Industrial Employment (Standing Orders) Act, 1946
The Industrial Employment (Standing Orders) Act, 1946 is a central legislation that provides for the preparation of standing orders, which are HR policies and procedures defining the employee-employer relationship. It outlines what is expected from employees, their rights, leaves, salary day, and how to take disciplinary action against employees. A Standing Order is a document that defines and regulates the employment of workers. It is prepared in consultation with the workers or their union and is signed and certified by an Officer of the Labour department not below the rank of Deputy Labour Commissioner. Once certified, the Standing Order is binding on both the employer and the employees, acting as a charter for both parties.
Applicability of Standing Orders
It is mandatory to file standing orders for establishments employing 100 workers. However, in many states, establishments employing 50 workers are also required to have certified standing orders. In some states, standing orders are required only for factories, while in many other states, commercial establishments are also mandated to have standing orders. If I am not mistaken, in Maharashtra, standing orders are required to be filed by commercial establishments as well.
Benefits of Standing Orders
The benefits of standing orders are numerous. Although the initial drafting process involves consultation with the workers and gaining their confidence, once certified, it simplifies matters related to service conditions, procedures for handling grievances, conducting disciplinary actions for various misconducts, and determining punishments based on the severity of misconducts.
Model Standing Orders
The Standing Order Act also includes an annexure, i.e., Model Standing Orders, which companies can use temporarily until the certified standing order becomes effective. This can also serve as a base for drafting standing orders.