Dear Friends,Please see the attachement for the clarifaction of doubts on weather the IT industry is applicable for Labour Laws. A Seminar was held at Andhra Pradesh FAPCCI, Hyderabad and calrified the doubts. An extract Q & A is attached for all HR Professionals. May be useful for every one. Regards, PBS KUMAR
From India, Kakinada
590From India, Kakinada
Hi, The attachment is not opening. It says the file is corrupted. Could you pls upload the document again?
Dear Mr Kumar:
Your post on the subject is a very useful document for all HR professionals
and more particularly to those in IT industry.
However, one observation I want to make to enlighten our colleagues in the profession is regarding the Q:19 relating to getting certification of Standing Orders under the provisions of Industrial Employment (Stnding Orders) Act 1946.
The said Act is applicable only to 'industrial establishements' as defined by Se.2(e) of the Act.
Sec.2(e) defines :
(e) “industrial establishment” means
(i) an industrial establishment as defined in clause (ii) of Section 2 of the Payment of Wages Act, 1936, or
[1][(ii) a factory as defined in clause (m) of Section 2 of the Factories Act, 1948, or ]
(iii) a railway as defined in clause (4) of Section 2 of the Indian Railway Act, 1890, or
(iv) the establishment of a person who, for the purpose of fulfilling a contract with the owner of any industrial establishment, employs workmen;
By this definition, IT/ITES industry is not attracted by this definition and hence the said Act is not applicable and is outside the scope of the said Act, provided they are not enaged in any manufacuring activity.
Hence, there is no need to go to the Certifying Officer for getting any approval for the employment rules of such companies.
R Sundararajan
From India, Madras
Your post on the subject is a very useful document for all HR professionals
and more particularly to those in IT industry.
However, one observation I want to make to enlighten our colleagues in the profession is regarding the Q:19 relating to getting certification of Standing Orders under the provisions of Industrial Employment (Stnding Orders) Act 1946.
The said Act is applicable only to 'industrial establishements' as defined by Se.2(e) of the Act.
Sec.2(e) defines :
(e) “industrial establishment” means
(i) an industrial establishment as defined in clause (ii) of Section 2 of the Payment of Wages Act, 1936, or
[1][(ii) a factory as defined in clause (m) of Section 2 of the Factories Act, 1948, or ]
(iii) a railway as defined in clause (4) of Section 2 of the Indian Railway Act, 1890, or
(iv) the establishment of a person who, for the purpose of fulfilling a contract with the owner of any industrial establishment, employs workmen;
By this definition, IT/ITES industry is not attracted by this definition and hence the said Act is not applicable and is outside the scope of the said Act, provided they are not enaged in any manufacuring activity.
Hence, there is no need to go to the Certifying Officer for getting any approval for the employment rules of such companies.
R Sundararajan
From India, Madras
Hey Rajan ji,Please go through the S.O Act at once.You mean; 'the word Industry' is only relating to the Industries ?If you are facing a dispute in your IT firm between Employee and Employer or Employee and Employee how you solve it ? on what basis you have to handeled the case ? For this you have to follow these orders. If the case is goes to Labour Court on what bases you have to attend. Please see the meaning as per the Industrial Disputes Act, 1947(j) "industry" means any systematic activity carried on by co-operation between an employer and his workmen (whether such workmen are employed by such employer directly or by or through any agency, including a contractor) for the production, supply or distribution of goods or services with a view to satisfy human wants or wishes (not being wants or wishes which are merely spiritual or religious in nature), whether or not, - (i) any capital has been invested for the purpose of carrying on such activity; or (ii) such activity is carried on with a motive to make any gain or profit, and includes - (a) any activity of the Dock Labour Board established under section 5A of the Dock Workers (Regulation of Employment) Act, 1948 (9 of 1949); (b) any activity relating to the promotion of sales or business or both carried on by an establishment, but does not include - (1) any agricultural operation except where such agricultural operation is carried on in an integrated manner with any other activity (being any such activity as is referred to in the foregoing provisions of this clause) and such other activity is the predominant one. Explanation : For the purposes of this sub-clause, "agricultural operation" does not include any activity carried on in a plantation as defined in clause (f) of section 2 of the Plantations Labour Act, 1951 (69 of 1951); or (2) hospitals or dispensaries; or (3) educational, scientific, research or training institutions; or (4) institutions owned or managed by organizations wholly or substantially engaged in any charitable, social or philanthropic service; or (5) khadi or village industries; or (6) any activity of the Government relatable to the sovereign functions of the Government including all the activities carried on by the departments of the Central Government dealing with defence research, atomic energy and space; or (7) any domestic service; or (8) any activity, being a profession practised by an individual or body of individuals, if the number of persons employed by the individuals or body of individuals in relation to such profession is less than ten; or (9) any activity, being an activity carried on by a co-operative society or a club or any other like body of individuals, if the number of persons employed by the co-operative society, club or other like body of individuals in relation to such activity is less than ten; SO IN VIEW OF THE ABOVE THE IT 'INDUSTRY' IS ALSO REQUIRED TO CERTIFY THE STANDING ORDERS TO SAFE GUARD THE ORGANISATION IN A CONGENIAL ATMOSPIER.Regards,PBS KUMAR
From India, Kakinada
From India, Kakinada
Dear Sir,
Thanks a lot.................for valuable information..............
