Umakanthan53
Labour Law & Hr Consultant
R.N.Khola
Labour Laws & Ir
Gkasture
Service
Kannanvenkatesh
Operation Incharge
+3 Others

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My company is in ITES industry and is registered under Shop & Commercial Estab. Act. At Gurgaon there are 700 employees and at Bangalore 250 employees. My query is related whether my Company is covered under definition of Industrial establishment under Industrial Emp. (Standing Order) Act or under the Payment of Wages Act. Or there is any specific Guideline/ notification of the respective State Govt. to make the captioned Act applicable to ITES company.
From India, New Delhi
Dear Swati,
As far as your Haryana Unit is concerned it is hereby clarified that you are not to have Standing orders certified from the Certifying Officer, Haryana under the Industrial Employment ( Standing Orders) Act,1946.In my opinion your unit is not covered under this Act. After going through Payment Of wages Act,1936 your unit is also not covered under this Act. Moreover it is also added here that the Govt. of Haryana have issued notification to the effect that the units which are covered under the schedule employments list under the Minimum wages,1948 then the provisions relating to the deduction from or delay in payment of wages to the employees in the schedule employments shall apply.
Opinion submitted as requested.
Regards,
R.N.Khola

(Labour Law & Legal Consultants)
09810405361

From India, Delhi
swati
the industrial employment act is applies to evety industrial establishment where in 100 or more workmen are employed
and both the centerl and state governments have power to apply this act to any establishn=ment employing een less then 100 workmen
actullay the act is central lesilagtion but is administereed by both the centerl and state governmets

From India, Mumbai
Dear Sir,
I am working in a IT Company based in Gurgaon. If you could please help me out of getting the act where it is mentioned that IT Companies in Haryana are exempted from getting Certified Standing Order, it will be very greatful of you.
Regards,
Sachin

From India, Delhi
Dear Sachin,
When the IT Company is not covered under the definition of Industrial Establishment then how this Act can be applicable. On the contrary plz let me know where it is written that this Act is covering the IT companies for certification of Standing Orders. Haryana Govt. not issued any notification for their coverage. For further clarification you can contact the office of Labour Commissioner, Haryana.
Regards,
R N KHOLA

From India, Delhi
Mr.Khola,
To my knowledge I.T Companies are covered by the Shops and Establishments Act.If it is correct, why not an establishment belonging to I.T.E.S too will be covered by the Standing Orders Act? Will you please elucidate your point in this back-drop?
With due regards,

From India, Salem
Dear Umakanthan,

It is correct that IT/ITES units are covered under the definition of the establishment under Shops & Establishment Act. Here in the State of Haryana these units are covered under the applicable Punjab Shops & Commercial Establishment Act, 1958. They are not doing any manufacturing activity. According to section 1(3) of the I E (SO) Act, 1946 it applies to every industrial establishment wherein one hundred or more workmen are employed, or were employed on any day of the preceding twelve months:

Provided that the appropriate Government may, after giving not less than two months’ notice of its intention so to do, by notification in the Official Gazette, apply the provisions of this Act to any industrial establishment employing such number of persons less than one hundred as may be specified in the notification.

Haryana Govt. has made it applicable on every Industrial Establishment employing 50 or more workmen in place of 100.

Industrial establishment is defined at sec. 2(e) of the IE (SO) Act, 1946 & in my opinion as IT/ITES units are not covered by the definition of the industrial establishment & hence they are not covered by this Act.

Haryana Govt. has not issued any notification regarding applicability of this Act on such type of units. Govt. is also not certifying the standing orders of such type of units which are covered under State Shops Act.

Opinion submitted.

Regards,

R N KHOLA

From India, Delhi
Dear Khola sir , Please Let me know how many state issued notification regarding applicability of Standing order Act IT/ITES units? Whether tamilnadu ,karnataka applicable to IT establishments
From India, Coimbatore
Dear Member,
This is to inform you that my area of working is only Haryana State. I do not collect information on other states.Members from Tamilnadu & Karnataka will be in a position to give the proper reply. I have heard that Govt. of Karnataka have issued such notification.
Regards,
R N KHOLA

From India, Delhi
Dear Members,

In continuation to my reply I would like to add here that while going through the Bombay Shops Act we came across section 38B which reveals that shops & establishments covered under this Act are also covered under IE (SO) Act, 1946 & the Rules made thereunder employing 50 or more employees. Relevant section may be read as under:

38-B. Application of Industrial Employment (Standing Orders) Act to establishments.-The provisions of the Industrial Employment (Standing Orders) Act, 1946, in its application to the State of Maharashtra (hereinafter in this section referred to as "the said Act"), and the rules and standing orders (including model standing orders) made thereunder from time to time, shall, mutatis mutandis, apply to all establishments wherein fifty or more employees are employed and to which this Act applies, as if they were industrial establishment within the meaning of the said Act.

This shows that the establishments which are not covered under the definition of the ‘Industrial Establishment’ as defined under the IE (SO) Act, 1946 are either required to be notified by the appropriate Govt. or there must be any provision in any of the enactments for applicability of this IE (SO) Act, 1946 on those establishments.

Regards,

R N KHOLA

From India, Delhi

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