ORIGIN OF THE ORDER

The Industrial Employment (Standing Orders) Act, 1946”was deigned to define the
Terms of employment and to give the workmen collective voice regarding the
terms of Employment and ensure the conditions of service. On the basis of the
tripartite labour Conference, the Central Government introduced a Bill providing
for framing the rules Containing the terms and conditions of employment in the
industrial establishments, was Introduced in the legislative assembly on April 8,
1946 and was passed under the title The Industrial Employment (Standing Orders)
Act, 1946.”It came into force on April 23, 1946. This Act has been amended
through several amendments in 1951, 1961 and 1963.

C. AIM AND OBJECTIVES OF THE STANDING ORDERS ACT

The aim and object of the Central Government was to introduce uniform Standing
Orders and provide equal conditions of service to the workmen employed in
industrial Establishment before or after the Standing Orders came into force.
After the enforcement of The Standing Orders, the conditions laid down therein,
will be binding on all those presently In the employment of the concerned
establishment and appointed thereafter.
On the basis of the judicial judgments given by the Supreme Court from time to
time,

The main objectives may be given as below:

I.“To define, with sufficient precision, the principal conditions of employment in
Industrial establishments under them and to make the said conditions known to
workmen Employed by them.”
II. To“regulate standards of conduct of the employers and employees so that
labourmanagement relations could be improved.”
III. To“maintain proper discipline, harmonious working conditions and achieve
higher Productivity by providing satisfactory employment and working
conditions.”
IV. “To provide for redressal of grievances arising out of employment or relating
to Unfair treatment of wrongful exaction on the part of the employers against
the employees.”
V. To“specify the duties and responsibilities of both the employers and the
employees.
VI. To provide statutory sanctity and importance to the Standing Orders.

MAIN CHARACTERISTICS OF THE ACT

The main characteristics of the Act are given below:
(i) “Standing Orders cover all matters specified in the Schedule of the Act.
(ii) These are approved by the proper authority and published ‘in such a
way that all the Workers can be familiar with them.
(iii) All the principal terms and conditions of employment, except matters
pertaining to Wages and other forms of remuneration, are settled
clearly under the Standing Orders. (iv) Most of the mutual rights and
duties of workers and management are clearly defined.
(iv) The procedures are to be followed whenever there is any dispute or
disagreement over
These mutual rights and duties which are also specified therein. The procedure
which the Management is to follow in disciplining the worker, and the procedure
which the worker has to follow when he has a grievance both these are given in
clear language.

CONCEPT AND NATURE OF THE STANDING ORDERS

The Industrial Employment Act, 1946 defines the meaning of ‘Standing Orders’ in
Section 2 (g). These are the rules which relate to the matters explained in the
Schedule. Under This section, the employer has to make a draft of standing orders
for submission to the Certifying officers regarding the matters prescribed in the
Schedule. The matters which are
Referred in the Schedule are as under:
a. The categories of the workers should be clearly defined, i.e., whether they
are regular or temporary on probation or badlis etc.
b. The working hours, rates of wages, holidays, pay-days should be intimated
to the Employees.
c. c. The shift of working should also be mentioned in the Schedule.
d. It should be clearly mentioned regarding the rules of attendance and late
coming.
e. The authority which will sanction leave and holidays and how to apply should
also be clearly specified in the Schedule.
f. The requirement of entrance and exit from the premises and liability should
also be specified.
g. The reopening and the closing of any section of the industry, temporary
stoppage of work, the rights and responsibilities of the employer arisen there-
from should also be specified.
h. The notice for termination of employment should also be given by the
employer.
i. The rules regarding the acts or omissions, suspension or dismissal for
misconduct etc. be given.
j. The means of redressal for wrongful act or unfair treatment by the employer or
his nominee should also be specified in the Schedule.
k. Any other matter which is deemed fit by the employer or employees.

*The nature of the Standing Orders* has attracted the attention of the courts and
the Tribunals. The different shades of opinions have emerged in the decisions of
the courts, i.e., The statutory nature of the standing orders, whether it is a special
kind of contract or an award to an employee or is it a form of delegated
legislation.

