This ppt is used for the students who are pursuing LLM in Industrial Law and also in Labour Law

1. INDUSTRIAL EMPLOYMENT
(STANDING ORDERS ) ACT,1946
PRESENTED BY
LUCHISHMITA
LATHA M RAJ

2. INTRODUCTION
• 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 led 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.
• 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 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 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.

3. 0BJECTS OF THE ACT
• To provide regular standing orders for workers, factories, and working relationship.
• To ensure that the employee recognises the terms and conditions of the employees and thus to
minimise exploitation of the workers.
• To promote industrial peace and harmony by supporting fair industrial practices.
• To make it compulsory for the employers to abide by the terms and conditions to provide better
working conditions for the employees and their welfare.

4. APPLICATION OF THE ACT
• Section 1 of the Act provides that the Act shall apply to the industrial establishments (within
India except the state of jammu and kashmir) with an engagement of more than a hundred
workmen at present or as noted on any day in the preceding year unless provided by the
appropriate Government for application to any such industrial establishhment – with less than a
hundred employees.
• It applies to railways, factories, mines, quarries, oil- fields, tramways, motor services, docks,
plantations, workshops, civil construction and maintenance works.
• The Act has 15 sections and a schedule.

5. CONT……
1. EXCEPTIONN
• Industries covered under the Bombay Industrial Relations Act, 1946.
• Industries covered under the M.P. Industrial Employment Standing Orders Act, 1946.
• According to sec 13 B of the Act, certain industries that are regulated by the following rules and
regulations are not covered under the Act:
• The fundamental and supplementary rules,
• The Civil Service (Classification, Control, and Appeal) Rules,
• The Civil Services (Temporary Service) Rules,
• The Revised Leave Rules,
• The Civil Service Regulations,
• The Civilians in Defence Service (Classification, Control and Appeal) Rules,
• The Indian Railway Establishment Code,
• Any other rules and regulations notified in the Official Gazette by the appropriate government.

6. FEATURES OF THE ACT
• Every employer whose industry is covered under the Act is required to make Standing Orders and
submit them to the certifying authority.
• The certifying authority is generally the labour commissioner.
• The certifying officer is given the power to modify or add contents to the Standing Orders in order to
certify it.
• Any group of employers in the same category of industries is allowed to submit a joint standing
order.
• In order to make it easy for the employers, the government can set out a model standing order with
which all the standing orders prepared by the employers must comply.
• The Act applies to industries with 100 or more employees.
• The certifying officers and authority have all the powers of a civil court for matters under the Act.
• An employer can be held liable for not submitting the standing order or contravening its provisions
when finalised. Moreover, he can be penalised for the same.
• The appropriate government has the power to exempt any industry from the ambit of the Act by
notification in the official gazette.

7. DEFINITIONS
Certifying Officer- Section 2(c) means a Labour Commissioner or a Regional Labour Commissioner, 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
Employer- Section2(d) 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 14[clause (f) of sub-section (1) of Section 7 of the Factories Act,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

8. SCHEDULE
 Matters to be contained in the Standing Orders
• Classification of the workmen : temporary, casual, apprentices
• Manner of intimating to workmen
• Shift working
• Attendance and late coming
• Conditions of, procedure in applying for, and the authority which may grant leave and holidays
• Requirements to enter premises by certain gates and liability to search
• Closing and reopening of sections of the establishments, temporary stoppages
• Suspension or dismissal for misconduct
• Acts and omissions which constitute misconduct

9. CONT…..
Model Standing Orders-
The draft prescribed by the central and state government to serve as an exemplary pattern of the rules of conduct based on
which the industrial establishments can draft their own standing orders and get them certified by the certifying officers
appointed for this purpose.
Certification Process-its Operation A Binding Effect
• Submission of Draft Standing Orders by Employer
• Section 3 of the Industrial Employment (Standing Orders) Act (hereinafter referred to IESOA) requires every employer of
an"industrial establishment" to submit draft standing orders, i.e.,"rules relating to matters set out in the Schedule" proposed
by him for adoption in his industrial establishment.
• Such a draft should be submitted within six months of the commencement of the Act to the Certifying Officer.-Failure to do
so is punishable and is further made a continuing offence
.• The draft standing orders must be accompanied by particulars of workmen employed in the, establishment as also the name
of the trade union, if any, to which they belong
.• Under sub-section 4, of Section 3, if the industrial establishments, are of similar nature, the the group of employers owning
those industrial establishments may submit a joint draft of Standing Orders.

