No Trade Union in IT Companies: Should We Implement Standing Orders?

I need the views of the forum. If in a company there is no trade union (in IT companies), is there a need to put in place Standing Orders?

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Regards.

Standing Orders Certification and Model Standing Orders

1. There is no need to have a union to get Standing Orders certified; however, you need elected representatives of employees to sign.

2. The law requires that every establishment engaging more than the stipulated number of employees must get their Standing Orders certified within the stipulated time.

3. However, the Act also states that in the absence of Certified Standing Orders, the Model Standing Order is applicable.

In The Indian Iron and Steel Co Ltd vs. The Ninth Industrial Tribunal (1977 LIC 607), the Calcutta High Court held that “if the Standing Orders of the establishment expressly relate only to one class of workers, the Model Standing Orders must necessarily be attracted insofar as the other workers are concerned for whom there are no other Standing Orders in the said establishment until draft Standing Orders for such workers are submitted and certified.”

Section 12A of The Industrial Employment Standing Orders Act reads: “Notwithstanding anything contained in Sections 3 to 12, for the period commencing on the date on which this Act becomes applicable to an industrial establishment and ending with the date on which the Standing Orders are finally certified under this Act come into operation under Section 7 in that establishment, the prescribed Model Standing Orders shall be deemed to be adopted in that establishment…”

Hence, it is settled law that Model Standing Orders are applicable to establishments where Standing Orders have not been certified.

Small companies and IT organizations can have Model Standing Orders and avoid a certification process.

Mr. Sivasankaran, whatever you said is correct. Here, I could interpret this as per the Industrial Employment (Standing Orders) Act, 1946, which states that where the number of workmen is 100 or more employed on any day in the preceding 12 months, the act applies. You can elect the workers' representatives to obtain the signature in the Standing Orders. If the number of workmen is not more than 100, then the Model Standing Orders are applicable.

Once the act applies, the employer has to submit the draft Standing Orders to the certifying officer within 6 months from the act commencement date. Five copies of the Standing Orders need to be submitted.

Regards, Sakthi Suku

Sorry, Mr. Sivasankaran, I am not able to accept your final observation "Small and IT Companies can have Model Standing Orders AND avoid a certification process." If so, there is no necessity of employing a rider clause into sec. 12 A of the Act. Adoption of the model standing orders during the interregnum does not absolve the employer of his submission of draft standing orders u/s 3 of the Act.