Hello Friends,
There is confusion about the applicability of the Industrial Employment Standing Orders Act or Standing Orders Act, specifically in organizations that are non-manufacturing in nature. As per the definition, it is clear that it is not applicable to organizations that are not industry in nature.
I have written a detailed description of the same on my blog. Please click, read, share, and comment: [Applicability of Industrial Employment (Standing Orders) Act, 1946](http://blog.simplycareer.net/2014/12/applicability-of-industrial-employment.html).
I would also request members to enrich this article with their views. Additionally, if someone has information, can you please share state-wise data on the minimum number of employees required in an organization to be covered under the Act.
From India, Mumbai
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87There is confusion about the applicability of the Industrial Employment Standing Orders Act or Standing Orders Act, specifically in organizations that are non-manufacturing in nature. As per the definition, it is clear that it is not applicable to organizations that are not industry in nature.
I have written a detailed description of the same on my blog. Please click, read, share, and comment: [Applicability of Industrial Employment (Standing Orders) Act, 1946](http://blog.simplycareer.net/2014/12/applicability-of-industrial-employment.html).
I would also request members to enrich this article with their views. Additionally, if someone has information, can you please share state-wise data on the minimum number of employees required in an organization to be covered under the Act.
From India, Mumbai
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The interpretation of the industry was very narrow at the time when the Act was originally passed. However, with the passage of time, many states have made changes to the Act regarding the number of workers and the industries covered. As a result, in states like Kerala, Karnataka, Maharashtra, etc., all commercial establishments covered by the Payment of Wages Act fall under the purview of the Industrial Employment (Standing Orders) Act.
Madhu.T.K
From India, Kannur
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Madhu.T.K
From India, Kannur
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Thanks, Madhu. Yes, I agree with you. That's why the Act clarifies - to refer to The Payment of Wages Act when one seeks the definition of an industrial organization.
The nature of business has changed rapidly, and now almost every organization has an employee handbook defining the conditions in employees' standing orders Act. As one can see, in Gujarat, even if an organization has 10 or more employees, the standing orders Act is applicable.
Karnataka has exempted the IT industry from it. I am looking for more comprehensive data on the same.
From India, Mumbai
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The nature of business has changed rapidly, and now almost every organization has an employee handbook defining the conditions in employees' standing orders Act. As one can see, in Gujarat, even if an organization has 10 or more employees, the standing orders Act is applicable.
Karnataka has exempted the IT industry from it. I am looking for more comprehensive data on the same.
From India, Mumbai
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In Karnataka, it is only an exemption given to IT companies, and there is no blanket exemption for all commercial establishments. I feel that asking for an exemption is very imprudent because having a certified Standing Order of its own is beneficial for any establishment. It defines the employee-employer relationship and provides clarity on expectations and responsibilities.
Madhu.T.K
From India, Kannur
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Madhu.T.K
From India, Kannur
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I agree, Madhu. Nobody needs to ask for exemption. However, this should not be a tool in the hands of labor inspectors to extract money and harass businesses.
Furthermore, organizations that do not know about the Act also have their employee handbooks, KRAs, and appointment letters which cover aspects and the soul as well as the sole purpose of the Act. For me, the Act is outdated, specifically for modern business organizations.
From India, Mumbai
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Furthermore, organizations that do not know about the Act also have their employee handbooks, KRAs, and appointment letters which cover aspects and the soul as well as the sole purpose of the Act. For me, the Act is outdated, specifically for modern business organizations.
From India, Mumbai
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Dear Colleagues,
It's good that you have a Standard Operating Procedure (SOP) in place, and we comply. It's mandatory as notified by states regarding the numbers of individuals working in industrial establishments. What disadvantages do you foresee? There is no exemption permissible from authorities except in special conditions, like Lijjat Papad and Milk Dairies, which have unique situations whereby they argued their cases, urging for better conditions to be established.
You can define these conditions as a matter of principle, with many clarifying words, terminologies that can bring concepts and practices together. For example, "resignation," which 30-40 years ago was termed as written communication tendered by a worker with the intention to leave employment. Today, the definition can be modern and articulated as - Resignation is a communication tendered either through a typed/handwritten letter, electronic communication, SMS with a photograph, and verified by a co-worker, or any such method that you may deem appropriate.
Later, in chapters discussing misconducts and procedures regarding domestic inquiries, smoking near a petro product manufacturing establishment is considered a serious misconduct as it may pose a danger to life, plant, properties, including neighbors. However, in furnaces, refractories, steel plants, it may not be considered as such.
