Mahindra Prabu, Asst. Prof.

(Law)

21-11-2015

IESOA, 1946

M. Mahindra Prabu
Asst. Professor (Law)
TNNLS

What is Standing Orders?

Conditions of employment
S. 2(g) of IESOA, 1946
Standing orders means rules relating to
matters set out in the Schedule

Mahindra Prabu, Asst. Prof. (Law)

21-11-2015

Schedule
MATTERS TO BE PROVIDED IN STANDING
ORDER UNDER THIS ACT
Classification of workmen, e.g. whether permanent,
temporary, apprentices, probationers, or badlis.
Manner of intimating to workmen periods and hours
of work, holidays, pay-days and wage rates.
Shift working.
Attendance and late coming.
Conditions of procedure in applying for, and the
authority which may grant, leave and holidays.
Requirement to enter premises by certain gates, and
liability to search.

Closing and re-opening of sections of the

industrial
establishment,
and
temporary
stoppages of work and the rights and liabilities of
the employer and workmen arising there from.
Termination of employment, and the notice
thereof to be given by employer and workmen.
Suspension or dismissal for misconduct, and acts
or omissions, which constitute misconduct.
Means of redress for workman against unfair
treatment or wrongful exactions by the employer
or his agents or servants.
Any other matter, which may be prescribed.

Mahindra Prabu, Asst. Prof. (Law)

21-11-2015

History
To avoid friction between management and
workers on conditions of employment
Tripartite Labour Conferences 1943, 1944,
1945
Consensus Opinion in favour of separate
enactment IESOA, 1946

Structure of IESOA, 1946

15 Sections & 1 Schedule
Applicable 100 or more Workmen
App. Govt may 2 Months Notice Gazette
Bring Industrial Establishment which is less
than 100 workmen

Mahindra Prabu, Asst. Prof. (Law)

21-11-2015

Why we need Standing Orders?

Laissez faire Hire & Fire

Mgmt Supreme Master
Contract between unequals
Need for statutory protection to unequals
IESOA Aimed @ achieving a transition from
mere contract between unequals to the
conferment of status on workmen through
conditions statutorily imposed upon the
employer by requiring every industrial
establishment to frame Standing Orders in
respect of matters enumerated in Schedule

Preamble
An Act require employers in industrial
establishments formally to define conditions
of employment under them. Whereas it is
expedient to require employers in industrial
establishments to define with sufficient
precision the conditions of employment
under them and to make the said conditions
known to workmen employed by them.

Mahindra Prabu, Asst. Prof. (Law)

21-11-2015

Object
To introduce uniformity of terms and conditions
of employment in respect of workman belonging
to the same category and discharging the same
and similar work under the industrial
establishment and to make the terms and
conditions of industrial employees well settled
and known to the employees before they accept
the employment.

Uptron India Ltd v. Shammi Bhan &

another, 1998 SCC (L&S) 1601
Labour Law Enactments Contract to Status
Concept of Employment 3 ingredients
Management/ Employer
Employee/Workman
Contract of Employment

General Principles of Contract Act, 1872

applicable to a contract of Industrial
employment
But, PARTLY CONTRACTUAL Labour
Legislations prescribes positive obligations for the
employer towards his workman i.e. PWA, MWA,
IESOA, PBA, PGA etc.

Mahindra Prabu, Asst. Prof. (Law)

21-11-2015

Uptron contd.,
In this case, the petitioner framed its own S.O &
got it certified. Clause 17(g) of C.S.O states that,
The Service of Workman are liable to automatic
termination if he overstays on leave without
permission for more than 7 days. In case of
sickness, the Med.C must be submitted within a
week. Based on the above said clause
Respondent (Permanent Employee) services was
terminated.
SC Observed, Permanent Status of an employee
guarantees security of tenure. Opportunity of
hearing was not given to respondent. It was bad
in law

Employer (Supreme)

IESOA (compelled by Statute)

Sufficient Precision on CoE

Mahindra Prabu, Asst. Prof. (Law)

21-11-2015

Interpretation
To any of the courts established by IDA
Words Natural Meaning
Two Constructions Possible then the
construction which advances the intention of
legislature, remedies the mischief to thwart
with which it is enacted be accepted.
Glaxo Laboratories (I) Ltd v. Labour Court,
(1984) I LLJ 16

Important Definitions

Mahindra Prabu, Asst. Prof. (Law)

21-11-2015

S. 2(a) Appellate Authority (notified by govt)

S. 2(b) Appropriate Govt
S. 2(c) Certifying Officer (Labour Comm. [L.C]
or Regional L.C or any other officer appointed by
app. Govt)
S. 2(d) Employer Includes
Mgr of Factory (u/s 7(1)(f) of Factories Act, 1948)
I.E u/c of govt. the authority appointed by govt. or
in absence, the HOD
any person responsible to the owner for the
supervision and control of the industrial
establishment

