Dear Colleague,
As per the details mentioned in the Official Website on THE INDUSTRIAL EMPLOYMENT (STANDING ORDERS) ACT, 1946 in the Site of LABOUR DEPARTMENT HARYANA
The Act makes it obligatory for employers of an industrial establishment where 100 or more workers are employed to clearly define the conditions of employment, by way of standing orders / services rules and to make them known to the workmen employed. However in the State of Haryana, the Act applies to an industrial establishment where 50 or more workmen are employed or were employed in the preceding 12 months.
The employer is required to prepare draft standing order, which he proposes to adopt and submit the same to the Certifying Officers for certification in accordance with the provisions of Section 3 of the Act.
The employer is required to act in conformity with the certified standing orders in dealing with the day today affairs of the workmen. Certified standing orders have the force of the law like any other enactment.
Where the number of workmen is less than 50 the Model Standing Orders provided in Schedule I of the Rules will be applicable.
Penalty
The Act provides that in case the employer fails to submit the draft standing orders, a fine up to Rs. 5,000/- can be imposed and in case of contravention of the standing orders, a fine up to Rs. 100/- and in case of continuance of the offence, further fine up to Rs. 25/- for each such day can be imposed.
As per Section 2(e) of the Standing Orders Act “industrial establishment” means—
(i) an industrial establishment as defined in clause (ii) of section 2 of the Payment of Wages
Act, 1936 (4 of 1936), or { which reads as [industrial or other establishment means] any [(a) tramway service, or motor transport service engaged in carrying passengers or goods or both by road for hire or reward; (aa) air transport service other than such service belonging to or exclusively employed in the military, naval or air forces of the Union or the Civil Aviation Department of the Government of India; (b) dock, wharf or jetty;][(c) inland vessel, mechanically propelled;] (d) mine, quarry or oil-field; (e) plantation; (f) workshop or other establishment in which articles reproduced, adapted or manufactured, with a view to their use, transport or sale;
9[(g) establishment, in which any work relating to the construction, development or maintenance of buildings, roads, bridges or canals, or relating to operations connected with navigation, irrigation or the supply of water, or relating to the generation, transmission and distribution of electricity or any other form of power is being carried on [(h) any other establishment or class of establishments which the Central Government or a State Government may, having regard to the nature thereof, the need for protection of persons employed therein and other relevant circumstances, specify, by notification in the Official Gazette].
Back .....to main definition :
[(ii) a factory as defined in clause (m) of section 2 of the Factories Act, 1948 (63 of 1948),
or] (iii) a railway as defined in clause (4) of section 2 of the Indian Railways Act; 1890 (9 of
1890), or (iv) the establishment of a person who, for the purpose of fulfilling a contract with the owner of any industrial establishment, employs workmen;
Hence legally when the required number of employees are there as per the threshold mentioned, then the Contractor's establishment becomes an entity under the Standing orders Act and the contractor as an Employer needs to go for certification of a separate standing order for his establishment. This is a valid document between the Contractor and his employees on terms of employment and other aspects. In case of any disciplinary issue the contractor has to take action on his employees only based on his standing order carried.
In case of the Principal Employer there will be a separate standing order for that establishment governing the direct employees of the Principal Employer.