The Industrial Employmnet (Standing Orders) Act, 1946
Section 1: Short title, extent and application.
(1) This Act may be called the Industrial Employment(Standing Orders) Act, 1946.
(2) It extends to 1[the whole of India 2 ].
3[(3) It applies to every industrial establishment wherein one hundred or more workmen areemployed, or were employed on any day of the preceding twelve months:
Provided that the appropriate Government may, after giving not less than two months' notice of itsintention so to do, by notification in the Official Gazette, apply the provisions of this Act to any industrialestablishment employing such number of persons less than one hundred as may be specified in thenotification.
4[
5[(4) Nothing in this Act shall apply to --
(i) any industry to which the provisions of Chapter VII of the Bombay Industrial Relations Act,1946 (Bombay Act 11 of 1947) apply; or
(ii) any industrial establishment to which the provisions of the Madhya Pradesh IndustrialEmployment (Standing Orders) Act, 1961 (Madhya Pradesh Act 26 of 1961) apply:
Provided that notwithstanding anything contained in the Madhya Pradesh Industrial Employment(Standing Orders) Act, 1961 (Madhya Pradesh Act 26 of 1961), the provisions of this Act shall applyto all industrial establishments under the control of the Central Government.]
STATE AMENDMENT
Karnataka
Amendment of section 1.---In section 1 of the Industrial Employment (Standing Orders) Act, 1946(Central Act 20 of 1946) in its application to the State of Karnataka, for the words u201cone hundredu201doccurring in sub-section (3) and in the proviso to it, the word u201cfiftyu201d, shall be substituted.
[Vide Karnataka Act 37 of 1975, s. 2]
Section 2: Interpretation.
In this Act, unless there is anything repugnant in the subject or context,--
1[(a) "appellate authority" means an authority appointed by the appropriate Government bynotification in the Official Gazette to exercise in such area as may be specified in the notification thefunctions of an appellate authority under this Act:
Provided that in relation to an appeal pending before an Industrial Court or other authorityimmediately before the commencement of the Industrial Employment (Standing Orders) AmendmentAct, 1963 (39 of 1963), that court or authority shall be deemed to be the appellate authority;]
(b) "appropriate Government" means in respect of industrial establishments under the control ofthe Central Government or a 2[Railway administration] or in a major port, mine or oil-field, theCentral Government, and in all other cases, the State Government:
3[Provided that where any question arises as to whether any industrial establishment is under thecontrol of the Central Government, that Government may, either on a reference made to it by theemployer or the workman or a trade union or other representative body of the workmen, or on its ownmotion and after giving the parties an opportunity of being heard, decide the question and suchdecision shall be final and binding on the parties;]
4[(c) "Certifying Officer" means a Labour Commissioner or a Regional Labour Commissioner,and includes any other officer appointed by the appropriate Government, by notification in theOfficial Gazette, to perform all or any of the functions of a Certifying Officer under this Act;]
(d) "employer" means the owner of an industrial establishment to which this Act for the timebeing applies, and includes --
(i) in a factory, any person named under 5[clause (f) of sub-section (1) of section 7, of theFactories Act, 1948 (63 of 1948)], as manager of the factory;
(ii) in any industrial establishment under the control of any department of any Government inIndia, the authority appointed by such Government in this behalf, or where no authority is soappointed, the head of the department;
(iii) in any other industrial establishment, any person responsible to the owner for thesupervision and control of the industrial establishment;
(e) "industrial establishment" means--
(i) an industrial establishment as defined in clause (ii) of section 2 of the Payment of WagesAct, 1936 (4 of 1936), or
6[(ii) a factory as defined in clause (m) of section 2 of the Factories Act, 1948 (63 of 1948),or]
(iii) a railway as defined in clause (4) of section 2 of the Indian Railways Act; 1890 (9 of1890), or
(iv) the establishment of a person who, for the purpose of fulfilling a contract with the ownerof any industrial establishment, employs workmen;
(f) "prescribed" means prescribed by rules made by the appropriate Government under this Act;
(g) "standing orders" means rules relating to matters set out in the Schedule;
(h) "trade union" means a trade union for the time being registered under the Indian Trade UnionsAct, 1926 (16 of 1926);
7[(i) "wages" and "workman" have the meanings respectively assigned to them in clauses (rr) and(s) of section 2 of the Industrial Disputes Act, 1947 (14 of 1947).]
