1.

INTRODUCTION

The Industrial Employment (Standing Orders) Act, 1946 was enacted to regulate the
conditions of employment in industrial establishments and promote industrial peace and
harmony. The primary purpose of this Act is to provide a standardized framework for the
terms and conditions of employment that apply to workers in industrial settings. It mandates
employers to define clear rules referred to as standing orders that govern various aspects of
the employment relationship, such as work hours, wages, leave entitlements, disciplinary
procedures, and termination processes.

The Act ensures that employees are informed about their rights and responsibilities, while
also offering employers a structured approach to managing workforce-related issues. These
standing orders, once approved by the certifying authority, become legally binding, providing
a fair and transparent way of resolving disputes and promoting smooth industrial relations.

2. PROVISION

1. Short title, extent and application

2. Interpretation
3. Submission of draft standing orders
4. Conditions for certification of standing orders
5. Certification of standing orders
6. Appeals
7. Date of operation of standing orders
8. Register of standing orders
9. Posting of standing orders
10. Duration and modification of standing orders
10-A. Payment of subsistence allowance
11. Certifying Officers and appellate authorities to have
power of Civil Court
12. Oral evidence in contradiction of standing orders not
admissible

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12-A. Temporary application of model standing orders
13. Penalties and procedure
13-A. Interpretation, etc., of standing orders
13-B. Act not to apply to certain industrial establishments
14. Power to exempt
14-A. Delegation of powers
15. Power to make rules

3. INDUSTRIAL EMPLOYMENT (STANDING ORDERS) ACT, 1946

The Industrial Employment (Standing Orders) Act, 1946 (IE Act) requires employers in
industrial establishments to define standing orders that outline the conditions of employment.
These standing orders govern various aspects of the workplace and provide a legal
framework for the rights and responsibilities of both employers and employees. Below is an
elaboration on the Draft Standing Orders topic, broken down into key components:

3.1 Purpose of the Industrial Employment (Standing Orders) Act

The main objective of the IE Act is to:
Establish a clear understanding between employees and employers about their rights and
responsibilities.
Ensure uniformity and consistency in the terms of employment across industries.
Provide a framework for resolving industrial disputes.

3.2 What are Standing Orders

Standing Orders are written rules that define the terms and conditions of employment in an
industrial establishment. These orders:
Outline work conditions, rights, and duties of both employers and workers.
Specify rules related to discipline, attendance, leave, termination, and disputes.
Provide a clear mechanism for dealing with misconduct, grievances, or disputes.

3.3 Draft Standing Orders

The Draft Standing Orders are the initial version proposed by the employer that must be
submitted for certification. These orders must:

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 Be created in consultation with the employees or their representatives.
Be aligned with the provisions of the IE Act and any applicable labor laws.
Reflect fair and just rules concerning employment conditions, employee behavior,
termination procedures, etc.

The Draft Standing Orders are to be submitted to the certifying authority (usually the Labor
Commissioner or equivalent) for approval.

4. KEY AREAS COVERED BY STANDING ORDERS

The standing orders typically cover the following key areas:

4.1 Classification of Workers:

This section defines the categories of employees in the establishment (e.g., permanent,
temporary, probationary, casual, etc.).

4.2 Conditions of Employment:

This includes the terms of employment like working hours, breaks, wages, overtime, and
holiday entitlements.

4.3 Leave Provisions:

Provisions for various types of leave, such as casual leave, sick leave, earned leave, and
maternity leave.

4.4 Termination and Dismissal:

Rules regarding the procedures for termination or dismissal of employees, including
grounds for dismissal (e.g., misconduct, absenteeism, etc.), notice periods, and severance pay.

4.5 Discipline and Conduct:

The code of conduct and behavior expected of workers. This also includes the penalties
or disciplinary actions for violations (e.g., warnings, fines, suspension, or dismissal).

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 4.6 Grievance Redressal:
Mechanisms to address employee grievances and disputes. This can include procedures
for internal dispute resolution or mechanisms for workers to raise issues formally.

4.7 Workplace Safety:

Guidelines on maintaining a safe working environment, ensuring compliance with health
and safety standards, and addressing workplace accidents.

4.8 Wages and Benefits:

Rules governing the payment of wages, deductions, bonuses, allowances, and other
benefits.

