Pl.read the following links also for better understanding of the provisions of the act :
In order to understand the provisions better w.r.t. employing "contract labour" one has to read the both the attached acts which concurrently relevant on the subject.
Now, clarifications on your queries:
Qn.1. What is the scope of Industrial Establishment (Standing Orders) Act 1946 - in concern of Contract workmen
= The SO as applicable to the employees of the Principal Employer suo-moto apply to contract workmen also.
Quote: "1. Short title, extent and application.—(1) This Act may be called the Industrial Employment
(Standing Orders) Act, 1946.
(2) It extends to [the whole of India
[(3) 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.
2.[(i) “wages” and “workman” have the meanings respectively assigned to them in clauses (rr) and
(s) of section 2 of the Industrial Disputes Act, 1947 (14 of 1947).]
xxx ID ACT Sec.2-....[(s) "workman" means any person (including an apprentice employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms of employment be express or implied, and for the purposes of any proceeding under this Act in relation to an industrial dispute, includes any such person who has been dismissed, discharged or retrenched in connection with, or as a consequence of, that dispute, or whose dismissal, discharge or retrenchment has led to that dispute, but does not include any such person-
(i) who is subject to the Air Force Act, 1950 (45 of 1950), or the Army Act, 1950 (46 of 1950), or the Navy Act, 1957 (62 of 1957); or
(ii) who is employed in the police service or as an officer or other employee of a prison; or
(iii) who is employed mainly in a managerial or administrative capacity; or
(iv) who, being employed in a supervisory capacity, draws wages exceeding one thousand six hundred rupees per mensem or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, function mainly of a managerial nature.]
Qn.2. A Contractor have 300 workmen, has the contractor need to get certification or ?
= The Certification of the SO is the responsibility of the employer, an "Industry" to whom the SO Act is applicable. Registration. Yes, the contractor should have the required registration/licence. The Principal Employer also issue necessary forms under the act to employ the Contractor under the CLR&A Act.
THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970 (ACT NO. 37 OF 1970)
" 9. Effect of non-registration.- No principal employer of an establishment, to which
this Act applies, shall--
(a) in the case of an establishment required to be registered under section 7, but which has not been registered within the time fixed for the purpose under that section,
(b) in the case of an establishment the registration in respect of which has beenrevoked under section 8, employ contract labour in the establishment after the expiry of the period referred to in clause (a) or after the revocation of
registration referred to in clause (b), as the case may be.
"13. Grant of licences.- (1) Every application for the grant of a licence under sub-section
(1) of section 12 shall be made in the prescribed form and shall contain the particulars regarding the location of the establishment, the nature of process, operation or work for which contract labour is to be employed and such other
particulars as may be prescribed.
(2) The licensing officer may make such investigation in respect of the application received under sub-section (1) and in making any such investigation the licensing officer shall follow such procedure as may be prescribed.
(3) A licence granted under this Chapter shall be valid for the period specified therein and may be renewed from time to time for such period and on payment of such fees and on such conditions as may be prescribed.
Qn.3. is Certified Standing Order of company applicable or ?
= Answer to this is as in Qn.1.
Qn.4. shall the contractor follows the Concern company Certified Standing Order to initiate disciplinary action against their workmen?
= The Principal Employer bound to instruct the Contractor to proceed as per the rules applicable therein. However the PE doesn't prosecute the contract labour directly.
Qn.5. what is the procedure to follow for terminating his contract workmen.
= As I said in 4 above, the Principal Employer however will not directly take any disciplinary action against the erring contract workmen, instead will issue necessary report/facts of the case to the contractor for appropriate action as per the rule applicable to the contract labour.
17th January 2019 From India, Bangalore
Generally, the Contract Labor System is a form of indirect labor through the practice of outsourcing of certain activities of an industrial establishment for one or more reasons like economy, specialisation, flexible hire and fire, elimination of constant and close supervision etc. Under this outsourcing arrangement which can either be the entire activity or the man power only, the establishment which gets the services is the outsourcer and the other who renders the service is the outsourcee.
Let me first present the picture of a Contractor's Establishment with reference to the essential nature of its activity.
(1) If the activity of an establishment is manufacturing or rendering service on behalf of any other person/entity in the latter's place of business or a mere supply of labor to one or more such entities under a contract for service, the relationship between the two becomes that of contract for service, such an establishment becomes a Contract Labor Establishment and the workmen employed therein are its direct labor. In the context of the CLRA Act,1970 which comes into play, the outsourcer becomes the Principal Employer, the outsourcee becomes the Contractor and the labor of the contractor becomes Contract Labor.
(2) Alternatively, however, only the entire outsourced activity can be left to the outsourcee i.e the contractor to be done at his own facility or premises. In such a situation, the CLRA Act,1970 has no application despite the subsistence of a contract for service between the outsourcer and the outsourcee.