Section 3: Submission of draft standing orders.
(1) Within six months from the date on which this Actbecomes applicable to an industrial establishment, the employer shall submit to the Certifying Officer fivecopies of the draft standing orders proposed by him for adoption in his industrial establishment.
(2) Provision shall be made in such draft for every matter set out in the Schedule which may beapplicable to the industrial establishment, and where model standing orders have been prescribed, shallbe, so far as is practicable, in conformity with such model.
(3) The draft standing orders submitted under this section shall be accompanied by a statement givingprescribed particulars of the workmen employed in the industrial establishment including the name of thetrade union, if any, to which they belong.
(4) Subject to such conditions as may be prescribed, a group of employers in similar industrialestablishments may submit a joint draft of standing orders under this section.
STATE AMENDMENT
Karnataka
Substitution of section 3.--For section 3 of the Industrial Employment (Standing Orders) Act, 1946(hereinafter referred to as the principal Act), the following shall be substituted, namely:--
"3. Submission of Standing Orders.--(1) Within six months from the date on which theIndustrial Employment (Standing Orders) (Karnataka Amendment) Act, 2005 becomes applicable toan industrial establishment, the employer shall prepare the Standing Orders proposed by him foradoption in his industrial establishment.
(2) The Standing Order prepared as required under sub-section (1) shall refer to every matter setout in the schedule which may be applicable to the Industrial establishment and where ModelStanding Orders have been prescribed shall be so far as is practicable in conformity with such ModelStanding Order.
(3) The Standing Orders so prepared shall be discussed with the Trade unions existing in theIndustrial establishment or representatives of the workmen, before adoption and the employeeproviding proof thereof:
Provided no Standing Order adopted under this sub-section shall be effective unless a copythereof as adopted is sent to the Certifying Officer by Registered Post Acknowledgement due and theacknowledgement therefor is received and filed.
(4) If there is no dispute with regard to the clauses and matters set out in the Standing Ordersdrafted by the employer of the Industrial Establishment, then it shall be adopted in the IndustrialEstablishment as if it is certified under this Act and a copy thereof shall be sent immediately to theCertifying Authority by Registered Post Acknowledgement Due.
(5) If there is any dispute or disagreement with regard to the adoption of any clauses or matter setout in the schedule between the employer and the trade Union or workmen representatives, then suchStanding Orders drafted by the employer shall be submitted to the Certifying Officer notified underthe rules with thirty days from the date of dispute, for adoption in the Industrial establishment."
[Vide Karnataka Act 12 of 2014, s. 2]
Section 4: Conditions for certification of standing orders.
Standing orders shall be certifiable under thisAct if--
(a) provision is made therein for every matter set out in the Schedule which is applicable to theindustrial establishment, and
(b) the standing orders are otherwise in conformity with the provisions of this Act;
and it 1[shall be the function] of the Certifying Officer or appellate authority to adjudicate upon thefairness or reasonableness of the provisions of any standing orders.
STATE AMENDMENT
Karnataka
Amendment of section 4.--In section 4 of the principal Act, for the words u201cStanding Orders shall becertifiableu201d, the words, brackets and figures u201cIn the event of submitting the draft Standing Order undersub-section (5) of the section 3, the Standing Orders shall be certifiableu201d shall be substituted.
[Vide Karnataka Act 12 of 2014, s. 3]
Section 5: Certification of standing orders.
(1) On receipt of the draft under section 3, the CertifyingOfficer shall forward a copy thereof to the trade union, if any, of the workmen, or where there is no suchtrade union, to the workmen in such manner as may be prescribed, together with a notice in the prescribedform requiring objections, if any, which the workmen may desire to make to the draft standing orders tobe submitted to him within fifteen days from the receipt of the notice.
(2) After giving the employer and the trade union or such other representatives of the workmen asmay be prescribed an opportunity of being heard, the Certifying Officer shall decide whether or not anymodification of or addition to the draft submitted by the employer is necessary to render the draft standingorders certifiable under this Act, and shall make an order in writing accordingly.
(3) The Certifying Officer shall thereupon certify the draft standing orders, after making anymodifications therein which his order under sub-section (2) may require, and shall within seven daysthereafter send copies of the certified standing orders authenticated in the prescribed manner and of hisorder under sub-section (2) to the employer and to the trade union or other prescribed representatives ofthe workmen.