Most of the High Courts had different views regarding the statutory nature of
contract Prior to the decision of the Supreme Court. In“Sudhir Chandra
Sarkar636”the Supreme Court has clearly stated that “the conditions of service
laid down in the standing orders is Either statutory in character or has statutory
flavor. Similarly, certified standing orders Which statutorily prescribe the
conditions of service shall be deemed to be incorporated in The contract of
employment of each employee with his employer.
The Supreme Court in “Rajasthan State Road Transport Corporation ”laid down
that: “The certified standing orders framed under and in accordance with the
Industrial Employment (Standing Orders) Act, 1946 are statutorily imposed
conditions of service and are binding both upon the employers and employees,
though they don’t amount to statutory Provision. Any violation of these standing
orders entitles an employee to appropriate relief Either before the forums
created by the Industrial Disputes Act or the civil court where Recourse to civil
court is open according to the principles indicated herein.”
Regarding a special kind of contract; the Court, in the case of“Jabalpur
Development Authority ”held that: “The certified standing orders represent the
relevant terms and conditions of service in a Statutory form and they are binding
on the parties at least as much, if not more, as private Contract embodying similar
terms and conditions of service.”

THE“REQUIREMENTS FOR CERTIFICATION OF STANDING ORDERS”

The Standing Orders will be certified under sec. 4 of the“Industrial Employment
(Standing Orders) Act, 1946”
“if:
 (1) Provision is made therein for every matter set out in the Schedule which is
applicable
To the industrial establishment; .
(2) they are in conformity with the provisions of the Act; and
(3) they are fair and reasonable.
”
The above conditions will form the ground of valid standing orders and these
should Be studied in the light of cases decided by the High Courts or the Supreme
Court from time to Time. In“Hindustan Lever v. Workmen, the Standing Orders
had a provision of transfer of an Employee from one department to another of
the same establishment at the discretion of Management, provided that terms
and conditions remain unchanged. Certain workmen Challenged their transfer on
the plea that it was done with, mala fide intention. It was held by The Court that
transfer is valid and the burden of proving it invalid lies with the workmen.

Submission of Draft Standing Orders: Section 3

A statutory obligation is imposed by the Act upon the employer(s) to submit,
individually/ jointly, five copies of a ‘Draft Standing Order’ within six months of its
applicability to the industrial establishment, which should be inclusive of the
matters enlisted in the Schedule and of the MSOs (short for – Model Standing
Orders), if any, and to which shall be annexed such documents containing
particulars of the workmen employed.
S.K. Sheshadri v H.A.L and others, (1983)
In this case, the Hon’ble Karnataka High Court held that, as long as the Standing
Orders fall within the Schedule to the Act, irrespective of the fact that they
contain additional provisions which are not accounted for in the MSOs, the
Standing Orders would not be deemed to be invalid or ultra vires of the Act. The
MSOs only serve as a model for framing the Standing Orders.
Hindustan Lever v Workmen, (1974)
In the present case, the issue relating to the ‘transfer of workmen’ was
highlighted by concurring that, the Manager is vested with the discretion of
transfer of workmen amongst different departments of the same company, so far
as the terms of the contract of employment are not affected. Further, if the
transfer is found to be valid, the onus of proving it to be invalid lies on the
workmen in dispute.
Management of Continental Construction Ltd. V Workmen of Continental
Construction, (2003)
In the instant case, the employer’s right to terminate the service of a probationer
was recognised by declaring that, if a person is an employee on probation, it is an
inherent power of the employer to terminate during/ at the end of the
probationary period, provided, that even while acting in accordance with the CSO,
the employer’s action be fair and consistent with the principles of natural justice.

Certification Process: Section 5

The procedure for certification of Standing Order, as prescribed under Section 5
of the Act, is threefold:
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.
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.
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
under Section 5(2).
Appeals: Section 6
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 seven days.
Modification of Standing Order: Section 10
A CSO cannot be modified, except on agreement between the related parties,
until six months from the last modification or operation of such standing order
under Section 7. Further, subject to Section 10(1) and other provisions of this Act,
the parties may apply to the Certifying Officer for modifications in the standing
order by annexing five copies of the proposal or a certified copy of the agreement
for modifications.

Interpretation of Standing Orders: Section 13-A

Any question relating to the application/interpretation of this Act may be referred
to the Labour Courts constituted for this purpose, whose decision shall be final
and binding on all parties.

Conclusion
The Act is a regulatory regime to formally define the employment relations
between the workmen/trade union and the employer. A very prominent initiative
of this Act is the concept of ‘standing orders’ which is amorphous in nature being
a contract promulgated statutorily, that represent the will of the parties so
regulated. Finally, it may be stated that, though it lays an exemplary notion, it
requires thorough reforms in respect of the present scenario of employment
practised by the principal employer so as to fulfil the Constitutional objective of
securing socio-economic justice substantially.