LexThe Industrial Employment (Standing Orders) Act, 1946
Punjab · state statute
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Industrial Employment (Standing Orders) Act, 1946
Sections
Preamble
1. Short title, extent and application
2. Interpretation
3. Submission of draft standing orders
4. Conditions for certificat ion 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 modificati on of standing orders
10-A. Payment of subsistence allowance
11. Certifying Officers and appe llate authorities to have
power of Civil Court
12. Oral evidence in contradict ion of standing orders not
admissible
12-A. Temporary applicati on of model standing orders
13. Penalties and procedure
13-A. Interpretation, et c., of standing orders
13-B. Act not to apply to ce rtain industrial establishments
14. Power to exempt
14-A. Delegation of powers
15. Power to make rules
THE SCHEDULE
1
Industrial Employment (Standing Orders)
Act, 1946
[Act No. 20 of 1946
1
As Amended by Acts Nos. 3 of 1951, 36 of 1956,
16 of 1961, 39 or 19632, 51 of 1970 and 18 of 1982
3
]
[23rd April, 1946]
An Ac4t require employers in industrial establishments formally to define
conditions of employment under them
Whereas it is expedient to require employe rs in industrial establishments to define
with sufficient precision the c onditions of employment under them and to make the said
conditions known to workmen employed by them.
It is hereby enacted as follow :
1. Short title, extent and application.- (1) This act may be called the
Industrial Employment (Standing Orders) Act, 1946.
(2) It extends to
5[the whole of India 6[* * *].]
7[(3) It applies to every industrial es tablishment wherein one hundred or more
workmen are employed, or were employed on any day of the preceding twelve months:
Provided that the appropria te Government may, after giving not less than two
months’ notice of its intention so to do, by notification in the Official Gazette, apply the
provisions of this Act to any industrial establishment employing such number of number
of persons less than one hundred as may be specified in the notification :
8[* * * *]
9[ (4) Nothing in this Act shall apply to-
1 For Statement of Objects and Reasons, see Gaz., of India, 1946, Pt. V, pp. 179 & 180
2 Came into force w.e.f. 23-12-1963, vide Noti. No. S.O., 3594 dt. 23-12-1963
3 Came into force w.e.f. 17.5.1982 vide Noti. No. S.O. 326 (E) dated 17-5-1982 (1982
CCL-III-146)
4 History of the Act.- The Act has been amended by the Indian Independence
(Adaptation of Central Acts and Ordinanc es ) Order, 1943; The A.O. 1950; Act 3 of
1951; Act 36 of 1956; Act 16 of 1961; Act 39 of 1963; 51 of 1970 and 18 of 1982,
Object of the Act.- That the object of the Act is to have uniform Standing Orders
providing for the matters enumerated in the Sc hedule to the Act, that it was not intended
that there should be different conditions of service for those who are employed before
and those employed after the Standing Orde rs came into force and finally, once the
Standing Orders come into the force, they bi nd all those presently in the employment of
the concerned establishment as well as those who are appointed thereafter. Agra Electric
Supply Co. Ltd. v. Aladdin, (1969) 2 SCC 598; U.P. Elect ric Supply Co. Ltd. v. Their
Workman, (1972) 2 SEC 54.
5 Subs. by the A.O. 1950, for “all the Provinces of India”
6 Omitted by Act No. 51 of 1970.
7 Subs. by Act No. 16 of 1961, S. 2 for sub-section (3)
8 The 2nd proviso to sub-section (3) omitted by Act No. 39 of 1963
2
(i) any industry to which the provisions of Chapter VII of the Bombay Industrial
Relations Act, 1946, apply; or
(ii) any industrial establishment to wh ich the provisions of the Madhya Pradesh
Industrial Employment (Standing Orders) Act, 1961 apply :
Provided that notwithstanding anything c ontained in the Madhya Pradesh Industrial
Employment (Standing Orders) Act, 1961, the pr ovisions of this Act shall apply to all
industrial establishments under the control of the Central Government .]
