The Industrial Employment (Standing Orders) Act, 1946

Object of the Act Scope and Application Definitions Submission of Draft Standing Orders Certification of Standing Orders Appeal Interpretation of Standing Orders

Importance

Conditions of service of workers were not well defined No clarity of rights and obligations of the employer in respect of terms of employment, friction/dispute between management and worker Emphasize on the workers right to know the terms & conditions of employment

Object of the Act

To require employers to define the terms and conditions( discharge, holidays,tenure, leaves, disciplinary action ,working hours,pay days etc. ) of employment and make it known to workers To bring about uniformity in terms and conditions of employment of employees belonging to same category

To minimize industrial conflicts To foster harmonious relations between employers and employees. To provide statutory sanctity and importance to standing orders

Scope and Application

Extends to the whole of India To every establishment wherein 100 or more workmen are employed Once applicable to the establishment then it continuous even if the no. of workmen employed gets reduced to less than 100 The central and state governments can apply the provisions of act to any industrial establishment employing less than 100 workmen also by giving 2 months prior noticfication.

Important Definitions

Appropriate Government: State Government, Central Government.[sec2b] Certifying Officer:[2c] means Labour Commissioner/Regional Labour Commissioner and includes any other officer appointed by the appropriate Government, by notification in the Official Gazette to perform such duties. Employer: owner of the establishment Appellate Authority : authority appointed by the appropriate Government by notification in the official Gazette to exercise the functions of an appellate authority under the act.

INDUSTRIAL ESTABLISHMENT

A factory defined in Section-2 (m) of the Factories Act, 1948 A railway defined in Railways Act, 1939 Establishment defined in the Payment of Wages Act, 1936

Standing Orders

The term Standing Orders means rules relating to matters set out in the Schedule of the Act.

Schedule
Matters to be contained in the Standing Orders

Classification of the workmen : temporary, casual, apprentices , probationers. Manner of intimating to workmen periods and hours of work,holidays,pay days and wages. 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 Termination of employment Suspension or dismissal for misconduct Acts and omissions which constitute misconduct

It is not permissible for the employers to frame standing orders in respect of the matters not provided for in the schedule of the ACT. Only the appropriate govt can by notification add matters In 1983 added: age of retirement, transfer,medical ex, exclusive service etc.

Model Standing Orders

The Central and State Govt have framed their own rules on the matters stated in the ACT . Classification of workerspermanent,probationer,badli,temporary workmen,casual,apprentice Tickets to permanent workman Cards-number of days etc.

Publication of working time , holidays, wage rates,shift working Read more

Submission of Draft Standing Orders

Obligatory on the part of an employer or a group of employers to furnish 5 copies of the draft standing orders to the certifying officer

Within 6 months of the applicablibity of the Act the employer shall submit the draft standing orders proposed
5 Copies to be given to the certifying officer

Draft has to enclose the prescribed particulars of the workmen The status and name of the trade unions to be given.
It has to take all matters set out in the Schedule.

Procedure for Certification of Standing Orders

Copy of draft standing orders to be sent to trade union/workmen by certifying officer Opportunity of hearing to trade union/workmen to be provided objection to be submitted within 15 days Certification Within 7 days of certification ,send copies to all Standing orders to be applicable to all present and future workmen.

Conditions for certification of Standing Orders

Provision is therein made for every matter set out in the schedule Standing orders are in conformity with the provisions of the Act.

Other provisions of the Act

Appeal
Any employer, workman, trade union aggrieved by the order of the certifying officer may, with in 30 days from the date on which copies of the certified standing orders sent to them

Date of Operation of the Act

On the expiry of 30 days of the certification given by certifying officer

Duration & modification of Standing Order

To remain unmodified for span of 6 months. These provision of modification do not apply in states of Mahrashtra and gujarat.

Register of standing order: The certifying officer is required to file a copy in prescribed register. Display of standing orders: to be posted in English language or local language near the entrance.

