The Industrial Employment (Standing Orders) Act, 1946

Important Definitions
Standing Orders The term Standing Orders means rules relating to matters set out in the Schedule of the Act. An act to require employers in industrial establishment formally to define conditions of employment under them.

Appropriate Government: State Government, Central Government. Certifying Officer: 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

Object of the Act

To require employers to define the conditions of work To bring about uniformity in terms and conditions of employment 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 On any day preceding twelve months Once applicable to the establishment then it continuous if the no. of workmen employed gets reduced to less than 100 The appropriate Govt. can exempt any establishment from any of the provisions of the Act

Continuous..

It applies to railways, factories, mines, quarries, oil-fields, tramways, motor services, docks, plantations, workshops, civil construction and maintenance works. The Act has 15 sections and a schedule. It applies to all the skilled or unskilled, manual, supervisory, technical, clerical work. The apprentices are also included. The persons employed mainly in a managerial/administrative/supervisory capacity drawing wages exceeding Rs.1600 are not covered.

Employer Expectation

Employee should adhere the companys code of conduct. If they avoids this then it leads to indiscipline/misconduct.

FORM:

Disobedience Theft, Dishonesty, Will fall Behaviour, Remain absent from work without leave etc

CAUSES OF INDISCIPLINE

Absence of Effective Leadership : It results in poor management in areas of direction dui dance, instruction etc. It leads to indiscipline. Unfair Management Practices : Payment of low wages, delay in payment, bad working conditions. It leads to indiscipline.

Divide & Rule Policy: Managers may often divide the employees into groups, get the information from different groups about others. It leads to indiscipline.

CAUSES OF INDISCIPLINE

Non-Uniform Disciplinary Action: Management has to treat all cases of indiscipline in a fair & equitable way if not it leads to indiscipline.

PRINCIPLES OF NATURAL JUSTICE AND DOMESTIC ENQUIRY

The principle of natural justice states that no man should be held guilty without getting an opportunity to explain his point of view. It states that the worker be given a fair chance :

To present evidence of his own choice. To cross examine the managements evidence. To explain his point of view without any pressure or fear. Enquiry should be done by non-bias person. Enquiry officer(manager) should not take any decision without hearing both the parties.

The changes made by the employer against the employee are explained to the worker. If the worker agrees with the changes made against him, the enquiry is dropped. The punishment should not be out of proportion to the misconduct of the employee.

DISCIPLINARY PROCEDURES

Issuing a Charge sheet:

Documents Allegation not the conclusion. Specific Date, Time, Venue of incident.

Show-Cause Notice:
It requires the worker to show cause why disciplinary action will not be taken against him. Give chance to employee Time is given.

Domestic Enquiry:

Any explanation. Explanation but not satisfactory to the management. Domestic enquiry starts. Notice.

Examination of Witness by the Enquiry Officer:

Right to cross examine the managements witness. Right to give his view point. Documents examined by enquiry officer.

Closure of the Enquiry:

Sum-up all the arguments. Signed.

Finding of the Enquiry Officer:

Enquiry officer should provide his decision on the basis of only evidence available & statement made by parties.

Punishment:

Fine, Stopage of increment Demotion Discharge/Dismissial from services Suspension ets.

Subsistence Allowance: 1st 90 days 50% of salary, more than 90 days 75% of salary if delay.

Payment of subsistence allowance by an employer to a workman who has been suspended by the employer and his investigation is pending 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, 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 .

Conditions for certification of Standing Orders

Must compile as per the Model Standing Orders Fairness of the provisions shall be verified by the Certifying Officer

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 Or After the expiry of 7 days of the decision given by appellate authority.