Dear Elite HR Team leaders, Whether model standing orders are applicable for the service industry otherwise whether this act applicable for establishments under Shop and establishments act?
From India, New Delhi
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425From India, New Delhi
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Dear Kumar,
Applicability of the IE(SO)A, 1946
Subject to the applicability provisions under Section 1(3) of the IE(SO)A, 1946, the Act is applicable to all industrial establishments falling within the ambit of the definition 'Industrial establishment' under Section 3(e) of the Act.
Temporary Application of Model Standing Orders
Section 12-A of the Act describes the situation of temporary application of the Model Standing Orders framed under the Act. This is applicable only when the establishment has failed to get the Standing Orders certified, even though it falls under the application clause. In other cases, regarding matters relating to the conditions of employment, only the contract of employment will hold good with reference to the principles of natural justice and the provisions of any labor law applicable to such establishments.
Analysis of Applicability to Service Industry
If we analyze your query in this backdrop, the following would be the answer according to the best of my judgment: The definition of 'industrial establishment' under Section 3(e) of the IE(SO)A, 1946, includes only four specific categories of establishments, in which the establishments under the S&E Act are not covered. Therefore, the applicability of the IE(SO)A to 'the service industry,' as generalized in the query, or the establishments falling under the S&E Act has to be traced to clause (i) of the definition of the term 'industrial establishment' under Section 3(e) of the IE(SO)A, 1946, which is the industrial establishment as defined under the Payment of Wages Act, 1936. Section 2(ii) of the PWA, 1936, enumerates an exhaustive list of establishments in this regard under its clauses (a) to (h). If I were permitted to draw an analogy from the State of Tamil Nadu's notification that the provisions of the PWA, 1936, would apply to Shops and Establishments employing 20 or more persons, the same would be the position in other States too. Therefore, the IE(SO)A, 1946, would be applicable to any service industry or establishments falling under the S&E Act, subject to the number criterion mentioned and fixed under the provisions of Section 1(3) of the Act.
From India, Salem
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Applicability of the IE(SO)A, 1946
Subject to the applicability provisions under Section 1(3) of the IE(SO)A, 1946, the Act is applicable to all industrial establishments falling within the ambit of the definition 'Industrial establishment' under Section 3(e) of the Act.
Temporary Application of Model Standing Orders
Section 12-A of the Act describes the situation of temporary application of the Model Standing Orders framed under the Act. This is applicable only when the establishment has failed to get the Standing Orders certified, even though it falls under the application clause. In other cases, regarding matters relating to the conditions of employment, only the contract of employment will hold good with reference to the principles of natural justice and the provisions of any labor law applicable to such establishments.
Analysis of Applicability to Service Industry
If we analyze your query in this backdrop, the following would be the answer according to the best of my judgment: The definition of 'industrial establishment' under Section 3(e) of the IE(SO)A, 1946, includes only four specific categories of establishments, in which the establishments under the S&E Act are not covered. Therefore, the applicability of the IE(SO)A to 'the service industry,' as generalized in the query, or the establishments falling under the S&E Act has to be traced to clause (i) of the definition of the term 'industrial establishment' under Section 3(e) of the IE(SO)A, 1946, which is the industrial establishment as defined under the Payment of Wages Act, 1936. Section 2(ii) of the PWA, 1936, enumerates an exhaustive list of establishments in this regard under its clauses (a) to (h). If I were permitted to draw an analogy from the State of Tamil Nadu's notification that the provisions of the PWA, 1936, would apply to Shops and Establishments employing 20 or more persons, the same would be the position in other States too. Therefore, the IE(SO)A, 1946, would be applicable to any service industry or establishments falling under the S&E Act, subject to the number criterion mentioned and fixed under the provisions of Section 1(3) of the Act.
From India, Salem
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Model standing orders.doc