EMPLOYMENT STANDING ORDER ACT 1946

INTRODUCTION:

Prior tp the enactment of industrial employment Act an industrial employer was free to lay down service conditions of its employees without
any statutory restriction .Because of which employers exploited the workmen and harassed them in various ways.To abolish these evil thje
industrial employment tsanding order was passed in 1946b.it is also called Model Act
OBJECT:

The central legislature therefore considered it necessary to enact law framing of service conditions by means of standing order definingconditions of recruitment or discharge ,disciplinary action ,holidays or leave etc .This has long way gone minimizing friction in the mgmt and
workmen of the industrial undertakings.
Thus it require employers in industrial establishment to define with sufficient precision the condition of employment of workmen
employed therein and to make them known to such workmen .and certify them by certifying authority .
The act designed to avoid friction and tension among employers and workmen employed in the industry .
Provision for effective safeguards against unjust and wrong dismissals and other disciplinary actions will always be in the interest as
much as of the industry and the workers.
The OBJECT of the Act is to have uniform standing order providing for the matters enumerated in schedule of the Act .
The FUNDAMENTAL OBJECT of the Act is to avoid any confusion in the minds of the employers and employees in respect of their rights and
obligations concerning the terms and conditions of employment and avoid unnecessary dispute.
MAJOR PROVISIONS OF THE ACT

1.
2.
3.
4.
5.
6.
7.

Employer should have standing order certified

duty of the certifying authority to adjudicate upon theit fairness and reasonableness.
The notice to be given to the union and in their absence to the workmen .
The right conferred upon them to raise objection
opportunity of being heard before they are certified .
The right to appeal and right to apply for modification given to workmen individually.
The obligation on the employer to have them published in the manner so that they become easily known to the workmen .which
becomes binding thereafter to both employer and employee.

MODEL ACT

The act is intended to operateas a model stamding order for the matters enumerated in Schedule I.They are,
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.
x.
xi.

Inclusion of workmen Permanent ,temporary ,apprentice,probationers or badli

Matters of Intimating to workmen periods and hrs of work ,holidays ,paydays ,wage rate
Shift working
Attendance and late coming
Conditions of procedure applying for and the authority which may grant leave and holidays
Requiring to enter premises by certain gatesand liability to search
Closing and re opening of sections of industrial establishment ;temporary stoppageof work ;rights and liabilities of the employer and
workmen arising from there.
Termination of employment and the notice thereof to be given by the employer and workmen
Suspension or dismissal for misconduct and acts or omission which constitute misconduct
Means for redress for workmen against unfair treatment by the employer or his agents or servants
Any other matter prescribed

APPLICATION OF THE ACT

The Act applies to the industrial establishment where in 100 or more workmen are employed or were on any day of the preceding 12 mons..
(but applies to less than 100 workmen by appropriate govt making notification in official gazette 2 mon notice)
NON APPLICATION OF THE ACT TO THE FOLLOWING

i.
ii.

Any industry to which the provision of chap 7 of the BombayIndustrial Regulation Act 1946 APPLY
Any industry to which the provision of Madhya Pradesh Industrial Employment Act 1961 APPLY

iii.

Under sec 13 B the provison of the Act will not apply to workmen employed in industrial estd governed by following
regulation

a)
b)
c)
d)
e)
f)

Fundamental and supplementary rules

Civil service (temporary service)rules
Civil service (classification , control, appeal )rules
The civilians in Defence Service (classification , control, appeal )rules
The Indian Railway Establishmnet Code
Any other rules/regulations that may be notified in this behalf by the appropriate govt in official gazette.

Bharilal Vs.Superintending Engineer ,Allahabad

Case where the state Electricity Board took over several private undertaking some undertaking fixed the age of superannuation of employee
while some not.State Govt in exercise of its power Under sec 13-B of the act and sec 79 of the Electricity supply Act notified regulation that
age of superannuation of employee is 58 yrs.It was challenged.The contention rejected and held that it valid.
U.P.State Electricity Board Vs.Harishankar Jain

even if the undertaking have the age of the superannuation higher than that of the 58 .Employee would be governed by the regulation under the
Act.
SEC2
INDUSTRIAL ESTABLISHMENT SEC 2(C)-MEAN

i.
ii.
iii.
iv.

