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INDUSTRIAL EMPLOYMENT (STANDING ORDERS) ACT, 1946
20 of 1946
An Act to 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; It is hereby enacted as follows :- MAHARASHTRA For the long title the following shall be substituted, namely :- "An Act to provide for defining with sufficient precision certain conditions of employment in industrial establishments in the State of Bombay." - vide Bombay Act No. XXI of 1958. In the preamble for the portion beginning with the words "to require" and ending with the words "by them", the words "to provide for defining with sufficient precision certain conditions of employment in industrial establish- ments in the State of Bombay, and for certain other matters" shall be substitut- ed - vide Bombay Act No. XXI of 1958.
SECTION 01: SHORT TITLE, EXTENT AND APPLICATION
(1) This Act may be called the Industrial Employment (Standing Orders) Act, 1946.
(2) It extends to the whole of India1[* * *].
2[(3) It applies to every industrial establishment wherein one hundred or more workmen or employed, or were employed on any day of the preceding twelve months: Provided that the appropriate 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 persons less
than one hundred as may be specified in the notification:3[* * *]]
4[(4) Nothing in this Act shall apply to-
(i) any industry to which the provisions of Chapter VII of the Bombay Industrial Relations Act, 1946 (I I of 1947), apply; or
(ii) any industrial establishment to which the provisions of the Madhya Pradesh Industrial Employment (Standing Orders) Act, 1961 (26 of 1961) apply: Provided that notwithstanding anything contained in the Madhya Pradesh Industrial Employment (Standing Orders) Act, 1961 (26 of 1961), the
provisions of this Act shall apply to all industrial establishments under the control of the Central Government.]
SECTION 02: INTERPRETATION
In this Act, unless there is anything repugnant in the subject or context,-
5[(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 commencement of the Indus- trial Employment (Standing Orders) Amendment Act, 1963 (39 of 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 a6 [Railway administration] or in a major port, mine or oilfield, the Central Government, and in all other cases, the State Government :7[Provided that where any question arises as to whether any 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 such decision shall be final and binding on the parties;]
8[(c) "Certifying Officer" means a Labour 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 industrial establishment to which this Act for the time being applies, and includes-
(i) in a factory, any person named under9[clause (f) of sub-section (1) of section 7 of the Factories Act, 1948 (63 of 1948)-], as manager of the factory;
( ii) in any industrial establishment under the control of any department of any Government in India, the authority appointed by such Government in this behalf, or where no authority is so appointed, the head of the department;
(iii) in any other industrial establishment, any person responsible to the owner for the supervision and control of the industrial establishment;
(e) "industrial establishment" means-
( i) an industrial establishment as defined in clause ( ii) of section 2 of the Payment of Wages Act, 1936-(4 of 1936), or
8[(ii) a factory as defined in clause (m) of section 2 of the Factories Act,1948-(63 of 1948), or]
(iii) a railway as defined in clause (4) of section 2 of the Indian Railways Act, 1890(9 of 1890), or
(iv) the establishment of a person who, for the purpose fulfilling a contract with the owner of any industrial establishment, employs workmen;
(f) "prescribed" means prescribed by rules made by the appropriate Government under this Act;
(g) "Standing orders" means rules relating to matters set out in the Schedule;
( h) "trade union" means a trade union for the time being registered under the Indian Trade Unions Act, 1926-(16 of 1926);
10[(i) "wages" and "workman" have the meanings respectively assigned to them in clauses ( rr) and (5) of section 2 of the Industrial Disputes Act, 1947-(14 of 1947).]
SECTION 03: SUBMISSION OF DRAFT STANDING ORDERS
(1) Within six months from the date on which this Act becomes applicable to an industrial establishment, the employer shall submit to the Certifying Officer five copies of the draft standing orders proposed by him for adoption in his industrial establishment.
(2) Provision shall be made in such draft for every matter set out in the Schedule which may be applicable to the industrial 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 submitted under 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 group of employers in similar industrial establishments may submit a joint draft of standing orders under this section.