STATE AMENDMENT
Karnataka
Amendment of section 5.---In section 5 of the principal Act, in sub-section (1), for the word and thefigure u201csection 3u201d, the words, brackets and figure u201csub-section (5) of section 3u201d shall be substituted.
[Vide Karnataka Act 12 of 2014, s. 4]
Section 6: Appeals.
(1)1[Any employer, workmen, trade union or other prescribed representatives of theworkmen] aggrieved by the order of the Certifying Officer under sub-section (2) of section 5 may, within2[thirty days] from the date on which copies are sent under sub-section (3) of that section, appeal to theappellate authority, and the appellate authority, whose decision shall be final, shall by order in writingconfirm the standing orders either in the form certified by the Certifying Officer or after amending thesaid standing orders by making such modifications thereof or additions thereto as it thinks necessary torender the standing orders certifiable under this Act.
(2) The appellate authority shall, within seven days of its order under sub-section (1), send copiesthereof to the Certifying Officer, to the employer and to the trade union or other prescribedrepresentatives of the workmen, accompanied, unless it has confirmed without amendment the standingorders as certified by the Certifying Officer, by copies of the standing orders as certified by it andauthenticated in the prescribed manner.
Section 7: Date of operation of standing orders.
Standing orders shall, unless an appeal is preferred undersection 6, come into operation on the expiry of thirty days from the date on which authenticated copiesthereof are sent under sub-section (3) of section 5, or where an appeal as aforesaid is preferred, on theexpiry of seven days from the date on which copies of the order of the appellate authority are sent undersub-section (2) of section 6.
STATE AMENDMENT
Karnataka
Amendment of section 7.---Section 7 shall be renumbered as sub-section (2), thereof and before subsection (2) as so renumbered, the following shall be inserted, namely:---
"(1) Standing Orders ass adopted under sub-section (4) of section 3 shall come into operation on theexpiry of 30 days from the date on with the employer and the trade union or workmen representativesagree to adopt the standing orders."
[Vide Karnataka Act 12 of 2014, s. 5]
Section 8: Register of standing orders.
A copy of all standing orders as finally certified under this Actshall be filed by the Certifying Officer in a register in the prescribed form maintained for the purpose, andthe Certifying Officer shall furnish a copy thereof to any person applying therefore on payment of theprescribed fee.
STATE AMENDMENT
Karnataka
Amendment of section 8.--In section 8 of the principal Act, after the words "finally certified", thewords "or adopted" shall be inserted.
[Vide Karnataka Act 12 of 2014, s. 6]
Section 9: Posting of standing orders.
The text of the standing orders as finally certified under this Actshall be prominently posted by the employer in English and in the language understood by the majority ofhis workmen on special boards to be maintained for the purpose at or near the entrance through which themajority of the workmen enter the industrial establishment and in all departments thereof where theworkmen are employed.
STATE AMENDMENT
Karnataka
Amendment of section 9.--In section 9 of the principal Act, after the words u201cfinally certifiedu201d, thewords u201cor adoptedu201d shall be inserted.
[Vide Karnataka Act 12 of 2014, s. 7]
Section 10: Duration and modification of standing orders.
(1) Standing orders finally certified under thisAct shall not, except on agreement between the employer and the workmen 1[or a trade union or otherrepresentative body of the workmen], be liable to modification until the expiry of six months from thedate on which the standing orders or the last modifications thereof came into operation.
2[(2) Subject to the provisions of sub-section (1), an employer or workman 1[or a trade union or otherrepresentative body of the workmen] may apply to the Certifying Officer to have the standing ordersmodified, and such application shall be accompanied by five copies of 3 the modifications proposed tobe made, and where such modifications are proposed to be made by agreement between the employer andthe workmen 1[or a trade union or other representative body of the workmen], a certified copy of thatagreement shall be filed along with the application.]
(3) The foregoing provisions of this Act shall apply in respect of an application under sub-section (2)as they apply to the certification of the first standing orders.
4[(4) Nothing contained in sub-section (2) shall apply to an industrial establishment in respect ofwhich the appropriate Government is the Government of the State of Gujarat or the Government of theState of Maharashtra.]