Industrial establishment as defined in sec 2(ii)of payment of wages act

A factory as defined in sec2(m)of the factories act 1948
A railway as defined in sec 2(iv) of the Indian railway act 1890
The establishment of a person who for the purpose of fulfilling a contract with the owner of any industrial estd employs workmen.
W.R.T payment of wages act :
tramway service /motortransport service carring passenger /goods by, road /hire/reward.
Air ,transport service other than such sevices belonging to military /naval /airforce of the union of civil Aviation Dept of Govt of India.
Dock ,wharf/jetty
Mine ,quarry /oilfield
inland vessel ,mechanically propelled
plantation
workshop /other estd-where articles produced ,adopted,mfg-for use ,transport and sale
An estd where work relating to construction ,development,maintainence of building ,road,bridges or canal or relating to operation
connected with navigation ;irrigation ,supply of water; relating to generation ,transmission and distribution of electricity or any form
of power carried out.

INDUSTRIAL ESTABLISHMENT means

1.
2.
3.
4.
5.
6.
7.
8.

STANDING ORDER SEC2(2) means

To mean the rules relating to the matters set out in the scheduleI .
Agra Electric Co Vs SriAlladin

S.O.after their certification will be binding on the employees presently employed and employed thereafter.
Associated Cement Co Vs.P.D.Vyas

Cumulative effect of sec 3,4,5,15,was that the certifying officer has to be satisfied that the draft standingorder Is in conformity with the matters
set out in the schedule
Bhagalkat cement Co.Vs .R.K.Pathan

No standing order could be certified by the certifying officer unless it is related to one of the topics enumerated in schedule of the Axct
Co-operative Central Bank Vs.Addl.Industrial Tribunal A.P

Though binding on employees it is not binding on industrial tribunal adjudicating an industrial dispute.
Rohtak and Hissar District Electrical Supply Co Vs.State of U.P

employee cant insist upon to add condition not in conformity with matters in the schedule of the act
WORKMEN SEC2(I) means= workmen under industrial dispute act 1947

To mean any person employed in any industrial estd to do any skilled or unskilled ,manual ,supervisory ,technical or clerical work for hire or
rewardbut not inc.
i.
Person to army act (1950), air force act (1950), navy act (1957)
ii.
Person employed in police service /an officer/employee of prison
iii.
Person employed mainly in managerial or admin capacity
iv.
Person employed in supervisory capacity drawring wage sexceeding 1600 /mon or fn of managerial nature.

PROCEDURE FOR CERTIFICATION OF THE STANDING ORDERS AND OPERATION THEREOF

A. DRAFT STANDING ORDER SEC .3

The employer with in 6 mon from the date on which the act becomes applicable to the industrial estd ,the employer shall submit
to the certifying officer 5 copies of thedraft standing order proposed by him for the adoption inhis industrial establishment.
Conformity : The draft standing oder should include every matter applicable to the industrial establishment .Where a model standing order
have been prescribed it should be in conformity with such model.The certifying officer has to enquire such .he has the power to departure from
model standing order.
Attachment: The draft standing oder should be accompanied by statement containing the particulars of workmen employed in the industrial
estd including the name of trade union to which they belong.
Joint Draft:A group of employer in similar industrial establishment may submit a joint draft ofstandingorder under this sec.
Time period :

Associated Cement Co Vs.P.D.Vyas

Conformity means not identical words , but substance matter must be in conformity .if it is shown that it is impracticable to bring about
conformity the draft standing order should be in conformity with the model.
Rohtak and Hissar District Electrical Supply Co Vs.State of U.P

It is for the authority to decide whether particular standing order is fair and reasonable
B. CONDITION FOR CERTIFICATION SEC .4

