I have recently joined an organization which has presence in Bangalore and Hyderabad. I need to prepare standing orders for both locations. Could you please help me with the below two queries please:
1. We do not have a trade union so who represents a trade union and is there any process we need to follow.
2. What is the validity of a standing order?
24th October 2018 From India, Attapur
Why you need Standing Orders? why you want prepare? If you do not have trade union then how many permanent employees you do have as of now?
24th October 2018 From India, Pune
We are presently 20 permanent employees in Hyderabad and nearly 50 in Bangalore. I understand it is a mandate to have standing orders if the number of employees are 100 and beyond. Very soon we may hit the 100 headcount and hence the need. Please suggest.
24th October 2018 From India, Attapur
As Hyderbad & Banglore are 02 different locations are you processing payroll from 01 location only? If you do not have an union then why don't you follow model Standing Orders?
24th October 2018 From India, Pune
Ok Great. This is helpful. We will be processing payroll from one location. Pardon my ignorance as I am a novice in drafting and understanding of standing orders. You mean to say if there is no trade union we can go ahead with having a model standing order? If yes, is the model standing order exempted from Certification from the Labor Office? Please suggest.
24th October 2018 From India, Attapur
Dear Ms.Manisha,
I infer from your post that the fact that the Industrial Employment ( Standing Orders ) Act,1946 in all respects applies to your organization which comprises of two inter-related units has prompted you to raise the queries.
For the sake of orderly convenience, let me answer your second query first. The object of the Act is to require the employers to make the conditions of employment under them precise and definite and make them known to their employees. The Act prescribes these conditions in the form of Standing Orders. Not only the object but the scheme of the Act is such that the employers must define precisely the conditions of employment of all employees and have the same certified by the Certifying Officer appointed under the Act. The right of representation given to the trade unions or elected representatives of the workmen enables employees' participation in the process of certification and amendment of the standing orders. Thus certified Standing Orders have statutory force.
In the absence of any trade union in the industrial establishment, the Certifying Officer has to call for a meeting of employees in the establishment to elect their representatives to take part in the certification process. Better you refer to the Central Rules.
The application for certification should be submitted within 6 months from the date the Act became applicable to your establishment. Till the time it is certified, the model Standing Orders would be temporarily applicable. Since because the model standing orders are applicable, you can not be contended with that.The failure to get the Standing Orders duly certified is a punishable offence under the Act.
24th October 2018 From India, Salem
Thank you very much Mr. Umakanthan for your guidance on this matter. This is very helpful. I have lot more clarity now. One last thing please, if you could let me know what is the validity of a standing order? Is there is any frequency of modification to be followed. Could you please help me on this process?
24th October 2018 From India, Attapur
Dear Mr. Umakanthan,
I referred to the Standing Order Rules as suggested and got an answer to my query. After the expiry of 6 months of final standing orders certified by the Certifying Officer, the employer and the workmen representative can submit 5 copies of revised standing orders in case of any modification and did not find any specific expiry date of standing orders. Thank you very much for guiding me on this.
24th October 2018 From India, Attapur
Dear Manisha,
I would like to add some practical suggestions with due respect to views expressed by the learned Colleague Mr Umakanthan.
In the context of your two establishments ,one at Bangalore and another at Hyderabad , both are not yet covered under the Industrial Employment Standing Orders Act, because their workmen strength( workman as defined under ID Act) excluding supervisory, executives and managerial staff, is far less than 100.
Even as and when it reaches/crosses 100 , you don't have to bother about going for certification and hope to have Certified Standing Orders.
You can very well follow the Model Standing Orders in spirit and by way of guide.
Although, certification process/procedure is provided for in the Act, my experience shows employers continue to follow MSOs for years together and Authorities have done nothing about requiring them to go for certification. In my view, the MSOs are adequate enough to facilitate day today working of the establishment in terms of essential rules of discipline, disciplinary actions and such other basic terms of employment.
If one thinks of it , what significant thing you can add while thinking of going for certification. Really speaking not much except to propose addition of some new classification of workmen, ( fix term contract employee), some misconducts and punishments like stoppage of increment, demotion etc.
