Dy Lab Comm, Pb (retd), Consultant And Qualified
Consultant - Hr & Legal
11th December 2008
Your post on the subject is a very useful document for all HR professionals
and more particularly to those in IT industry.
However, one observation I want to make to enlighten our colleagues in the profession is regarding the Q:19 relating to getting certification of Standing Orders under the provisions of Industrial Employment (Stnding Orders) Act 1946.
The said Act is applicable only to 'industrial establishements' as defined by Se.2(e) of the Act.
Sec.2(e) defines :
(e) “industrial establishment” means
(i) an industrial establishment as defined in clause (ii) of Section 2 of the Payment of Wages Act, 1936, or
[(ii) a factory as defined in clause (m) of Section 2 of the Factories Act, 1948, or ]
(iii) a railway as defined in clause (4) of Section 2 of the Indian Railway Act, 1890, or
(iv) the establishment of a person who, for the purpose of fulfilling a contract with the owner of any industrial establishment, employs workmen;
By this definition, IT/ITES industry is not attracted by this definition and hence the said Act is not applicable and is outside the scope of the said Act, provided they are not enaged in any manufacuring activity.
Hence, there is no need to go to the Certifying Officer for getting any approval for the employment rules of such companies.
26th December 2008 From India, Madras
27th December 2008 From India, Kakinada
I have carefully reviewed your reply. But, I beg to differ on this.
The Act in question is 'Industrial Establishment (Standing Orders ) Act 1946. It is applicable only to 'industrial establishments' as defined by the Act. This is what I had highlighted. The term 'industry' under the Industrial Disputes Act s different from the definiton of 'industrial establishment' under the IE(SO) Act.
We need to have rules and regulations for employees conduct. Normally, it is circulated as part of Employees Handbook or terms and conditions of appointment and employees acceptance is obtained therefor. These are binding on the employees. Such employees acceptance is enough for dealing with matters of dispute in labour courts.
Not having rules and regulations is one thing and not having cerified rules and regulations under the Act is totaly a different one.
All I am saying is as per the extant law today. as far as the IT/ITES companies are concerned, they can frame their rules and regulations for employees and it is not mandatory for them to go to the Certifying Officer for certification under the Act.
27th December 2008 From India, Madras
Sir, I appologise in differing with your views expressed in response to a query by Sh. R.Sundrarajan. I venture to point out that the definition of 'industry' under the Industrial Dispute Act, 1947, quoted by your goodself in this column is still not in operation although the same is an amended definition under Industrial Disputes (Amendment) Act, 1982 (Act 46 of 1982). The courts are still bound by the existing definition of 'industry' under the Industrial Disputes Act, 1947 Act according to which the word 'industry' means any business, trade, undertaking, manufacturig or calling employers and and includes any calling, service, employment, handicraft or idustrial occupation or avocation of workmen.
However, the provisions of the Industrial Employment (Standing Orders) Act, 1946 are not necessarily applicable to the 'industry' under the ID Act, 1947 but are applicable to the 'Industrial Establishments' defined under the Act,1946. It is suggested that let the readers be not confused regarding the provisions of these two legislations and they may read them independently; meaning thereby that - for example - a factory employing 18 workmen may be covered under the ID Act 1947, but may not be covered under the SO Act, 1946
14th April 2009 From India, Chandigarh