D.S.O should provide for condition set out in schedule which is applicable to industrial estd
D.S.O should conform with the provision of the act under sec 4
D.S.O should provide for particulars of workmen Permanent ,temporary ,apprentice,probationers or badli ,name of trade union to
which workmen belongs to(as under rule 5)
D.S.O if found impracticableto be in conformity with the model the cerfying officer ,certify inspite of disparity provided it is in
conformity with provision under sec 4 of the act
The jurisdiction of the certifying officer /appellate authority is to see that D.S.O prepared by employer are certifiable and make such
modification/addition necessary to render draft to be certifiable under the act

C. DUTIES OF CERTIFYING OFFICER SEC 5

On receipt of D.S.O the certifying authority shall fwd a copy of it to trade union along with notice in Form II/ if no tade union to the meeting of
workmen to elect 3 representatives to whom such D.S.O sent with notice.
1. In conformity with model act
2. In conformity with provision of the act
3. Fair and reasonable.
4. Require performance of duty even when employees given their consent to standing order /even if they are absent
5. If deviation any from model standing order, its open to certifying officer to enquire the reasonableness and certify.
CERTIFICATION OF STANDING ORDER SEC 5

1.

On receipt of D.S.O the certifying authority shall fwd a copy of it to trade union along with notice in Form II/ if no trade union to the
meeting of workmen to elect 3 representatives to whom such D.S.O sent with notice.
2. The union shall be given 15 days time period to file the objection
3. The certifying officer shall give the employer and trade unions an opportunity of being heard
4. After hearing the unions and employer the certifying officer shall certify the D.S.O.
5. Within 7 days from the date of passing such final order , copies of the certified standing order under sec 15(2)must be sent to the
employer and the trade union .
6. The certified standing order shall be authenticated by the certifying officer by putting his signature and office seal as per the Rule 7 of
the Central Rules.
7.Such Certified Standing Order-U/S 5(2) have force of Law:

Act prescribe various provision to frame and certify .If model standing order replaced by certified standing order there
violation of provision which is a criminal offence .-Viswanath vs.Ramesh Chand

Though standing order made by pvt estd it should come within purview of act and condition imposed by it .and it have
statutory force like other instrument-Worker of DEvan Tea Estate Vs.Their Manager

By Writ of mandamus pvt party or company may be compelled to perform duties if there is certified standing order.It has
stutury force like any other law -Abani Bhusan Biswas Vs.Hindustan Cables Ltd

The standing order duly certified and provided are intravires have force of law binding B/W employer and employee & not
on Industrial tribunal which deals with industrial dispute.- Co-operative Central Bank Vs.Addl.Industrial Tribunal A.P

WHO ARE BOUND BY STANDING ORDERS

i.

The standing order after their due certification shall apply to all workmen employed before and those employed after the standing
order came into force officially .
The reason is to have uniform standing order providing for the matters enumerated in schedule of the act

ii.

Avery India LTD Vs.Industrial Tribunal ,W.B

There cant be different standing order governing the terms and conditions of services of workmen of a particular industrial estd.
Agra Electric Co Vs SriAlladin

S.O.after their certification will be binding on the employees presently employed and employed thereafter.
D.APPEAL AGAINST CERTIFICATION SEC 6
The right of appeal should be filed with in 30 days from the date of which the copies of official standing order are sent to the
employer and the union or their labour representative.
Person preferring an appeal shall make Memorandam of appeal stating ground and forward 3 copies of it + certified copies of
standing orders ,amendments or modification to the appellate authority .The Memorandam of appeal shall be in for 4 set out in
schedule I
The appellate authority may either confirm the order or make the necessary modification so as to render the standing orders certifiable
under the act .such order must be passed after giving the appellant an opportunity of being heard.
The appellate authority within 7 days of its order send copies of the order of the certifying officer to the employer ,trade union or other
representatives of the workmen accompanied by the copies of the authenticated standing orders.6(2)
POWER :
i.
ii.

confirm the certified standing orders whether with or without modification and not to completely cancel the standing order
that are appealed against Bill Mazdoor Sangh Vs.U.P.Electricity Board
The appellate authority similar to certifying officer competent to permit departure from model standing order on ground of
fairness and reasonableness . but such departure muts not be contrary to M.S.O.-A.R.Das Gupta Vs.Mgmt ,Assam
Tribune.