State Amendments
SECTION 04: CONDITIONS FOR CERTIFICATION OF STANDING ORDERS
Standing orders shall be certifiable under this Act if-
(a) provision is made therein for every matter set out in the Schedule which is applicable to the industrial establishment, and
( b) the standing orders are otherwise in conformity with the provisions of this Act; and it11[shall be the function] of the Certifying Officer or appellate authority to adjudicate upon the fairness or reasonableness of the provisions of any standing orders.
SECTION 05: CERTIFICATION OF STANDING ORDERS
(1) On receipt of the draft under section 3-, 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, to the workmen in such manner as may be prescribed, together with a notice in the prescribed form requiring objections, 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 Standing Orders certifiable under this Act, and shall make an order in writing accordingly.
(3) The Certifying Officer shall thereupon certify the draft standing orders, after making any modifications therein which his order under subsection (2) may require, and shall within seven days thereafter send copies of the certified 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.
SECTION 06: APPEALS
STATE AMENDMENTS
SECTION 07: 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 sent 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 which copies of the order of the appellate authority are sent under sub- section (2) of section 6-
SECTION 08: 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 register in the prescribed form maintained for the purpose, and the Certifying Officer shall furnish a copy thereof to any person applying therefor on payment of the prescribed fee. STATE AMENDMENTS
SECTION 09: 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 majority of his workmen on special boards to be maintained for the purpose at or near the entrance through which the majority of the workmen enter the industrial establishment and in all departments thereof where the workmen are employed. STATE
SECTION 10: DURATION AND MODIFICATION OF STANDING ORDERS
STATE AMENDMENTS
SECTION 10A: [PAYMENT OF SUBSISTENCE ALLOWANCE].
18 (1) Where any workman is suspended by the employer pending investigation or inquiry 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 the workman was entitled to immediately preceding the date of such suspension, for the first ninety days of suspension; and
( b) at the rate of seventy-five per cent of such wages 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 employer concerned may refer the dispute to the Labour Court, constituted under the Industrial Disputes Act, 1947-(14 of 1947), within the local limits of whose jurisdiction the industrial establishment 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 being heard, decide the dispute and such decision shall be final and binding on the parties.
(3) Notwithstanding anything contained in the foregoing provisions of this section, where provisions relating to payment of subsistence 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.]
SECTION 11: CERTIFYING OFFICERS AND APPELLATE AUTHORITIES TO HAVE POWERS OF CIVIL COURT
19[(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 the discovery and production of documents, and shall be deemed to be a Civil Court within the meaning of20[sections 345-and346 of the Code of Criminal Procedure, 1973 (2 of 1974)]-.
21[(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 authority or the successor in office of such Officer or authority, as the case may be.]
SECTION 12: ORAL EVIDENCE IN CONTRADICTION OF STANDING ORDERS NOT ADMISSIBLE
No oral evidence having the effect of adding to or otherwise varying or contradicting standing orders as finally certified under this Act shall be admitted in any Court.
SECTION 12A: [TEMPORARY APPLICATION OF MODEL STANDING ORDERS.]
22 (1) Notwithstanding anything contained in sections 3-to 12, for the period commencing on the date on which this Act becomes applicable to an industrial establishment and ending with the date on which the standing orders as finally certified under this Act 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 provisions of section 9-, sub-section (2) of section 13-andsection 13A-shall apply to such model standing orders as they apply to the standing orders so certified.
(2) Nothing contained in sub-section (1) shall 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 13: PENALTIES AND PROCEDURE
(1) An employer who fails to submit draft standing orders as required by section 3-, or who modifies 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 case of a continuing offence with 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 contravention of the standing orders finally certified under this Act or 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 of23[a Metropolitan Magistrate or Judicial Magistrate of the second class] shall try any offence under this section.
(5) A Court taking cognizance of an offence under sub-section (2) shall state upon the summons to be served on the accused person that he-
(a) may appear by pleader and not in person; or
(b) may, by a specified date prior to the hearing of the charge, plead guilty to the charge by registered letter acknowledgement due and remit to the Court such sum as the Court may, subject to the maximum limit of fine prescribed for the said offence, specify.
(6) Where an accused person pleads guilty and remits the sum in accordance with the provisions of sub-section (5), no further proceedings in respect of the offence shall be taken against him.
