Standing orders
SHASHIDHAR A
(Querist) 01 October 2013
This query is : Resolved
Dear Sirs,
I wanted to know if ITES Industry (Call Centers, BPO's) come under the purview of Standing Orders Act in Tamil Nadu.
Is it mandatory for Call Centers to have Standing Orders registered with Lab.Dept.
As per our knowledge it is applicable to Industrial Employments and ITES do not come under Industrial Employment as it is part of Shop & Establishment.
Kindly share your views.
Kumar Doab
(Expert) 02 October 2013
The IT/ITeS/BPO/KPO/Call Centre companies should be under the purview of standing orders……………..
Please update the current status for Tamilnadu and confirm in this thread. It shall benefit many.
>> The term Industry does not mean factory alone.
The Standing Order Act is applicable to all establishments to which the Payment of Wages Act, 1936 applies…………………. Section 2 (e) THE INDUSTRIAL EMPLOYMENT (STANDING ORDERS) ACT, 1946,
>> Software firms are factories: High Court
“Creation or development of software is a manufacturing process and the premises where computers are used in the manufacturing process is a 'factory' for the purpose of the Employees' State Insurance Act, 1948 (ESI Act),”
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
FIRST APPEAL NO.143 OF 2012
Vs.
M/s. Western Outdoor Interactive Pvt. Ltd
WITH
FIRST APPEAL NO. 307 OF 2012
M/s. Reliable Software Systems Pvt. Ltd
http://bombayhighcourt.nic.in/data/judgements/2012/CFA2233111.pdf
>> The State Government can exempt a particular industry from this Central law.
The state of Karnataka had granted 2 year exemption to the IT and it 5 times, since 1999 and the exemption lasted 12 years.
The IT/ITeS employees association/groups had been protesting and finally the state of Karnataka ended this exemption and all companies were advised to submit draft standing orders by Dec12 for certification by Mar13.
The States of Maharashtra and Gujarat, Haryana, Tamil Nadu and to an extent Andhra Pradesh had also granted the exemption.
You may check the current status for Tamilnadu and confirm in this thread. It shall benefit many.
SEZ’s might also be exempted as per the policy. Therefore the SEZ and IT policy of the state may be looked into.
>> The IT/ITeS BPO companies are covered under Shops and Commercial establishments Act………………………….
{BPO companies are covered under Shops and Commercial establishments Act:
Delhi High Court: Mantec Consultant Pvt. Ltd vs State & Anr
http://www.indiankanoon.org/doc/147071732/}
>> The state of Kerala has notified all Commercial Establishments as Industrial Establishments under the payments of Wages Act.
http://www.lawyersclubindia.com/forum/files/534429533_notification_kl_ce%20inclusion%20under%20pow%20act%201936_18%2006%202013.pdf
