Comparative analysis of amendment in schedule under the Industrial Employment (Standing Orders) Act, 1946 and Industrial Employment (Standing Orders) Rules, 1946, vide notification dated 16th March, 2018.

Ref Existing provision Amended provision Analysis
Item 1 of Schedule in ‘Industrial Employment (Standing Orders) Act, 1946’ Item 1 of Schedule in ‘Industrial Employment (Standing Orders) Act, 1946’

”Fixed term employment workmen in apparel manufacturing sector”.

A fixed term employment” workman is a workman who has been engaged on the basis of a written contract of employment for a fixed period:

Item 1 of Schedule in ‘Industrial Employment (Standing Orders) Act, 1946’

”Fixed term employment”.

[point 2 of the notification dated 16.03.2018]

As per the amendment ”Fixed Term Employment” has now been introduced irrespective of the industry of work.
Industrial Employment (Standing Orders) Central Rules, 1946 No old provision. Rule 3A.

”No employer of an industrial establishment shall convert the posts of the permanent workmen existing in his industrial establishment on the date of commencement of the Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018 as fixed term employment thereafter”.

[point 3 (a) of the notification dated 16.03.2018]

This newly added rule i.e. 3A, directs that no employer of an industrial establishment shall convert the posts of the permanent workmen existing in his industrial establishment on the date of commencement of the Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018 as fixed term employment thereafter.
Industrial Employment (Standing Orders) Central Rules, 1946 No old provision. Item (6A) of Rule 5.

”Number of fixed term employment workmen”.

[point 3 (b) of the notification dated 16.03.2018]

In pursuit of sub-section (3) of Section 3, an industrial establishment has to submit a statement giving prescribed particulars of the workmen employed along with the submission of draft standing orders.

Therefore, with the insertion of item 6A, detail regarding number of fixed term employment workmen shall be included in the statement

.

Industrial Employment (Standing Orders) Central Rules, 1946 No old provision. Item 3A in sub paragraph (a) of paragraph 2 of Schedule I under Industrial Employment (Standing Orders) Central Rules, 1946.

”Fixed term employment workmen”.

[point 3 (c) (i) (A) of the notification dated 16.03.2018]

In sub paragraph (a) of paragraph 2 under Schedule I i.e. model standing orders; the establishments are required to provide information with respect to classification of workmen.

That is why, with the insertion of a new term ‘fixed term employment’ in the act, classification w.r.t fixed term employment workmen shall be provided and hence Item 3A inserted.

Industrial Employment (Standing Orders) Central Rules, 1946 No old provision. Sub paragraph (h) of paragraph 2 of Schedule I under Industrial Employment (Standing Orders) Central Rules, 1946.

A “fixed term employment workman” is a workman who has been engaged on the basis of a written contract of employment for a fixed period:

Provided that-

(a) his hours of work, wages, allowances and other benefits shall not be less than that of a permanent workman; and

(b) he shall be eligible for all statutory benefits available to a permanent workman proportionately according to the period of service rendered by him even if his period of employment does not extend to the qualifying period of employment required in the statute’.

[point 3 (c) (i) (B) of the notification dated 16.03.2018]

Sub-paragraph (h) inserted explaining the meaning of fixed term employment workman.

As per proviso, there should not be any difference between fixed term employment workman and permanent workman w.r.t working hours, wage, allowances or any other benefits and shall be eligible for all benefits available to permanent workman in proportion to the period of service rendered.

Industrial Employment (Standing Orders) Central Rules, 1946 Sub-paragraph (2) of paragraph 13 of Schedule I under Industrial Employment (Standing Orders) Central Rules, 1946.

No temporary workman, probationer or badli entitled to any notice for termination.

 

 

 

 

 

 

 

 

 

Provided that no temporary workman shall be terminated by way of punishment unless he has been given an opportunity of explaining the charges of misconduct, alleged against him in the manner prescribed in Paragraph 14”.

Sub-paragraph (2) of paragraph 13 of Schedule I under Industrial Employment (Standing Orders) Central Rules, 1946.

“ Subject to the provisions of the Industrial Disputes Act, 1947 (14 of 1947),-

(i) No temporary workman, probationer or badli entitled to any notice for termination.

