Understanding Standing Orders, Leave Management, and Compliance with Labor Laws in Organizations

Hi,

Our management provided 24 days of leave per year, i.e., 12 days of casual leave and 12 days of medical leave. Management has decided to introduce only 12 days of leave starting next year. However, our standing order currently has 24 days of leave approved by the Joint Commissioner of Labour.

Is it possible to revoke or reduce the leave from the JCL approved standing order, or do we need to submit a modified one?

Thanks,
Ravi

Hi,

The management cannot make decisions independently to amend the Standing Orders already approved by the JCL. It can only do so with the consent of the working employees or approval from their trade unions, and then proceed to seek an amendment for the leave clause from the JCL.

Mohan Rao
Manager HR

Dear Ravi,

You have to apply for modification in accordance with Section 10 of the Industrial Employment (Standing Orders) Act, 1946. You are not in a position to reduce the number of leaves. In my opinion, this matter falls within the ambit of a change of condition of service and thus also attracts Section 9A of the Industrial Disputes Act, 1947.

Opinion submitted as requested.

Regards,

R.N.Khola

(Labour Law & Legal Consultants)
09810405361

Dear Ravi,

The same procedure is to be adopted as adopted by you in the case of certification of your Standing Orders. However, the difference in this case is that you are now required to reapply to the JLC cum Certifying officer under I E (S.O) of your area with five copies of the draft modification needed. The C O shall undergo the same procedure and will also hear the representatives of the workmen, i.e., the affected party. In my opinion, this will not be modified unless accepted by the representatives of the workmen or unless you provide specific reasons based on the facts and circumstances of this case.

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

Mr. R.N. Khola, sir,

I used to fail to understand the following:

1. If a company already has a certified standing order, is it necessary to prepare a Service Code?
2. If a service code is prepared, by which rules will the employee be governed?

Please clarify.

Regards,
Pramod

Whether

Dear Pramod,

This is to clarify that certified standing orders are applicable to the workmen as defined under section 2(s) of the Industrial Disputes Act, 1947. Now the question arises how to regulate the terms and conditions of employment of the rest of the personnel working with the organization as everything is not possible to write time and again in the appointment letters. Therefore, we also prepare service rules/code for these employed persons. After making these rules applicable to the rest of the employees, we write only one line in the appointment letter of these officers/employees that you will be governed by the service rules of the unit which are in force as of today and as amended from time to time.

Comments submitted as requested.

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

Mr. Ravi,

In your query, please clarify that apart from these 24 days of Medical and Casual leave, are you adhering to the provisions of PL as per the Factories Act, 1948? Also, if you are providing PL as per the provisions of the Factories Act, then you can apply to the Labour Commissioner with the new amendment. However, he will advise you not to reduce any benefits that are in practice. Still, you can try to show a valid reason to do so. Also, please inform your management about the consequences from the Union or workers' representatives, as it may create industrial relations issues since the workforce generally does not wish to see benefits reduced.

If you are not providing PL, then you can transfer these 12 days of leave to PL.

Regards,
Vipul Rana
Plant Personnel Manager
J.M. Huber India Pvt. Ltd

Yes, you have to resubmit the Standing Order with the requisite fee to get it altered. Second, there will be no changes approved that move the S.O. out of legal limits or bypass the welfare of workers.

Sukhwin

Mr. Ravi,

As per the Factories Act, you have to provide 1 day of leave for every 20 days worked. Additionally, you have to comply with the standing order provisions legally. Any violation of this will attract punishments for the occupier and factory manager. Therefore, please follow the legal provisions and apply for modifications with the certifying officer, which is unlikely if you have a union in your factory.

Regards,
B. Ravichandiran

Dear Prasad,

Please find below the differences:

I.R:
Industrial Relations have various definitions which precisely portray the relationships between the Employee and the Management. Industrial Relations are basically the interactions between the Management and Employees or a group of employees represented by a Union, where attempts are made to arrive at solutions between conflicting objectives and values.

H.R.:
Though it is said that H.R. is part of I.R., it has a more specific meaning which actively plays a pivotal role in any conflicting objectives. These days, H.R. is considered a completely different field that deals with non-union issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training. In short, it is nothing but Personnel Management.

Hope I was helpful.

Thanks,
Sathish S. Nair

Dear Lalit,

You must be aware that national and festival holidays are declared and granted under the State Act. Most of the states have enacted the National and Festival Holidays and Casual and Sick Leaves Act, and we are required to adhere to that State Act. In the states of Punjab, Haryana, and UT Chandigarh, we do not observe May Day as a compulsory holiday. I do not have knowledge of all the State Acts, but from what I have observed on this citehr, it seems to be a holiday in your Maharashtra State and might be possible in West Bengal as well. Members may be requested to provide the correct information.

Regards,
R.N.Khola
(Labour Law and Legal Consultants)
09810405361