Industrial Relations And Labour Laws
Ram K Navaratna
Hr Consultancy
Manager- Hr & Admin
+2 Others

Thread Started by #hopegovind

Hello Friends,
There is confusion about applicability of Industrial Employment Standing Orders Act or Standing Orders Act specifically in the organisation who are non manufacturing in nature.
As per the definition, it is clear that it is not applicable to the organisations who are not industry in nature
I have written a detailed description of the same on my blog. Please click, read, share and comment
Applicability of Industrial Employment (Standing Orders) Act, 1946
I would also request members to enrich this article with their view and also, if someone has, can you please share statewise data on minimum numbers of employees required in an organisation to be covered under the Act
3rd December 2014 From India, Mumbai
The interpretation of industry was very narrow at the time when the Act was originally passed but with the passage of time, many States have made changes in the Act with regard to number of workers and the industries covered. Accordingly, in most of the states like Kerala, Karnataka, Maharashtra etc, all commercial establishments which are covered by the provisions of the Payment of Wages Act are under the purview of Industrial Employment (Standing Orders) Act.
3rd December 2014 From India, Kannur
Thanks Madhu, yes I agree to you. Thats why the Act clarifies- to refer The Payment of Wages Act while one seeking definition of industrial organisation.
Nature of business has changed rapidly and now almost every organisation have employee handbook defining those conditions in employees standing orders Act.
As one can see, in Gujarat, even if an organisation has 10 or more employees, standing orders Act is applicable.
Karnataka has exempted IT industry from it. I am looking for more comprehensive data on the same.
3rd December 2014 From India, Mumbai
In Karnataka, it is only an exemption given to IT companies and there is no blanket exemption to all commercial establishments. And it is very stupid to ask for exemption, I feel, because having a certified Standing Order of its own is good for any establishment since it defines the employee employer relationship and gives an idea about what are expected to be done and what are not.
3rd December 2014 From India, Kannur
I agree Madhu. Nobody need to ask for exemption. However, this should not be a tool in hands of labour inspector to extract money and harass business.
Further, organisation, those who do not know about the Act also have their employee handbook, KRAs, Appointment letters which covers aspect and the soul as well as sole purpose of the Act. For me, the Act is outdated specifically for modern business organisation.
3rd December 2014 From India, Mumbai
Dear Colleagues,

Its good that you have SO and we comply.Its mandatory as notified by states on numbers working in industrial establishments. Whats disadvantages you foresee ?There is no exemption permissible from authorities except in special condition like Lijjat Papad and Milk Dairies got special situations whereby they argued their cases craving it better in order to establish few working conditions that You can define with as matter of principle, many many clarifying words, terminologies which can bring in concepts and practices together. Like "resignation " which 30-40 yrs before was termed as written communication tendered by a workman with intention to leave employment. Today definition can be a modern and articulated like -Resignation is a communication tendered either through typed / hand written letter, electronically communication, SMS with its photograph and verified by co-worker or any such thing which you may be good make it march past.Later, in chapters of misconducts and procedure regarding domestic inquiry.Smoking near to a petro product manufacturing establishment is serious misconduct as it may cause danger to life, plant and properties including neighbors, while in furnaces,refractories,steels plant it may not amount.

So, you have options in hands to interpret, include, exclude aspects causing impacts on practicable conditions in your SO and same shall be enforceable as enactment of Acts and one should be able to make effective application of this provision.


RDS Yadav

Thats reason, it is delegated to states and further on mutual agreements with workers companies can do justice and become Model.

Best luck!!

RDS Yadav
5th December 2014 From India, Bareilly
In Karnataka IT industries have exemption subject to certain conditions and not blanket exemption as Madhu pointed out.
In Karnataka IT companies were asked to show better and more favourable service conditions, but they did not produce nor they drafted suitable modern SO suiting to their industry in modern context but continued their apprehensions and crying for exemption.
It is high time considering modern business and HR practices, other changes SO has to be redrafted since current Model SOs are not exhaustive .
Ram K Navaratna
HR Resonance
5th December 2014 From India, Bangalore
I agree to Ram
I am not suggesting for any exemption. As stated in my article, many modern organisations have much more and better employee handbook, KRAs, conditions of employment stated in appointment letter so this Act become outdated and just a tool in the hand of labour inspectors to harass the organisation
5th December 2014 From India, Mumbai
Sr.CiteHR Members.
To say that SO is a tool in the hands of LI to harass employer may not be true. LI has many other loophole points/subjects like CL, Maintenance of various registers like Attendance, Leave, Wages, Co-Off etc., whereas SO was intended to inform all workers what they are supposed to do & what not to do & for the Management to define precisely all the terms & conditions of employment under them to be made known to workers. It is rather a compulsion on the part of employer to make it & made known to all & thus educate the workers about work culture. Thus, there is utility for the workers by framing SO though a compulsion for the employer under the said Act.
I hope, Seniors would agree. c.neyimkhan 8.12.2014
8th December 2014 From India, Bangalore
I could not understand what Mr. C.Neyimkhan wanted to convey to Sr.CiteHr Members. In could interpret SO as Standing Orders but what is LI? Madhu.T.K
9th December 2014 From India, Kannur
LI- Labour Inspector
I agree to his statement and I also expressed similar view. Such outdated law is a tool in the hand of labour inspectors/ Government Law officers (GLOs) and other such officers

9th December 2014 From India, Mumbai
Dear Colleagues,

Imagine various terminologies and applicable provisions of standing orders are supposed to be taken commonly and uniformly a guidelines. The model SO code itself suggest and allows employers and employees to set best working conditions with mutual consents with genuineness, fairness, firmness , just and appropriate practicable approaches. Your 4-5 pages appointment letter can not cover all code of conducts, misconducts,when its breaches and terms and conditions related to punishment .Yes it has few but does not in totality. One of my very senior IR boss used to call SO as Bhagwat Geeta and then I took seriously the SO through out my career. I have no hesitation to say that this should be regarded with meaningful applications at every place of business. Act is rightly given a place in labour jurisprudence.Since Model Act is one and industries are large in numbers ; basis their nature of business, provisions of working conditions, good practices can be included in firming up a certified standing orders otherwise you could not locate every point and procedures anywhere.I suggest beginners and others who have not made thorough study to please read provision of The Industrial Employment (Standing Orders) Act 1946 and develop thoughtful insights .

RDS Yadav

Advisor and Management Consultant

+91- 8057800040
9th December 2014 From India, Bareilly
Hallow CiteHR Members.
I thank Shri Govind Sharma, RDS Yadav, TK Madhu and my Senior Shri Ram Ravarathna (whom I met in Sami Lab, Peenya, years back) for their updates on SO.
HR has a moral responsibility to create awareness of all laws especially SO acts; what employees are supposed to do, what not to do, their duties, obligations etc., Courts have ruled that employer cannot punish its employees for acts not specified in the Certified SO.
Though it is a statutory obligation, it is educative & HR Dept. must take the lead to create awareness of SO among employees & implement it.
Ph: 9535470460
9th December 2014 From India, Bangalore
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