Concept and Nature of Standing Orders

The concept of Standing Orders is integral to the regulation of industrial establishments,

delineating crucial aspects of employment and fostering balanced employer-employee
relations. Serving as a set of rules, Standing Orders aim to bring clarity and consistency
to employment conditions.

The intricate nature of Standing Orders is marked by ongoing debates over their
classification, oscillating between statutory and contractual dimensions.

Let’s understand the concept and nature of Standing Orders.

Contents hide

1. The Concept of Standing Orders

2. What are the Objectives of the Standing Orders?
3. Nature of Standing Orders
4. Statutory Nature of Standing Orders
5. Arguments Against the Statutory Nature of Standing Orders
6. Who Does the Industrial Employment (Standing Orders) Act Apply To?
7. Who is Exempt from the Industrial Employment (Standing Orders) Act?
8. Conclusion

The Concept of Standing Orders

Standing Orders are essentially the rules that cover various aspects of employment in
industrial establishments, particularly in coal mines.

These rules address matters such as the classification of workers, working hours,
attendance, leave procedures, entry to premises, rights and responsibilities of both
employers and workers during work stoppages and the termination or suspension of
workers. The specific details are outlined in the Schedule of the Industrial Employment
(Standing Order) Act, 1946.

Objectives of the Standing Orders

The main goals of Standing Orders are to establish consistency in employment terms,
promote positive relations between employers and employees, ensure that work
conditions are clear to workers and regulate various aspects of employment such as
recruitment, discharge, disciplinary actions, leave and holidays in industrial
establishments. It helps to define the concept and nature of Standing Orders in labour
law.

Nature of Standing Orders

The legal status of Standing Orders is a topic that has sparked debates, with differing
views on whether they are primarily statutory, contractual or resemble an ‘award.’

While some argue that the nature of Standing Orders is ambiguous and inconclusive,
others contend that it cannot be definitively categorised as statutory, contractual or an
award without strong supporting arguments.

Statutory Nature of Standing Orders

One argument supporting the statutory nature of Standing Orders refers to a Supreme
Court case, The Bagalkot Cement Co. Ltd. Vs. R.K. Pathan & Ors., where the court
emphasised the intention of the Industrial Employment (Standing Orders) Act to make
employment conditions precise and definite. This decision has been relied upon in
subsequent judgments, reinforcing the idea that certified Standing Orders are statutory.

In Tata Chemicals Ltd. And Ors. vs Kailash C. Adhvaryu, the High Court of Gujarat
differentiated between statutory and contractual obligations, asserting that the
certification of standing orders under the IESO Act creates statutory rights and
obligations.

Another perspective supporting the statutory nature argues that the Certifying Officer,
in certifying the standing orders, is engaged in a form of delegated legislation. The
consultation process with both parties affected by the decision implies a rule-making
role for the Certifying Officer, contributing to the overall statutory character of the
process.

Arguments Against the Statutory Nature of Standing

Orders
Counterarguments suggest that considering standing orders as statutory may contradict
fundamental rights enshrined in the constitution, opening the possibility for challenges
under Article 32 and Article 226.
Another counterargument is that industrial tribunals, under The Industrial Disputes Act,
1947, should not have the power to override provisions with statutory effect. Treating
certified standing orders as statutory could limit the tribunal’s authority to modify terms
or pass orders under standing orders.

Section 10(1) of the IESO Act, which allows changes to standing orders by agreement
between employers and workers, is presented as conflicting with the concept of
statutory orders, as statutes are typically not subject to modification based on
agreements.

Lastly, it is argued that the Act imposes restrictions on employers’ bargaining power,
limiting freedom of contract and emphasising compliance with model standing orders.
The Act does not delegate legislative powers but instead obligates individual employers
to create rules aligned with the schedule’s model standing orders. This, along with the
limited judicial power of the Certifying Officer, suggests that certified standing orders
are not delegated legislation and, therefore, not strictly statutory in nature.

Who Does the Industrial Employment (Standing

Orders) Act Apply To?
The Industrial Employment (Standing Orders) Act applies to the entire country, covering
all of India. Specifically, it applies to every industrial establishment where one hundred
or more workers are employed or were employed on any day within the preceding
twelve months.

Exemptions
The Act does not apply to industrial establishments where workers are covered by or
subject to the following Rules or Regulations:

 Fundamental and Supplementary Rules;

 Civil Services (Classification, Control and Appeal) Rules;
 Civil Services (Temporary Service) Rules;
 Revised Leave Rules;
 Civil Service Regulations;
 Civilians in Defense Service (Classification, Control and Appeal) Rules;
 Indian Railway Establishment Code or any other rules;
 Regulations that may be notified for this purpose by the appropriate Government
in the Official Gazette.
Conclusion
Standing Orders are rules governing industrial establishments, defining terms of
employment and regulating relations between employers and workers. The concept and
nature of standing orders revolve around establishing clarity and uniformity in
employment conditions. The nature of Standing Orders is subject to debate, with
arguments suggesting both statutory and contractual aspects.

