The Industrial Employment

(Standing Orders) Act,1946

Objective

To make clear to both the parties on what terms and

conditions:
The workers are offering to work ad
The employer is offering to engage them

The Act requires employers to define the conditions of

service in their establishments and to reduce them to
writing and to get them compulsorily certified with a view
to avoid unnecessary industrial disputes
This act applies to every industrial establishment employing
more than 100 workmen on any day

Legal nature and impact of Standing

Orders

The certified Standing Orders have a statutory force

The standing Order implies a contract between the
employer and workmen which is legally binding on both
parties

Therefore the employer and workman cannot enter into a

contract overriding the statutory contract as embodied in
the certified standing Orders
No workman can be appointed by the employer on
conditions of service different form those defined in the
standing Orders unless the standing Orders are themselves
modified in accordance with the provisions of the Act.

Matters to be provided for

1) Classification of workmen : whether temporary, permanent,
apprentice, probationers or badlis (casuals)
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 to be given by the
employer and workmen

9) Suspension or dismissal for misconduct, and accts or

omissions which constitute misconduct
10) Means of redress for workmen against unfair treatment or
wrongful exactions by employer or his agents or servant
11) Any other matter which may be prescribed
) Temporary application of Model Standing Orders
Till such time as the establishment gets it Standing Orders
certified, the Model Standing Orders in the Act shall be
deemed to apply and disputes between workmen and
employer shall be with reference to the appropriate
provisions of the Model Standing Orders
) Any clause in contradiction to any specific provision of the
Standing Orders is null and void and cannot be enforced by
the employer

Payment of Subsistence allowance

Sec.10 A.

If a workman is suspended by the employer pending

investigation or enquiry the employer is obliged to pay the
workman during the period of suspension subsistence
allowance as follows:
50% of the wages for the first 90 days of suspension
75% of the wages for the remaining period of suspension after 90 days
, provided the delay is not directly attributable to the conduct of the
workman

Modification of Standing Orders

the Standing Orders may be modified on application by either party

only after a period of 6 months after certification or last modification

Posting of Standing Orders

Standing Orders on certification should be posted both in English and in
the local language of the workmen at or near the entrance of the
establishment and also in all departments where the workmen are
employed

The Industrial Employment(Standing

Orders) Central Rules

Probation period: 3 months

Provision of ID card ( including temporary ID card for
casuals)
Casual leave : 10 days per year
Notice of termination : one month on either side

Disciplinary Action for misconduct

A workman may be fined up to 2 % of his wages in a month

as punishment for a proved act of misconduct
List of misconducts is given in the Central Rules
A workman may be suspended as punishment for a period
not exceeding 4 days at a time or
Dismissed without notice or any compensation in lieu of
notice if he is found to be guilty of misconduct
Criminal case: where action against a workman in a
criminal case is taken by the State the employer may place
the workman on suspension during the period of the trial or
investigation if it is deemed necessary; but a suspension
order in writing explaining the reasons for the suspension
should be given to the workman

While imposing punishment on the delinquent workman the

employer shall:
Take into account the gravity of the misconduct
The previous record, if any, of the workman and
Any extenuating or aggravating circumstances that may exist

The punishment order shall be in writing and a copy given

to the workman
A workman who is not satisfied with the order of
punishment or with the conduct of the domestic enquiry
can appeal to the appellate authority within 21 days of the
date of receipt of the punishment order
The appellate authority(the employer) shall give an
opportunity to the workman to be heard and pass an order
in writing within 15 days of receipt of the appeal

Disciplinary Proceedings
Domestic enquiry