But the very process of certification will not allow it to succeed with the suggested amendments without creating hurdles from the workmen representatives or Union opposing /objecting to it. Therefore ,why to cause ripples in the quiet water?
So legal requirement of certification notwithstanding, your not going for it and following MSO, by way of guiding principle when your strength is less than 100 workmen as well as when it crosses, will immensely benefit you and in my view, you should follow them - MSOs without any hesitation.
Vinayak Nagarkar
HR- Consultant
25th October 2018 From India, Mumbai
Thank you for your inputs Mr. Vinayak. I am curious to know if there is a legal mandate for getting the Standing Orders certified? I understand from Mr. Umakanthan's inputs that wherever the Standing Order is applicable, failure to get the same certified is punishable offence under the Act. Please help.
29th October 2018 From India, Attapur
Dear Manidha,
If you go through the provisions of the Act, it is crystal clear that it is mandatory to get certified standing orders in terms of the process and procedure as laid down in the Act and State/central Rules as per its applicability. Failure to get it certified is punishable offense.
But as I pointed out earlier, if you follow the MSOs, it is adequate.
I have not come across any prosecution against any organization yet by the authorities for non- certification and perhaps Mr Umakanthan , who has served in that authority , can throw more light on this aspect.
Vinayak Nagarkar
HR- Consultant.
29th October 2018 From India, Mumbai
Thank you very much for clarifying Mr. Vinayak. This helps.
Warm Regards,
5th November 2018 From India, Attapur
Dear All
++++++++++++++ Thanks for your inputs. Wish a happy and prosperous festival of lights, DIWALI +++++++++++++
5th November 2018 From India, New Delhi
In case, if you are not proceeding towards enacting MSO/SO or unionised set up, an alternative arrangements may be made to set up a mechanism, in the form of 'Grievance Cell' comprising employer's & employees' rep. & Appellate Committee to deal with grievances raised & complaints received. This type of set up team are functional in govt. & quasi-govt.institutions.
6th November 2018 From India, Bangalore
Dear All,
In continuation to my query in this post, need your advice/suggestions on the below points please.
1. How does a Certifying Officer decide on the number of employees he would like to meet to elect the three workmen representatives.
2. Can the management suggest the Certifying Officer about the employees who can be part of this meeting?
3. If for some reason the workmen representatives resigns from the organization or would want to discontinue being a representative then who is obliged to inform the Certifying Officer and what is the generally the next step in this situation?
4. Can the HR/Employee Relations team who are involved in drafting the standing orders be part of the meeting for electing the workmen representative?
Request your advice please.
Warm Regards,
9th November 2018 From India, Attapur
Certain humble words of clarification as suggested by our friend Mr.Vinayak Nagarkar in his post dated 29-10-2018.
In the first place, the history of no penal action against the violation/non-compliance of any explicit provision of a Law so far may be indicative of the laxity of enforcement but can not be construed as an implied sanction or precedent for continued non-compliance forever.
Had the Legislature thought that the permanent adoption of the MSO is sufficient compliance, no necessity for the introduction of exclusive provisions for certification and amendment nor to have captioned Sec. 12-A of the Act as " Temporary application of model Standing orders". Similarly, it is not at all warranted to provide for penal provisions including enhanced punishment for continuing offence.
MSOs are simply guidelines to be followed while drafting and certifying Standing Orders befitting the peculiar nature of the activities of the industrial establishment concerned. Even an employer who has already got an CSO can not simply implement the provisions of the subsequent amendment in the MSO without amending his existing CSO.
The practical difficulties highlighted in the process of certification would pale into insiginificance if the proposed conditions of service are fair and legal in all respects. I am of the firm view that if an employer treats a trade union as a parallel institution of fostering amity between the Capital and Labor, he need not be scared of its lawful differences in matters of employment including the certification or amendment of standing orders.
For her latest queries, Manisha may refer to rule 6 of the IE(SO)Central Rules or the corresponding Rules of her State.
9th November 2018 From India, Salem
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