Standing Orders in India

Introduction:

In the realm of labor law, “standing orders” refer to a set of regulations that govern the terms of employment and the conduct of both workers and employers within industrial establishments. These orders play a crucial role in bringing clarity and consistency to employment conditions, encompassing various aspects such as work hours, holidays, workplace behavior, disciplinary procedures, and other essential facets of employment.

In India, the Industrial Employment (Standing Orders) Act of 1946 mandates that employers in industrial establishments with one hundred or more employees formally define the conditions of employment. Additionally, under specific circumstances, the government may extend the Act’s provisions to establishments with fewer than one hundred employees. According to this Act, employers are obligated to submit a draft of the proposed standing orders to a certifying officer. These orders must comprehensively outline employment conditions, including worker classification, work shifts, attendance rules, leave policies, termination procedures, disciplinary actions, and mechanisms for resolving disputes.

Objectives of the Standing Orders

The objectives of standing orders are multifaceted:

1. To establish uniformity in terms and conditions of employment.
2. To cultivate harmonious relations between employers and employees.
3. To ensure that conditions of service are clearly communicated to workers.
4. To regulate recruitment, discharge, disciplinary actions, leave, holidays, and other pertinent aspects concerning workers in industrial establishments.

Date of Operation of Standing Orders

Standing Orders become effective thirty days after authenticated copies are sent under sub-section (3) of Section 5, unless an appeal is filed under Section 6. If an appeal is lodged, they come into force seven days after the appellate authority’s order is dispatched under sub-section (2) of Section 6.

Applicability of the Industrial Employment Act

The Industrial Employment (Standing Orders) Act applies nationally to industrial establishments that employ one hundred or more workers or have employed that number at any time in the preceding twelve months. The government has the authority to extend its applicability to establishments with fewer than one hundred workers through official notification. Certain categories of establishments may be exempted as specified by governmental regulations.

Applicability of Standing Orders

The applicability of standing orders varies by state and nationally as outlined below:

KEY PROVISIONS

1. Submission and Certification of Draft Standing Orders
   Within six months of the Act becoming applicable to an industrial establishment, employers are required to submit five copies of their proposed draft standing orders to the Certifying Officer. These drafts must encompass all matters specified in the Act’s Schedule and should closely align with any model standing orders provided. Employers in similar establishments have the option to jointly submit draft orders. Standing orders are certified if they cover all relevant Schedule matters and comply with the Act’s provisions. The Certifying Officer evaluates the fairness and reasonableness of each provision and has the authority to modify or supplement the draft orders as necessary. Once certified, the orders and the Certifying Officer’s decision are communicated to the employer and relevant trade unions or worker representatives.
2. Appeals and Implementation
   Any aggrieved party, whether employer, workers, trade unions, or other representatives, has the right to appeal the decision of the Certifying Officer within thirty days. The Appellate Authority’s decision is final and may either confirm the certified orders or make amendments to ensure compliance with certification requirements. Standing orders come into effect thirty days after authenticated copies are distributed, or after seven days if an appeal is lodged.
3. Content of Standing Orders
   Standing orders must comprehensively outline rules regarding work shifts, attendance, leave procedures, and protocols for managing workplace closures. They are also required to specify grounds for termination, suspension, or dismissal, and establish procedures for addressing grievances or instances of unfair treatment by employers.
4. Model Standing Orders in Labor Law
   Model standing orders serve as governmental guidelines for formulating standing orders in industrial establishments. Separate provisions apply to establishments related to coal mines, as specified in the Industrial Employment (Standing Order) Central Rules of 1946.
5. Duration and Modification of Standing Orders
   Once certified, standing orders can only be modified with mutual agreement between employers and workers or their representatives. Modifications cannot be made within six months of the standing orders or their last revisions coming into effect.
6. Penalties and Legal Procedure
   Failure to submit draft standing orders or making unauthorized modifications can result in fines. Employers found contravening certified standing orders may face penalties, subject to government sanction before prosecution. Offences are adjudicated in courts with appropriate jurisdiction. An employer acting in contravention of certified standing orders for their industrial establishment under this Act may incur a fine of up to one hundred rupees initially, with an additional daily fine of up to twenty-five rupees for each subsequent day the offence continues.

Conclusion

Standing orders represent a pivotal aspect of labor law, particularly under the Industrial Employment (Standing Orders) Act, 1946, and the more recent Industrial Relations Code, 2020. They serve as formal regulations governing employment terms and conditions in industrial establishments. The conclusion underscores the critical role of standing orders in fostering clarity, consistency, and equity in employer-employee relationships. These orders comprehensively address various aspects of employment, including worker classification, work shifts, attendance, leave provisions, termination procedures, disciplinary actions, and grievance redressal mechanisms. Legally binding and enforceable through labor or industrial courts, standing orders play a crucial role in minimizing disputes and maintaining a well-structured work environment. They impose statutory obligations on both employers and employees to adhere to established norms, thereby promoting a harmonious workplace.

Disclaimer

The information provided in this article is intended for general informational purposes only and should not be construed as legal advice. The content of this article is not intended to create and receipt of it does not constitute any relationship. Readers should not act upon this information without seeking professional legal counsel.