STATE AMENDMENT
Karnataka
Amendment of section 10.--In section 10 of the principal Act,---
(i) in sub-section (1), after the words finally certified", the words "or adopted" shall be inserted;
(ii) after sub-section (2) the following proviso shall be inserted, namely:---
"Provided that nothing in this sub-section shall be applicable in case of modificationsmutually agreed by an employer, workmen or a trade union or other representative body of theworkmen and such modifications shall be effected under sub-sections (3) and (4) of section 3."
[Vide Karnataka Act 12 of 2014, s. 8]
Section 11: Payment of subsistence allowance.
1[10A. Payment of subsistence allowance.--(1) Where any workmen is suspended by the employerpending investigation or inquiry into complaints or charges of misconduct against him, the employer shallpay to such workman subsistence allowance--
(a) at the rate of fifty per cent. of the wages which the workman was entitled to immediatelypreceding the date of such suspension, for the first ninety days of suspension; and
(b) at the rate of seventy-five per cent. of such wages for the remaining period of suspension ifthe delay in the completion of disciplinary proceedings against such workman is not directlyattributable to the conduct of such workman.
(2) If any dispute arises regarding the subsistence allowance payable to a workman undersub-section (1) the workman or the employer concerned may refer the dispute to the Labour Court,constituted under the Industrial Disputes Act, 1947 (14 of 1947), within the local limits of whosejurisdiction the industrial establishment wherein such workman is employed is situate and the LabourCourt to which the dispute is so referred shall, after giving the parties an opportunity of being heard,decide the dispute and such decision shall be final and binding on the parties.
(3) Notwithstanding anything contained in the foregoing provisions of this section, where provisionsrelating to payment of subsistence allowance under any other law for the time being in force in any Stateare more beneficial than the provisions of this section, the provisions of such other law shall be applicableto the payment of subsistence allowance in that State.]
Section 12: Certifying Officers and appellate authorities to have powers of civil court.
1[(1)] EveryCertifying Officer and appellate authority shall have all the powers of a Civil Court for the purposes ofreceiving evidence, administering oaths, enforcing the attendance of witnesses, and compelling thediscovery and production of documents, and shall be deemed to be a civil court within the meaning of2[sections 345 and 346 of the Code of Criminal Procedure, 1973 (2 of 1974).]
3[(2) Clerical or arithmetical mistakes in any order passed by a Certifying Officer or appellateauthority, or errors arising therein from any accidental slip or omission may, at any time, be corrected bythat Officer or authority or the successor in office of such Officer or authority, as the case may be.]
Section 13: Oral evidence in contradiction of standing orders not admissible.
No oral evidence havingthe effect of adding to or otherwise varying or contradicting standing orders as finally certified under thisAct shall be admitted in any Court.
STATE AMENDMENT
Karnataka
Amendment of section 12.--In section 12 of the principal Act, after the words u201cfinally certifiedu201d, thewords u201cor adoptedu201d shall be inserted.
[Vide Karnataka Act 12 of 2014, s. 9]
Section 14: Temporary application of model standing orders.
1[12A. Temporary application of model standing orders.--(1) Notwithstanding anything containedin sections 3 to 12, for the period commencing on the date on which this Act becomes applicable to anindustrial establishment and ending with the date on which the standing orders as finally certified underthis Act come into operation under section 7 in that establishment, the prescribed model standing ordersshall be deemed to be adopted in that establishment, and the provisions of section 9, sub-section (2) ofsection 13 and section 13A shall apply to such model standing orders as they apply to the standing ordersso certified.
(2) Nothing contained in sub-section (1) shall apply to an industrial establishment in respect of whichthe appropriate Government is the Government of the State of Gujarat or the Government of the State ofMaharashtra.]
STATE AMENDMENT
Karnataka
Amendment of section 12A-- In section 12A of the principal Act, after the words u201cfinally certifiedu201d,the words u201cor adoptedu201d shall be inserted.
[Vide Karnataka Act 12 of 2014, s. 10]
Section 15: Penalties and procedure.
(1) An employer who fails to submit draft standing orders as requiredby section 3, or who modifies his standing orders otherwise than in accordance with section 10, shall bepunishable with fine which may extend to five thousand rupees, and in the case of a continuing offencewith a further fine which may extend to two hundred rupees for every day after the first during which theoffence continues.