Can u please explain me how practically PA is done in IT Industry......ant materials do you have....plese forward me sir.....
From India, Bangalore
Thanks a lot.................for valuable information..............
Can u please explain me how practically PA is done in IT Industry......ant materials do you have....plese forward me sir.....
From India, Bangalore
Dear Kumar:
I have carefully reviewed your reply. But, I beg to differ on this.
The Act in question is 'Industrial Establishment (Standing Orders ) Act 1946. It is applicable only to 'industrial establishments' as defined by the Act. This is what I had highlighted. The term 'industry' under the Industrial Disputes Act s different from the definiton of 'industrial establishment' under the IE(SO) Act.
We need to have rules and regulations for employees conduct. Normally, it is circulated as part of Employees Handbook or terms and conditions of appointment and employees acceptance is obtained therefor. These are binding on the employees. Such employees acceptance is enough for dealing with matters of dispute in labour courts.
Not having rules and regulations is one thing and not having cerified rules and regulations under the Act is totaly a different one.
All I am saying is as per the extant law today. as far as the IT/ITES companies are concerned, they can frame their rules and regulations for employees and it is not mandatory for them to go to the Certifying Officer for certification under the Act.
R Sundararajan
From India, Madras
I have carefully reviewed your reply. But, I beg to differ on this.
The Act in question is 'Industrial Establishment (Standing Orders ) Act 1946. It is applicable only to 'industrial establishments' as defined by the Act. This is what I had highlighted. The term 'industry' under the Industrial Disputes Act s different from the definiton of 'industrial establishment' under the IE(SO) Act.
We need to have rules and regulations for employees conduct. Normally, it is circulated as part of Employees Handbook or terms and conditions of appointment and employees acceptance is obtained therefor. These are binding on the employees. Such employees acceptance is enough for dealing with matters of dispute in labour courts.
Not having rules and regulations is one thing and not having cerified rules and regulations under the Act is totaly a different one.
All I am saying is as per the extant law today. as far as the IT/ITES companies are concerned, they can frame their rules and regulations for employees and it is not mandatory for them to go to the Certifying Officer for certification under the Act.
R Sundararajan
From India, Madras
Respected Sh. PBS Kumar ji,
Sir, I appologise in differing with your views expressed in response to a query by Sh. R.Sundrarajan. I venture to point out that the definition of 'industry' under the Industrial Dispute Act, 1947, quoted by your goodself in this column is still not in operation although the same is an amended definition under Industrial Disputes (Amendment) Act, 1982 (Act 46 of 1982). The courts are still bound by the existing definition of 'industry' under the Industrial Disputes Act, 1947 Act according to which the word 'industry' means any business, trade, undertaking, manufacturig or calling employers and and includes any calling, service, employment, handicraft or idustrial occupation or avocation of workmen.
However, the provisions of the Industrial Employment (Standing Orders) Act, 1946 are not necessarily applicable to the 'industry' under the ID Act, 1947 but are applicable to the 'Industrial Establishments' defined under the Act,1946. It is suggested that let the readers be not confused regarding the provisions of these two legislations and they may read them independently; meaning thereby that - for example - a factory employing 18 workmen may be covered under the ID Act 1947, but may not be covered under the SO Act, 1946
Regards
Jpratap
From India, Chandigarh
Sir, I appologise in differing with your views expressed in response to a query by Sh. R.Sundrarajan. I venture to point out that the definition of 'industry' under the Industrial Dispute Act, 1947, quoted by your goodself in this column is still not in operation although the same is an amended definition under Industrial Disputes (Amendment) Act, 1982 (Act 46 of 1982). The courts are still bound by the existing definition of 'industry' under the Industrial Disputes Act, 1947 Act according to which the word 'industry' means any business, trade, undertaking, manufacturig or calling employers and and includes any calling, service, employment, handicraft or idustrial occupation or avocation of workmen.
However, the provisions of the Industrial Employment (Standing Orders) Act, 1946 are not necessarily applicable to the 'industry' under the ID Act, 1947 but are applicable to the 'Industrial Establishments' defined under the Act,1946. It is suggested that let the readers be not confused regarding the provisions of these two legislations and they may read them independently; meaning thereby that - for example - a factory employing 18 workmen may be covered under the ID Act 1947, but may not be covered under the SO Act, 1946
Regards
Jpratap
From India, Chandigarh
Dear Mr.Sundarajan, Could you please tell us guideline for definition of the 'Manufacturing Activity" (as per which Act) as referred in your post.
From India, Madras
From India, Madras
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