14906801562. Industrial Employment (standing Orders) Act, 1946

Industrial Employment (Standing Orders), Act 1946 Object of the Act Is to provide service rules to workman. Is to require employers in industrial establishments to formally define conditions of employment under them. Case: - Barauni Refinery Pragati Sheel Parishad v. Indian Oil Corporation Ltd. In this case it was held that the object of the Act is to have uniform standing orders in respect of matters enumerated in the Schedule to the Act, applicable to all workers irrespective of their time of appointment.

Applicability of the Act The Act is applicable to all industrial establishments employing 100 or more workmen. The term industrial establishment includes factory, transport service, construction work, mines, plantation, workshop, building activity, transmission of power, etc. The provisions of this Act shall apply to all industrial establishments under the control of the Central Government. The appropriate Government may, after giving not less than 2 months notice of its intention to do so, by notification in the Official Gazette, extend the provisions of this Act to any industrial establishment employing such number of persons less than 100 as may be specified in the notification.

The Act does not apply to any industry to which provisions of Chapter VII of the Bombay Industrial Relations Act, 1946, apply; or any industrial establishment to which provisions of Madhya Pradesh Industrial Employment (Standing Orders) Act, 1961 apply. Section 13-B of the Act specifically exempt certain industrial establishments from the purview of the Act, viz., the industrial establishment in so far as the workmen employed therein are persons to whom the

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Fundamental and Supplementary Rules, Civil Services (Classification, Control and Appeal) Rules, Civil Service (Temporary Services) Rules, Revised Leave Rules, Civil Service Regulations, Civilians in Defence Service (Classification, Control and Appeal) Rules, 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. Section 14 provides that 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.

Important Definitions Standing Orders [Section 2(g)] Standing Orders mean rules of conduct for workman employed in an industrial establishment. i.e. rules relating to matters set out in the Schedule to the Act. Standing orders must specify: Classification of workmen i.e., temporary, casual, skilled, etc. Manner of intimating working hours, shift change, transfers, etc. to workmen Holidays Attendance and late coming rules Leave rules Termination of employment, suspension, dismissal, etc. for misconduct Retirement age Means of redressal of workmen against unfair treatment Any other matter as may be prescribed

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Appropriate Government [Section 2(b)] “Appropriate Government” means Central Government: - in respect of industrial establishments under the control of the Central Government or a Railway administration or in a major port, mine or oilfield. State Government: - in all other cases. Appellate Authority [Section 2(a)] 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. Certifying Officer [Section 2(c)] “Certifying Officer” means Labour Commissioner or 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 [Section 2(d)] “Employer” means owner of an industrial establishment to which this Act applies, and also includes the following persons: A manager named under Section 7(1)(f) of the Factories Act, 1948. The head of the department or any authority appointed by the Government in any industrial establishment under its control. Any person responsible to the owner for the supervision and control of any other industrial establishment which is not under the control of Government.

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Industrial Establishment [Section 2(e)] It means an industrial establishment defined by Section 2(ii) of the Payment of Wages Act, 1936, or a factory as defined by Section 2(m) of the Factories Act, 1948, or a railway as defined by Section 2(4) of the Indian Railways Act, 1890, or the establishment of a person who, for the purpose of fulfilling a contract with the owner of any industrial establishment, employs workmen. Wages and Workmen [Section 2(i)] Have the same meanings as defined under the Industrial Disputes Act, 1947.