(7) Nothing contained in this section shall apply to the continuing offence referred to in sub-section (2)" - vide M.P. Act No. 18 of 1967.
SECTION 13A: INTERPRETATION, ETC., OF STANDING ORDERS
If any question arises as to the application or interpretation of a standing order certified under this Act, any employer or workman25[or a trade union or other representative body of the workmen] may refer the question to any one of the Labour Courts constituted under the Industrial Disputes Act, 1947 (14 of 1947), and specified for the disposal of such proceeding by the appropriate Government by notification in the Official Gazette, and the 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.] STATE AMENDMENTS
SECTION 13B: ACT NOT TO APPLY TO CERTAIN INDUSTRIAL ESTABLISHMENTS
Nothing in this Act shall apply to an industrial establishment in so far as the workmen employed therein are persons to whom the Fundamental and Supplementary Rules, Civil Services (Classification, Control and Appeal) Rules, Civil Services (Temporary Services) Rules, Revised Leave Rules, Civil Service Regulations, Civilians in Defence Service (Classification, Control and Appeal) Rules or the Indian Railway Establishment Code or any other rules or regulations that may be notified in this behalf by the appropriate Government in the Official Gazette, apply.]
SECTION 14: POWER TO EXEMPT
The appropriate Government may by notification in the Official Gazette exempt, conditionally or unconditionally, any industrial establishment or class of industrial establishments from all or any of the provisions of this Act.
SECTION 14A: 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 matters 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 the State Government or by such officer or authority subordinate to the State 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.]
SECTION 15: POWER TO MAKE RULES
(1) The appropriate Government may, after previous publication, by notification in the Official Gazette, make rules 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 orders 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 Certifying, Officers and appellate authorities;
(d) prescribe the fee which may be charged for copies of standing order entered in the register of standing orders;
(c) provide for any other matter which 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.
27(3) Every rule made by the Central Government under this section 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 or28[in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid] 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 anything previously done under that rule.] STATE AMENDMENTS
SCHEDULE 1 THE SCHEDULE
[See sections 2(g) and 3(2)]Matters to be provided in Standing Orders under this Act1. Classification of workmen, e.g., whether permanent, temporary, apprentices, probationers, or badlies. 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 for, and the authority which may grant leave and holidays. 6. Requirement to enter premises by certain gates, and liability to search. 7. Closing and reopening of sections of the industrial establishment, and temporary stoppages of work and the rights and liabilities of the employer and workmen arising therefrom. 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.
INDUSTRIAL EMPLOYMENT (STANDING ORDERS) CENTRAL RULES, 1946
11(37)
In exercise of the powers conferred by section 15, read with clause (b) of section 2 of the Industrial Employment (Standing Orders) Act, 1946 (20 of 1946), the Central Government is pleased to make the following rules, the same having been previously published as required by sub-section (1) of the said section 15, namely :-
RULE 1
(1) These rules may be called the Industrial Employment (Standing Orders) Central Rules, 1946.
2[(2) They extend to all Union territories, and shall also apply in any State (other than a Union territory) to industrial establishments under the control of the Central Government or a Railway administration or in a major port, mine or oilfield.]
RULE 2
In these rules, unless there is anything repugnant in the subject or context :
(a) "Act" means the Industrial Employment (Standing Orders) Act, 1946(20 of 1946);
(b) "Form" means a form set out in Schedule II appended to these rules.
RULE 2A
In the Schedule to the Act, after Item 10, the following additional matters shall be inserted, namely :-
10A. Additional matters to be provided in Standing Orders relating to all industrial establishments in coal mines:-
(1) Medical aid in case of accident; (2) Railway travel facilities; (3) Method of filling vacancies; (4) Transfers;
(5) Liability of manager of the establishment or mine; (6) Service certificate; (7) Exhibition and supply of Standing Orders.
10B. Additional matters to be provided in the Standing Orders relating to all industrial establishments,-
(1) Service Record-matters relating to service card, token tickets, certification of service, change of residential address of workers and record of age;
(2) Confirmation;
(3) Age of retirement;
(4) Transfer;
(5) Medical aid in case of accidents;
(6) Medical examination;
(7) Secrecy;
(8) Exclusive Service.]
