Industrial relations form the backbone of a productive economy, and orderly employment practices are critical to maintaining harmony between employers and workmen. In India, the Industrial Employment (Standing Orders) Act, 1946, provides a framework to standardize conditions of employment in industrial establishments. Standing orders define the rights, duties, and responsibilities of employers and workmen in clear terms, reducing ambiguity and preventing disputes.
The certification of standing orders is a legal requirement for industrial establishments with 100 or more workmen, and it ensures that employment terms are uniform, lawful, and enforceable. This essay explains the meaning of standing orders, the procedure for their certification, relevant legal provisions, and practical significance, followed by a mnemonic to remember the steps.
Meaning and Importance of Standing Orders
Definition
Section 2(a) of the Industrial Employment (Standing Orders) Act, 1946 defines a standing order as:
“A document that clearly lays down the terms and conditions of employment of workmen and the rules governing their conduct and behavior in the workplace.”
Key Features:
- Standardization – Applies uniformly to all workmen in an establishment.
- Legal Validity – Once certified, standing orders have the force of law.
- Clarity of Rights and Duties – Covers aspects like wages, leave, working hours, discipline, grievance redressal, termination, and misconduct.
- Dispute Prevention – Reduces the likelihood of industrial disputes.
Scope of Standing Orders
Standing orders typically cover:
- Classification of workmen (permanent, temporary, apprentices)
- Attendance, leave, and working hours
- Disciplinary rules and penalties
- Termination, retrenchment, and resignation procedures
- Grievance redressal mechanisms
- Safety, welfare, and facilities
Applicability of Standing Orders
The Industrial Employment (Standing Orders) Act, 1946 applies to:
- Industrial establishments employing 100 or more workmen (threshold varies in some states).
- Both permanent and temporary employees.
- Any industry or establishment included under the First Schedule of the Act.
Employers must certify standing orders with the certifying authority to ensure they are lawful, fair, and enforceable.
Authority for Certification
The Certifying Officer, appointed under the Act, is the competent authority to examine, certify, and enforce standing orders.
Powers of Certifying Officer:
- Examine draft standing orders submitted by the employer.
- Ensure compliance with the Act and rules.
- Hear objections or suggestions from workmen or trade unions.
- Certify, modify, or reject standing orders based on statutory compliance.
Procedure for Certification of Standing Orders
The certification process under Section 4 of the Industrial Employment (Standing Orders) Act, 1946 involves the following steps:
Drafting of Standing Orders
- The employer prepares a draft of standing orders covering all prescribed matters.
- Draft should comply with model standing orders notified under the Act.
- Employers may consult trade unions or representatives of workmen for inputs.
Submission to Certifying Officer
- The employer submits the draft standing orders to the Certifying Officer.
- Accompanied by a statement specifying the number of workmen employed and other particulars of the establishment.
- The draft must be in duplicate or as prescribed by the authority.
Objections and Modifications
- The Certifying Officer gives notice to workmen or their representatives to examine the draft.
- Workmen or unions can raise objections, suggest modifications, or seek clarifications.
- The Certifying Officer holds hearings, allowing both parties to present arguments.
Certification
- The Certifying Officer examines the draft in light of statutory requirements and objections.
- If compliant, the standing orders are certified, giving them the force of law.
- Certification includes:
- Date of certification
- Name of establishment
- Duration for which standing orders will remain effective
Publication
- Certified standing orders must be displayed in a prominent place in the establishment.
- Copies should be made available to all workmen.
- Employers are legally bound to adhere to certified standing orders, and violation may result in penalties.
Modification of Standing Orders
Over time, circumstances may necessitate modification of standing orders. Section 7 of the Act provides the procedure:
- Proposal for Modification – Employer or workmen submit proposed modifications to the Certifying Officer.
- Notice to Workmen – Workmen or trade unions are notified and allowed to submit objections or suggestions.
- Hearing – Certifying Officer conducts hearings to resolve objections.
- Certification of Modifications – Approved modifications are formally certified, and the standing orders are updated.
Legal Consequences of Non-Compliance
Failure to certify standing orders or comply with certified orders can result in:
- Penalties under Section 12 of the Act (fine up to ₹1,000 or as prescribed).
- Unenforceable terms in employment contracts if not certified.
- Increased risk of industrial disputes and litigation.
Courts have emphasized that certified standing orders protect both employers and employees by providing legal clarity on employment terms.
Importance of Certification
Benefits of Certified Standing Orders:
- Legal clarity for both parties.
- Prevention of disputes related to wages, termination, or discipline.
- Statutory protection for employers following the procedure.
- Strengthens industrial peace and compliance with labour laws.
- Provides a framework for grievance redressal and disciplinary action.
Judicial Support:
In Workmen of Hindustan Steel Ltd. v. Management, the Supreme Court recognized the binding nature of certified standing orders and the importance of fair procedures in industrial relations.
Mnemonic to Remember Certification Procedure
“D.S.O.C.M.P”
D – Draft standing orders
S – Submission to Certifying Officer
O – Objections and hearing
C – Certification granted
M – Make copies available to workmen
P – Periodic modifications approved
About Lawgnan
Certifying standing orders is essential for employers to comply with labour laws and maintain industrial peace. It ensures that workmen clearly understand their rights, duties, and obligations, reducing conflicts and litigation. Properly certified standing orders protect both employers and employees by providing legal certainty in employment relations. To understand detailed procedures, model standing orders, and best practices for certification and modifications under Indian labour law, visit lawgana.in. Equip yourself with actionable legal insights, templates, and expert guidance to implement certified standing orders effectively and maintain transparent, fair, and harmonious industrial relations in your organization.