Approval of Standing Orders Step 1 - {Section 3} Every employer covered under the Act has to prepare standing orders covering the matters required under the Act. Five copies of the standing orders shall be sent to Certifying Officer (Labour Commissioner) for approval. The draft Standing Orders shall be accompanied by a statement containing prescribed particulars of the workmen employed in the industrial establishment including the name of the trade union, if any, to which they belong. If the industrial establishments are of similar nature, a group of employers owning those industrial establishments may submit a joint draft of Standing Orders subject to such conditions as may be prescribed. Step 2 - {Section 4} It shall be the function of the Certifying Officer or appellate authority to Adjudicate upon the fairness or reasonableness of the provisions of the

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Standing Orders. The Act has imposed a duty on the Certifying Officer, to consider the reasonableness and fairness of the Standing Orders before certifying the same. The Certifying Officer is under a legal duty to consider that the Standing Orders are in conformity with the Act. If the Certifying Officer finds that some provisions, as proposed by the employer relate to matters which are not included in the Schedule, or if he finds some provisions are unreasonable he must refuse to certify the same. Certification of any such Standing Order would be without jurisdiction. Case: - Air Gases Mazdoor Sangh, Varanasi v. Indian Air Gases Ltd. The Certifying Officer has a mandatory duty to discharge and he acts in a quasi-judicial manner. Where a matter is not included in the Schedule and the concerned appropriate Government has not added any such item to the Schedule, neither the employer has a right to frame a Standing Order enabling him to transfer his employees nor does the Certifying Officer have jurisdiction to certify the same. The consent of the employees to such standing orders would not make any difference. Step 3 - {Section 5} On receipt of the draft Standing Order from the employer, the Certifying Officer shall forward a copy thereof to the trade union of the workmen or where there is no trade union, then to the workmen in such manner as may be prescribed, together with a notice requiring objections, if any, which the workmen may desire to make in the draft Standing Orders. These objections are required to be submitted to him within 15 days from the receipt of the notice. On receipt of such objections he shall provide an opportunity of being heard to the workmen or the employer and will make amendments, if any, required to be made therein and this will render the draft Standing Orders certifiable under the Act and he will certify the same. A copy of the certified Standing Orders will be sent by him to both the employer and the employees association within 7 days of the certification.

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Step 4 - Effect of certification The Act is a special law in regard to matters enumerated in the Schedule and the regulations made by the employer with respect to any of those matters. These are of no effect unless such regulations are notified by the Government under Section 13B or certified by the Certifying Officer under Section 5 of the Act. Step 5 - Register of Standing Orders: {Section 8} Certifying Officer has to file a copy of all the Standing Orders as certified by him in a register maintained for the purpose in the prescribed form. He shall furnish a copy of the same to any person applying there for on payment of the prescribed fee. Step 6 – Appeals: {Section 6} Order of the Certifying Officer can be challenged by any employer, workman, trade union or any other prescribed representatives of the workmen, who can file an appeal before the appellate authority within 30 days from the date on which copies are sent to employer and the workers representatives. The appellate authority, whose decision shall be final, has the power to confirm the Standing Orders as certified by the Certifying Officer or to amend them. The appellate authority is required to send copies of the Standing Orders as confirmed or modified by it, to the employer or workers representatives within 7 days of its order. Case: - Khadi Gram Udyog Sangh v. Jit Ram The appellate authority has no power to set aside the order of Certifying Officer. It can confirm or amend the Standing Orders. Case: - Kerala Agro Machinery Corporation The appellate authority can not remand the matter for fresh consideration. Step 7 - Date of operation of standing orders (Section 7) Standing Orders shall come into operation on the expiry of 30 days from the date on which the authenticated copies are sent to employer and

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workers representatives or where an appeal has been preferred, they will become effective on the expiry of 7 days from the date on which copies of the order of the appellate authority are sent to employer and workers representatives. Step 8 - Posting of standing orders (Section 9) Standing order should be displayed in English and local language on special Notice Board at or near entrance of the establishment. Step 10 - Duration and modification of standing orders (Section 10) Employers are prohibited to modify the Standing Orders once they are certified under this Act except on agreement between the employer and the workmen or a trade union or other representative body of the workmen. Such modification will not be affected until the expiry of 6 months from the date on which the Standing Orders were last modified or certified as the case may be. Section 10(2) does not contain any time limit for making modification application by employee. Case: - Indian Express Employees Union v. Indian Express (Madurai) Ltd. Workmen are entitled to apply for modification of the Standing Orders at any time.