; and

(ii) no workman employed on fixed term employment basis shall be entitled to any notice or pay in lieu thereof, if his services are terminated after over of the contract period:

Provided that the services of a temporary workman shall not be terminated as a punishment unless he has been given an opportunity of explaining the charges of misconduct alleged against him in the matter prescribed in paragraph 14.”;

[point 3 (c) (ii) of the notification dated 16.03.2018]

As per the notification, there is no necessity on  part of the employer, to either serve notice of termination or pay in lieu thereof to the temporary workman, whereas as per the old provision, notice or pay in lieu thereof to the temporary workman was not required only in case of termination.

Also, as per the new guidelines, even workman employed on fixed term employment basis shall not require to serve with the notice or payment in lieu thereof, in case of non-renewal of contract or employment or on the expiry of contract period.

It means workman employed on fixed term employment will be served with notice, if there service is terminated before the expiry of the contract period.

Industrial Employment (Standing Orders) Central Rules, 1946 No old provision. Item (iiia) in sub paragraph (a) of paragraph 3 of Schedule IA under Industrial Employment (Standing Orders) Central Rules, 1946.

”Fixed term employment”.

[point 3 (d) (i) (A) of the notification dated 16.03.2018]

In sub paragraph (a) of paragraph 3 under Schedule IA i.e. model standing orders for industrial establishment in coal mines; the establishments are required to provide information with respect to classification of workmen.

That is why, with the insertion of a new term ‘fixed term employment’ in the act, classification w.r.t fixed term employment shall be provided and hence Item (iiia) inserted.

Industrial Employment (Standing Orders) Central Rules, 1946 No old provision. Sub paragraph (da) of paragraph 3 of Schedule IA under Industrial Employment (Standing Orders) Central Rules, 1946.

“ A fixed term employment” workman is a workman who has been engaged on the basis of a written contract of employment for a fixed period:

Provided his working hours, wages, allowances and other benefits shall not be less than that of a permanent workman and also eligible for all statutory benefits without any restriction, proportionately on the basis of his service period

[point 3 (d) (i) (B) of the notification dated 16.03.2018]

Sub-paragraph (da) of Schedule IA i.e model standing orders for industrial establishment in coal mines; inserted explaining the meaning of fixed term employment workman.

As per proviso, there should not be any difference between fixed term employment workman and permanent workman w.r.t working hours, wage, allowances or any other benefits and shall be eligible for all benefits available to permanent workman in proportion to the period of service rendered even if his employment period is not as per the employment required in the statute to enjoy such benefits.

Industrial Employment (Standing Orders) Central Rules, 1946 Sub-paragraph (b) of paragraph 13 of Schedule IA under Industrial Employment (Standing Orders) Central Rules, 1946.

”Subject to the provisions of the Industrial Disputes Act, 1947 no notice of termination required in case of temporary and badli workers.

If temporary workman has completed three months continuous service, two weeks termination notice is required, if it is not in accordance with the terms of the contract.

Provided that, when the services of temporary and badli workers, who have not completed three months continuous service are terminated, before the completion of employment, shall be informed of the reason in writing.

 

 

Sub-paragraph (b) of paragraph 13 of Schedule IA under Industrial Employment (Standing Orders) Central Rules, 1946.

Subject to the provisions of the Industrial Disputes Act, 1947 (14 of 1947),-

(i) no notice of termination shall be necessary in the case of temporary and badli workmen; and

(ii) no workman employed on fixed term employment shall be :

If temporary workman has completed three months continuous service, two weeks termination notice is required, if it is not in accordance with the terms of the contract.

Provided that, when the services of temporary and badli workers, who have not completed three months continuous service are terminated, before the completion of employment, shall be informed of the reason in writing.

[point 3 (d) (ii) (b) of the notification dated 16.03.2018]

Sub-paragraph (b) of Schedule IA i.e model standing orders for industrial establishment in coal mines; inserted explaining the terms about termination of services.

As per the notification, there is no necessity on the  part of the employer, to serve notice of termination  in case of temporary and badli workmen. Further, workman employed on fixed term employment shall not be entitled for any notice of termination or payment in lieu thereof after the expiry of his contract period.

This means, if services of workman on fixed term employment is terminated, the employer in that case required to serve the notice of termination of his services.

There has been no amendment in the proviso, which says that two weeks’ notice is required to terminate the services of temporary workman, if he has completed three months continuous service.

However, reason of termination in writing is required, if temporary workman has not completed three month’s continuous services.

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