RULE 3
[ (1) Save as otherwise provided in sub-rule (2), the Model Standing Orders for the purposes of the Act shall be those set out in Schedule I appended to these rules.
(2) The Model Standing Orders for the purposes of the Act in respect of industrial establishments in coal mines shall be those set out in Schedule IA appended to these rules.]
RULE 4
An application for certification of standing orders shall be made in Form 1.
RULE 5
The prescribed particulars of workmen for purposes of sub-section (3) ofsection 3of the Act shall be:
(1) Total number employed,
(2) Number of permanent workmen, (3) Number of temporary workmen, (3A) Number of casual workmen, (4) Number of badlis or substitutes, (5) Number of probationers, (6) Number of apprentices,
(7) Name of the trade union, or trade unions, if any, to which the workmen belong,
(8) Remarks.
RULE 6
As soon as may be after he receives an application under Rule 4in respect of an industrial establishment, the Certifying Officer shall-
(a) where there is a trade union of the workmen, forward a copy of the draft standing orders to the trade union together with a notice in Form II;
4[(b) where there is no such trade union, held election of three representatives by the workmen from among themselves or authorise any officer in writing to hold such election, and thereupon shall forward a copy of the draft standing orders together with a notice in Form II to the representatives so elected].
RULE 7
Standing orders certified in pursuance of sub-section (3) of section 5or sub- section (2) of section 6of the Act shall be authenticated by the signature and seal of office of the Certifying Officer or the appellate authority as the case may be, and shall be forwarded by such officer or authority within a week of authentication by registered letter post to the employer and to the trade union, or, as the case may be, the representatives of the workmen elected in pursuance of rule 6
RULE 7A
[ (1) Any person desiring to prefer an appeal in pursuance of sub-section (1) of section 6of the Act shall draw up a memorandum of appeal setting out the grounds of appeal and forward it in quintuplicate to the appellate authority accompanied by a certified copy of the standing orders, amendments or modifications, as the case may be.6[The memorandum of appeal shall be in Form IV set out in Schedule II to these rules.]
(2) The appellate authority shall, after giving the appellant an opportunity of being heard, confirm the standing orders, amendments or modifications as certified by the Certifying Officer unless it considers that there are reasons for giving the other parties to the proceedings a hearing before a final decision is made in the appeal.
(3) Where the appellate authority does not confirm the standing orders, amendments or modifications it shall fix a date for the hearing of the appeal and direct notice thereof to be given-
(a) where the appeal is filed by the employer or a workman, to trade unions of the workmen of the industrial establishments, and where there are no such trade unions to the representatives of workmen elected under clause (b) of rule 6, or as the case may be, to the employer;
(b) where the appeal is filed by a trade union, to the employer and all other trade unions of the workmen of the industrial establishment;
(c) where the appeal is filed by the representatives of the workmen, to the employer and any other workmen whom the appellate authority joins as a party to the appeal.
(4) The appellant shall furnish each of the respondents with a copy of the memorandum of appeal.
(5) The appellate authority may at any stage call for any evidence it considers necessary for the disposal of the appeal.
(6) On the date fixed under sub-rule (3) for the hearing of the appeal, the appellate authority shall take such evidence as it may have called for or consider to be rele- vant.]
RULE 8 8
The register required to be maintained by section 8of the Act shall be in Form III and shall be properly bound and the Certifying Officer shall furnish a copy of standing orders approved for an industrial establishment to any person applying therefor on payment7[calculated at the following rates per copy-
(i) for the first two hundred words or less, seventy-five paise;
(ii) for every additional one hundred words or fraction thereof, thirty-seven paise:
Provided that, where the said standing order exceeds five pages, the approximate number of the words per page shall be taken as the basis for calculating the total number of words to the nearest hundred, for the purpose of assessing the copying fee.]
Footnotes:
1. The words "except the State of Jammu and Kashmir" omitted by the Central Labour Laws (Extension to Jammu and Kashmir) Act, 1970. Earlier these words were substituted for "except Part B States' by the Part B States (Laws) Act, 1951.
2. Substituted by the Industrial Employment (Standing Orders) (Amendment) Act, 1961.
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