing-orders-act-1946/
  • https://blog.ipleaders.in/nature-of-standing-orders-under-the-industrial-employment-standing-order-act-1946/
  • https://legalvidhiya.com/binding-nature-effect-of-certified-standing-order/
  • https://vakilsearch.com/blog/industrial-employment-standing-orders-act

End-Notes:
  1. Industrial Employment (Standing orders) Act, 1946, available at https://vakilsearch.com/blog/industrialemployment-standing-orders-act/ (visited on 29/7/23)
  2. Industrial Employment Standing Orders Act, 1946, available at https://www.deskera.com/blog/industrialemployment-standing-orders-act-1946/ (visited on 29/7/23)
  3. The Industrial employment (Standing orders) Act, 1946, available at https://blog.ipleaders.in/industrialemployment-standing-orders-act-1946/ (visited 30/7/23)


Award Winning Article Is Written By: Mr.Mohankumar T
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Authentication No: DE336151898927-27-1223

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