Can States Modify the Industrial Employment Act for Smaller Workforces? Insights on Haryana's Rules

Dear Friends,

I have a query for the experts:

As much as I know, according to the Industrial Employment (Standing Orders) Act of 1946, it is applicable to establishments with a workforce of 100 or more (I have seen the same for Delhi & Punjab). Can states amend this to suit their needs? Is this act applicable to establishments employing 50 or more workers in the State of Haryana?

Please send me your responses at the earliest.

Thanks & Regards,

Debashis Roy

Though I am not an expert, the provisions can be modified by the appropriate authority of the state. In certain states, it is applicable to 50 or more workers as well. In the N.C.T. of Delhi, the Act applies to an industrial establishment where 50 or more workmen are employed or were employed in the preceding 12 months. You could check corpmen.com for relevant information. I have seen this info on the given site.

Regards,
Vani

Hi,

The scope and coverage of THE INDUSTRIAL EMPLOYMENT ACT state that this extends to the whole of India and applies to every industrial establishment where 100 or more workmen are employed or were employed on any day of the preceding 12 months. However, this act further states that "THE CENTRAL OR STATE GOVT. MAY, HOWEVER, EXTEND ITS PROVISIONS TO ANY INDUSTRIAL ESTABLISHMENT EMPLOYING EVEN LESS THAN 100 WORKMEN. ONCE THE ACT BECOMES APPLICABLE TO AN ESTABLISHMENT, IT DOES NOT CEASE TO APPLY ON ACCOUNT OF A SUBSEQUENT FALL IN THE NUMBER OF WORKMEN IN THE ESTABLISHMENT."

So, the statement proves that provisions could be made if the workmen are less than 100.

KATYANA

Under sec. 38 of the Bombay Shops and Establishment Act, the standing orders were made applicable to all establishments covered by the said Act, irrespective of the number of employees. However, this created a lot of problems, and therefore the said section was amended to state that standing orders under the Industrial Employment (Standing Order) Act will apply only to those establishments that employ 50 or more employees. This is the current position in Maharashtra.

Does a new IT establishment with less than 50 employees also come under the Industrial Employment Act? If not, then what should be the criteria for framing the strategies and policies for the organization. I am the HR Manager of the same and want to establish strong standing orders for my company so that in the future, when the number of employees reaches 100, there are no issues in framing policies and strategies. Please guide.

Thanks,
Fauzia

Dear G.J. Panchal,

Why don't you go through the State Rules yourself to see the Model Standing Orders.

R.N. Khola
Sr. Associate
Skylark Associates, Gurgaon

I am working in MSEDCL as a Pay Grade-I Officer. I would like to inquire whether the Industrial Employment Standing Orders Act of 1946 is applicable to MSEDCL concerning the modification of basic service conditions for officers working within the organization. Please provide your valuable and seasoned comments.

Thank you,

Dr. C V Ambilwade

In Haryana, The Industrial Employment (Standing Orders) Act, 1946 applies to every industrial establishment wherein fifty or more workmen are employed.

Clarification Needed on Workforce Count

Please clarify whether the employed 50 workmen include contractual labor or just the on-roll employees. Please suggest.

Regards.

Can anyone tell me the rules related to the Standing Orders (in Uttarakhand), such as the required number of workmen and where to send the copies of standing orders, etc.?

Regards,
Neeraj Singh

Dear, as a fellow member has already pointed out and referred to Section 38 of the Bombay S&E Act. In view of the above provision, the IE(SO) Act becomes automatically applicable to all establishments covered by the Bombay S&E Act, whether they are IT or ITES companies or in the service industry.

I would further like to clarify that where the Payment of Wages Act is applicable, the IESO Act also becomes applicable by virtue of the definition/applicability as mentioned in the IESO Act. In pursuance of the same, most states have made provisions in their Shop Act that the provisions of the Payment of Wages Act are applicable to all establishments covered by the S&E Act. Therefore, by default, the IE(SO) Act becomes applicable in such circumstances. For example, Gujarat, MP, AP, Kerala, TN, etc.

So, if IT and ITES or service industry companies are covered by the Shop Act and Payment of Wages Act, then Standing Orders also need to be framed and certified.

Karnataka has exempted IT and ITES companies from the applicability of the IESO Act for 5 years.

The definition of workmen is incorporated in the Industrial Employment (Standing Orders) Act, 1946, from the Industrial Disputes Act, 1947. Since labor through the contractor is not included in the definition of a workman under the Industrial Disputes Act, 1947, it is not required to be counted for ascertaining the applicability of the Industrial Employment (Standing Orders) Act, 1946.