It automatically implies that there exists a direct employer- employee relationship between the outsourcee i.e the contractor and his labor. So, for all practical purposes, the contractor's establishment becomes an industrial establishment and hence the application of all the labor laws including the IE(SO)Act,1946 subject to the criteria for coverage. Thus I think that I've answered your questions with serial nos. 1,2 and 5.
Regarding q.nos. 3 and 4, "No" is the answer since there is no direct employment relationship between the PE and the Contract Labor.
17th January 2019 From India, Salem
The Contractor referred to in this post is engaging 300 workers and perhaps must have registered his establishment under State Shops and East Act. Therefore, the Industrial Empl Standing Orders Act/Rules will apply to his establishment.
Until such time certified standing orders are in place, the Model Standing Orders have to be followed by him.
The certified standing orders , if any, of the Principal Employer ,will not apply to him.
For disciplinary action against the contract worker, he will have to follow provisions of the Model Standing Orders and principles of natural justice.
17th January 2019 From India, Mumbai
The Standing Order is nothing but a guidelines/constitution of an establishment. The applicability of SO is both for the employee on direct roll or contractual as per their rules framed in SO by the employer.
The establishment of Contractor can have their own SO if the engagement is 100 or more.
20th January 2019 From India, Mumbai
Dear CITE HR MEMBERS, Sir,
SUB: TRAINING on Important HR. SYSTEMS, RULES, Forms (SRF) to work HR ,
P&A. Dept. (Abbreviations used to save space)
I am providing Training to Company Officials, P&A Mgrs., Freshers; to ASSIST them to improve, update their P&A. works with S.O.P. for Factory, Mines, all Estts., Office Admn.; HR Auditing, Recruitment, Attendance, Salary, Benefit , Leave Admin., Leave Card System, Grading of employees, PA, PMS, HRIS, MIS., All Policies, Procedures, Legal, Statutory Compliance, C.L., Regn., Licence, PF, ESI, Inspection by F.I.,L.I.etc., from Recruitment to Separation - with all Systems, Rules, Forms for H.R. Management - in Soft & Hard Copy - for easy understanding & Adoption.
I am giving below some of the Imp. P&A. Systems, Rules, Forms(SRF) to help P&A Officials as some of them are NOT there in many Cos; Books, Google etc., When u Google for “MPIF,PA,MIS or S.O., IDA. etc.”; U will get 10+ Options; each different from the other. It confuses & you may not get the right answer, Forms u wanted; as u can get from me. Many Consultants don’t have these SRF. Hence,
P&A. Mgrs. face problems to make HRIS, MIS Report to GM, FC, MD, Comply with Statutory Returns to FI,LI,ESI,PF, Pension,IT, PT,Bank etc.
I am providing Training for adopting, implementing the above SRF for
a. Attendance Certification problems for payment of Salary
(Employees not regularizing OD,OP,Leave etc.in time),
b. Optional-Holidays instead of Fixed Holidays to help HODs to
deploy M.P.for Essential works without violating Rules, OT etc,
c. Adopt Leave Card(LC)Systems instead of loose Leave Appn. due to
many benefits to P&A works; JSWSteel adopted LC in 1996 + SLR,SLL,
Kirloskar,Kalyani,BKG etc.;for Leave Admn; 1 Card for 1 empl. for
1 yr + Leave Rules on backside for infn.& compliance of all empls.
d. New Co.Appn.Form-60+ points to collect all personal details for
HRIS,Returns to FI,LI,ESI,PF,IT,PT,Bank,Nominee in 1 Form (instead
of piecemeal; which cannot be traced, causing problems later) to help P&A
Mgrs. to show all persnl.dtls. to GM,MD, FI,LI etc. Many Cos. adopted my Form as
their Form had below 20 points. Pl.check No.of points in ur Co.’s Appn).
e. M.P.I.Form to help HODs to give specific details of persons
to be recruited; to fill posts; specially, TECHNICAL posts.
f. Interview Assessment Form to help Panel Members, MD to assess,
Select, fix Design.Grade, Salary & Appoint the Right Person,
g. P.A.Form to Assess, Regularise Trainees, Confirm Probationers,
Promotion, SI & Grading of all employees into 27 Levels as per
Grading Chart to help HRD, Mgmnt.to fix Post, Grade, Salary &
to know No.of empls.-Grade & Dept-wise; for MIS, Returns etc.
h. Resignation-Acceptance, Notice Period, No Due Certificate,
Absenteeism, AOS Procedures, SC Notice, Enquiry, Termination,
Retrenchment, Relieving, F.S., etc. as per S.O., IDA.,
Our Group Consultants at B’lur, Chennai together have Developed 200+ Imp. HR Systems, Rules, Forms etc.,for the use of P&A, Accts.Works. The above Subjects will be explained with Soft, Hard copy in 1-4 weeks; as per ur needs. Ready-to-use Systems, Forms will be given for ur adoption. 1st Presentation is Free. My HR Training will save ur precious time, energy & money; and it will help ur P&A works for several years.
Two of the Samples are given below for ur infn. & ref.
