STANDING ORDER IS COMPULSARY FOR MANUFACTURING INDUSTRY


HI,

 

IN A MANUFACTURING INDUSTRY PREVIOUSLY THEY DONT HAVE HR DEPARMENT NOW THEY ARE PLANNING TO SETUP HR DEPARTMENT SO THEY ARE MAKING CHECKLIST FOR STATUTORY COMPLAINS, UNDER THAT STANDING ORDER IS COMPULSARY.

RAJESH

 
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Lawyer

If the employment is 100 or more,  certified standing orders are mandatory. 

 
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HR - PROFESSIONAL

Dear Rajesh ji,

For the manufacturing unit the employees strength crosses 100 the Standing Orders are mandatory, but there is a rule where the certified standing orders are not there the State Industrial Employment Model Standing orders should be followed (Temporary until certification).

Regards,

PBS KUMAR

 
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LEGAL COUNSEL

 

Applicability Of Industrial Employment (Standing Orders) Act.

 

 

As per Section 1 (3)  the Act applies to every industrial establishment wherein 100*  or more workmen are employed, or were employed on any day of the preceding twelve months. It is further provided that the appropriate Government by a notification apply the provisions of this Act to any industrial establishment employing such number of persons leas than 100, as may be specified…

 

Section 2 (e) of the Act defines "Industrial establishment" - , as follows:-

 

(e)  "industrial establishment" means –  (extract)

 

(i)                an industrial establishment as defined in clause (ii) of section 2 of the Payment of Wages Act, 1936  or
(ii)…….

(ii)               

(iv)          the establishment of a person who, for the purpose of fulfilling a contract with the   owner of any industrial establishment, employs workmen;

 

Relevant extract of The Payment of Wages Act

 

  • Section 2 (i) the term `industrial and other establishments’ means any:           

  • (g)  workshop or other establishment in which articles are produced, adapted or      manufactured       with a view to their use, transport or sale

 

(i)  any other establishment or class of establishments which the Central Govt. or a State
      Govt.,     may, having regard to the nature thereof, the need for protection of persons
      employed     therein and other relevant circumstances, specify, by notification in the
      Official Gazette.

 

 

As per Section 2(i) `wages’ and `workman’ have the meanings respectively assigned to them in clauses (rr) and (s) of Section 2 of the ID Act, 1947.

 

 

Relevant extract of The Industrial Disputes Act

Section 2(s)

 

 "workman" means any person (including an apprentice) employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms of employment be express or implied, and for the purposes of any proceeding under this Act in relation to an industrial dispute, includes any such person who has been dismissed, discharged or retrenched in connection with, or as a consequence of, that dispute, or whose dismissal, discharge or retrenchment has led to that dispute, but does not include any such person - (i) who is subject to the Air Force Act, 1950 (45 of 1950), or the Army Act, 1950 (46 of 1950), or the Navy Act, 1957 (62 of 1957);



Therefore, for an establishment  to come under the purview of the IE(SO)Act, 
the following conditions needs to be satisfied:-

 

  1. 100* [one hundred] or more “workmen” are employed, or were employed on any day of the preceding twelve months.

  2. It should be an “industrial establishment”, as defined by the Payment of Wages Act.

  3. it should be an establishment of a person who, for the purpose of fulfilling a contract with the   owner of any industrial establishment, employs workmen;

  4. it should be an establishment of a class notified by either the Central Government or the
    State Government concerned.

 

 

(1) Maharasthra         

 

  • The definition under  Section 2(2) (iv) viz.  the establishment of a person who, for the

         purpose of fulfilling a contract with the   owner of any industrial establishment, employs

          workmen;  is deleted by Bombay Amendment., 1958.

 

  • However, pursuant to the provisions of Section 38B of the Bombay Shops & Establishment Act, the provisions of the I(SE) Act and the rules and standing orders (including model standing orders) applies to all establishments in Maharasthra  wherein fifty or more employees are employed… as if they were industrial establishments.

  •  As per the definitions of the Bombay S&E Act, (Section 2(6) “employee” means a person wholly or principally employed, whether directly or through any agency, and whether for
    wages or other consideration, in or in connection any establishment and includes an apprentice, but does not include a member the employer’s family.

 (2) M.P.

 

  • As per Section 2 of the M.P.Industrial Employment (Standing Orders) Act, 1961, (a) every undertaking wherein the number of employees on any day during the twelve months preceding .. is more than twenty (20)

 

(

(3) For rest of the States, the provisions of Section 2(2) of the Industrial Employment (Standing Orders) Act. applies WHERE  the number of employees is 100 or more, except Karnataka & Gujarat, where the number is 50 or more.

 


 
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