Applicability:
The Act will apply to every industrial establishment wherein 100 or more workmen are employed or were employed on any day of the preceding 12 months.
Industrial establishment means –
i. Industrial establishment defined under the Payment of Wages Act, 1936
ii. Factory defined under the Factories Act, 1948
iii. Railway defined under the Indian Railways Act, 1890
iv. Establishment of contractor who employs workmen for fulfilling contract with the owner of the industrial establishment.
Workman has meaning assigned to it under section 2(s) of the Industrial Dispute Act, Thus it includes skilled, unskilled, manual or clerical work but does not include employees engaged in managerial, administrative or supervisory capacity.
Submission and approval of draft Standing Order:
The employer should submit to the certifying officer, 5 copies of draft Standing Order proposed to be adopted by him within 6 months from the date of applicability of the Act. On receipt of draft, the certifying officer will forward one copy to trade union or workmen (in case there is no trade union) and hear their objections. After that he will certify the Standing Order or direct the employer to make necessary modification. The Certified Standing Order should be displayed in English and local language at the notice board or near the entrance of the establishment. Standing Orders once approved will be binding on both employer and employee. Till the approval of the draft Standing Order, Model Standing Order prescribed under the Act will automatically apply to the establishments.
Date of operation of Standing Order:
The Standing Order shall come into operation –
i. On the expiry of 30 days from the date on which authenticated copies are sent or
ii. In case appeal against the order is preferred, on expiry of 7 days from the date on which copies of the order of the appellate authority are sent.
Payment of Subsistence Allowance:
Where any workman is suspended by the employer pending investigation or inquiry into the complaint or charges of misconduct against him, the employer shall pay the subsistence allowance to such workman at 50% of his wages for first 90 days and 70% of wages for remaining period till the completion of disciplinary proceedings. In case of any dispute regarding the payment of subsistence allowances, parties may refer the dispute to labour court constituted under the Industrial Dispute Act, 1947. The dicision of the labour court shall be final and binding on both the parties.
Penalties and Procedures:
An employer who fails to submit draft standing order (as per section 3) or who modified his standing order otherwise than in accordance with section 10, shall be punishable with a fine which may extend to Rs.5000 and in case of continuing offence with a further fine of Rs.200 for every day after the first during which the offence continues.
Interpretation etc. of the Standing Order:
If any question arises as to the application or interpretation of the Standing Order parties may refer the same to any of the Labour court constituted under the Industrial Disputes Act, 1947. The decision of the concerned labour court shall be final and binding on both employer and workmen.
Matters to be provided in the Standing Order
1. Classification of workmen e.g. Permanent/temporary/apprentice/probationery etc.
2. Manner of intimating to workmen periods and hours of work, holydays, pay-days and wage rate.
3. Shift working
4. Attendance and late coming
5. Conditions of, procedure in applying for, and the authority which may grant leave and holidays.
6. Requirement to enter premises by certain gates, and liability to search.
7. Closing and reporting of sections of industrial establishment, temporary stoppages of work and the rights liabilities of the employer and workmen arising there from.
8. Termination of employment, and the notice thereof to be given by the employer and workmen.
9. Suspension or dismissal for misconduct, and acts or omissions which constitute misconduct.
10. Means of redress for workmen against unfair treatment or wrongful exactions by the employer or his agents or servants.
11. Any other matters which may be prescribed.
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