Does the Industrial Employment Standing Orders Act Apply to High-Salary IT/ITES Employees? Seeking Clarity and Model Orders

Does IESA apply to IT/ITES companies? Even if all the employees draw a salary in excess of the Rs. 1600 wages prescribed by IESA, does the company have to follow a particular process under IESA? Where can I find the Model Standing Orders?

A reply ASAP would be greatly appreciated. Thanks.

Dear Dheeraj,

In my opinion, this Act is not applicable to the IT industry as this type of industry is covered under the State Shops Act, and thus these units are not covered under the definition of the "Industrial Establishment" under the Industrial Employment (Standing Orders) Act, 1946. Submitted as per your request.

Regards,
R.N. Khola
Senior Associate (Haryana)

Dear, it should be applicable to your industry and why the IT industry is exempted. The Act's applicability clause clearly states that this Act is applicable to all establishments employing more than 100 persons. I do not understand what Mr. Khola wants to say.

Thanks,
J. S. Malik

Dear Mr. Malik,

Let us wait for others, including the esteemed HR personnel, to provide their views regarding the definition of "Industrial Establishment."

With best regards,

R.N. Khola
(Haryana)

The term 'Industrial Establishment' has a wider meaning under the Act. It has been defined, among other things, in section 2(e) of the Industrial Employment (Standing Orders) Act, 1946, as an establishment within the meaning of the Payment of Wages Act, 1936. According to section 2(ii)(h) of the Payment of Wages Act, an industrial or other establishment means any other establishment or class of establishments which the Central Government or a State Government may, having regard to the nature thereof, the need for protection of persons employed therein, and other relevant circumstances, specify by notification in the Official Gazette.

In the Payment of Wages Act, the terms 'industrial establishment' and 'other establishment' are separately defined. However, in the Standing Order Act, only the first usage is made. This does not mean that other establishments wherein activities other than manufacturing are carried out are out of the purview of the Act. The respective state government has enforced rulings by notification with a view to protecting workmen employed. As such, it shall be interpreted to give a wider meaning to the term industrial establishment, and therefore the Standing Order Act will be applicable to all establishments wherein 100 or more are working.

Regards,
Madhu.T.K