Disciplinary Action The most important use of standing order is in the case of disciplinary action. A workman can be punished only if the act committed by him is misconduct as defined under the standing orders. Model standing orders contain such acts like insubordination (rebel), disobedience, fraud, dishonesty, damage to employers' property, taking bribe, habitual absence or habitual late attendance, habitual neglect of work, strike in contravention of law etc as misconduct. The certified standing orders may cover other acts as misconduct, if approved by Certifying Officer.

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Temporary application of model standing orders {Section 12-A} Until the standing orders are certified, Model Standing Orders prepared by the Government shall automatically apply. In case where there are no certified Standing Orders applicable to an industrial establishment, the prescribed Model Standing Orders shall be deemed to be adopted and applicable. Case - Indian Iron and Steel Co. Ltd. v. Ninth Industrial Tribunal Where there are two categories of workers, daily rated and monthly rated but the certified Standing Orders are in respect of daily rated workmen only, then Model Standing Orders can be applied to monthly rated workmen.

Once the standing orders are specified, they supersede any "terms and conditions of employment contained in the employment letter. Case - Eicher Goodearth Ltd. v. R.K. Soni If there is any inconsistency between standing orders and appointment letter, provisions of standing orders shall prevail.

Payment of subsistence allowance {Section 10A} Inserted by the amending Act (No. 18) of 1982. Where any workman is suspended by the employer pending investigation or inquiry into complaints or charges of misconduct against him, the employer shall pay to such a workman the subsistence allowance At the rate of 50% of the wages which the workman was entitled to immediately preceding the date of such suspension, for the first 90 days of suspension: and At the rate of 75% 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

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to the conduct of such workman. Any dispute regarding subsistence allowance may be referred by the workman or the employer, to the Labour Court constituted under the Industrial Disputes Act, 1947. However, if the provisions relating to payment of subsistence allowance under any other law for the time being in force are more beneficial, then the provisions of such other law shall be applicable. Case: - BPCL v. Petroleum Employees Union It was held that right to get the subsistence allowance during the period of suspension is an unconditional right and it cannot be affected by requiring the suspended workman to mark his attendance to get the subsistence allowance.

Interpretation of standing orders {Section 13-A} Any question relating to application or interpretation of a Standing Order certified under this Act, can be referred to any Labour Court constituted under the Industrial Disputes Act, 1947 by any employer or workman or a trade union or other representative body of the workmen. The Labour Court, to which the question is so referred, shall decide it after giving the parties an opportunity of being heard. Such decision shall be final and binding on the parties.

Important Cases Case: - Barauni Refinery Pragati Sheel Parishad v. Indian Oil Corporation Ltd. In this case it was held that the object of the Act is to have uniform standing orders in respect of matters enumerated in the Schedule to the Act, applicable to all workers irrespective of their time of appointment.

Case: - Air Gases Mazdoor Sangh, Varanasi v. Indian Air Gases Ltd. The Certifying Officer has a mandatory duty to discharge and he acts in a quasi-judicial manner. Where a matter is not included in the Schedule and the concerned appropriate Government has not added any such

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item to the Schedule, neither the employer has a right to frame a Standing Order enabling him to transfer his employees nor does the Certifying Officer have jurisdiction to certify the same. The consent of the employees to such standing orders would not make any difference.

Case: - Khadi Gram Udyog Sangh v. Jit Ram The appellate authority has no power to set aside the order of Certifying Officer. It can confirm or amend the Standing Orders. Case: - Kerala Agro Machinery Corporation The appellate authority can not remand the matter for fresh consideration. Case: - Indian Express Employees Union v. Indian Express (Madurai) Ltd. Workmen are entitled to apply for modification of the Standing Orders at any time. Case - Indian Iron and Steel Co. Ltd. v. Ninth Industrial Tribunal Where there are two categories of workers, daily rated and monthly rated but the certified Standing Orders are in respect of daily rated workmen only, then Model Standing Orders can be applied to monthly rated workmen. Case - Eicher Goodearth Ltd. v. R.K. Soni If there is any inconsistency between standing orders and appointment letter, provisions of standing orders shall prevail.