10.  Procedure For Certification of Standing Orders
• When the draft standing orders are submitted for certification, the Certifying Officer shall send a copy of the draft to the
trade union, if any, or in its absence to the workmen concerned, to file objections, if any, in respect of the draft standing
orders, within fifteen days of the receipt of the notice.
• He is further required to provide hearing opportunity to the trade union or workmen concerned as the case may be
 Certifying Officers : Their Appointments, Powers And Duties
• • The Certifying Officers under the IESOA means as Labour Commissioner or a Regional Labour Commissioner, 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 Certifying Officer under the Act. He is "the statutory representative of the Society?“
• Section 11 (1) vests certifying officer and appellate authority with all the power of a Civil Court for the purposes of.
(i) receiving evidence;
(ii) (ii) enforcing the attendance of witnesses; and
(iii) (iii) compelling the discovery and production of documents. He shall also be deemed to be the 'Civil Court' within the
meaning of Sections 345 and 346 of the Code of Criminal Procedure, 1973

11.  Register of Standing Orders
• Section 8 of the Act provides that a copy of all standing orders as finally certified under this Act shall be filed by the
Certifying Officer in a register in the prescribed form maintained for the purpose, and the Certifying Officer shall furnish a
copy thereof to any person applying therefore on payment of the prescribed fee.
 Posting of Standing Orders
• Section 9 of the Act requires that the text of Standing Orders as finally certified in accordance with the provisions of this
Act be permanently posted by the employer in English and in the language understood by the majority of his workmen 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.

12. Payment of Subsistence Allowance
• Sec.10-A
• Where any workman is known to be suspended at the investigation or inquiry into complaints or
charges of misconduct against him, it is mandatory for the employer to pay to such workman
subsistence allowance at the following rates:
• For the first 90 (ninety) days: at the rate of 50% (percentage fifty) of the wages which the
workman was entitled to immediately preceding the date of such suspension.
• For 91 (ninety-one) to 180 (one hundred eighty) days: at the rate of 75% (percentage seventy-
five) of such wages of suspension if the delay in the completion of disciplinary proceedings
against such workman is not directly attributable to the conduct of such workman. Virtually the
order of suspension does not put an end to a workman’s service though he is not permitted to
work and is paid only substance allowance which is less than is salary. This reduced rate of
wages constitutes subsistence allowance.

13. Penalty
• Sec 13
• If an employer defaults to submit draft standing orders or modifies his standing orders, then the concerned officer may
impose a penalty which will be above Rs 5,000 (five thousand), and in the case of a continuation of offence may impose a
fine which will be above Rs 200 (two hundred) for every day till the offence continues.
• If the establishment does any act in violation of the standing orders after getting certified under this Act, then the employer
will be punishable with the penalty of which will be more than Rs 100 (One hundred), and in the case of a continuation of
offence may impose a fine of Rs 25 (twenty five) for every day till the offence continues.

14. Case laws
in the case of Rohtak and Hisar District v. State of Uttar Pradesh and others (1965), the Supreme Court held that the employer
cannot be compelled to add a condition related to matters not included in the schedule in the standing order. However,
provisions related to the rights and liabilities of employers and employees can be added, along with their enforcement.
In the case of Jeewanlal Ltd. v. Workmen (1972), the Supreme Court held that the present day tendency to fix the age of
superannuation is usually 60 years unless and until the tribunal feels that the work is hazardous or needs hard work and the
workmen might lose efficiency.
in the case of Associated Cement Co. Ltd. v. PD Vyas (1960), the Supreme Court modified the standing order related to
misconduct due to strikes and their incitement in order to include illegal strikes within its amband fairit. This was considered
reasonable.