1. ATTENDANCE CERTIFICATION FOR SALARY – H.R. PROBLEMS
Certification of Attendance of all empls.at the month-end; for Salary is an imp.task of all P&A.Managers.
Some Mgrs. face problems to Certify Attendance due to some of the employees
NOT Signing / Punching daily, NOT regularizing Leave, OD, OP, Co-Off. in time; Absenteeism,
Online, Manual Attendance NOT tallying etc.,
Causing delay to Certify Attendance for Salary;
delay Salary Payment; Resentment by employees etc.,
Big Cos.,specially; where 100s of employees works in 2-3 Shifts; P&A Mgrs. face the following problems; leading to employees grievances; representation to Seniors etc.,
1. Employees NOT signing in Attendance Regr.,NOT Punching while
entering & exiting, NOT following Shift Schedules.
2. Employees NOT writing Shift name disturbing Shift Allotment.
3. Employees while going out of Estt. during duty hours; NOT
submitting Approved OD, OP, Leave Card, Co-Off Appn. etc.,
4. Employee NOT regularizing Absence, W/Off, Holidays, Leave, Co-Off, OD, OP etc. within 2 days of NOT SIGNING and many COLUMNS ARE LEFT BLANK in the Attendance Regr. as on 30/31 of the MONTH; causing problems to certify Attendance.
5. Employees after working on Sundays, Holidays etc.,& after
taking Co-off, not regularizing with Co-off Appn., NOT
recording in Statutory Extra work-Co-Off Regr. etc.
6. Employees NOT putting small initial but big signature;
spoiling the Regr. / causing problems to others to sign.
7. Employees over-write in Attendance Regr., sign for others &
other errors, mistakes, violations.
My New Rules, Forms will give you imp. Guidelines, Procedures, to streamline Attendance Rules; reduce the problems to close the Attendance, Regularise Leave, Co-Off, OD OP, etc.,and help P&A. Mgrs., HODs, Accts.Dept. Auditors, GM/MD to overcome this monthly recurring problems & Comply with Co.& Statutory Rules.
2. WHY STANDING ORDERS (S.O.) / SERVICE RULES - I.D. ACT - ISSUES.
A Certified STANDING ORDERS under the Indus. Emplmnt. (S.O) Act; empowers the Co. to take Disc. Action against its Erring Empl’s. for violating T&C in S.O. BUT; the Co. cannot punish an Empl’. for acts not included in the S.O.- SUPREME COURT.
Company Suspends, Terminates employees leading to grievances; Litigation, damaging Co.reputation; demoralizing; besides wasting Co.’s Money & time. TERMINATION WITHOUT ENQUIRY / NATURAL JUSTICE etc. IS ILLEGAL & Court can re-instate such Empl’s.
S.O. Act obliges Cos.with 50+ empl.(in Karnataka etc.,)to adopt/Certify S.O. to regulate Employment conditions, Master-Servant Relation -tobe Certified by DLC & displayed for infn. & compliance by Co. & all empls.
Imp. Do’s, Don’t’s Duties of Empl’s.,Mis-conducts for which empl’s. LIABLE FOR DISCI. ACTION-80 points. Imp.t&c. in Appt.Order.-for Sk.empl.-20,Suprvsrs & above-30.Pl. include Imp.acts/Conducts in S.O. & A.O.,and Follow PROCEDURES of NATURAL JUSTICE to make Co’s. action Legal. For Cos. not covered under SO Act, Service Rules are to be made for the infn. & compliance of empls.not covered by SO. Pl.
contact to share imp.t & c. to frame, Certify S.O.,S.R., A.O.,A.O.S., IDA problems etc.,
Every HR,P&A Mgr. must have all Imp. Acts, Systems, Rules, Forms to administer HR works effectively & Professionally; as P&A Mgr. is answerable to
F.I., L.I., PFI, Pension, ESI, Gratuity, PT, other Govt. Officers, Auditors, HODs, GM/MD, Employees etc., and he has to solve all employees problems; keep Records in Per. Files for future ref. DURING THE LIFE OF EMPLOYEES & CO. ITSELF.
If you have any of the HR.SRF problems, I can provide you all Updated “Ready to use”Systems, Rules etc., & assist you to implement them with my 35 yrs. exp. in 7 Mfg.Cos.at different places + 6 yrs in HR Consulting. Pl.contact to share more.
Kindly inform/forward this Msg. to ur Seniors,friends for their infn; Recommend to them to use my services to adopt the above SRF.
Thanking you & requesting your response.
C.N. Khan, HR & Mgmnt. Consultant. (Ex-AGM-HR&A..+ Secy.for ISO Certification) .
Ph: 9535470460- E-Mailid:
SANDUR, HOSPET. BELLARY Dist.,
Ex-Member, NIPM, Calcutta, Ex- Tr.Member, I.I.M., B;luru.
Languages known: Kannada, Tamil, Telugu + Hindi & English
20th September 2019 From India, Mumbai