Hello Esteemed Advisors,
I am currently employed as an HR professional in a startup Non-Banking Financial Company (NBFC), which is in the process of being registered with the Reserve Bank of India (RBI). Our RBI consultant has requested our standing orders. At present, we only possess an Employee Handbook that provides all essential information. My question is, is it obligatory for us to register under the Standing Order Act 1946, or can this step be skipped?
From India
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I am currently employed as an HR professional in a startup Non-Banking Financial Company (NBFC), which is in the process of being registered with the Reserve Bank of India (RBI). Our RBI consultant has requested our standing orders. At present, we only possess an Employee Handbook that provides all essential information. My question is, is it obligatory for us to register under the Standing Order Act 1946, or can this step be skipped?
From India
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The Industrial Employment (Standing Orders) Act, 1946, applies to every industrial establishment wherein 100 or more workmen are employed, or were employed on any day of the preceding 12 months. However, some states in India have reduced this employee threshold. For Delhi, the threshold has been reduced to 50 employees. As your startup NBFC has 30-40 employees, it is not obligatory for you to register under the Standing Order Act 1946 in Delhi.
However, having a Certified Standing Order in place is generally beneficial for both the employer and employees as it helps in maintaining industrial harmony and smooth running of the industry. It lays down the conditions of employment, code of conduct, and also the disciplinary process.
Even though it is not mandatory for your NBFC to have a standing order, your RBI consultant has asked for it. In this case, you can either get your Employee Handbook certified as a Standing Order if it covers all necessary points, or you can draft a new Standing Order and get it certified. Here are the core steps to certify a Standing Order:
1. Draft the Standing Order in line with the Model Standing Order provided in the Act.
2. Submit five copies of the draft to the Certifying Officer.
3. The Certifying Officer will review the draft and may suggest changes.
4. Once the draft is approved, the Certifying Officer will send a copy to the employer and to the trade union or workmen.
5. The employer should then display the Standing Order prominently at the workplace.
Please be aware that this is a simplified process and you should refer to the Industrial Employment (Standing Orders) Act, 1946 for full details. You may also want to get legal advice to ensure that your Standing Order complies with all relevant laws.
From India, Gurugram
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80However, having a Certified Standing Order in place is generally beneficial for both the employer and employees as it helps in maintaining industrial harmony and smooth running of the industry. It lays down the conditions of employment, code of conduct, and also the disciplinary process.
Even though it is not mandatory for your NBFC to have a standing order, your RBI consultant has asked for it. In this case, you can either get your Employee Handbook certified as a Standing Order if it covers all necessary points, or you can draft a new Standing Order and get it certified. Here are the core steps to certify a Standing Order:
1. Draft the Standing Order in line with the Model Standing Order provided in the Act.
2. Submit five copies of the draft to the Certifying Officer.
3. The Certifying Officer will review the draft and may suggest changes.
4. Once the draft is approved, the Certifying Officer will send a copy to the employer and to the trade union or workmen.
5. The employer should then display the Standing Order prominently at the workplace.
Please be aware that this is a simplified process and you should refer to the Industrial Employment (Standing Orders) Act, 1946 for full details. You may also want to get legal advice to ensure that your Standing Order complies with all relevant laws.
From India, Gurugram
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In our opinion first go through The Industrial Employment (Standing Orders) Act, 1946 for examination of its applicability on your unit. Then see which is your appropriate Govt. & what is minimum no. of workers required for its applicability in that area. Go through the definition of Industrial Establishment & if your nature of work is covered under this definition then see the no. of workmen for its applicability. If found applicable then approach the o/o Certifying Officer of your area to have CSO. Discuss the matter with your RBI consultant on its requirement.
R N KHOLA
From India, Delhi
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R N KHOLA
From India, Delhi
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In the absence of Certified Standing Orders for your firm, and it looks like you are well below the minimum threshold limit as per the applicable Industrial Employment (Standing Orders) Act, yet you can mention the Model Standing Order mentioned in such Act. There is nothing wrong or illegal in invoking it , as it constitutes the minimum service condition applicable at the local area. The statutory authority cannot find fault with for voluntarily following the Model S.O. From your query it is not clear as to your location. But for RBI purpose you can mention the Standing Orders that is applicable in that area.
From India, Bhopal
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From India, Bhopal
Acknowledge(0)Amend(0)Preeti-sethi
My area is Delhi and employees are only 30-40
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CiteHR.AI
(Fact Checked)-Your response is accurate. Firms can indeed use Model Standing Orders if they don't have their own. Great job! (1 Acknowledge point)
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Dear Preeti-Sethi,
You need to understand the applicability of the Act.
In Delhi, an industrial establishment is subject to standing orders, if it employs 100 or more workmen.
The Scope of the Act:
The Act requires employers to define the conditions of employment through standing orders and make them known to the employees.
The appropriate government can extend the application to establishments with less than 100 employees by issuing a notification in the Official Gazette.
Therefore, if an industrial establishment in Delhi employs 100 or more workmen, it must comply with the provisions of the Industrial Employment (Standing Orders) Act, 1946.
Thus you don't need Standing Orders on first hand. But there is nothing wrong to have a standing orders for the establishment because it's rule book both for employer and employees. The employees can be aware of the conducts & misconducts and their benefits. You draft one Standing Orders and submit the copy to labour license authority for certification. They may not certify because below the threshold limit. You send the copy of standing orders and acknowledgement copy of labour department as a compliancebto the RBI.
From India, Mumbai
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You need to understand the applicability of the Act.
In Delhi, an industrial establishment is subject to standing orders, if it employs 100 or more workmen.
The Scope of the Act:
The Act requires employers to define the conditions of employment through standing orders and make them known to the employees.
The appropriate government can extend the application to establishments with less than 100 employees by issuing a notification in the Official Gazette.
Therefore, if an industrial establishment in Delhi employs 100 or more workmen, it must comply with the provisions of the Industrial Employment (Standing Orders) Act, 1946.
Thus you don't need Standing Orders on first hand. But there is nothing wrong to have a standing orders for the establishment because it's rule book both for employer and employees. The employees can be aware of the conducts & misconducts and their benefits. You draft one Standing Orders and submit the copy to labour license authority for certification. They may not certify because below the threshold limit. You send the copy of standing orders and acknowledgement copy of labour department as a compliancebto the RBI.
From India, Mumbai
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Checked)-Your explanation is accurate. The Industrial Employment (Standing Orders) Act, 1946 applies to establishments with 100+ employees. Good job! (1 Acknowledge point)
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In few states like Maharashtra Standing order is applicable if engaged 50 or more workmen & few states its 100 or more, as you have less than 50 Standing order Act shall not be applicable
From India, Bangalore
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From India, Bangalore
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Checked)-Your information is correct. The Industrial Employment (Standing Orders) Act, 1946 applies to establishments with 100 or more workmen. Great job! (1 Acknowledge point)
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Industrial Employment Standing Orders Act 1946.pdf
Industrial Employment Standing Order Act.doc
CiteHR.AI
(Fact Checked)-Your advice is accurate. Checking the applicability of The Industrial Employment (Standing Orders) Act, 1946 is indeed the right step. Good job! (1 Acknowledge point)