Need for Certainty in Industrial Employment
Industrial establishments function smoothly only when there is clarity regarding service conditions, disciplinary rules, working hours, leave, termination, and other employment matters. In the absence of written and standardized rules, ambiguity often leads to disputes between employers and workmen. To address this problem, the Indian legislature enacted the Industrial Employment (Standing Orders) Act, 1946, with the objective of bringing uniformity, transparency, and fairness in industrial employment. The Act mandates employers to clearly define conditions of employment through “Standing Orders” and get them legally certified. Standing Orders thus play a vital role in maintaining industrial discipline, protecting workers’ rights, and ensuring harmonious industrial relations.
Meaning and Definition of Standing Orders
The term “Standing Orders” is defined under Section 2(g) of the Industrial Employment (Standing Orders) Act, 1946 as:
“Rules relating to matters set out in the Schedule.”
These matters include classification of workmen, working hours, attendance, leave, misconduct, disciplinary action, suspension, termination, and grievance redressal. Standing Orders are written rules framed by the employer to govern the service conditions of workmen employed in an industrial establishment. Once certified, they acquire statutory force and are binding on both employer and employees.
The primary purpose of standing orders is to replace arbitrary employer discretion with clear, predictable, and fair service rules. They ensure that workers are aware of their rights and obligations, thereby minimizing misunderstandings and industrial disputes.
Objectives of the Standing Orders Act
The Industrial Employment (Standing Orders) Act, 1946 aims to achieve the following objectives:
- To define and standardize conditions of employment in industrial establishments.
- To bring certainty and uniformity in service rules.
- To prevent unfair labour practices arising from vague or unwritten rules.
- To promote industrial peace and discipline.
- To provide workers with legal protection against arbitrary actions by employers.
The Act applies to industrial establishments employing 100 or more workmen (earlier 50, later increased by amendment), though state governments may extend its application to smaller establishments.
Matters Covered under Standing Orders
The Schedule to the Act specifies matters that must be covered in standing orders. These include:
- Classification of workmen (permanent, temporary, probationers, apprentices)
- Manner of intimating working hours, shifts, and holidays
- Attendance and late coming
- Conditions of leave and holidays
- Termination, suspension, and disciplinary action
- Acts or omissions constituting misconduct
- Grievance redressal mechanism
These provisions ensure comprehensive regulation of employment conditions in an industrial establishment.
Certification of Standing Orders: Legal Framework
The process of certification is governed primarily by Sections 3 to 7 of the Industrial Employment (Standing Orders) Act, 1946. Certification ensures that standing orders are fair, reasonable, and in conformity with the Act.
Procedure for Certification of Standing Orders
Draft Standing Orders by Employer (Section 3)
Every employer of an industrial establishment to which the Act applies must prepare draft standing orders covering all matters specified in the Schedule. These draft standing orders must be submitted to the Certifying Officer within six months from the date on which the Act becomes applicable to the establishment.
The employer is also required to submit a statement showing the number of workmen employed, along with five copies of the draft standing orders.
Notice to Workmen (Section 5)
Upon receiving the draft standing orders, the Certifying Officer sends a copy to the trade union of the workmen or, where no union exists, to the workmen directly. This ensures participation of workers in the certification process.
Workmen are given an opportunity to file objections within a prescribed time. This step reflects the principles of natural justice and participative management.
Hearing and Examination by Certifying Officer
The Certifying Officer examines:
- Whether the standing orders cover all matters specified in the Schedule
- Whether they are in conformity with the provisions of the Act
- Whether they are fair and reasonable
The Certifying Officer may hold hearings, consider objections, and require modifications to ensure balance between employer’s interests and workmen’s rights.
Certification of Standing Orders (Section 5)
After hearing both parties and making necessary modifications, the Certifying Officer certifies the standing orders. Once certified, copies are sent to both employer and workmen.
Certified standing orders come into operation on the expiry of 30 days from the date of authentication.
Appeal Against Certification (Section 6)
Any aggrieved party—employer or workmen—may file an appeal against the order of the Certifying Officer within 30 days to the Appellate Authority.
The Appellate Authority has the power to:
- Confirm the standing orders
- Modify them
- Set aside the certification order
The decision of the Appellate Authority is final and binding.
Operation and Binding Nature of Certified Standing Orders
Once certified, standing orders have statutory force and are binding on both employer and workmen. They override any inconsistent terms in individual employment contracts.
In Western India Match Co. Ltd. v. Workmen (1973), the Supreme Court held that certified standing orders prevail over conflicting terms of appointment letters. Similarly, in Rajasthan State Road Transport Corporation v. Krishna Kant (1995), the Court emphasized that standing orders have the force of law.
Model Standing Orders
In cases where an employer fails to submit draft standing orders, the Model Standing Orders prescribed by the government automatically apply. Model standing orders act as a default code ensuring workers are not left without statutory protection.
Importance of Certification Process
The certification process ensures:
- Transparency in service conditions
- Worker participation in rule-making
- Fairness and reasonableness of employment rules
- Reduction in industrial disputes
- Legal enforceability of service conditions
The process balances managerial authority with worker protection.
Practical Illustration
Consider a manufacturing unit employing 300 workers. The employer drafts standing orders defining working hours, leave rules, misconduct, and disciplinary procedures. The trade union objects to certain disciplinary provisions as being harsh. The Certifying Officer modifies these clauses to ensure fairness before certification. Once certified, both parties follow these rules, thereby reducing disputes and ensuring smooth industrial relations.
Relationship with Principles of Natural Justice
Certification of standing orders incorporates principles of natural justice, particularly audi alteram partem (right to be heard). Workmen are given a chance to raise objections, and decisions are taken after hearing both sides, ensuring fairness and legitimacy.
Mnemonic to Remember the Answer
“D-N-H-C-A”
D – Draft standing orders by employer
N – Notice to workmen / trade union
H – Hearing by Certifying Officer
C – Certification of standing orders
A – Appeal to Appellate Authority
Remember: Standing Orders = D-N-H-C-A
About lawgnan
Ensure clarity, fairness, and legal compliance in industrial employment by understanding the Industrial Employment (Standing Orders) Act, 1946. At lawgana.in, students, HR professionals, and labour law practitioners can access detailed explanations of the certification process, statutory obligations, judicial interpretations, and practical illustrations. Learn how to draft, notify, and certify standing orders effectively, while protecting workers’ rights and promoting industrial harmony. Lawgana.in provides structured mnemonics, case law summaries, and step-by-step guides to master the D-N-H-C-A process. Visit lawgana.in today to strengthen your knowledge and apply labour law principles confidently in real-world industrial settings.