2. Interpretation.- In this Act, unless there is a nything repugnant in the subject or
context
10[(a) “appellate authority” means 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 :
Provided that in relation to an appeal pending before an Industrial Court or other
authority immediately before the commenc ement of the Industrial Employment
(Standing Orders) Amendment Act, 1963, that Court or authority shall be deemed
to be the appellate authority:]
(b) “appropriate Government” means in respect of industrial establishments under the
control of the Central Government or a 11[Railway administration] or in a major
Port, mine or oil field, the Central Government, and in all other in all other cases
the State Government :
12[Provided that where question arises as to whether any industrial establishment is
under the control of the Central industrial establishment is under the control of the
Central Government that Government may, either on a reference made to it by the
employer or the workman or a trade union or other representative body of the
workmen, or on its own motion and after giving the parties an opportunity of
being heard, decide the question and su ch decision shall be final and binding on
the parties :]
13[ (c) “Certifying Officer” means a Labo ur Commissioner or a 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:]
(d) “employer” means the owner of an indus trial establishment to which this Act for
the time being applies, and includes-
9 Added by ibid
10 Subs. by Act No. 39 of 1963
11 Subs. by the A.O. 1950, for “Federal railway”.
12 Ins. by Act No. 18 of 1982 (w.e.f. 17-5-1982
13 Subs. by Act No. 16 of 1961, S. 3, for cl. (c).
3
(i) in a factory, any person named under 14[clause (f) of sub-section (1) of Section
7 of the Factories Act,1948], as manager of the factory;
(ii) in any industrial establishment und er the control of any department of any
Government in India, the authority a ppointed by such Government in this
behalf, or where no authority is so appointed, the head of the department;
(iii) in any other industrial establishmen t, any person responsible to the owner for
the supervision and control of the industrial establishment;
(e) “industrial establishment” means
(i) an industrial establishment as defi ned in clause (ii) of Section 2 of the
Payment of Wages Act, 1936, or
15[(ii) a factory as defined in clause (m) of Section 2 of the Factories Act, 1948, or ]
(iii) a railway as defined in clause (4 ) of Section 2 of the Indian Railway Act,
1890, or
(iv) the establishment of a person who, fo r the purpose of fulfilling a contract with
the owner of any industrial establishment, employs workmen;
(f) “prescribed’ means prescribed by ru les made by the appropriate Government
under this Act ;
(g) “ standing orders” means rules relati ng to matters set out in the Schedule:
(h) “trade union” means a trade union for the time being registered under the Indian
Trade Union Act, 1926;
16[(i) “wages” and “workman” have the m eanings respectively assigned to them in
clauses (rr) and (s) of Section 2 of the Industrial Disputes Act, 1947 (14 of 1947).]
3. Submission of draft standing orders.-- (1) Within six months from the date on
which this Act becomes applicable to an i ndustrial 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 industria l 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 unde r 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 gr oup of employers in similar
industrial establishments may submit a joint draft of standing orders under this section.
4. Conditions for certification of standing orders.-- Standing orders shall be
certifiable under this Act if--
14 Subs. by S. 3, ibid, for “cl. (e) of sub- section (1) of S. 9, the Factories Act, 1934”.
15 Subs. by Act No. 16 of 1961, S. 3, for sub clause (ii)
16 Subs by Act No. 18 of 1982 (w.e.f. 17-5-1982).
4
(a) provision is made therein for ever y matter set out in the Schedule which is
applicable to the industrial establishment, and
(b) the standing orders are ot herwise in conformity with the provisions of this Act ;
and it
17
[shall be the function] of the Certif ying Officer or appe llate authority to
adjudicate upon the fairness or reasonableness of the provisions of any standing orders.
5. Certification of standing orders.--(1) On receipt of the draft under Section3, the
Certifying Officer shall forward a copy thereof to the trade union, if any, of the workmen,
or where there is no such trade union, if any, of the workmen or where there is no trade
union, to the workmen in such manner as may be prescribed, together with a notice in
the prescribed form requiring ob jections, if any, which the workmen may desire to make
to the draft standing orders to be submitted to him within fifteen days from the receipt of
the notice.
(2) After giving the employer and the trade union or such other representatives of the
workmen as may be prescribed an opportunity of being heard, the Certifying Officer shall
decide whether or not any modification of or addition to the draft submitted by the
employer is necessary to render the draft sta nding orders certifiable under this Act, and
shall make an order in writing accordingly.
(3) The Certifying Officer shall there upon certify the draft standing orders, after
making any modifications there in which his order under sub-section (2) may require, and
shall within seven days thereafter send co pies of the certifie d standing orders
authenticated in the prescribed manner and of his order under sub-section (2) to the
employer and to the trade union or other prescribed representatives of the workmen.