The appellate authority under the Act follows the pattern of the civil court but it is not a court to which provisions of
the civil procedure code as a rule apply
The appellate authority not considering the fairness and reasonableness of the amendment has power to setaside the
amendment made by the certifying officer on ground that its beyond authority of certifying officer.
The H.C will not issue a writ of certiorari to interfere with decision of the certifying offcer /appellate authority unless the
decision has been found to be arbitrary or perverse Newspaper Ltd Vs.Industrial Tribunal
The certified orders cant be challenged in civil court . which is finalized by the appellate authority .However finalty given by
appellate authority is subject to modification of those very standing orders certified by him-S.S.Light RlyVs.S.S.Rly

iii.
iv.

Worker
Guest Keen Wiliams Ltd Vs P.J.Sterlling

D.S.O to certifying authority submitted for certification. It was certified after reciving objection &conducting enquiry .S.O provided
superannuation on reaching 55 years.but company prior to this gave retirement order to employees who ere above 55 yrs.An industrial dispute
was raised and referred to tribunal to adjudication.where it was held illegal .on further appeal To SC it was held that Tribunal shud consider not
only reasonableness,fairness /propriety in question but also nature of work ,wage structure, benefits,amenities, and superannuation fixed in
comparable industries in same region .thereby fixed in this case to be 60 yrs as age of superannuation.
E. OPERATIVE DATE OF STANDING ORDER ,MAINTAINENCE OF REGISTER SEC 7

The certified standing order shall come into operation on expiry of 30 days on which the authenticated copies are sent to the employer and the
trade unions or the representatives of the workmen.If an appeal is preferred then standing order will be operative on the expiry of 7 days from
the date on which the copies of order of appellate authority are sent to certifying officer the employer and the trade unions or the
representatives of the workmen.
Guest Keen Wiliams Ltd Vs P.J.Sterlling

In case of dispute arising out of the order it shall be referred to the tribunal an dit has jurisdiction to deal with it .
F. REGISTRATION OF STANDING ORDER SEC 8

i.

The Act requires the certifyimg officer to file copies of all certified standing orders ina register in the prescribed form maintained for
that purpose .
As per rule 8 the register to file certified standing order shall be in form III and shall be properly bound.
The Certifying officer shall furnish a copy of such register on payment of prescribed fee

ii.
iii.

G.POSTING OF STANDING ORDER SEC 9

1.
2.
3.
4.
5.

The text of standing order as finally certified shall be prominently posted by the employer in English and in language understood by
the majority of his workmen on special board tobe maintaijned for that purpose at or near the entrance through which the majority of
workman enter the industrial establishment.
This enables direct knowledge and communication about the service and employment
The above rule is mandatory not directory .
The tribunal will take into consideration the disply while taking appln of employer
But noncompliance with the provision under this sec will not make the S.O.ineffective

Ismail Papania Vs.Labour Appellate Tribunal

But noncompliance with the provision under this sec will not make the S.O.ineffective.Both employer and workmen bounded by S.O

FOR SAME CATEGORY OF EMPLOYEES -2 SET OF STANDING ORDER IN SAME ESTD

Salem Erode Electricity Distribution Company Vs.The workmen; K.A.Abraham Vs.G.M.Bhilai Steel Plant

Company :employee joining after 1/10/60 entitled to less leaves than employees already in service .company filed draft S.O for
certification.Labour union opposed this .The certifying officer proposed that changes would be unfair, unreasonable and discriminate.It was
taken to S.Cwhere it was held two set of standing order will create confusion and discontent among workersand it may further duplicate the
standing order.