5. CERTIFICATION OF STANDING ORDERS

Once the draft standing orders are submitted, they are reviewed and may be modified by
the certifying authority. The authority ensures that the orders comply with the IE Act and
other relevant labor laws.
The certifying authority can either approve the draft as is or make necessary amendments.
After approval, the standing orders become legally binding.

6. CERTIFICATION PROCESS
Timeframe: Employers must submit the draft standing orders to the certifying authority
within six months of the commencement of their establishment.
Consultation: The employer must consult with employees or their representatives before
finalizing the standing orders.
Appeal Process: If either party (employer or employee) is not satisfied with the certifying
authority’s decision, they can appeal to the appellate authority.

7. MODIFICATIONS AND AMENDMENTS TO STANDING ORDERS

The standing orders are not static; they can be modified to reflect changes in law or
working conditions.
Employers are required to submit any amendments to the certifying authority, which will
then follow the same certification process as the original standing orders.

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8. LEGAL IMPLICATIONS
Once certified, the standing orders become legally enforceable.
Both the employer and employees must adhere to the terms outlined in the standing orders.
Any violation of the certified standing orders by either party can result in legal
consequences or penalties.

9. BENEFITS OF STANDING ORDERS

For Employers: Clear rules reduce conflicts, set expectations, and ensure smooth operations
in the workplace.
For Employees: Standing orders provide protection from arbitrary treatment and ensure
workers' rights are respected.
For the Government: The standing orders contribute to maintaining industrial peace,
promoting fairness, and ensuring compliance with labor laws.

10. SUBMISSION OF DRAFT OF STANDING ORDERS

The draft of Standing order is the proposal made by the employer for adoption of Standing
orders in that particular industrial establishment. This draft standing order must include all
the matters set out in the 1st Schedule of the Act. Further, if Model standing orders have been
prescribed for that industrial establishment, then the draft standing order shall be in
conformity with such model, so far as practicable.

Under Section 3 of the Act, the employer must submit such a draft of a standing order within
the period of six months from the date on which the Act becomes applicable to an industrial
establishment. The employer has the obligation to submit 5 copies of draft standing orders to
the certifying officer which is proposed by him for adoption in that particular industrial
establishment.

Draft to be accompanied by particulars of the workmen

The draft standing orders submitted to the certifying officer shall be accompanied by a
statement giving prescribed particulars of the workmen employed in the industrial
establishment. Among all other particulars, such as name, address etc. it shall also include the
name of the trade union to which those employees belong.

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The particulars of workmen mean the details regarding the workmen in the industrial
establishment. Rule 5 of the Industrial Establishment (standing order) Central Rules, 1946
provides the list of particulars of the workmen they are as follows:

 Details regarding total number of people employed.

 Number of permanent workmen, temporary workmen and casual workmen
 Number of badlis or substitutes;
 Number of probationers and no. of apprentices.
 Name of the trade union or trade unions to which the workmen belong. It is not
mandatory, that means if the workman does not belong to any trade union then this
particular information could be avoided.
 Remarks

The draft standing order must be accompanied with the particulars of workmen prescribed
above. It should be noted that for similar industrial establishments, more than one employer
of such a similar industry may submit a joint draft of standing orders to the certifying
officer.

11. CERTIFICATION OF THE DRAFT STANDING ORDER

Section 5(3) of the Industrial Employment (Standing Order) Act,1946 specifies the matter
regarding certification of the draft standing order. After modifying the draft standing orders,
the certifying officer shall within seven days certify the standing orders. Then after shall send
the authenticated certified copies to the concerned parties. This is the process of certification
of standing order in accordance with the Industrial Employment (Standing Orders) Act,
1946.

As per the Rule 7 of the Industrial Employment (Standing Orders) Central Rules,1946 the
certified copies of standing order must be officially stamped and sealed by the office seal of
the Certifying Officer. If the terms of the standing order are appealed before appellate
authority and appellate authority modifies the standing order, then in such case the standing
order would bear the stamp and seal of appellate authority. The stamped and sealed standing
order shall be sent to the employer, employees or authorized representative of workmen and
to the trade union by the certifying officer within a week of the certification of the Standing
orders. They shall be sent by the registered post.

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SUBMISSION OF DRAFT STANDING ORDERS.—

(1) Within six months from the date on which this Act becomes applicable to an industrial
establishment, the employer shall

submit to the Certifying Officer five copies of the draft standing orders proposed by him

for adoption in this industrial establishment.