Case: - BPCL v. Petroleum Employees Union It was held that right to get the subsistence allowance during the period of suspension is an unconditional right and it cannot be affected by requiring the suspended workman to mark his attendance to get the subsistence allowance.

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Industrial Employment (Standing Orders), Act 1946 Practice Set - 1 1. The minimum rate of subsistence allowance in case of suspension pending enquiry has been given under which of the following legislations? (a) Industrial Disputes Act (b) Trade Union Act (c) Industrial Employment (Standing Orders) (d) None of the above, Act 2. Which of the following statements is not true regarding Industrial Employment(Standing Orders) Act, 1946? (a) Within 6 months from the date of application of the Act, the employer shall submit to the Certifying Officer 5 copies of the draft standing orders. (b) There is a schedule which sets out the matters to be incorporated in the standing orders. (c) There is no provision to refer the draft standing orders to the Unions/Workmen by the Certifying Officer. (d) Certifying Officers and appellate authorities shall have powers of Civil Courts. 3. Draft standing orders are to be submitted within (a) Two years from the date on which the Act is applicable in five copies. (b) One year from the date on which the Act is applicable in five copies (c) Six months from the date on which the Act is applicable in five copies (d) Six months from the date on which the act is applicable in ten copies 4. Which act requires employers in industrial establishments to define the conditions of employment? (a) The Factories Act, 1948 (b) The Industrial Disputes Act, 1947

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(c) The Industrial Employment (standing orders) Act, 1946 (d) The Trade Union Act, 1926 5. The Industrial Employment (standing orders) Act, 1946 applies to every establishment employing (a) 100 workmen (b) 150 workmen (c) 150 workmen on any day preceeding 12 months (d) 100 workmen on any day preceeding 12 months and the government can order by application to establishments employing less than 100. 6. The provision relating to suspension has been made under which of the following legislations? (a) Industrial Disputes Act (b) Trade Union Act (c) Industrial Employment (Standing Orders) Act (d) None of the above 7. Which of the following amendments of Industrial Employment (standing order) Act provided for payment of subsistence allowance by the employer to a suspended employee pending enquiry against him? (a) Industrial Employment (standing order) Amendment Act, 1956 (b) Industrial Employment (standing order) Amendment Act, 1963 (c) Industrial Employment (standing order) Amendment Act, 1982 (d) Industrial Employment (standing order) Amendment Act, 1961 8. Arrange the following steps of disciplinary procedure in the order in which they are used: (a) Dismissal and discharge (b) Show-cause notice (c) Domestic enquiry (d) Serving of charge sheet (e) Submission of the report

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Codes: (a) b, d, c, e, a (b) b, e, c, d, a (c) c, d, b, e, a (d) d, b, c, e, a 9. The copies of the certified standing orders authenticated in the prescribed manner may be send to ------- by the Certifying officer within 7 days. (a) the employer (b) the trade union (c) other prescribed representatives of the workmen (d) All the above 10. The appeal on the certified standing orders may be preferred within ------- days before the appellate authority (a) 60 days (b) 30 days (c) 15 days (d) 90 days 11.Standing orders shall, unless an appeal is preferred under Sec. 6, come into operation on the expiry of -------- days from the date on which authenticated copies are sent under sub-section (3) of Sec. 5. (a) 60 days (b) 90 days (c) 30 days (d) 15 days 12. 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:

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(a) through employer (b) through court (c) on free of cost (d) on payment of the prescribed fee. 13.Standing orders finally certified under this Act shall not be liable to modification, except on agreement between the employer and the workmen until the expiry of --------- months from the date on which the standing orders or the last modifications thereof came into operation. (a) 6 months (b) 3 months (c) 12 months (d) 9 months 14. If any workman is suspended by the employer, the employer shall pay to such workman subsistence allowance at the rate of ----------percent of the wages which the workman was entitled to immediately preceding the date of such suspension, for the first ninety days of suspension (a) 75% (b) 50% (c) 60% (d) 70% 15.An employer who fails to submit draft standing orders as required by Sec. 3, or who modifies his standing orders otherwise than in accordance with Sec. 10, shall be punishable with fine which may extend to ----------rupees (a) Rs.1000/(b) Rs.10000/(c) Rs.5000/(d) Rs.2500/-

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Industrial Employment (Standing Orders), Act 1946 Practice Set - 2 1.An employer who does any act in contravention of the standing orders finally certified under this Act for his industrial establishment shall be punishable with fine which may extend to -------- rupees, and in the case of a continuing offence with a further fine which may extend to ---------- rupees for every day after the first during which the offence continues. (a) Rs.100/- & Rs.25/- respectively (b) Rs. 500/- & Rs.100/- respectively (c) Rs,1000/- & Rs.100/- respectively (d) Rs.100/- & Rs.50/- respectively 2. No prosecution for an offence punishable under -------section shall be instituted except with the previous sanction of the appropriate Government. (a) Section 12 (b) Section 13 (c) Section 10 (d) Section 11 3. No Court inferior to that of ------------ shall try any offence under section 13. (a) High Court (b) Supreme Court (c) Judicial Magistrate of the second class (d) None of the above

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4.If any question arises on the application or interpretation of a standing order certified under this Act, any employer or workmen (or a trade union or other representative body of the workmen) may refer the question to any one of the (a) Supreme Court (b) High Court (c) Judicial Magistrate of the second class (d) Labour Courts constituted under the Industrial Disputes Act, 1947 5. Who have the power to exempt conditionally or unconditionally, any industrial establishment or class of industrial establishment from all or any of the provisions of this Act. (a) The appropriate Government by notification in the official Gazette (b) Supreme Court (c) High Court (d) Labour Courts constituted under the Industrial Disputes Act, 1947 6. Nothing in this Act shall apply to. (a) Any industry to which the provisions of Chapter VII of the Bombay Industrial Relations Act, 1946 (Bombay Act II of 1947) apply (b) Any Industrial establishment to which the provisions of the Madhya Pradesh Industrial Employment (Standing Orders) Act, 1961 (Madhya Pradesh Act 26 of 1961 apply (c) Both (a) & (b) (d) None of the above 16 PANKAJ KUMAR, FCS, Chartered S I ( CISI - London), MBA ( Finance )

7. Which section states that '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' (a) Section 3(1) (b) Section 3(2) (c) Section 3(3) (d) Section 3(4) 8. The objections, which the workmen may desire to make to the draft standing orders to be submitted to the Certifying Officer within --------- days from the receipt of draft standing order from the Certifying Officer. (a) 12 days (b) 30 days (c) 9 days (d) 15 days 9. Which section states that 'certifying officer and appellate have the powers of Civil Court' (a) Section 11 (b) Section 10 (c) Section 9 (d) Section 12 10. Which section deals with conditions for certification of Standing Orders? (a) Section 6 (b) Section 4 17 PANKAJ KUMAR, FCS, Chartered S I ( CISI - London), MBA ( Finance )

(c) Section 3 (d) Section 7 11. Which section deals with register of Standing Orders (a) Section 7 (b) Section 9 (c) Section 8 (d) Section 11 12. Which section states about duration and modification of standing orders (a) Section 13 (b) Section 11 (c) Section 9 (d) Section 10 13. Which section deals with temporary application of Model Standing Orders? (a) Section 12A (b) Section 13 (c) Section 11 (d) Section 10 14. Which section deals with penalties and procedure? (a) Section 11 (b) Section 13 (c) Section 12 (d) Section 9