(2) An employer who does any act in contravention of the standing orders finally certified under thisAct or his industrial establishment shall be punishable with fine which may extend to one hundred rupees,and in the case of a continuing offence with a further fine which may extend to twenty-five rupees forevery day after the first during which the offence continues.
(3) No prosecution for an offence punishable under this section shall be instituted except with theprevious sanction of the appropriate Government.
(4) No Court inferior to that of 1[a Metropolitan Magistrate or Judicial Magistrate of the second class]class shall try any offence under this section.
STATE AMENDMENT
Karnataka
Amendment of section 13.--In section 13 of the principal Act,---
(i) in sub-section (1), after the words and figure "Standing Orders as required by section 3", thewords and figures "or who fails to adopt Standing Orders as required by sub-section (4) of section 3"shall be inserted;
(ii) in sub-section (2), after the words "finally certified", the words "or adopted" shall be inserted.
[Vide Karnataka Act 12 of 2014, s. 11]
Section 16: Interpretation, etc., of standing orders.
1[13A. Interpretation, etc., of standing orders.--If any question arises as to the application orinterpretation of a standing order certified under this Act, any employer or workman 2[or a trade union orother representative body of the workmen] may refer the question to any one of the Labour Courtsconstituted under the Industrial Disputes Act, 1947 (14 of 1947), and specified for the disposal of suchproceeding by the appropriate Government by notification in the Official Gazette, and the Labour Courtto which the question is so referred shall, after giving the parties an opportunity of being heard, decide thequestion and such decision shall be final and binding on the parties.]
STATE AMENDMENTS
Karnataka
Amendment of section 13-A.--In section 13-A of the principal Act, after the words u201cStanding OrdersCertified the words u201cor adoptedu201d shall be inserted.
[Vide Karnataka Act 12 of 2014, s. 12]
Section 17: Act not to apply to certain industrial establishments.
1[13B. Act not to apply to certain industrial establishments.--Nothing in this Act shall apply to anindustrial establishment in so far as the workmen employed therein are persons to whom the Fundamentaland Supplementary Rules, Civil Services (Classification, Control and Appeal) Rules, Civil Services(Temporary Services) Rules, Revised Leave Rules, Civil Service Regulations, Civilians in DefenceService (Classification, Control and Appeal) Rules or the Indian Railway Establishment Code or anyother rules or regulations that may be notified in this behalf by the appropriate Government in the OfficialGazette, apply.]
Section 18: Power to exempt.
The appropriate Government may by notification in the Official Gazetteexempt, conditionally or unconditionally, any industrial establishment or class of industrialestablishments from all or any of the provisions of this Act.
Section 19: Delegation of powers.
1[14A. Delegation of powers.--The appropriate Government may, by notification in the OfficialGazette, direct that any power exercisable by it under this Act or any rules made thereunder shall, inrelation to such matters and subject to such conditions, if any, as may be specified in the direction, beexercisable also--
(a) where the appropriate Government is the Central Government, by such officer or authoritysubordinate to the Central Government or by the State Government or by such officer or authoritysubordinate to the State Government, as may be specified in the notification;
(b) where the appropriate Government is a State Government, by such officer or authoritysubordinate to the State Government as may be specified in the notification.]
Section 20: Power to make rules.
(1) The appropriate Government may, after previous publication, bynotification in the Official Gazette, make rules to carry out the purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing power, such rules may--
(a) prescribe additional matters to be included in the Schedule, and the procedure to be followedin modifying standing orders certified under this Act in accordance with any such addition;
(b) set out model standing orders for the purposes of this Act;
(c) prescribe the procedure of Certifying Officers and appellate authorities;
(d) prescribe the fee which may be charged for copies of standing orders entered in the register ofstanding orders;
(e) provide for any other matter which is to be or may be prescribed:
Provided that before any rules are made under clause (a) representatives of both employers andworkmen shall be consulted by the appropriate Government.
1[(3) Every rule made by the Central Government under this section shall be laid as soon as may beafter it is made, before each House of Parliament while it is in session for a total period of thirty dayswhich may be comprised in one session or 2[in two or more successive sessions, and if, before the expiryof the session immediately following the session or the successive sessions aforesaid], both Houses agreein making any modification in the rule or both Houses agree that the rule should not be made, the ruleshall thereafter have effect only in such modified form or be of no effect, as the case may be; so howeverthat any such modification or annulment shall be without prejudice to the validity of anything previouslydone under that rule.]