How Does the Industrial Employment Act Apply Differently Across States Based on Workforce Size?

Please clarify for me the applicability of THE INDUSTRIAL EMPLOYMENT (STANDING ORDERS) ACT, 1946 in establishments where 100 or more workmen are employed. In some states, the Act applies even if the number of workmen is less than 100—for example, in Andhra Pradesh, it applies when more than 50 workmen are employed. Could someone provide me with relevant information and an explanation of the Act's applicability based on the number of employees in each state?

Thank you.

State Rules and the Standing Orders Act

State rules prescribe the number of employees below which the Standing Orders Act is not to be complied with. There are even states (for example, Assam) which have prescribed a lower minimum of 20 employees for coverage under the Industrial Employment Standing Orders Act. Therefore, you have to refer to the state rules.

Madhu.T.K

Applicability of the Industrial Employment (Standing Orders) Act, 1946 in Maharashtra

The provisions of the Act are applicable in Maharashtra State to industrial establishments, as defined in the Act, employing 50 or more employees. The employer of such an industrial establishment is obligated to follow the Model Standing Orders under the Act until he obtains a Certified Standing Order from the Competent Authority (Deputy Commissioner of Labour) to suit the local requirements of his establishment. For this, he must follow the procedure laid down under the Act. Such Standing Orders are also settled under the Bombay Industrial Relations Act, 1946. Pending this, the Model Standing Orders framed for the industry ensure discipline in an industrial establishment, helping to eliminate many industrial disputes.

Regards.

Dear Sripadkumar,

Different state-wise units of numerical strength for the applicability of the Act are the outcome of the enabling provision in the Act to empower the states to apply the provisions of the Act as per their discretion. If you need the particulars, it is better to go through all the states' rules.

Madhu Sir,

Does "industrial establishments" include only factories or all establishments under the Industrial Employment (Standing Orders) Act, 1946? Are microfinance institutions covered under the Industrial Employment (Standing Orders) Act, 1946, as they are already included in the Shops and Commercial Establishment Act?

Your response and guidance are awaited.

That depends on state rules. In Maharashtra, all establishments coming under the Shops Act are covered under Standing Orders as well. In Karnataka, the same was enforced a couple of years back (though IT companies have sought some exemptions). In Kerala, all establishments, including commercial establishments covered by the Payment of Wages Act, are also covered under the Standing Order Act. Therefore, you will have to check the applicability with reference to your state rules.

Madhu.T.K