Industrial Discipline and the Need for Standing Orders
Industrial establishments function efficiently only when service conditions are clear, uniform, and transparent. Before the enactment of the Industrial Employment (Standing Orders) Act, 1946, employers enjoyed wide discretion in framing service rules, often leading to uncertainty, arbitrary action, and industrial unrest. Workmen were frequently unaware of their rights and obligations, resulting in disputes relating to misconduct, disciplinary action, leave, termination, and working hours. To remedy this situation and promote industrial harmony, the legislature enacted the Industrial Employment (Standing Orders) Act, 1946. The Act mandates employers to formally define and certify service conditions, known as Standing Orders, thereby bringing certainty, fairness, and discipline in industrial relations.
Meaning and Concept of Standing Orders
Standing Orders are written rules relating to conditions of employment in an industrial establishment. They define the rights and duties of both employer and workmen and regulate matters such as classification of workmen, working hours, attendance, leave, misconduct, disciplinary action, and termination of employment. Under Section 2(g) of the Industrial Employment (Standing Orders) Act, 1946, Standing Orders mean rules relating to matters set out in the Schedule to the Act. Once certified, Standing Orders acquire statutory force and are binding on both parties. They act as a code of conduct governing industrial employment.
Object and Scope of the Standing Orders Act
The primary object of the Act is to eliminate ambiguity in service conditions and prevent arbitrary exercise of managerial power. The Act seeks to ensure that workmen are made aware of the conditions governing their employment in advance. In Western India Match Co. v. Workmen (1973), the Supreme Court observed that the Act aims to require employers to define conditions of employment clearly and precisely, so as to minimize industrial disputes and maintain industrial peace.
Applicability of the Act
The Industrial Employment (Standing Orders) Act applies to every industrial establishment employing 100 or more workmen, or such lower number as notified by the appropriate government, under Section 1(3). The Act covers factories, mines, plantations, and other industrial establishments. Once applicable, the employer is under a statutory obligation to submit draft Standing Orders for certification. Non-compliance attracts penalties under the Act.
Submission of Draft Standing Orders
Under Section 3, the employer must submit draft Standing Orders to the Certifying Officer within six months from the date the Act becomes applicable. These draft Standing Orders must cover all matters specified in the Schedule of the Act. The employer must also include any additional matters prescribed by rules. The draft Standing Orders must be in conformity with the Model Standing Orders unless special circumstances justify deviation.
Certification of Standing Orders
The certification process is governed by Section 5. The Certifying Officer examines whether the draft Standing Orders are fair and reasonable and whether they conform to the provisions of the Act. Copies of the draft are sent to trade unions or workmen for objections. After hearing both sides, the Certifying Officer may modify the draft before certifying it. In Associated Cement Co. v. P.D. Vyas (1960), the Supreme Court held that the Certifying Officer has the authority to ensure fairness and reasonableness in Standing Orders.
Model Standing Orders
Model Standing Orders are provided by the government as a standard framework of service rules. Under Section 12-A, Model Standing Orders automatically apply to establishments where certified Standing Orders are not in force. Model Standing Orders ensure that even in the absence of certified rules, workers are protected against arbitrary conditions. Courts have recognized that Model Standing Orders have statutory force and bind both employer and workmen.
Matters Covered under Standing Orders
The Schedule to the Act specifies matters that must be covered in Standing Orders. These include:
- Classification of workmen
- Working hours and shifts
- Attendance and late coming
- Leave and holidays
- Misconduct and disciplinary action
- Termination, suspension, and dismissal
These matters directly affect day-to-day employment and industrial discipline, making Standing Orders an essential governance tool.
Modification of Standing Orders
Standing Orders are not rigid and may be modified under Section 10. Either the employer or the workmen may apply for modification after the expiry of six months from the date the Standing Orders come into operation. The modification process follows the same procedure as certification. This ensures flexibility while maintaining fairness.
Binding Nature and Statutory Force
Once certified, Standing Orders become statutorily binding. They override any inconsistent terms in individual contracts of employment. In Bharat Petroleum Corporation Ltd. v. Maharashtra General Kamgar Union (1999), the Supreme Court held that Standing Orders prevail over service contracts and are enforceable as statutory conditions of service.
Penalties for Non-Compliance
Failure to submit draft Standing Orders or violation of certified Standing Orders attracts penalties under Section 13 of the Act. Employers may be fined for non-compliance, reinforcing the mandatory nature of the legislation.
Role of Standing Orders in Disciplinary Proceedings
Standing Orders play a crucial role in disciplinary proceedings by defining misconduct and prescribing procedures for punishment. Any disciplinary action inconsistent with Standing Orders is liable to be set aside. Labour Courts often examine Standing Orders to determine the legality of employer action.
Practical Illustration
A manufacturing unit employing 200 workmen fails to frame certified Standing Orders. A worker is dismissed for alleged misconduct. The Labour Court applies Model Standing Orders under Section 12-A and finds that no proper domestic enquiry was conducted. The dismissal is set aside, and reinstatement is ordered. This example highlights the protective role of Standing Orders.
Mnemonic to Remember the Answer
“D-C.M.M.B.P.”
D – Draft Standing Orders
C – Certification by authority
M – Model Standing Orders
M – Matters in Schedule
B – Binding statutory force
P – Penalties for violation
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