Understanding the Industrial Employment Act: Which State's Rules Apply to Remote Workers?

If a company is registered in Bangalore and its employees are working in other states, is the Industrial Employment (Standing Orders) Act of 1946 applicable to them in Karnataka or the states where they are working?

Regards,
Sarita

I am glad to share my knowledge with you because you raised an excellent question. Actually, for any industry or firm registered under the Industrial Employment Standing Orders Act of 1946, we must mention the establishment name and address, as well as work locations like the regional office, corporate office, and branch office. Each and everything should be mentioned in Registration Form - III. I am hereby sending an attachment for your needs.

Regards,
Satyanarayana M
HR Executive
[Phone Number Removed For Privacy Reasons]

Thank you for your response. If there are employees working in other states and are on the payroll of the HQ location, for example, if the HQ is in Bangalore and they are working at a client's place in another state like AP, in that scenario, will the Karnataka Standing Order be implemented for them (employees working in AP) or will the AP Standing Order be applicable to them?

Regards,
Sarita

Application of Standing Orders Across States

For an establishment having branches in other states, a set of orders certified in the state where its Head Office (HO) is situated is sufficient, provided the said standing orders address branches in the other states. It is similar to service rules. It is not feasible to have different service rules for employees at different branches. For example, State Bank of India has employees in different states, but all are covered by one set of service rules. The only difference will be with regard to festival holidays, which will be based on regional interests.

Moreover, the Industrial Employment (Standing Orders) Act is a central Act, and the state is only enforcing it within the state.

Regards,
Madhu.T.K

Thank you for your guidance. However, Central Law has a ceiling of 100 workers, while many states have a limit of 50 employees. How can it effectively manage its operations while dealing with different state regulations?

Regards,
Sarita

Certainly, the applicability provision has empowered the state governments to make it applicable to establishments employing a lesser number of employees. That is why there is a difference.

Regards,
Madhu.T.K