Industrial Employment (Standing Orders)

Act 1946
In an earlier era, India didn’t really have as many laws connected
with suitable employment and labour practices, as it does now. As a
result, workers did not have uniformity in their service conditions
as enforced by the standing orders act. This lead to a lot of
disruptions, friction and productivity loss between these workers
and their bosses – and this was seen mostly in the industrial
undertakings involving heavy workloads and multiple employees.
Here, in Standing Order Act topic,  we take a closer look at every
clause, various aspects of this act.

Introduction
The Labour Committee 1944- 1946 was created and they
immediately spotted the key cause of issues. There was a lack of
understanding, on part of the employees, about employment
conditions. This committee maintained that the workers had a right
to know all terms and conditions related to their work and
employment.

They even wanted a distinct central law that made it obligatory for
employers to frame and approve employment conditions and get
them enforceable by law. The Industrial Employment (Standing
Order) Act 1946 and this order act lists out laws governing the
contract as devised, duly signed and eventually terminated by either
party.

                                          
Objective of Standing Order Act 
Starting with the very objective the Standing Orders Act, out of
which there are three. The first objective states that the act is to
provide regular standing orders for factories, workers and the main
professional or working relationship.

The second aim is to ensure that all employees recognize their

employment terms and conditions they are expected to follow or
adhere to. This is to help minimize the exploitation of workers
against their will and knowledge.
The third objective states that it also supports the promotion of
industrial peace and harmony by supporting fair industrial practices.

Next, it tells employers the procedure for getting standing orders

certified. If they fall under the Industrial Employment (standing
order) Act, they are expected to register themselves by giving in
five draft copies of those standing orders.

The documents are sent to the certifying officers as appointed by

the government, such as a regional labour commissioner for
assessment. The assessment and final certification of those standing
orders is successful provided when they have all of the following
details.

 Classification of all workers into categories like temporary,

probation, permanent, etc.
 The method through which workmen are informed about
holidays, working hours.
 Shift working
 Temporary suspensions of work.
 Notice periods and other provisions regarding the termination of
employment.
 All actions and inaction that are to be treated as misconduct and
consequences for said faults.
 Grievance redressal procedure in cases of unfair treatment by the
employer.
 Attendance system to be followed by all employees.
 Workmen information and records
 The process followed for obtaining an accumulation of leaves,
leave encashment
 Employment termination as issued by employer and employees
and notice thereof.

How the Standing Order Act affects

Labour terms?
These objectives lie at the very core of the Standing Order Act and
determine the direction in which all clauses go. The Act applies to
all legal industrial establishments that have employed 100 or more
employees, as defined in Section 1 (3). And, under Section 2 (i), the
word ‘industrial establishments’ applies to all that have been listed
below.

1) The Railway Industry

2) Industrial Establishments as mentioned in Section 2 (i) of the
Payment of Wages Act.
3) Factories, as defined in Section 2 (m) of the Factories Act.
4) Establishment of contractors, who employ workers for
completing the contract of a person who owns an Industrial
Establishment, as per Section 2 (e)
5) Worker as given in the Industrial Disputes Act, Section 2 (s).
According to Section 2 (i), the term worker is applied to all manual,
clerical, skilled and unskilled trades.

It doesn’t include those people who have been employed in

administrative, supervisory or managerial capacities or those people
who are subject to the Army Act, Air Force Act, Navy Act, prison
services and police.