FOR DIFFERENT CATEGORY OF EMPLOYEES DIFFERENT STANDING ORDER IN SAME ESTD

Indian Iron And Steel Co Vs.Industrial Tribunal ;

Agra Electric Co Vs SriAlladin (uniform)

Inrespect of ech estd there cant be more than one set of standing order .But if the certified standing order are meant only for one category of
workmen then there can be no difficulty in having another set of standing order for another category .1- related to daily rated workmen , othermonthly rated workmen
SEC 10: DURATION AND MODIFICATION OF CERTIFIED STANDING ORDER

The standing order certified under sec 6 shall be final i.e no further appeal /revision against that order and futher sec 6 R/W sec 12
finality given to the certification by the appellate authority is against challenge in the civil court .
Thus sec 10(i)does not permit any change to the existing certified standing order before expiry of 6months after certification or the
last modification unless both the parties consent such an amendment.
The finality of standing order is subject to right to apply for modification under sec 10(ii).
WHO CAN APPLY FOR MODIFICATION : SEC 10(i)

B4 1956 Amendment :employer alone can make appln for modification of the standing order to certifying officer .During which the
workman may raise industrial dispute to modify the existing order.
After 1956 Amendment : employer / workmen can make appln for modification of the standing order to certifying officer.
PROCEDURE FOR MODIFICATION OF STANDING ORDER SEC 10(ii)

i.
ii.
iii.
iv.

Employer and the union or the representative body of the workmen can apply for modification of existing standing order after expiry
of six mon from date of certification /last modification.
The application must be accompanied by 5 copies of proposed modification
If the proposed modification are by the virtue of an agreement between the employer and workmen , then a certified copy of the
agreement shall be filled along with application.
The procedure contemplated under section 3,4,5,6, regarding the certification of standing order should be followed in the case of
modification as well.

CONDITION FOR MODIFICATION OF STANDING ORDER

An appln for modification shall be made where

1. A change of circumstances has occurred
2. Experience of the working of the standing orders last certified results any inconvienience , hardship or anomaly etc
3. Some fact was lost sight at the time of certification
4. The applicant feels that the modification will be more beneficial
s.s. light co Vs.workers union
It was held that change of circumstances

are not necessary for modifying standing order.The contention that thechange of circumstances is a
condition precedent to maintain an application under sec 10(ii) or that an application for modification without proof of such change of
circumstances was not accepted by the court .
Since the act is a beneficial legislation and therefore unless compelled by any words the court will not be justified to give restrictive
interpretation to sec 10 of the act .The policy of sec 10 is clear that modification should not be allowed with in 6 mon standing order or last
modification came into operation.The object is to provide time limit tofind whether the S.O Or their modification allowed to work for
sufficiently long time to see whether they work properly or not .
Subsistence Allowance Sec 10-A Inserted By 1982 Amendment Act

Any workman suspended during pending inquiry or investigation into complaints or charges of misconduct , the employer shall pay subsistence
at following rate
i.
50 % of wages for ninety days
ii.
75% of the wages for remaining period of suspension
Power Of The Certifying Officer And Appellate Authority

Every Certifying Officer And Appellate Authority shall have the power of a civil court for the purpose of
1. Receiving evidence
2. Administering oath
3. Enforcing attendance of witnesses
4. Compelling the discovery and production of documents
They shall be deemed to be civil court with the meaning of sections 345, 346, 348 of cr.p.c 1973.
Sec 11(2) Every Certifying Officer And Appellate Authority may correct the following on own or of his predecessor in office
1. Clerical mistake
2. Arithmetical mistake
3. Error out of accidental slip or omission
Associate Industries Vs.R.G.Singh

The power available to Certifying Officer And Appellate Authority will not change authorities tocourt of law and will not amount to
proceedings in civil court
Newspaper Ltd Vs.Industrial Tribunal

