The Industrial Employment Act serves a pivotal role in the various factories. It provides a framework for regulating employer-employee relationships within an organisation. The standing order in labour law serves as internal rules that outline the terms and conditions of employment. It includes the summation of work hours, wages, leaves, and more.
Did you know you can claim a subsistence allowance from your employer even if you are suspended for misconduct? One can claim 50% of their wages for the first 90 days and 75% after that unless the delay is the employee’s fault. To learn more about such intriguing facts, join us in the article as we educate you about the intricacies of labour laws in the country.
In this post, we look at the various aspects of the Industrial Employment Act, offering a comprehensive understanding of its purpose.
Concept of the Standing Order
This act was passed in 1946 to cover the various aspects of employment in industrial establishments, especially in coal mines. It outlines the specific details of standing orders in its schedule. The standing order meaning in labour law explains the rules related to the overall rights and liabilities of the workmen. It covers various aspects of employment, such as:
- Employee classification
- Working hours
- Attendance
- Leave procedures
- Suspension or termination of workers
- Rights and responsibilities of employers and employees during work stoppages
- Entry to premises
The preamble of this act mandates employees “to define with sufficient precision the conditions of employment” and orders that workers must be acquainted with such provisions.
Objective of the Act
As we have already gained a simplified overview of what is standing order in labour law, let us understand its intent.
The main objectives are stated as follows:
- It aims to provide standing orders for employees, industries, and working relationships.
- It ensures that the worker recognises the terms and conditions of their workplace, reducing their chance of getting exploited by their employers.
- To promote peace and harmony within the workplace by supporting just industrial practices.
Applicability of the Industrial Employment Act
The standing order in labour law notes all industrial establishments with at least a hundred workers under sections 1(3) and 2(i), Industrial Establishment. The entities that are covered under this act are listed below:
- Railway sector
- Industries, as explained in section 2(m) of the Factories Act
- A factory that is specified in section 2(i) of the Payment of Wages Act
- A contractor who employs individuals to work under an industrial establishment under section 2(e)
- A workman as specified under section 2(s) of the Industrial Disputes Act.
Employees Exempt From the Standing Order in Labour Law
The Industrial Employment Act does not apply to establishments where the following regulations bind employees:
- Fundamental and Supplementary Rules
- Civil Service Regulations
- Civil Services (Classification, Control and Appeal) Rules
- Civil Services (Temporary Service) Rules
- Civilians in Defense Service (Classification, Control and Appeal) Rules;
- Revised Leave Rules
- Indian Railway Establishment Code or any other rules
Procedure of Submission of Draft Standing Orders
- The employer has to submit five copies of drafted orders to the certifying officer within 6 months from the date of applicability of this act to their industrial establishment. This form should be accompanied by providing prescribed particulars of employees, including the name of the trade union, if any.
- This draft must cover every matter in the act and roughly conform to the model standing order act in labour law.
Procedures of Certification of Standing Orders
- A copy of the draft must be forwarded to the worker’s trade union, if any. Alternatively, if there is no such group, it must be sent to the representative of the workman accompanied by the notice in Form 11. In case of objection or comments, the employees can decide to compile a new draft and hand It back to the employer within 15 days of receiving the notice.
- After revision, the draft is transferred to the certifying officer, who reviews it and ensures it complies with the act’s requirements. They may suggest modifications or additions to make it more appropriate and fair.
- Once the officer is satisfied with the draft, they will certify it. However, in case of deficiency, they may return the document with specific comments and instructions for revision. This process may be repeated until the standing orders are deemed satisfactory.
- If the officer’s order aggravates any individual related to the industry, a memorandum can be sent within 30 days. They can set out the grounds of appeal in Form IV to the appellate authority.
- The authority can allow the individual to be heard, after which they will make the final order on the petition.
Procedures of Certification of Standing Orders
If an employee is suspended during the investigation, an employer is bound to provide a subsistence allowance.
- Industry owners must provide 50% of the wages to which the workman was entitled for the first 90 days.
- After this period of 180 days, the employee will receive 75% of their wages if there is a delay in the disciplinary proceedings.
It must be noted that the suspension does not end the employees’ service, although they might be entitled to subsistence allowance.
Processing Time
Once the final revision of the draft is completed and approved by the certifying officer, it shall come into operation within 30 days of sending the authenticated copies.
Summary
The standing orders are regulations governing factories aiming to reduce the exploitation of workers. Failure to comply with such rules can impose a penalty on the employer, starting from rupees 5000 to rupees 200 for every day till the offence continues. Workers and business owners can foster a harmonious workplace with such consistent frameworks.
