Hello Friends,
There is confusion about applicability of Industrial Employment Standing Orders Act or Standing Orders Act specifically in the organisation who are non manufacturing in nature.
As per the definition, it is clear that it is not applicable to the organisations who 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
I would also request members to enrich this article with their view and also, if someone has, can you please share statewise data on minimum numbers of employees required in an organisation to be covered under the Act
From India, Mumbai
87There is confusion about applicability of Industrial Employment Standing Orders Act or Standing Orders Act specifically in the organisation who are non manufacturing in nature.
As per the definition, it is clear that it is not applicable to the organisations who 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
I would also request members to enrich this article with their view and also, if someone has, can you please share statewise data on minimum numbers of employees required in an organisation to be covered under the Act
From India, Mumbai
The interpretation of industry was very narrow at the time when the Act was originally passed but with the passage of time, many States have made changes in the Act with regard to number of workers and the industries covered. Accordingly, in most of the states like Kerala, Karnataka, Maharashtra etc, all commercial establishments which are covered by the provisions of the Payment of Wages Act are under the purview of Industrial Employment (Standing Orders) Act.
Madhu.T.K
From India, Kannur
Madhu.T.K
From India, Kannur
Thanks Madhu, yes I agree to you. Thats why the Act clarifies- to refer The Payment of Wages Act while one seeking definition of industrial organisation.
Nature of business has changed rapidly and now almost every organisation have employee handbook defining those conditions in employees standing orders Act.
As one can see, in Gujarat, even if an organisation has 10 or more employees, standing orders Act is applicable.
Karnataka has exempted IT industry from it. I am looking for more comprehensive data on the same.
From India, Mumbai
Nature of business has changed rapidly and now almost every organisation have employee handbook defining those conditions in employees standing orders Act.
As one can see, in Gujarat, even if an organisation has 10 or more employees, standing orders Act is applicable.
Karnataka has exempted IT industry from it. I am looking for more comprehensive data on the same.
From India, Mumbai
In Karnataka, it is only an exemption given to IT companies and there is no blanket exemption to all commercial establishments. And it is very stupid to ask for exemption, I feel, because having a certified Standing Order of its own is good for any establishment since it defines the employee employer relationship and gives an idea about what are expected to be done and what are not.
Madhu.T.K
From India, Kannur
Madhu.T.K
From India, Kannur
I agree Madhu. Nobody need to ask for exemption. However, this should not be a tool in hands of labour inspector to extract money and harass business.
Further, organisation, those who do not know about the Act also have their employee handbook, KRAs, Appointment letters which covers aspect and the soul as well as sole purpose of the Act. For me, the Act is outdated specifically for modern business organisation.
From India, Mumbai
Further, organisation, those who do not know about the Act also have their employee handbook, KRAs, Appointment letters which covers aspect and the soul as well as sole purpose of the Act. For me, the Act is outdated specifically for modern business organisation.
From India, Mumbai
Dear Colleagues,
Its good that you have SO and we comply.Its mandatory as notified by states on numbers working in industrial establishments. Whats disadvantages you foresee ?There is no exemption permissible from authorities except in special condition like Lijjat Papad and Milk Dairies got special situations whereby they argued their cases craving it better in order to establish few working conditions that You can define with as matter of principle, many many clarifying words, terminologies which can bring in concepts and practices together. Like "resignation " which 30-40 yrs before was termed as written communication tendered by a workman with intention to leave employment. Today definition can be a modern and articulated like -Resignation is a communication tendered either through typed / hand written letter, electronically communication, SMS with its photograph and verified by co-worker or any such thing which you may be good make it march past.Later, in chapters of misconducts and procedure regarding domestic inquiry.Smoking near to a petro product manufacturing establishment is serious misconduct as it may cause danger to life, plant and properties including neighbors, while in furnaces,refractories,steels plant it may not amount.
So, you have options in hands to interpret, include, exclude aspects causing impacts on practicable conditions in your SO and same shall be enforceable as enactment of Acts and one should be able to make effective application of this provision.
Regds,
RDS Yadav
Thats reason, it is delegated to states and further on mutual agreements with workers companies can do justice and become Model.
