Standing orders

1. STANDING ORDERSSTANDING ORDERS
fIlmA VARGhESE
TRADE mARk DEpARTmENT
AlTAcIT GlObAl
EmAIl: [email protected]
WEbSITE: www.altacit.com

2. STANDING ORDERS
•The Industrial Employment (Standing Orders)
Act, 1946 was formulated to lay upon employers
an obligation to specifically define the conditions
of employment as well as convey the same to the
employees.
•The Industrial Employment (Standing Orders)
Act, 1946, was amended in 1982, to provide for
payment of subsistence allowance to workmen
who are kept under suspension, pending
domestic enquiry.

3. ObJEcTIVES Of ThE AcT
•To ensure that the terms and conditions of the
employment are known to the employee and thus to
minimize exploitation of the workers.
•To have uniform standing orders in respect to workers,
factories and working relationship.
•To promote industrial peace and harmony by promoting
fair industrial practices.
•Conditions of employment like recruitment, discharge,
disciplinary actions, holidays etc.
•To avoid disputes & vagueness in terms of employment.

4. ScOpE AND ApplIcATION
•Whole of India
•Mandatory for every industrial establishment,
which in preceding 12 months has employed 100
or more worker
•Central and state governments can make this Act
applicable to establishments employing less than
50 persons, as in the case of UP and West Bengal.

5. mATTERS TO bE
pROVIDED IN STANDING
ORDERS •Classification of workers i.e. temporary, badli, casual, permanent,
skilled etc
•Confirmation
•Vacancies
•Hours of work, holidays, pay days & wage rates
•Conditions of procedure in applying leave & holidays
•Shift working
•Attendance & late coming
•Transfers
•Disciplinary actions
•Means of redressal of workmen against unfair treatment or wrongful
extractions by employer
•Suspension or dismissal
•Termination of employment
•Retirement

6. DIScIplINE bY STANDING
ORDERS
•Punished only if the act committed by him is
misconduct as defined under the Standing Orders.
•The Model Standing Orders contain such acts like
insubordination, disobedience, fraud, dishonesty,
damage to employer‘s property, taking bribe,
habitual absence or habitual late attendance,
riotous behavior, habitual neglect of work, strike in
contravention of rules etc. as misconducts.
•The Certified Standing Orders may cover other
acts as misconduct.

7. SUbSISTENcE AllOWANcE TO ThE
WORkER
Suspended workman by employer (pending
investigation or enquiry) - Subsistence
allowance equal to 50% of wages for first 90
days of suspension and 75% of wages for
remaining period till completion of
disciplinary proceedings.

8. pROcEDURE fOR cERTIfIcATION Of
STANDING ORDERS
•Every employer covered under the Act has to prepare
Standing Orders, covering the matters required in the
Standing Orders.
•Five copies of these should be sent to Certifying Officer for
approval.
•The Certifying Officer will inform the Union and workmen
and hear their objections. After that, he will certify the
Standing Orders for the industrial establishment.
•Till standing orders are certified, Model Standing Order
prepared by Government will automatically apply.
•Standing order should be displayed in English and local
language on special notice boards at or near entrance of the
establishment.
•Modifications of Standing Order shall be done by following
similar procedure.

9. DATE Of OpERATION Of STANDING
ORDERS
Standing orders certified and their
authenticated copies are sent to employer and
workers and on the expiry of 30 days, they will
be applicable. If an appeal has been made then
after 7 days of the orders the standing orders
(as modified) will be applicable.

10. OblIGATION Of ThE EmplOYERS
•To submit draft standing orders with the required
information to the certifying officer for certification
within the time limit set in the Act.
•To act in conformity with the certifying standing orders
in the day-to-day dealings with the workmen;
•Modify certified standing orders only with the approval
of the certifying officer;
•Post prominently the text of the certified standing
orders in English or any other language understood by
the majority of the workmen near the entrance through
which the majority of workers enter the establishment
and also in all departments where workmen are
employed.

11. OblIGATION Of ThE WORkmEN
•To work in conformity with the certified
standing orders, and
•To comply with the provision of the Act the
mode standing orders in regard to modification
and interpretation of these Standing orders.

12. cASE STUDIES
Eicher Goodearth Ltd. v. R K Soni -
(1993)
XXIV LLR 524 = 1993 LLR 524 (Raj
HC)
Once the Standing Orders are certified, they
supersede any term and condition of employment,
contained in the appointment letter. If there is
inconsistency between Standing Order and
Appointment Letter‘, the provisions of Standing
Order prevail.

13. Rajasthan SRTC v. Krishna Kant - AIR
1995
SC 1715
Standing orders are binding on employer and
employee. These are statutorily imposed conditions
of service. However, they are not statutory
provisions themselves (meaning that the Standing
Orders‘ even when approved, do not become law‘
in the sense in which Rules and Notifications
issued under delegated legislation become after
they are published as prescribed)

14. ThANk YOU