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15. Which Section states about the industrial establishments where this act not applicable (a) Section 11 (b) Section 12 (c) Section 13B (d) Section 10

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Industrial Employment (Standing Orders), Act 1946 Practice Set - 3 1. Industrial employment standing orders act is applicable in every industrial establishment where ____ workmen are employed. a. 200 b. 150 c. 100 d. 50 2. An authority who is appointed by the appropriate government by notification in the official Gazette to exercise in such area as may be specified? a. Appellate Authority b. Certifying officer c. Acting officer d. None of the above 3. Section 2 of payment of wages act, 1936 defines ______ a. Industrial establishment b. Wages c. Workman d. Amendments 4. What is the time frame in which the employer shall submit 5 copies of the draft standing orders proposed by him for adoption in his industrial establishment? a. 1 month from the date on which standing orders act becomes applicable 20 PANKAJ KUMAR, FCS, Chartered S I ( CISI - London), MBA ( Finance )

b. 12 months from the date on which standing orders act becomes applicable c. 18 months from the date on which standing orders act becomes applicable d. 6 months from the date on which standing orders act becomes applicable 5. Which of the following is an additional matter to be provided as per the act relating to all industrial establishments in coal mines? A. Transfers B. Service certificate C. Exhibition and supply of standing orders D. Railway travel facilities a. Only A b. B & C c. A & C d. All of the above e. None of the above 6. Section 10B in the act deals with ______ a. Additional matters to be provided in the standing orders relating to all industrial establishments b. Additional matters to be provided in the standing orders relating to all industrial establishments in coal mines c. Prescribed particulars of workmen d. None of the above

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7. As per sub - section 3 of section 5 the standing orders shall come into operation on the expiry of ______ days from the date on which authenticated copies are sent. a. 30 days b. 7 days c. 15 days d. 5 days 8. In which language is the text of the standing orders posted on the notice boards? a. English or that is understood by majority of the workmen b. Only English c. Language as understood by the workmen d. None of the above 9. How many copies have to be submitted to the certifying officer while making any modifications in the standing orders? a. 10 b. 4 c. 5 d. 2 10. Which section takes care of payment of subsistence allowance in standing orders act? a. Section 10 b. Section 1 c. Sub section 1 d. Section 10A

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Industrial Employment (Standing Orders), Act 1946 Practice Set - 4 1. What is the rate of wage (in percentage) that an employee gets during the subsistence period in case of delay in the completion of disciplinary proceedings? a. 50% b. 75% c. 25% d. 80% 2. In case of a dispute regarding the suspense allowances, to whom does the employer or the workman refer? a. Adjudicator b. Court of enquiry c. Conciliation d. Labour Court 3. What is the amount of fine paid by the employer wherein he fails to submit the draft standing orders as per section 3? a. 5000 Rupees b. 200 Rupees c. 1000 Rupees d. 10000 Rupees 4. As per section 13, if the employer continues with the offences of non - submission of the draft model standing orders, he pays a fine of ____________ Rupees per day. a. 5000 + 200 Rupees daily b. 200 Rupees 23 PANKAJ KUMAR, FCS, Chartered S I ( CISI - London), MBA ( Finance )

c. 5000 Rupees d. 100 Rupees 5. Which section deals with sections in which standing orders act is not applicable in certain industrial establishments? A. 13 B. 13B C. 13C D. 13A 6. Which amongst the following is/ are the matter to be provided in the standing orders? A. Attendance and late coming B. Shift working C. Adequate working conditions D. Water facility a. Only A b. Only D c. Both A & B d. Both A & D 7. Which sections of the Code of Criminal Procedure takes care of the powers of certifying officers and appellate authorities? a. 345 & 346 b. 321 & 322 c. 350 & 351 d. None of the above

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