6. Appeals.--(1)
18[Any employer, workmen, trade union or other prescribed
representatives of the workmen] aggrieved by the order of the Certifying Officer under
sub-section (2) of Section 5 may, within 19 [thirty days] from the date on which copies are
sent under sub-section (3) of that section, appeal to the appellate authority, and the
appellate authority, whose decisi on shall be final, shall by or der in writing confirm the
standing orders either in the form certified by the Certifying Officer or after amending the
said standing orders by making such modifica tions thereof or additions there to as it
thinks necessary to render the standing orders certifiable under this Act.
(2) The appellate authority shall, within seven days of its order under sub-section (1)
send copies thereof to the Certifying Officer , to the employer and to the trade union or
other prescribed representatives of the wo rkmen, accompanied, unle ss it has confirmed
without amendment the standing orders as certified by the Certifying Officer, by copies
of the standing orders a certified by it and authenticated in the prescribed manner.
7. Date of operation of standing orders.-- Standing orders shall, unless an appeal is
preferred under Section 6, come into operation on the expiry of thirty days from the date
on which authenticated copies thereof are se nt under sub-section (3 ) of Section 5, or
where an appeal as aforesaid is preferred, on the expiry of seven days from the date on
17 Subs, by Act No. 36 of 1956, S. 32, for ‘shall not be the function”. (w.e.f. 17-9-1956),
18 Subs, by Act No. 18 of 1982 (w.e.f. 17-5-1982).
19 Subs, by Act No. 1 of 1961, s. 4, for twenty-one days”.
5
which copies of the order of the appellate authority are sent unde r sub-section (2) of
Section 6.
8. Register of standing orders. -- A copy of all standing orders as finally certified
under this Act shall be filed by the Certifying Officer in a regi ster in the prescribed form
maintained for the purpose, and the Certifying Officer shall furnish a copy there of to any
person applying there for on payment of the prescribed fee.
9. Posting of standing orders.-- The text of the standing orders as finally certified
under this Act shall be prominently posted by the employer in English and in the
language understood by the majo rity of his workmen on special boards to be maintained
for the purpose at or near the entrance thr ough which the majority of the workmen enter
the industrial establishment and in all de partments thereof where the workmen are
employed.
10. Duration and modification of standing orders.-- (1) Standing orders finally
certified under this Act shall not, except on agreement between the employer and the
workmen
20[or a trade union or other representa tive body of the workmen] be liable to
modification until the expiry of six months fr om the date on which the standing orders or
the last modifications thereof came in to operation.
21[(2) Subject to the provisions of su b-section (1), an employer or workman 22[ or a
trade union or other represen tative body of the workmen] ma y apply to the Certifying
Officer to have the standing orders modified, and such a pplication shall be accompanied
by five copies of 23[***] the modifications proposed to be made, and where such
modifications are proposed to be made by agreement between the employer and the
workmen 19[or a trade union or other representati ve body of the workmen], a certified
copy of that agreement shall be filed along with the application.]
(3) The foregoing provisions of this Act shal l apply in respect of an application under
sub-section (2) as they apply to the certification of the first standing orders.
24[(4) Nothing contained in sub-section (2) shall apply to an i ndustrial establishment
in respect of which the appropriate Government is the Government of the State of Gujarat
or the Government of the State of Maharashtra.]
25[10-A. Payment of subsistence allowance.-- (1) Where any workman is suspended
by the employer pending investigation or i nquiry into complaints or charges of
misconduct against him, the employer shall pay to such workman subsistence allowance-
(a) at the rate of fifty per cent of the wages which workman was entitled to
immediately preceding the date of such suspension, for the first ninety days of
suspension; and
20 Ins. by Act No.18 of 1982 (w.e.f.17-5-1982).
21 Subs, by Act No. 36 of 1956, S. 32, for th e original sub-section (w.e.f. 17-9-956).
22 Ins. by Act No.18 of 1982 (w.e.f.17-5-1982).
23 Omitted by Act No. 39 of 963.
24 Added by ibid.
25 Ins. by Act No. 18 of 1982 (w.e.f. 17-5-1982).
6
(b) at the rate of sevent y-five per cent of such wage s for the remaining period of
suspension if the delay in the completion of disciplinary proceedings against such
workman is not directly attributable to the conduct of such workman.
