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Ie(so) & sevice rules

(Querist) 28 March 2014 This query is : Resolved 
Hi,
1. Want to if the Industrial employment Standing Orders have been made compulsory to software/pvt co/commercial establishments in Karnataka. In 2012/13, there was proposal to remove exemption granted since 1999? Please clarify.

2. Some pvt companies/software companies have Service Rules. What is the legal sanctity of this. Is it the same as IE(SO). Should they be certified. If the company just has Service Rules and makes employees sign them, what is the legal effect of that. Appreciate if you can clarify these two questions in detail.
Kumar Doab (Expert) 28 March 2014
Terms and Conditions inconsistent with standing orders shall not survive.

The standing orders Certified/Model is instrument of law/have statutory force and supersede and overrule any private agreement that employer has signed with employee e.g/ contract of employment.

Employer PERSONALLY shall be held responsible for FAITHFUL observance of standing orders.


You are from which side: Employer, Employee or Employees'/Trade Union?

Reshma (Querist) 28 March 2014
I have two separate questions. Can you answer separately and specifically pls?
Kumar Doab (Expert) 28 March 2014
Had you responded to the question it might have been possible to provide specific inputs.

Regret further elaboration can't be made.

You may wait for advise by expert's.
Reshma (Querist) 29 March 2014
Still waiting for replies
Ahmed Daud Girach (Expert) 29 March 2014
A case I have gone through regarding a Technician in agood company of Anand got another good job in Ahmedabad so he resigned the company gave notice to pay 3 months salary as liquidated damages and filed civil suit to recover the same as per agreement already signed.Since the technitian was a workman under ID Act all agreements with him by employer MUST comply to Ind.Standing Orders Act so I filed an application under S. 33 (c) of ID act read with Ind.Employment Standing order act(I think it was S.20)in Labour court saying All the agreement MUST comply with Ind.Employees Standing Order Actand the company called the technician to withdraw the application from Labour court and gave him the accrued bonus without insisting notice pay. As per IESOact all the agreement done with the workman must be repeat must be certified by competent authority under standing order act. Service rules of the companys have legal sanctity til they comply with the standing order Act.
Reshma (Querist) 29 March 2014
Dear Sir, thanks for the answer, but i have two very specific questions - any clarity on that please


1. Want to know if the Industrial employment Standing Orders have been made compulsory to software/pvt co/commercial establishments in Karnataka. In 2012/13, there was proposal to remove exemption granted since 1999? Please clarify.

2. Some pvt companies/software companies have Service Rules. What is the legal sanctity of this. Is it the same as IE(SO). Should they be certified. If the company just has Service Rules and makes employees sign them, what is the legal effect of that. Appreciate if you can clarify these two questions in detail.
Ahmed Daud Girach (Expert) 29 March 2014
IE(SO) being central Act applies to Karnataka also.Standing order Act applies to workman of Industry as defined in ID ACT and IE(SO)Act.If u are in Management and if u have been granted exemption from operation of Act see that from which provisions u are given exemption and further see that renewal if any is required.If u are not seeking exemption then automatically provosions of IE(SO)Actwill apply i.e. u have to implement Model Standing Orders found in the Act.Specifically I am unaware of any removal of exemption.You may see Lawyers Club Act section and find out text of the Act if possible otherwise go on website of labour departmentof Karnataka government perhaps u may find it.
some companys have their own rules ,correct. These rules are OK for employees who are not workman under IT act and that company is not Industry under ID Act.For othr employees who are not workman shop and establishmentAct applies.If they are making rule and getting sign it is valid if these rules are duly approved as staanding orders by certifying authority.
Reshma (Querist) 29 March 2014
Thanks very much. Let's say for example, its an IT company. Service Rules are made, the same is not certified.

Is the Service rules which are not certified but employees just sign them have any legal sanctity. This is my question. Please be very specific
Ahmed Daud Girach (Expert) 29 March 2014
Pl refer to ID act and Standing order act see the definitions of workman and industry ; the rules which are not certified will not be applicable to workman but will be applicable to non workman.Kindly meet some labour advocate who is practicing in labour court ,IT or High court in Labour side to understand your quarry. Because these definitions require some labour legal references and knowledge.
Ahmed Daud Girach (Expert) 29 March 2014
As far legal sanctity companies actions are ok till disputed.If nobody disputes there is no need to see whether it is legal or not .In your question you are silent regarding exact matter what happened that u are now serious about knowing it. Be frank and write correct problem so that solution can be arrived at.Otherwise for academic purpose the discussion is far fetched and more than enough.
Guest (Expert) 30 March 2014
Unspecific problem can fetch only general discussion, not the solution to the real problem in absence.

However, if an organisation has its own service rules, there is no need for SO, unless the same are in violation of ID Act.

Still further, even if any organisation has SOs. the same are meant only for workers, not for executives. Services of executives would still remain governed by a set of separate service rules for them.
Reshma (Querist) 31 March 2014
Okay, let me simplify.

Let's say Infosys Technologies makes service rules. Now ID Act IE(So) do not apply.

Lets say Infosys has just on its own made some service rules and employees are made to sign.

Now my question is, is this service rule of any consequence in deciding any case between the employee and Infosys or will it go by the established principles of labour law. This is my specific question
Guest (Expert) 31 March 2014
Better post your own problem, rather than stretching the thread too far merely on supplementary academic type of questions or hypothetical clarifications. Instead of making the experts suppose about Infosys, discuss the problem of your own company with complete background and facts of the case, if there is really any.


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