STANDING ORDERSSTANDING ORDERS

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STANDING ORDERS

• The Industrial Employment (Standing Orders) Act, 1946 was formulated to lay upon employers an obligation to specifically define the conditions of employment as well as convey the same to the employees.

• The Industrial Employment (Standing Orders) Act, 1946, was amended in 1982, to provide for payment of subsistence allowance to workmen who are kept under suspension, pending domestic enquiry.

OBJECTIVES OF THE ACT

• To ensure that the terms and conditions of the employment are known to the employee and thus to minimize exploitation of the workers.

• To have uniform standing orders in respect to workers, factories and working relationship.

• To promote industrial peace and harmony by promoting fair industrial practices.

• Conditions of employment like recruitment, discharge, disciplinary actions, holidays etc.

• To avoid disputes & vagueness in terms of employment.

SCOPE AND APPLICATION

• Whole of India

• Mandatory for every industrial establishment, which in preceding 12 months has employed 100 or more worker

• Central and state governments can make this Act applicable to establishments employing less than 50 persons, as in the case of UP and West Bengal.

MATTERS TO BE PROVIDED IN STANDING

ORDERS • Classification of workers i.e. temporary, badli, casual, permanent, skilled etc

• Confirmation• Vacancies• Hours of work, holidays, pay days & wage rates• Conditions of procedure in applying leave & holidays• Shift working• Attendance & late coming• Transfers• Disciplinary actions• Means of redressal of workmen against unfair treatment

or wrongful extractions by employer • Suspension or dismissal • Termination of employment• Retirement

DISCIPLINE BY STANDING ORDERS

• Punished only if the act committed by him is misconduct as defined under the Standing Orders.

• The Model Standing Orders contain such acts like insubordination, disobedience, fraud, dishonesty, damage to employer‘s property, taking bribe, habitual absence or habitual late attendance, riotous behavior, habitual neglect of work, strike in contravention of rules etc. as misconducts.

• The Certified Standing Orders may cover other acts as misconduct.

SUBSISTENCE ALLOWANCE TO THE WORKER

Suspended workman by employer (pending investigation or enquiry) - Subsistence allowance equal to 50% of wages for first 90 days of suspension and 75% of wages for remaining period till completion of disciplinary proceedings.

PROCEDURE FOR CERTIFICATION OF STANDING ORDERS

• Every employer covered under the Act has to prepare Standing Orders, covering the matters required in the Standing Orders.

• Five copies of these should be sent to Certifying Officer for approval.

• The Certifying Officer will inform the Union and workmen and hear their objections. After that, he will certify the Standing Orders for the industrial establishment.

• Till standing orders are certified, Model Standing Order prepared by Government will automatically apply.

• Standing order should be displayed in English and local language on special notice boards at or near entrance of the establishment.

• Modifications of Standing Order shall be done by following similar procedure.

Date of operation of Standing orders

Standing orders certified and their authenticated copies are sent to employer and workers and on the expiry of 30 days, they will be applicable. If an appeal has been made then after 7 days of the orders the standing orders (as modified) will be applicable.

OBLIGATION OF THE EMPLOYERS

• To submit draft standing orders with the required information to the certifying officer for certification within the time limit set in the Act.

• To act in conformity with the certifying standing orders in the day-to-day dealings with the workmen;

• Modify certified standing orders only with the approval of the certifying officer;

• Post prominently the text of the certified standing orders in English or any other language understood by the majority of the workmen near the entrance through which the majority of workers enter the establishment and also in all departments where workmen are employed.

OBLIGATION OF THE WORKMEN

• To work in conformity with the certified standing orders, and

• To comply with the provision of the Act the mode standing orders in regard to modification and interpretation of these Standing orders.

CASE STUDIES

Eicher Goodearth Ltd. v. R K Soni - (1993)

XXIV LLR 524 = 1993 LLR 524 (Raj HC)

Once the Standing Orders are certified, they supersede any term and condition of employment, contained in the appointment letter. If there is inconsistency between Standing Order and Appointment Letter‘, the provisions of Standing Order prevail.

Rajasthan SRTC v. Krishna Kant - AIR 1995

SC 1715

Standing orders are binding on employer and employee. These are statutorily imposed conditions of service. However, they are not statutory provisions themselves (meaning that the Standing Orders‘ even when approved, do not become law‘ in the sense in which Rules and Notifications issued under delegated legislation become after they are published as prescribed)

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