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Ambit of industrial employment (standing orders) Act 1946

The industrial employment standing orders act is the piece of labour legislation which lays the model standing orders applicable to every industrial establishment under the act.

Object of The Act
To require employers in industrial establishments formally to draft and define conditions of employment under them. Standing orders mean set of conditions defining the:
  • Conditions of recruitment
  • Disciplinary action
  • Discharge
  • Holidays and leave
The purpose of standing orders act 1946 is to minimize friction between the management and workers in the industrial establishments. The act contains 15 section and a schedule.

The Indian labour conference tripartite on Indian labour conference revealed a consensus of opinion in favor of legislation. The bill accordingly seeks to provide for the framing of standing orders in all industrial establishments employing 100 or more workers. Section 2(g) of the act defines “standing orders “as the rules relating to matter set out in the schedule.

Industrial Establishment

Section 2(e) defines industrial establishment as:

  • any factory under the factories act 1948
  • industrial establishment as under section 2(ii) of the Payment of wages act, 1936
  • railway under Indian railways act 1890

Procedural Aspects:

  1. Submission And Certification Of Standing Orders
    Section 3 defines about submission of draft standing orders. The section lays the procedure that employer shall draft standing orders relating to the industrial establishment and submit it to the certifying officer who is generally termed as regional labour commissioner or labour officer. Where such a model standing order has been prescribed, the standing order draft shall be in conformity with that model standing orders. The standing orders on being certified by the certifying authority shall bind on both the employer and workman.
  2. Appeals
    Section 7 the person workman or any employer, trade union or any parties who are aggrieved by the order of certifying officer shall appeal to the appellate authority within 30 days of such order sent by certifying authority. The appellate authority on receipt of order shall modify the order, add, some conditions in it and within seven days of receipt shall send copies to the certifying officer who shall certify it .

Concept of Subsistence Allowance Section 10A

The act also provides for the payment of subsistence allowance.
As a result of enquiry and investigation or misconduct charges against any workman and it results in his suspension by the employer then
  • For the first 90 days : the workman shall be entitled for 50 % wages
  • For the remaining period: if suspension remains for more than 90 days then 75 % of wages shall be paid as subsistence allowance.

Schedule And Contents
The act contains only 1 schedule which lays down the matters to be provided in the standing orders of industrial establishments depending upon the nature of industrial establishment the employer shall draft standing orders. The matters to be stated are:
  1. Classes of workman
  2. Hours of work
  3. Shift working
  4. Attendance
  5. Condition regarding holidays
  6. Entry conditions and requirements
  7. Closure and reopening of industrial establishments
  8. Termination of employment
  9. Suspension
  10. Means of redressal for unfair treatment
  11. Such other matters as may be prescribed
Thus the act and its ambit in providing subsistence allowance and applicability of the industrial employment (standing orders) act 1946 are discussed. The employer shall at his discretion draft the standing orders and get it certified by the authority provided it is in conformity with the model standing orders.

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