Understanding Standing Orders and Service Rules in Relation to Industrial Employment

Dear All,

Is there any definition of Standing Orders & Service Rules? Can we use both for employees, or is it restricted that Standing Orders under the Act 1946 are used for Workmen and Service Rules are used for Staff?

Please help me out.

Dear Anu,

Before responding to your query, please let us know how many workmen are working in your unit as per the definition of a workman given under the Industrial Disputes Act, 1947, and whether you are covered under the definition of an Industrial Establishment as per the definition given in the Industrial Employment (S.O) Act, 1946. Also, confirm whether your unit is covered under the Factories Act or the Punjab Shops Act, 1958. If covered under the Shops Act, please state the nature of work being carried out in the unit.

Regards,

R.N. Khola
(Labour Law & Legal Consultant)
09810405361

Dear Sir,

Our casual employees (workers) number around 250 (variable) with approximately 47 workers on the company payroll. I work in corporate and we need to establish service rules.

I have drafted this, but my senior mentioned that both the service rules and the standing orders are the same.

It's like this, please suggest to me.

Dear [Name],

Now, this is an internal matter. How to deal with the senior is something you must know better than me.

Regards,
R.N. Khola
Labour Law & Legal Consultants
09810405361

Dear Sir,

I just want to know if service rules and standing orders are the same or related to different aspects. I need your guidance.

Dear Anu,

You must be aware that Model Standing Orders are provided under the Industrial Employment (Standing Orders) Punjab Rules, 1949, which are made applicable to the workmen (workman under ID Act, 1947) employed in the Industrial Employment, as defined under the I E (SO) Act, 1946. If your office is the only one covered under the Punjab Shops Act, 1958, then this Act does not apply, as establishments without any manufacturing processes are not covered by this Act. In this case, you need to prepare Service Rules for all your employees and workers, considering the various labor laws, and ensure that these rules are in line with the laws applicable to your establishment.

On the other hand, if your unit is covered under the I E (SO) Act, 1946, you must get your Standing Orders certified by the Certifying Officer designated under the Act for the workmen falling under the defined category. You need to draft Standing Orders based on the Model Standing Orders provided under the Punjab Rules, aligning them with the nature of your establishment, and submit them to the Certifying Officer in your area for certification. For employees not covered under the I E (SO) Act, 1946, you should establish Service Rules to regulate their terms and conditions of service. While there is no specific legal requirement for these Service Rules, they are essential to govern employment conditions within the organization.

Opinion submitted as requested.

Regards,

R.N.Khola
(Labour Law & Legal Consultants)
09810405361

Yes.

Also, there must be already existing Standing Orders since you are a limited firm in the manufacturing of sugar and production of power. Kindly study your organization processes, practices, and office files.

Dear All,

The scope and applicability of Standing Orders and Service Rules are different. The Standing Orders have statutory force, and since you are covered under the Industrial Employment Standing Orders Act, 1946 (100 or more workmen employed on any day), it is either the Model SO provided therein or your certified SO which will be applicable to the workmen category. Staff, if it is used for white-collar workers, would also come within the ambit of workmen and are covered under the IE (SO) Act. The Service Rules are company-framed rules broadly conforming to the principles of Natural Justice and are applicable to those whom the SO is not applicable. Hence, the two are mutually exclusive. Unlike SO, the Service Rules have no force of law.

Hope the above clarifies.

KK Nair

Who is the HR person in your company? They should be aware of both S.O.s and Service Rules. If you are the HR person in question, then I must say - God save the company. A professional must have a minimum level of competency; otherwise, they are just a layman.

Regards.

I am framing service rules for officers and managers, and it is mentioned that the Shops and Establishment Act applies to them. However, Mr. KK Nair has stated that there is no legal requirement for this category of employees.

Good Evening R.N.Khola Sir,

This is Raju from U.P. I have seen your posts on CiteHR; they are really helpful for new joiners like me. Thank you for your valuable posts. My query is, Our's is a cement manufacturing unit. We have already submitted the standing order and obtained certification for the plant. Now, we are in the process of preparing standing orders for the mines attached to the Cement Plant. My question is, what should we mention in the name column of the list of industries since our establishment already has certified standing orders for the plant? Is it appropriate to state "mines attached to" before our establishment name? Please guide me, Sir.

This is very urgent. Thank you.