Employment (standing Order) Act, 1946 Delhi
Applicability: Employment (standing Order) Act, 1946 Delhi 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.
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 propose to adopt and submit the same to the Certifying Officers for certification. The employer is required to act in conformity with the certified standing orders in dealing with the day today affairs of the workmen.
The objective of the Industrial Employment (Standing Orders) Act, 1946 is to minimize the industrial disputes or conflicts. It aims to make certain precise provisions regarding the terms of services and conditions of employment.
Standing Order:
Standing orders are the rules relating to matters set out in the Schedule, i.e. with reference to:
a) The classification of workmen;
b) Manner of intimation to workers about work and wage-related details;
c) Attendance, and conditions of granting leaves, etc.;
d) Rights & liabilities of the employer/ workmen in certain circumstances;
e) Conditions of ‘termination of’/‘suspension from’ employment; and
f) Means of redressal for workmen, or any other matter.
Draft Standing Order:
Draft Standing Orders are documents prepared by the employer.
Submission of Draft Standing Orders:
The employer to prepare the Draft Standing Orders defining the terms of services and the condition of employment.
It is the liability of the employer to submit individually or jointly 5 copies of the Draft Standing Orders within the six months of its applicability to the industrial establishment.
Conditions for Certification of Standing Orders:
The Act declares the conditions upon the fulfilment of which, a standing order can be certified. It thereby requires a standing order to provide for all the matters set out in the Schedule of the Act and be in conformity with the provisions of this Act.
Certification Process:
a) The Certifying Officer to send a copy of the Draft Standing Order to the workmen or trade union, along with a notice calling for objections, that shall be submitted to him within 15 days of receiving such notice.
b) Upon receipt of such objections, the employer and workmen to be given an opportunity of being heard, after which the Certifying Officer shall decide and pass an order for modification of the Standing Order.
c) Finally, the Certifying Officer shall certify such Standing Order, and thereby, within seven days, send a copy of it annexed with his order for modification passed
Appeals:
Any related party aggrieved by the order of the Certifying Officer may appeal to the ‘appellate authority’ within 30 days, provided that its decision, of confirming such Standing Order or amending it, shall be final. The appellate authority shall thereafter send copies of the Standing Order, if amended, to the related parties within 7 days.
Compliance:
a) Employer of an industrial establishment is required to maintain Register of standing orders and files the same with Certifying Officer in Form III.
b) Employer of an industrial establishment is required to post the text of the standing orders in English and in the language understood by the majority of his workmen on special boards at or near the entrance through which workmen enter and in all departments.
Penalties:
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.
Author – CA Gaurav Agrawal, Kishore Gupta & Co, Chartered Accountants in Practice from Central Delhi and can be contacted at gauravag.ca@gmail.com & Mobile Number 9711033545.
Author Bio