(2) If any dispute arises regarding the subsistence allowance payable to a workman
under sub-section (1), the workman or the em ployer concerned may refer the dispute to
the Labour Court, constituted under the I ndustrial Disputes Act, 1947 (14 of 1947),
within the local limits of whose jurisdicti on the industrial estab lishment wherein such
workman is employed is situate and the Labour Court to which the dispute is so referred
shall, after giving the parties an opportunity of be ing heard, decide th e dispute and such
decision shall be final and binding on the parties.
(3) Not with standing anything contained in the foregoing provisions of this section,
where provisions relating to payment of s ubsistence allowance under any other law for
the time being in force in any State are more beneficial than the provisions of this section,
the provisions of such other law shall be applicable to the payment of subsistence
allowance in that State.]
11. Certifying Officers and appellate author ities to have powers of Civil Court.-
(1) Every Certifying Officer and appellate authority shall have all the powers of a Civil
Court for the purposes of receiving evidence, administering oaths,, enforcing the
attendance of witnesses, and compelling th e discovery and production of documents, and
shall be deemed to be a Civil Court within the meaning of [Secti ons 345 and 346 of the
Code of Criminal Procedure, 1973 (2 of 1974)]
26
27[(2) Clerical or arithmetical mistakes in any order passed by a Certifying officer or
appellate authority, or errors arising therein from any accidental slip or omission may, at
any time, be corrected by that Officer or au thority or the successor in office of such
officer or authority, as the case may be.]
12. Oral evidence in contradiction of standing orders not admissible.--No oral
evidence having the effect of adding to or otherwise varying or c ontradicting standing
orders finally certified under this Act shall be admitted in any Court.
28[12-A. Temporary application of model standing orders.--(1) Notwithstanding
anything contained in Sections to12, fo r the period commencing on the date on which
this Act becomes applicable to an industria l establishment and ending with the date on
which the standing orders as finally certified under this Ac t come into operation under
Section 7 in that establishment, the prescribed model standing orders shall be deemed to
be adopted in that establishment, and the pr ovisions of Section 9, sub-section (2) of
Section 13 and Section 13-A shal l apply to such model standi ng orders as they apply to
the standing orders so certified.
26 Added by ibid.
27 The original S. 11 renumbered as sub-section (1) and sub-section (2) added by Act
No. 39 of 1963
28 Added by Act No. 39 of 1963.
7
(2) Nothing contained in sub-section (1) sh all apply to an industrial establishment in
respect of which the appropriate Government is the Government of the State of Gujarat or
the Government of the State of Maharashtra.]
Section 12-A.--Where there are two categor ies of workmen, one in respect of the
daily rated workmen and the other in respect of the monthly rated workmen, if there are
certified standing orders in respect of the daily rated workers only, the prescribed model
standing orders should be deemed to have been adopted for those who are employed on
the monthly basis until such categories have their own certified standing orders,
13. Penalties and procedure.-- (1) An employer who fails to submit draft standing
orders as required by Section 3 or who modifi es his standing orders otherwise than in
accordance with Section 10, shall be punishable with fine which may extend to five
thousand rupees, and in the cas e of a continuing offence w ith a further fine which may
extend to two hundred rupees for every day after the first during which the offence
continues.
(2) An employer who does any act in cont ravention of the sta nding orders finally
certified under this Act for his industrial establishment shall be punishable with fine
which may extend to one hundred rupees, and in the case of a continuing offence with a
further fine which may extend to twenty-five rupees for every day after the first during
which the offence continues.
(3) No prosecution for an offence punishable under this section shall be instituted
except with the previous sanction of the appropriate Government.
(4) No Court inferior to that of
29[a Metropolitan or Judicial Magistrate of the second
class] shall try any offence under this section.
30[13-A. Interpretation, etc ., of standing orders.-- If any question arises as to the
application or interpretation of a standing order certified unde r this Act, any employer or
workman [or a trade union or other representative body of the workmen] 31 may refer the
question to any one of the Labour Courts c onstituted under the Indus trial Disputes Act,.
1947, and specified for the disposal of such proceeding by the appropriate Government
by notification in the Official Gazette, and th e Labour Court to which the question is so
referred shall, after giving the parties an opportunity of being heard, decide the question
and such decision shall be final and binding on the parties.