(2) Provision shall be made in such draft for every matter set out in the Schedule

which may be applicable to the industrial establishment, and where Model standing

orders have been prescribed shall be, so far as is practicable, in conformity with such

model.

(3) The draft standing orders submitting 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.

(4) Subject to such conditions as may be prescribed, a group of employers in similar

industrial establishments may submit a joint draft of standing orders under this section.

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12. CASE LAW

1. Bharat Petroleum Corporation Ltd. v. Maharashtra General Kamgar Union (1977)

Key Point: This case emphasized the importance of adhering to the certified standing orders
in matters related to dismissal and misconduct.

Facts: Bharat Petroleum Corporation Ltd. had suspended an employee for misconduct
without following the procedure laid down in the certified standing orders of the company.
The company was found to have violated the procedures for dismissing or suspending
employees.

Judgment: The court ruled that an employer must strictly follow the procedure laid down in
the certified standing orders regarding termination or suspension, and any violation of the
process will render the action invalid.

2. D.C.M. Ltd. v. Workmen (1979)

Key Point: This case dealt with the issue of whether an employer could unilaterally change
the standing orders without consulting the workers or their representatives.

Facts: D.C.M. Ltd. attempted to amend its standing orders to reduce employee benefits. The
union objected to the amendment, arguing that it was done without proper consultation.

Judgment: The Supreme Court held that employers cannot unilaterally change the certified
standing orders. Any amendment or modification requires approval from both the certifying
authority and the workers' representatives.

3. Workmen of the Firestone Tyre & Rubber Co. v. Firestone Tyre & Rubber Co.
(1973)

Key Point: This case discussed the enforceability of standing orders related to the
disciplinary actions and terminations.

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 Facts: Employees at Firestone Tyre Company challenged their dismissal, claiming that the
company did not follow the standing orders related to dismissal procedures, such as giving
proper notice or holding a hearing.

Judgment: The Supreme Court ruled that when the standing orders are certified, they
become legally binding, and any violation of the laid-down procedures for disciplinary
actions or termination would be deemed invalid.

4. Kalyani Steels Ltd. v. State of Karnataka (2008)

Key Point: This case clarified the scope of the Industrial Employment (Standing Orders)
Act in the context of "unilateral changes" by employers to employment conditions.

Facts: Kalyani Steels Ltd. attempted to change the work hours and overtime policies, which
were part of their certified standing orders, without prior approval from the workers'
representative or consultation with the certifying authority.

Judgment: The court ruled that any change to the certified standing orders must follow the
prescribed process, which includes consultation with the workforce and approval from the
certifying authority. Unilateral changes without approval violate the terms of the IE Act.

5. M/s. Tata Engineering and Locomotive Co. Ltd. v. Workmen (1963)

Key Point: This case dealt with the issue of non-compliance with certified standing orders
and the right of workers to seek redressal through labor courts.

Facts: Tata Engineering had dismissed workers without adhering to the procedures outlined
in the certified standing orders. The workers filed a claim for reinstatement, arguing that the
termination was unlawful.

Judgment: The court held that certified standing orders are binding, and any action contrary
to them, such as wrongful dismissal, would be deemed illegal. Workers are entitled to seek
redressal in the labor courts if the employer fails to follow the certified standing orders.
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13 CONCLUSION:

The Industrial Employment (Standing Orders) Act, 1946 plays a crucial role in regulating
employment conditions and maintaining industrial harmony. Through the implementation of
standing orders, the Act ensures that both employers and employees have clear guidelines
regarding their rights, responsibilities, and procedures for dealing with matters like
termination, discipline, leave, and disputes.

In conclusion, standing orders serve as a vital tool in ensuring fairness, transparency, and
consistency in the workplace, offering protection to employees and providing employers with
a framework to manage labor relations effectively. Both employers and employees must
understand the significance of these orders, as non-compliance can lead to disputes and legal
challenges, undermining industrial peace and the employer-employee relationship.

14. REFERENCE :
 Industrial Employment (Standing Orders) Act – IndiaFilings
 Bharatiya Kamgar Karmachari Mahasangh v. Jet Airways Ltd. –
Supreme Court Cases
 36820_2018_11_1502_45463_Judgement_25-Jul-2023.pdf (sci.gov.in)
 https://indiankanoon.org/doc/149275/
https://www.simpliance.in/blog/standing-orders-under-the-industrial-
relations-code/

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