Compliance with Model Employment Standing Orders Act: Are Small Establishments Required to Follow It?

Compliance with the Model Employment Standing Orders Act

Is an industrial establishment employing fewer than 100 workmen required to follow the Model Employment Standing Orders Act?

An extract of local amendments will clarify the position:

1. Short Title, Extent, and Application: (1) This Act may be called the Industrial Employment (Standing Orders) Act, 1946.

(2) It extends to [the whole of India].

(3) It applies to every industrial establishment wherein one hundred or more workmen are employed, or were employed on any day of the preceding twelve months:

Provided that the appropriate Government may, after giving not less than two months' notice of its intention so to do, by notification in the Official Gazette, apply the provisions of this Act to any industrial establishment employing such a number of persons less than one hundred as may be specified in the notification.

(4) Nothing in this Act shall apply to:

(i) any industry to which the provisions of Chapter VII of the Bombay Industrial Relations Act, 1946, apply; or

(ii) any industrial establishment to which the provisions of the Madhya Pradesh Industrial Employment (Standing Orders) Act, 1961 apply:

Provided that notwithstanding anything contained in the Madhya Pradesh Industrial Employment (Standing Orders) Act 1961, the provisions of this Act shall apply to all industrial establishments under the control of the Central Government.

Local Amendments

Karnataka: In Section 1, in its application to the State of Karnataka, for the words "one hundred" occurring in subsection (3) and in the proviso to it, the word "fifty" shall be substituted (Vide Karnataka Act 37 of 1975) (w.e.f 11-7-1975).

Maharashtra and Gujarat States: For the Bombay State in subsection (3), for the words "one hundred" the word "fifty" shall be substituted. (Vide Bom. Act XXI of 1958).

Local Application

In West Bengal, the Government has specified the industrial establishment wherein fifty or more, but less than one hundred, workmen are employed to be a class or other industrial establishments to which this Act shall apply. (Vide Noti. No. 157 Dis/D/I-A-5/51, dated 25th January 1952, pub. in Cal. Gazette, dated 7-2-1952, pt.I.p.403).

In Uttar Pradesh, the Government has directed that this Act shall apply to all the industrial establishments in the State employing less than 100 workmen, in which the employers voluntarily apply for certification of the Standing Orders in accordance with the Act. [Vide Notification No. 2828 (LL)/XVIII-450 (LL)-50 dated November 15, 1950, pub. in U.P. Gazette, dated 18-11-1950, pt I, p. 894]. Further, the Government has directed that the Act shall apply to all industrial establishments which are factories within the meaning of Section 2(m) of the Factories Act, 1948 vide Noti. No.5022(v)/XXXVI-3-57/SO(1)-77, dated 20-1-1978 (1978 LLT-V-80).

In Gujarat, the Act has been applied to every industrial establishment wherein fifty or more but less than one hundred workmen are employed. (vide Notification No. Ind.Emp.1960-H dated 4-6-1962).

In Tamil Nadu, applied to all factories employing less than 100 workmen vide G.O.Ms. No. 1350 dt. 19-3-1966; to all industrial establishments where more than fifty but less than 100 workers are employed vide G.O.Ms No. 1375, dated 10-11-1978. See also Section 51 of T. N. Handloom Workers Etc. Act 1981 (T.N. Act 61 of 1981).

In Madhya Pradesh, this Act does not apply to those industrial establishments to which the M.P. Industrial Employment (Standing Orders) Act, 1961 (M.P.26 of 1961) applies vide Section 4 of M.P.Act 26 of 1961.

Thanks

Regards

Sushil

Yes, if your company has fewer than 100 employees, you must follow model standing orders. You cannot have prescribed standing orders.

I feel that by virtue of the proviso to section 1(3) of the Industrial Employment Standing Orders Act, once the provisions of the Act are made applicable to industrial establishments having fewer than 100 employees, there is no bar for such establishments to have their prescribed model standing orders. However, initially, as per section 12A, the model standing orders are applicable.

Thanks,
Sushil

If the provisions of the Standing Orders Act applicable to your state indicate that it applies to establishments with 50 or more workmen, then the Model Standing Orders are applicable until you get your standing orders certified.

Regards,
Varghese Mathew

Hello All,

From the information provided above, it is clear that the policy will apply to all factory employees. I would like to inquire whether the certification of standing orders is voluntary or mandatory.

Please advise.

Smita

If the standing orders Act is not applicable to an industrial establishment by virtue of the number of workmen, then the model standing orders are not applicable. It is applicable for the temporary period from the date of its applicability to the date of the final certification of standing orders.

Varghese Mathew
08547139493

Applicability:

1) Model Standing Orders are applicable only from the period when the unit has applied to the Certifying Officer to obtain the certified standing orders until the date it is certified by the Certifying Officer.

2) To date, only manufacturing units located in Gujarat and Maharashtra have the option of using the model standing orders, irrespective of the number of workers.