The Industrial Employment

(Standing Orders) Act, 1946

Objective

• There was no specific legislation requiring the employer to define

the terms and conditions of employment
• Relationship b/w employer and employees were regulated
through service contracts
• There was no uniformity
• Employees were not aware of what act/omission would entail any
punishment.
Adoption

• Labour Investigation Committee 1946

• Workers have the right to know the terms and conditions

Bombay Textile Labour enquiry Committee 1940

Recognition of TU activities and collective bargaining

power of employees paved way for the adoption of
Standing Order Act.
Basic objective

• To minimize the friction between the management and

workers in industrial undertaking in respect of their
conditions of recruitment, discharge, disciplinary action,
holidays, leave etc.
• Object of Act states that
• Require employers in industrial establishments to define with
sufficient precision the conditions of employment under
them and
• To make the said conditions known to workmen employed by
them.
 Cases on its application

• Agra Electricity Supply Co. Ltd v. Alladin 1969 Once the standing order
come into existence, they bind all those presently in the employment of
the concerned establishment as well as those who are appointed
thereafter.(Avery India Ltd. V. Second Industrial Tribunal, W.B 1972)

• D.K Yadav v. J.M.A Industries Ltd.1993…Certified SO have statutory force

thus need to follow constitutional principles.

• If it is illegal, arbitrary and violative of principles of natural justice can be

challenged u/A 226….Narendra Pal Gahlot v. State of UP 1994.
Application

• Industry where 100/more workmen employed / were employed on any

day of the preceding twelve months.
• Provisions are applicable to all central govt. establishment
• Less than 100 employees by Govt notification..only by giving at least two
months notice before applying

Balakrishna Pillai v. Anand Engineering Works(p) Ltd. 1974.. Once it is

made applicable it does not cease to apply on account of a subsequent
fall in the number of the workmen in the establishment.
Definition
• Standing Order S.2(G)

• Following matters are to be provided in the SO

• Classification of workmen
• Manner of intimating to workmen periods and hours of work,
holidays, pay days and wage rates
• Shift working, attendance and late coming
• Procedure for applying for leave
• Termination of employment
• Suspension/dismissal for misconduct
• Means of redress for workmen against unfair treatment or
wrongful exactions by the employer
Application of SO on transfer of establishment

• Hari Shankar v. Rural Electrification Division, 1976…SO will

not change on transfer except- no statutory provision.

• Maharashtra SRTC v. Casteribe Rajya Parivahan Karmachari

Sanghatana 2009 SCC - SO are contractual in nature and do
not have a statutory force and the breach of SO by
Corporation is an unfair labour practice.
 Submission

• S. 5 – Shall apply within six months

• Five copies of draft SO – the certifying officer
• Matters set out in the Schedule
• In conformity with the model standing order
• Statement of particulars of workmen employed in the
industrial establishment.
 Certification of Standing Order S.5

• CO – forward copy of SO to TU/ Workmen

• Workmen / TU shall submit objection within 15 days
• Right to be heard – TU/workmen
• Same powers as that of civil court
 Conditions for certification of SO S.4

• Will be certified if only

• Provisions are made for every matter set out in the schedule
• SO are otherwise in conformity with the provisions of the Act.
• The certifying authority shall adjudicate upon the fairness or
reasonableness of the provisions of any standing order.

• Western India Match Co. v. Workmen 1974 SC .. While

adjudging the fairness or reasonableness Certifying Officer should consider
the social interest in the claims of the employer and social interest in the
demands of the workmen. It is mandatory duty on certifying office to
adjudicate the fairness and reasonableness.
Appeal S.6

• Appeal – within 30 days (Employer, Workmen, TU)

• Appellate authority may confirm or amend the SO
• AA shall send copies of its order to the CO, employer,
TU and Representatives of the workmen within 7 days
of its order.
• Powers of the AA is co – extensive with those of the
certifying officer.
Contd..

• Punjab Khadi Gram Udyog Sangh v Jit Ram 1975

• The AA has no power to set aside the order of the certifying
officer. It can confirm or amend the standing order.

• Kerala Agro Machinery Corporation v. Industrial Tribunal

• It cannot remand the matter for fresh consideration.
Date of operation of the SO S.7

• Where no appeal is preferred

• Come into operation on the expiry of 30 days from the date on
which authenticated copies are sent.

• On appeal .. Come into force on the expiry of seven days from

the date on which the copies of the order of appellate authority
are sent.
Register of SO S.8 and posting of SO

• CO shall file a copy of all SO finally certified, in a

register and he shall provide a copy of it to any
person applying for it on payment of prescribed fee.
• Posting of SO:S.9
• Employer Shall post the certified SO in English and
in the language understood by the majority of his
workmen on special boards to be maintained for
the purpose.
Duration and Modification of SO S.10

• No amendment until the expiry of 6 months from the

date on which the SO certified.

Procedure for amendment--Employer, Workmen, Trade

Union or Representative body of the workmen may apply
• Shall submit application for modification
accompanied by five copies of the modification
proposed to be made.
Special agreement cannot prevail over the
standing order

• Western India Match Company v. Workmen 1973

Scc 531
• If there is any special agreement between
employer and workmen, which is inconsistent
with the standing order, it will be void b/s any
special agreement cannot prevail over the
standing order.
Temporary Application

• Till the date to which the SO come into operation, the

prescribed model standing orders shall deemed to have
been adopted in that establishment.

• Penalty S. 13
• Who fails to submit or who modifies his standing
order but not in accordance with S.10, is punishable
with fine. The fine may extend to Rs.5000.
Contid…

• Kerala Standing order Rules

• Amendment Rules 2018