Best luck!!
RDS Yadav
From India, Bareilly
Its good that you have SO and we comply.Its mandatory as notified by states on numbers working in industrial establishments. Whats disadvantages you foresee ?There is no exemption permissible from authorities except in special condition like Lijjat Papad and Milk Dairies got special situations whereby they argued their cases craving it better in order to establish few working conditions that You can define with as matter of principle, many many clarifying words, terminologies which can bring in concepts and practices together. Like "resignation " which 30-40 yrs before was termed as written communication tendered by a workman with intention to leave employment. Today definition can be a modern and articulated like -Resignation is a communication tendered either through typed / hand written letter, electronically communication, SMS with its photograph and verified by co-worker or any such thing which you may be good make it march past.Later, in chapters of misconducts and procedure regarding domestic inquiry.Smoking near to a petro product manufacturing establishment is serious misconduct as it may cause danger to life, plant and properties including neighbors, while in furnaces,refractories,steels plant it may not amount.
So, you have options in hands to interpret, include, exclude aspects causing impacts on practicable conditions in your SO and same shall be enforceable as enactment of Acts and one should be able to make effective application of this provision.
Regds,
RDS Yadav
Thats reason, it is delegated to states and further on mutual agreements with workers companies can do justice and become Model.
Best luck!!
RDS Yadav
From India, Bareilly
Hi
In Karnataka IT industries have exemption subject to certain conditions and not blanket exemption as Madhu pointed out.
In Karnataka IT companies were asked to show better and more favourable service conditions, but they did not produce nor they drafted suitable modern SO suiting to their industry in modern context but continued their apprehensions and crying for exemption.
It is high time considering modern business and HR practices, other changes SO has to be redrafted since current Model SOs are not exhaustive .
Ram K Navaratna
HR Resonance
Bangalore
www:hrresonance(dot)com
From India, Bangalore
In Karnataka IT industries have exemption subject to certain conditions and not blanket exemption as Madhu pointed out.
In Karnataka IT companies were asked to show better and more favourable service conditions, but they did not produce nor they drafted suitable modern SO suiting to their industry in modern context but continued their apprehensions and crying for exemption.
It is high time considering modern business and HR practices, other changes SO has to be redrafted since current Model SOs are not exhaustive .
Ram K Navaratna
HR Resonance
Bangalore
www:hrresonance(dot)com
From India, Bangalore
I agree to Ram
I am not suggesting for any exemption. As stated in my article, many modern organisations have much more and better employee handbook, KRAs, conditions of employment stated in appointment letter so this Act become outdated and just a tool in the hand of labour inspectors to harass the organisation
From India, Mumbai
I am not suggesting for any exemption. As stated in my article, many modern organisations have much more and better employee handbook, KRAs, conditions of employment stated in appointment letter so this Act become outdated and just a tool in the hand of labour inspectors to harass the organisation
From India, Mumbai
Sr.CiteHR Members.
To say that SO is a tool in the hands of LI to harass employer may not be true. LI has many other loophole points/subjects like CL, Maintenance of various registers like Attendance, Leave, Wages, Co-Off etc., whereas SO was intended to inform all workers what they are supposed to do & what not to do & for the Management to define precisely all the terms & conditions of employment under them to be made known to workers. It is rather a compulsion on the part of employer to make it & made known to all & thus educate the workers about work culture. Thus, there is utility for the workers by framing SO though a compulsion for the employer under the said Act.
I hope, Seniors would agree. c.neyimkhan 8.12.2014
From India, Bangalore
To say that SO is a tool in the hands of LI to harass employer may not be true. LI has many other loophole points/subjects like CL, Maintenance of various registers like Attendance, Leave, Wages, Co-Off etc., whereas SO was intended to inform all workers what they are supposed to do & what not to do & for the Management to define precisely all the terms & conditions of employment under them to be made known to workers. It is rather a compulsion on the part of employer to make it & made known to all & thus educate the workers about work culture. Thus, there is utility for the workers by framing SO though 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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Industrial Employment Standing Oder Act.doc