Therefore, you have options to interpret, include, or exclude aspects that impact practical conditions in your SOP, and these shall be enforceable as Acts. One should be able to effectively apply this provision.
Regards,
RDS Yadav
This is the reason it is delegated to states, and further mutual agreements with workers can allow companies to do justice and become a role model.
Best of luck!
RDS Yadav
From India, Bareilly
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It's good that you have a Standard Operating Procedure (SOP) in place, and we comply. It's mandatory as notified by states regarding the numbers of individuals working in industrial establishments. What disadvantages do you foresee? There is no exemption permissible from authorities except in special conditions, like Lijjat Papad and Milk Dairies, which have unique situations whereby they argued their cases, urging for better conditions to be established.
You can define these conditions as a matter of principle, with many clarifying words, terminologies that can bring concepts and practices together. For example, "resignation," which 30-40 years ago was termed as written communication tendered by a worker with the intention to leave employment. Today, the definition can be modern and articulated as - Resignation is a communication tendered either through a typed/handwritten letter, electronic communication, SMS with a photograph, and verified by a co-worker, or any such method that you may deem appropriate.
Later, in chapters discussing misconducts and procedures regarding domestic inquiries, smoking near a petro product manufacturing establishment is considered a serious misconduct as it may pose a danger to life, plant, properties, including neighbors. However, in furnaces, refractories, steel plants, it may not be considered as such.
Therefore, you have options to interpret, include, or exclude aspects that impact practical conditions in your SOP, and these shall be enforceable as Acts. One should be able to effectively apply this provision.
Regards,
RDS Yadav
This is the reason it is delegated to states, and further mutual agreements with workers can allow companies to do justice and become a role model.
Best of luck!
RDS Yadav
From India, Bareilly
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Hi,
In Karnataka, IT industries have exemptions subject to certain conditions and not blanket exemptions, as Madhu pointed out. In Karnataka, IT companies were asked to show better and more favorable service conditions, but they did not produce suitable modern SOs suiting their industry in the modern context. Instead, they continued their apprehensions and pleas for exemptions.
It is high time to consider modern business and HR practices; therefore, other changes in the SO have to be redrafted since the current Model SOs are not exhaustive.
Ram K Navaratna
HR Resonance
Bangalore
www.hrresonance.com
From India, Bangalore
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In Karnataka, IT industries have exemptions subject to certain conditions and not blanket exemptions, as Madhu pointed out. In Karnataka, IT companies were asked to show better and more favorable service conditions, but they did not produce suitable modern SOs suiting their industry in the modern context. Instead, they continued their apprehensions and pleas for exemptions.
It is high time to consider modern business and HR practices; therefore, other changes in the SO have to be redrafted since the current Model SOs are not exhaustive.
Ram K Navaratna
HR Resonance
Bangalore
www.hrresonance.com
From India, Bangalore
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I agree with Ram. I am not suggesting any exemptions. As stated in my article, many modern organizations have much more comprehensive and improved employee handbooks, KRAs, and conditions of employment stated in the appointment letter. Therefore, this Act has become outdated and is merely a tool in the hands of labor inspectors to harass organizations.
From India, Mumbai
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From India, Mumbai
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Dear Sr. CiteHR Members,
To say that SO is a tool in the hands of LI to harass employers may not be true. LI has many other loopholes like CL, maintenance of various registers such as attendance, leave, wages, co-off, etc., whereas SO was intended to inform all workers about what they are supposed to do and what not to do, and for the management to define precisely all the terms and conditions of employment to be made known to workers. It is rather a compulsion on the part of the employer to create and make it known to all, thus educating the workers about work culture. Therefore, there is utility for the workers by framing SO even though it is a compulsion for the employer under the said Act.
I hope seniors would agree.
c.neyimkhan
8.12.2014
From India, Bangalore
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To say that SO is a tool in the hands of LI to harass employers may not be true. LI has many other loopholes like CL, maintenance of various registers such as attendance, leave, wages, co-off, etc., whereas SO was intended to inform all workers about what they are supposed to do and what not to do, and for the management to define precisely all the terms and conditions of employment to be made known to workers. It is rather a compulsion on the part of the employer to create and make it known to all, thus educating the workers about work culture. Therefore, there is utility for the workers by framing SO even though it is a compulsion for the employer under the said Act.
I hope seniors would agree.
c.neyimkhan
8.12.2014
From India, Bangalore
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