13-B. Act not to apply to cert ain industrial establishments.-- Nothing in this
Act shall apply to an industrial establishmen t in so far as the workmen employed therein
are persons to whom the Fundamental a nd Supplementary Rules, Civil Services
(Classification, Control and Appeal)Rules, Ci vil Services (Temporary Service) Rules,
Revised Leave Rules, Civil Service Regul ations, Civilians in Defense Service
(Classification, Control and Appeal) Rules or the Indian Railway Establishment Code or
any other rules or regulations than may be notified in this behalf by the appropriate
Government in the Official Gazette, apply.]
29 Sub., by Act no. 18 of 1982 (w.e.f. 17-5-1982)
30 Ins. by Act No. 36 of 1956, S. 32 (w.e.f. 10.3.1957).
31 Ins. by Act No.18 of 1982 (w.e.f. 17-5-1982).
8
14. Power of exempt.-- The appropriate Government may by notification in the
Official Gazette exempt, conditionally or unc onditionally any industrial establishment or
class of industrial establishments from all or any of the provisions of this Act.
32[14-A. Delegation of powers.-- The appropriate Government may by notification
in the Official Gazette, direct that any power exercisable by it under this Act or any rules
made thereunder shall, in relation to such ma tters and subject to such conditions, if any,
as may be specified in the direction, be exercisable also-
(a) Where the appropriate Government is the Central Government, by such officer or
authority subordinate to the Central Government or by th e State Government, or by such
officer or authority subordinate to the Stat e Government, as may be specified in the
notification;
(b) where the appropriate Government is a State Government, by such officer or
authority subordinate to the State Government, as may be specified in the notification.]
15. Power to make rules.-- (1) The appropriate Govern ment may after previous
publication, by notification in th e Official Gazette, make ru les to carry out the purposes
of this Act.
(2) In particular and without prejudice to the generality of the foregoing power, such
rules may--
(a) prescribe additional matters to be included in the Schedule, and the procedure to
be followed in modifying standing orde rs certified under this Act in accordance
with any such addition;
(b) set out model standing orders for the purposes of this Act;
(c) prescribe the procedure of Certif ying Officers and appellate authorities;
(d) Prescribe the fee which may be charged for copies of standing orders entered in
the register of standing orders;
(e) provide for any other matter whic h is to be or may be prescribed;
Provided that before any rules are made under clause (a) representatives of both
employers and workmen shall be consulted by the appropriate Government.
33[(3) Every rule made by the Central Govern ment under this secti on shall be laid as
soon as may be after it is made, before each House of Parliament while it is in session for
a total period of thirty days which may be comprised in one session or 34 [in two or more
successive sessions, and if, before the expiry of the session immediately following the
session or the successive sessions afores aid] both Houses agree in making any
modification in the rule or both Houses agree that the rule should not be made, the rule
shall thereafter have effect only in such modified form or be of no effect, as the case may
be ; so however that any such modification or annulment shall be without prejudice to the
validity of any thing previously done under that rule.]
THE SCHEDULE
32 Ins. by Act No. 16 of 1961, S. 5, and sub. by Act No. 39 of 1963.
33 Ins.by S. 6 of Act No. 16 of 1961.
34 Sub. By Act No. 18 of 1982 (w.e.f. 17-5-1982).
9
[See Sections 2 (g) and 3(2)]
MATTERS TO BE PROVIDED IN STANDING ORDERS UNDER
THIS ACT
1. Classification of workmen, e.g., whether permanent, temporary, apprentices,
probationers, or badlis.
2. Manner of intimating to workmen periods and hours of work, holidays, pay-days
and wage rates.
3. Shift working.
4. Attendance and late coming.
5. Conditions of, procedure in applying fo r, and the authority which may grant leave
and holidays.
6. Requirement to enter premises by cer tain gates, an liability to search.
7. Closing and reporting of sections of the industrial establishment, temporary
stoppages of work and the rights and liabilities of he employer and workmen arising there
from.
8. Termination of employment, and the notice thereof to be given by employer and
workmen.
9. Suspension or dismissal for misconduct, and acts or omissions which constitute
misconduct.
10. Means of redress for workmen against unfair treatment or wrongful exactions by
the employer or his agents or servants.
11. Any other matter which may be prescribed.