Understanding the Industrial Employment (Standing Orders) Act, 1946: How Can It Help You?

Hello everybody,

I've attached a PPT on the "Industrial Employment (Standing Orders) Act, 1946". I hope it will be helpful for you.

Sankuraj

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.

The link provided is really good, but it's not clear whether industries also come under the Industrial Act or the Shops and Establishment Act. Seniors, please clarify.

Fauzia

Dear Sankuraj,

That PPT was really helpful. Thanks.

I have another query. Mine is a manufacturing concern located in Maharashtra. We have almost 120 employees and 22 workers. Additionally, 15 to 20 workers are contract workers. Does the Standing Orders Act apply to our company? Should I go ahead with the drafting of standing orders and getting it certified? Currently, I am in the process of creating a code of conduct for all other employees. I hope that doesn't require any kind of certification.

Also, do you have a copy of the List of Standing Orders as per the law?

Please help.

Regards,
Mitali

Dear Mitali,

You have to set up a Standing Order of your own and get it certified. For reference, please follow the link in my earlier posting.

Regards,

Madhu.T.K

Dear friends,

Please suggest some good and feasible topics for a PhD in HR. It can also be related to Behavioral Psychology but approached through the lens of HR.

Arpita

Dear Madhu Sir,

Hi,

I'm working in a corporate office (New Delhi) of a manufacturing company. We have two plants in Haryana and Rajasthan, and both the plants have standing orders. In the corporate office, no standing order exists. Our strength is 90 on rolls and 30 non-rolls. The corporate office consists of Marketing, Accounts, and Administrative & HR departments only.

Please suggest to me, is it necessary to have a standing order for this kind of setup? Also, clarify whether the 100 employees required for a standing order are only on rolls or if non-rolls are also included.

Regards

All employees who work for the organization are expected to be on the roll of the organization. Engaging employees without showing them on your muster roll itself is illegal. Even if they are under the roll of any contractor, they are supposed to be counted as employees for the purpose of industrial and labor laws. As such, your employment strength is not 90 but 120, and you have to go for a certified standing order. In fact, it is not due to the number, but it is for your convenience that I suggest framing standing orders because a certified standing order is the basic document that can be referred to whenever a matter needs clarification.

Regards, Madhu.T.K

The term industry does not mean factory alone. The Standing Orders Act is applicable to all establishments to which the Payment of Wages Act, 1936 applies. Section 2(e)(iv) states that any establishment of a person who, for the purpose of fulfilling a contract with the owner of any industrial establishment, employs workmen is an industrial establishment. As such, a minor port will also come under the definition of Standing Orders. Even if not covered by virtue of definition or number of employees, it is always desirable to have standing orders since it clearly defines the relationship between employer and employees.

Regards,

Madhu T.K

Sir,

It's good, but I need a standard format that includes the company name and other details to help with submission. Please assist me in this regard.

Kuntal

Hi, Mr. Anurag,

As per the Standing Orders Act, mines are also covered if the employees are 50 or more. According to Mr. Madhu's views, it's better to draft standing orders wherever applicable as per the act. If not, go for certified rules and regulations for other establishments because in the future, if there is a difference or clash, you can proceed as per the framed rules and regulations or certified standing orders, whichever is applicable.

Regards, Ramnath

Dear all,

My company, SSI, is involved in manufacturing electronics equipment. Are standing orders applicable to my company? Is there a procedure to certify standing orders? If yes, please explain the complete procedure after the standing order is made.

My email is [Login to view].

Regards,
Ujwala

What steps must be taken when an employee tenders conditional resignation and also sends a leave application indicating their absence from duty? Can we take action under Standing Order provisions? Please guide me. Can we issue a charge sheet for misconduct due to unauthorized absence (willful)? Is it possible to terminate his service?

Applicability of the Industrial Employment (Standing Orders) Act to Construction Industries

Is the Industrial Employment (Standing Orders) Act applicable to construction industries? Some of my colleagues are saying that the Standing Orders are applicable for all establishments covered by the Payment of Wages Act. The Act has been extended in Andhra Pradesh to various categories of establishments via G.O.Rt.No.590, dated 31.03.2011 of LET & F (Lab.II) Department. Please help me. I am currently working with one of India's biggest construction companies as an Industrial Relations Officer.

Regards,
Satya

Hi all,

I need one urgent piece of information. Can an officer-rank employee be suspended based on the Standing Orders?

You can suspend an officer following the service rules applicable to officers and not following the Standing Orders of the company. Disciplinary action can be taken against an officer, even citing it as a business requirement, even if there are no written rules specifically meant for officers.

Madhu.T.K

Thank you, Madhu Sir, for the reply. What if an officer is suspended on the basis of Standing Orders? Also, how long can an officer be suspended if a pending inquiry is completed?

Please let me know if you need any further assistance.

Dear Sir,

If the employee is in the supervisory category only, then you can take action as per the Standing Orders. Therefore, examine his nature of duties, and if he falls into the category of a supervisor, you can suspend him; if not, then not. Furthermore, if you have a staff manual, you can take action as per that if the misconduct is serious.

Thank you.