Download VTU MBA 3rd Sem IR 5 Industrial Employment -Important Notes

The industrial employment (standing orders) Act

Introduction & Definition

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• To avoid friction amongst the employees employed in an industry is the principle Legislation in India.
• It was considered that the society had settlement of terms of employment of India settlement of Labor problems.
• Therefore, the steps were taken by the Government to enact Industrial Employment (Standing Orders) with a view to afford protection to the workers conditions of employment.
• Definition under the Act (Sec.2)

"Standing Orders" mean rules relating to matters in the Schedule to the Act [Sec.2(g)] to be covered and the employer has to draft for submission to certifying officer are matters specified in the Schedule.

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Objective of the Act

1. The purpose of having Standing Orders in industrial and other commercial establishments is to promote harmonious relations.
2. This Orders regulate the conditions of employment, misconduct etc. of the workers employed in industrial undertakings.
3. Unsolved grievances can become industrial disputes.

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Model Standing Orders

• Classification of Workers
• Publication of Work Time, Holidays, Pay Days
• Shift Working

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• Attendance and Late Coming
• Leave and Holidays
• Casual Leave
• Payment of Wages
• Stoppage of Work

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• Termination of Employment
• Disciplinary Action for Misconduct
• Suspension
• Dismissal
• Complaints

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Procedure for the Application of Standing Order

• The main provision that deal for the application of Standing Orders are:

1. Procedure for the submission of Draft Standing Orders [Section 3].
2. Procedure for the Conditions for Certification of Standing Orders [Section 4].

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3. Procedure for Certification of Standing Orders (Procedure for Adoption) [Section 5].
4. Appeals [Section 6].

Procedure for the submission of Draft Standing Orders

1. Within 6 months from the date on which the Act becomes applicable to industrial establishment, the employer shall submit to the Certifying Officer 5 copies of the draft standing orders proposed by him.

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2. Provision shall have to be made as such every matter in the Schedule which may be applicable to the industrial establishment and were model standing orders prescribed.
3. Subject to such conditions as may be prescribed, group of employers in similar industrial establishments may submit a joint draft or standing orders under this section.

Procedure for Certification of Standing Orders (Procedure for Adoption)

1. The Certifying officer receipt of the draft standing orders from the employer shall forward a copy of there of to the trade union or to the recognized trade union of the workmen or where there is no such union submission of objection to draft standing orders.

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2. The standing orders came into operation after the expiry of 30 days from the date on which the authenticated copies of the standing orders are forwarded to the employer and the workmen by the certifying officer.
3. The conditions of employment, which is agreed upon between the employer and the workmen from the date on which the standing operational.

Appeal of Standing Orders

• Any employer, workmen, trade union or other representatives of workmen aggrieved by the order of the Certifying Officer may appeal to the appellate authority within 30 days from the date on which copies are sent.

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• The appellate authority may confirm the standing orders either certified, or may make modifications or additions as it thinks them certifiable and it has to send copies of the order to the concerned person within 7 days of the order.

Certifying Officer

• Definition:-

The "certifying officer" under standing orders means a Labor Commissioner, Labor Commissioner or other officer appointed by the appropriate government by the notification in the official gazette to perform all or any of the functions of certifying officer.

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• Powers of Certifying Officer:-

Every Certifying Officer and appellate authority shall have the powers of Civil Court for he purpose of:

1. Receiving Evidence,
2. Administering oaths,
3. Enforcing the attendance of witness, and

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4. Compelling the discovery and production of documents.

Payment of Subsistence Allowance

• Where any workmen is suspended by the employer pending investigation or inquiry into complaints or charges against him, the employer shall pay to such workmen subsistence allowance:

1. At the rate of 50% of the wages which the workmen was entitled to immediately preceding the date of such suspension for the first 90 days of suspension; and

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2. At the rate of 70% of such wages for the remaining period of suspension.

Offences and Penalties

• An employer fails to submit the draft standing orders as required by Section 3 or who modified standing orders otherwise with sec.10 shall be punishable with fine which may extend to Rs.5000 and in case of continuous offence with a further fine of Rs.200 for every day after the first during which the offence continues.
• An employer who does not act in contravention of the standing orders finally certified under this Act in respect of his establishment shall be punishable with fine which may extend to Rs.100 and in case of continuous offence with a further fine of Rs.25 every day after the first during which the offence continues.

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• No persecution for any offence punishable under this Act shall be instituted except with the previous sanction of the appropriate government. It can be tried only by a presidency magistrate or the second class magistrate.