Umakanthan53
Labour Law & Hr Consultant
Loginmiraclelogistics
Asso.prof.(commerce & Management)
Nagarkar Vinayak L
Hr And Employee Relations Consultant

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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?

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?
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.
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?
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.
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.

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?
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.

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.
Regards,
Vinayak Nagarkar
HR- Consultant

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.

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