Certifying Officer And Appellate Authority are quasi judicial in nature.They are bound to observe the principle of natural justice.The H.C will
not issue a writ of certiorari to interfere with decision of the certifying offcer /appellate authority unless the decision has been found to be
arbitrary or perverse
N.G.E.F Ltd Byppanapillai Vs. Industrial Tribunal

accidental slip or omission came up for consideration in this case b4 Mysore High court .The Appellate Authority while cerifying the modified
standing order certified the very standing order which it had rejected .W.R.T. leave authorities fail to prescribe several classes of leave and
competent person to grant leave
The employer under sec 11(2) applied for rectification but appln was rejected.hence matter b4 H.C. .IT was held that order suffered
material omission and appln made by employer is wholly competentand had to be decided by the authority .
SEC 12:No oral evidence .-which

have the effect of varying / modifying the standing order as finally certified shall be admitted in any court

SEC12-A- Temporary Application Of Model standing order

Model standing order appended with the rules will be applicable to an industrial establishment when the act becomes applicable to such
establishment .Thus the model standing order to such estd is limited to a temporary period until standing order is finally certified under this act
comes into operation .operation of amendment to model standing order cant be enforced without amendment to certified standing order of an
establishment
Mgmt of Ideal Jawa Ltd Vs. T.RAMY

If thers is no provision in certified S.O of industry w.r.t. subsistence allowance .That any provision in S.O Act on basis of which any
amendment to the model standing orders can be enforced without any amendment to the certified standing order .That it can be treated that
amendment to certified standing order

Sulaiman Vs Tran Plywood LTD

Until provision for the subsistence allowance or appeal incorporated in the standing orders , the labour court / Dir board could not grant relief
on basis of amendment made to model standing order.here only remedy is to approach civil court
SEC13A-Interpretation Of Standing Order

Question as to the interpretationj /application of the Certified Standing Order may be referred to the labour court be employer /workmen .The
labour court is set up by the appropriate govt for this purpose.The labour court is require to conduct enquiry aftergiving opportunity and
hearing to parties and take decision and such decision is final and binding on parties.
Tata Chemicals Ltd Vs.Kailash

labour court fn ltd i.e decision whether Certified Standing Order be applied/ not.It is not entrusted with power to grant relief in enforcement
of right and liabilities
K.R.S.T.CORPN Vs.Labour Court Banglore

Employee convicted of offence of theft before appointing for service into corpn.therafter corpn dismissed him from service.Labour court held
that there is no provision under certified standing order for his removal on ground of misconduct b4 service.The H.C held the finding of
labour court to be erroneous SINCE S.O contain specific provision to treat an award of punishment by competent court for any crl.offence
What is important in this case is conduct of employee whichled to conviction and not alleged date of misconduct .Therby the order of Labour
Court setaside.
Tata Chemicals Ltd Vs.K.C .Acharya

A labour court cant reinstate a dismissed employee or direct employer to pay him wages from date of dismissal till reinstatement.
---------------------------------------------------------------------------------------------------------------------------------------------------------------------PENALTIES

Person fail to submit Draft Standing Order under sec 3

Person who modified the stnding order contravening provision of sec10

SEC 13(2) Person

SEC 13(3)

contravening certified standing order of his estd

}Rs.5000 ; Rs 200 for offence continued every day

} Rs100 ; Rs.25 for offence continued every day.

For every prosecution of offence under this provision the sanction of appropriate govt is compulsory.

SEC 13(4) NO court inferior to that

Aboo Mohd Vs .State Of Bihar

of presidency magistrate or magistrate of 2nd class can try any offence under this sec.

Employer failed to furnish wage slip to workmen as required under clause 14 of standing order of the estd.IT was held that employer could not
be punished for breach of standing order under section even though it is not a matter enumerated in the schedule of the act
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------SEC 14-A- DELEGEATION OF POWER
SEC 15- POWER TO MAKE RULES :By appropriate authority

i.
ii.
iii.
iv.
v.

To prescribe addl matters to be included in th schedule and that procedure to be followed in modifying standing order s
Et out model standing orders for purpose of this act
Prescribe procedure of crtifying officer and appellate authority
Prescribe fee that may be charged for copies of standing order enterd in register of standing orders
Provide any other matter that may be prescribed

SEC 15-proviso before framing any rules the representative of both employer and workmen shall be consulted by appropriate
under clause 3 where rules made by central and state govt are laid b4 parliament and state legislature fo total 30 days

govt