While some judicial decisions lean towards their statutory nature, acknowledging the
Industrial Employment (Standing Orders) Act’s intent to make employment conditions
precise, others highlight contractual elements. The ambiguous nature stems from
challenges in categorising them definitively as statutory, contractual or resembling an
‘award,’ making the characterisation complex and multifaceted.

2. . This Orders regulate the

conditions of employment,
grievances, misconduct etc. of the
workers
employed in industrial
undertakings.
3. 3. Unsolved grievances can
become industrial disputes.
 Scope and Coverage of the
Industrial Employment (Standing
Orders) Act, 1946 •
i) Establishments Covered (Sec.
1(3)
ii) • The Act applies to every
industrial establishment wherein
one hundred or more workmen are
employed, or were employed on
any day of preceding twelve
months. (the appropriate govt can
include other establishments also) •
iii) ii) Industrial Establishment •
Section 2(e) defines "industrial
establishment" to mean •
(a) an industrial establishment as
defined in clause (ii) of Section 2
of the Payment, of Wages Act
which defines "industrial
establishment" to mean any: •
i) tramway service or motor
transport service engaged in
carrying passenger, goods or both
by
road for hire or reward. •
ii) air transport service other than
such service belonging to, or
exclusively employed in the
Military, Naval or Air Forces of
the Union or Civil Aviation,
umartment of the Government of
India- •
iii.Dock wharf or Jetty; •
iv) inland vessel, mechanically
propelled •
v) mine, quarry or oil field; •
vi) plantation; •
vii) vii) workshop or other
establishment in which articles are
produced adapted or manufactured
with a view to their use, to
transport and sales; •
viii) viii) establishment in which
any work relating to construction
development or maintenance of
buildings, roads, bridges or canals,
or relating to operations connected
with navigation, irrigation
or the supply of water or relating
to the generation, transmission and
distribution of electricity
or any other form of power is
being carried on.
ix) • ix) Industrial and any other
establishments as mentioned u/s
2(ii) of Payment of Wages Act.
136., as defined in Clause (ii) of
Section 2 of the Payment of Wages
Act, 1963; •
x) or • a factory as defined in
Clause (m) of Section 2 of the
Factories Act, 1948 or; •
xi) a railway as defined in Clause
(4) of Section 2 of the. Indian
Railways Act 1890; or •
xii) the establishment of a person
who, for the purpose of fulfilling a
contract with the owner of any
industrial establishment, employs
workmen.
2. . This Orders regulate the
conditions of employment,
grievances, misconduct etc. of the
workers
employed in industrial
undertakings.
3. 3. Unsolved grievances can
become industrial disputes.
Scope and Coverage of the
Industrial Employment (Standing
Orders) Act, 1946 •
i) Establishments Covered (Sec.
1(3)
ii) • The Act applies to every
industrial establishment wherein
one hundred or more workmen are
employed, or were employed on
any day of preceding twelve
months. (the appropriate govt can
include other establishments also) •
iii) ii) Industrial Establishment •
Section 2(e) defines "industrial
establishment" to mean •
(a) an industrial establishment as
defined in clause (ii) of Section 2
of the Payment, of Wages Act
which defines "industrial
establishment" to mean any: •
 i) tramway service or motor
transport service engaged in
carrying passenger, goods or both
by
road for hire or reward. •
ii) air transport service other than
such service belonging to, or
exclusively employed in the
Military, Naval or Air Forces of
the Union or Civil Aviation,
umartment of the Government of
India- •
iii.Dock wharf or Jetty; •
iv) inland vessel, mechanically
propelled •
v) mine, quarry or oil field; •
vi) plantation; •
vii) vii) workshop or other
establishment in which articles are
produced adapted or manufactured
with a view to their use, to
transport and sales; •
viii) viii) establishment in which
any work relating to construction
development or maintenance of
buildings, roads, bridges or canals,
or relating to operations connected
with navigation, irrigation
or the supply of water or relating
to the generation, transmission and
distribution of electricity
or any other form of power is
being carried on.
ix) • ix) Industrial and any other
establishments as mentioned u/s
2(ii) of Payment of Wages Act.
136., as defined in Clause (ii) of
Section 2 of the Payment of Wages
Act, 1963; •
x) or • a factory as defined in
Clause (m) of Section 2 of the
Factories Act, 1948 or; •
xi) a railway as defined in Clause
(4) of Section 2 of the. Indian
Railways Act 1890; or •
xii) the establishment of a person
who, for the purpose of fulfilling a
contract with the owner of any
industrial establishment, employs
workmen.