TU Refer TUA, 1926

Wages, Workman S.2 (rr) and (s) IDA 1947

Certification Process

Mahindra Prabu, Asst. Prof. (Law)

21-11-2015

Stage 1 - Application

Industry (100 or more workmen)

Within 6 months Act applicable to Industry
Submit DSO (5 copies) to C.O
MSO From the day on which the act is
applicable to Industry operative till DSO
become CSO
DSO should be in conformity with MSO
MSO, DSO & CSO

Stage 2 - Process
C.O sent notice to T.U or Workmen (Requiring
Objections)
TU or Workmen should reply within 15 days
from the receipt of notice
After giving opportunity to both the sides CO
shall decide whether or not any modification
or addition to the draft is necessary

Mahindra Prabu, Asst. Prof. (Law)

21-11-2015

Stage 3 - Certification
Once certified, within 7 days CSO will be sent
to the Employer, TU or Workmen.
CO must make an entry into REGISTER
whereas the Employer must post the CSO in
industrial premises

Stage 4 - Appeal
Within 30 days
Who can go?
Employer or
Workman or
TU

Within 7 days of its Order copies of

(modified) S.O as certified by it will be sent to
Employer, Workman & TU

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Mahindra Prabu, Asst. Prof. (Law)

21-11-2015

Date of Operation
No Appeal
On expiry of 30 days from the date on which
authenticated copies there of are sent

On Appeal
On expiry of 7 days from the date on which
copies of order of appellate office are sent.

Modification after Certification of S.O

S. 10
No modification until the expiry of 6 months from
D.OP or an agreement between Er &Wm to that effect
An application for modification would ordinarily be
made, where
a change of circumstances has occurred (or)
Where experience of the working of the standing orders
last certified results inconvenience, hardship, anomaly
etc., (or)
Where some fact was lost sight at the time of certification
(or)
where the applicant feels that a modification will be more
beneficial

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Mahindra Prabu, Asst. Prof. (Law)

21-11-2015

Nature & Character of S.O

RSRTC v. Krishna Kant, 1995 II LLJ 728 (SC)
S.O Whether Delegated / Sub-ordinate
Legislation?
Whether C.S.O acquires Statutory effect or
become part of a Statute?

Ans: NO
Employer May be private person not
necessarily a statutory corporation
If yes, a writ petition would lie against
violation u/A 309 of Constitution then
neither suit nor a reference under IDA is
necessary.
Thus, it can be said that they are statutorily
imposed CoS & it cant be said that they
constitute statutory provisions themselves

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Mahindra Prabu, Asst. Prof. (Law)

21-11-2015

Penalties & Procedure

Er fails to submit D.S.O
Fine Rs. 5000
Rs. 200 for continuance of such offence everyday

Er contravenes C.S.O
Fine Rs. 100
Rs. 25 for continuance of such offence everyday

Previous Sanction of App. Govt is MUST

No Court inferior to that of MM or JM II shall
try any offence under this section.

Power to Exempt [S. 14]

App. Govt.
Conditionally or Unconditionally
Any I.E or class of I.E
From all or any provision of the Act
Gazette Notification MUST

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Mahindra Prabu, Asst. Prof. (Law)

21-11-2015

Payment of Subsistence Allowance

S. 10 A
Any workman is suspended by the employer
pending investigation or
inquiry into complaints or
charges of misconduct against him

Employer Shall pay S.A

First 90 days of Suspension 50% of Wages
Remaining Period (Delay not on part of
Workman) 75% of Wages

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Mahindra Prabu, Asst. Prof. (Law)

21-11-2015

Who can refer the dispute? To Whom?

Employer or Workman can refer the dispute
to the Labour Court and its decision is FINAL.
Note:
Any other provision in any other law
beneficial than this then that may be
applicable

B.D. Shetty & Others v. CEAT Ltd & Anr,

2002 SCC (L&S) 131

CEAT Er
B.D. Shetty & Others Workmen
Mumbai Shramik Sangh Union
Rival
Shramik Utkarsha Sabha
TUs
B.D. Shetty & Others resigned from MSSU and
joined SUS
MSSU Only TU of that I.E
An employee & V.P of MSSU on union rivalry
lodged Crml complaint against B.D. Shetty &
Others

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Mahindra Prabu, Asst. Prof. (Law)

21-11-2015

Crml Cases & Domestic Inquiry (Misconduct)

were initiated (Parallel)
B.D. Shetty & Others approached L.C and got
stay on D.I till the completion of Crml Trial
Co. appealed to I.T (pending)
Co. reduced S.A from 75% to 50% on basis of
delay on part of Workman

Whether such reduction on S.A is Valid?

Ans: NO

Whether workmen is entitled to 75% of S.A

under these circumstances?
Ans: YES

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