Payment of Subsistence allowance

Payment of subsistence allowance by an employer to a workman who has been suspended by the employer and his investigation is pending or inquiry into complaints or charges of misconduct

the allowance shall be at the rate of 50% of the

wage for the first 90 days of suspension

The allowance shall be 75% of the wage after 90 days if the investigation is delayed due to employer

Penalty

Any employer fails to submit draft standing orders or modifies it without approval of the Certifying officer, shall be punishable with fine which may extend to Rs. 5000. In case of continuance of the above offence, fine up to Rs.200 per every day. Any contravention of Standing Orders is punishable by Rs. 100 fine further Rs25 a day.

The Contract Labor Act ,1970

An Act to regulate the employment of contract labour in certain establishments and to provide for its abolition in certain circumstances and for matters connected therewith.

A workman is deemed to be employed as Contract Labour when he is hired in connection with the work of an establishment by or through a contractor. Contract workmen are indirect employees;persons who are hired, supervised and remunerated by a contractor who, in turn, is compensated by the establishment. Contract labour has to be employed for work which is specific and for definite duration.

Contract labour should not be employed where: (a) The work is perennial and must go on from day to day; (b) The work is incidental to and necessary for the work of the factory; (c) The work is sufficient to employ considerable number of whole time workmen

It applies-(a) To every establishment in which twenty or more workmen are employed or were employed on any day of the preceding twelve months as contract labour (b) to every contractor who employees or who employed on any day of the preceding twelve months twenty or more workmen

Who is a Principal employer

In a factory, the owner or the occupier of the factory & where a person has been named as Manager under the Factories Act, 1948

Who is a Contractor

A person who undertakes to produce a given result for the establishment through contract labour or who supplies contract labour for any work of establishment & includes a sub contractor.

Who is a Contract labor

Any worker will be a contract labour when he is hired for work of establishment through a contractor, with or without the knowledge of the principal employer

Liabilties of a Principle Employer

Sr. No.
1 Provision Canteen

Conditions
Where 100 or more contract labour employed & employment of contract worker continue more than 6 months If contract labour is required to halt at night & employment of contract worker continue for 3 or more months Where 20 or more female contract labor are employed. Sufficient supply at convenient place. At least one latrine for every 25 male & female contract labor separately Separate for female & male contract labor At least one First aid box for every 150 contract labor

2
3

Rest rooms
Crche Drinking Water Latrines & Urinals Washing Facilities First aid Facilities

4 5 6 7

Responsibility of a Contractor

Ensure timely disbursement of wages Pay the rate of wages as fixed in agreement Maintain rolls and registers of wages, overtime, deductions, fines etc. Issue wage slips Display notice of wage rates , hours of work etc.

Responsibility for payment of wages: - A contractor shall be responsible for the payment of wages

Wages shall be paid in the presence of authorized person nominated by the Principal employer. No wage period shall exceed one month.

Wages of terminated worker shall be paid before the expiry of second working day from the day on which his services were terminated.
Wages to every worker shall be paid directly or to any person authorized by him. The wages paid to the contract workers shall be authenticated by the representative of the Principal employer at the end of the wage sheet.

Register & records to be maintained:

Sr. No.

Register to be maintained Register of Contractor Register of Person employed Employment card Service Certificate Muster Roll

Form No. 12 13 14 15 16

1 2 3 4 5

6
7 8 9 10 11

Register of wages
Wages cum Muster roll register where is fortnightly or less Register of Deductions Register of Fines Register of Advances Register of Overtime

17
18 20 21 22 23

12

Wages slip where wage period is more than one week

29

Prohibition of employment of contract labor

The State govt can prohibit the employment of Contract Labor by a notification in the following areas: The process, operation is the main business of the establishment Continuous Manufacturing Perennial nature of work Where the work should be done by whole time workmen.

Employment permitted by the State Govt for employment of Contract Labor Housekeeping Horticulture

Loading & Unloading

Material Movements Canteen Employment Security & Vigilance

Registration of Establishment
The Principal employer if employing 20 or more workers through the contractor, he is obliged to get himself registered through FORM No. 1.

Licensing of Contractors The Contractor has to obtain License if employing more than 20 workers & deposit the required fees on FORM No. 4 along with the Principal Employer Certificate on FORM No. 5.

Validity & Renewal The License will be valid for one year and can be renewed thereafter before 30 days of its expiry

Revocation, suspension & amendment of license If the license is obtained by misrepresentation or suppression of material facts.

Security Deposit The Contractor has to deposit the Security amount as prescribed by the State Govt.