We have fewer than 75 employees sitting at Head Office. We have obtained a Shops & Establishment License. Please confirm if it's mandatory to have Standing Orders as well. We heard from a source that with fewer than 75 employees, it's not required to have Standing Orders.
Seeking clarity.
From India, Noida
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Seeking clarity.
From India, Noida
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Dear colleague,
The query is related to whether The Industrial Employment Standing Orders Act/Rules are applicable to your establishment or not. This Central Act applies to the Establishment/Factory employing 100 workmen, but the State Governments are empowered to make it applicable to less than this prescribed number of workmen, like in Maharashtra, where it applies to 50 workmen in an establishment.
Therefore, you need to ascertain from the state Labour Commissioner's office about any such notification. If not, the Act will not apply to the establishment under reference.
However, since the Standing Orders lay down service conditions relating to employment, it would be a prudent option to get Service Rules framed by some expert on the lines of Standing Orders.
Regards,
Vinayak Nagarkar HR and Employee Relations Consultant
From India, Mumbai
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660The query is related to whether The Industrial Employment Standing Orders Act/Rules are applicable to your establishment or not. This Central Act applies to the Establishment/Factory employing 100 workmen, but the State Governments are empowered to make it applicable to less than this prescribed number of workmen, like in Maharashtra, where it applies to 50 workmen in an establishment.
Therefore, you need to ascertain from the state Labour Commissioner's office about any such notification. If not, the Act will not apply to the establishment under reference.
However, since the Standing Orders lay down service conditions relating to employment, it would be a prudent option to get Service Rules framed by some expert on the lines of Standing Orders.
Regards,
Vinayak Nagarkar HR and Employee Relations Consultant
From India, Mumbai
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Dear Brother,
Industrial Employment Standing Orders is a vital document that governs the terms of employment, as you know.
The applicability depends on the number of employees employed. Kindly check the latest number stipulated under Industrial from the respective Labour Commissioner of Noida/Delhi, who has jurisdiction for your location. If the number is above the stipulated number of employees, then you must have Certified Standing Orders. If the number is less than the stipulated number, then you may follow the Model Standing Order annexed to the said Act for all practical purposes. If you have branches in many locations, then you can have one single Standing Order covering your branches and Head office, commonly certified by the Central Labour Wing. All the best, Brother.
Under the Proposed Industrial Relations Code 2020, there are Model Standing Orders stipulated separately for Manufacturing and Mines, and then for the Service Sector. The option is given here to either go for a certified Standing Order (separately for your establishment) or adopt the Model Standing Order prescribed under the Act and Rules (Industrial Relations Code 2020 and Standing Orders Rules) with the due declaration and as per the process stipulated under the Act/Rules mentioned. However, the effective date is yet to be announced by the Government of India.
From India, Chennai
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Industrial Employment Standing Orders is a vital document that governs the terms of employment, as you know.
The applicability depends on the number of employees employed. Kindly check the latest number stipulated under Industrial from the respective Labour Commissioner of Noida/Delhi, who has jurisdiction for your location. If the number is above the stipulated number of employees, then you must have Certified Standing Orders. If the number is less than the stipulated number, then you may follow the Model Standing Order annexed to the said Act for all practical purposes. If you have branches in many locations, then you can have one single Standing Order covering your branches and Head office, commonly certified by the Central Labour Wing. All the best, Brother.
Under the Proposed Industrial Relations Code 2020, there are Model Standing Orders stipulated separately for Manufacturing and Mines, and then for the Service Sector. The option is given here to either go for a certified Standing Order (separately for your establishment) or adopt the Model Standing Order prescribed under the Act and Rules (Industrial Relations Code 2020 and Standing Orders Rules) with the due declaration and as per the process stipulated under the Act/Rules mentioned. However, the effective date is yet to be announced by the Government of India.
From India, Chennai
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Dear colleague,
The views expressed by the learned colleague are largely correct; however, I beg to differ with the second paragraph.
The IESAct, when applicable, provides for the procedure of certification of the Standing Orders. It also provides for the Model Standing Orders. An establishment can follow the MSO in the absence of certified standing orders. I do not find any provision in the Act stating that the certified standing orders apply only up to a certain number of employees (the workmen), and if it is less than that, Model Standing Orders apply. I would appreciate if a specific clause relating to such a provision is cited for the education of members on this forum.
Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant
From India, Mumbai
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The views expressed by the learned colleague are largely correct; however, I beg to differ with the second paragraph.
The IESAct, when applicable, provides for the procedure of certification of the Standing Orders. It also provides for the Model Standing Orders. An establishment can follow the MSO in the absence of certified standing orders. I do not find any provision in the Act stating that the certified standing orders apply only up to a certain number of employees (the workmen), and if it is less than that, Model Standing Orders apply. I would appreciate if a specific clause relating to such a provision is cited for the education of members on this forum.
Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant
From India, Mumbai
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For shops, the Act 1946 applies on the strength of 100 workmen. - S.K. Mittal Industrial & Labour Lawyer 9319956443
From India, Faridabad
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From India, Faridabad
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Dear Colleague,
Thanks for highlighting; it is a great observation. For more clarity, this is shared further for the benefit of the forum.
As rightly pointed out, there is no legal provision under the Industrial Employment (Standing Orders) Act, 1946.
This is a sharing from our past experience on what we did.
When the number of workers is 100 or more, Certified Standing Orders become applicable. We had a few factories engaging fewer than 100 workers. Managing workers in many places where IR was very strong (without a Standing Order) was becoming tough day by day. So what we did was that we annexed the Model Standing Order as part of Employment Terms in their Appointment Order (more or less the same provisions of Model Standing Order) and both sides signed (Worker-Employer) at the time of appointment. It was helpful for Employee Administration from Shift working to Misconduct/Discipline and many more matters stipulated there.
This is the clarity and more from a practical point of view of how we managed it effectively some years back until we went for Certification of Standing Order separately for the said Factories.
Further, the applicability of Model Standing Orders temporarily is as per Section 12-A of the Act (1946) only as many of our colleagues know very well.
Reproduced: Section 12A: (Act of 1946) Temporary application of model standing orders. -- (1) Notwithstanding anything contained in Sections to12, for the period commencing on the date on which this Act becomes applicable to an industrial establishment and ending with the date on which the standing orders as finally certified under this Act come into operation under Section 7 in that establishment, the prescribed model standing orders shall be deemed to be adopted in that establishment, and the provisions of Section 9, subsection (2) of Section 13, and Section 13-A shall apply to such model standing orders as they apply to the standing orders so certified.
Thanks once again for the crisp point highlighted by our colleague.
From India, Chennai
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Thanks for highlighting; it is a great observation. For more clarity, this is shared further for the benefit of the forum.
As rightly pointed out, there is no legal provision under the Industrial Employment (Standing Orders) Act, 1946.
This is a sharing from our past experience on what we did.
When the number of workers is 100 or more, Certified Standing Orders become applicable. We had a few factories engaging fewer than 100 workers. Managing workers in many places where IR was very strong (without a Standing Order) was becoming tough day by day. So what we did was that we annexed the Model Standing Order as part of Employment Terms in their Appointment Order (more or less the same provisions of Model Standing Order) and both sides signed (Worker-Employer) at the time of appointment. It was helpful for Employee Administration from Shift working to Misconduct/Discipline and many more matters stipulated there.
This is the clarity and more from a practical point of view of how we managed it effectively some years back until we went for Certification of Standing Order separately for the said Factories.
Further, the applicability of Model Standing Orders temporarily is as per Section 12-A of the Act (1946) only as many of our colleagues know very well.
Reproduced: Section 12A: (Act of 1946) Temporary application of model standing orders. -- (1) Notwithstanding anything contained in Sections to12, for the period commencing on the date on which this Act becomes applicable to an industrial establishment and ending with the date on which the standing orders as finally certified under this Act come into operation under Section 7 in that establishment, the prescribed model standing orders shall be deemed to be adopted in that establishment, and the provisions of Section 9, subsection (2) of Section 13, and Section 13-A shall apply to such model standing orders as they apply to the standing orders so certified.
Thanks once again for the crisp point highlighted by our colleague.
From India, Chennai
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It is not the number of employees but number of workmen, the criteria for applicability of IESO Act. Pl check whether the Act is extended to commercial establishments also in the state.
From India, Thiruvananthapuram
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From India, Thiruvananthapuram
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Dear HR Manager,
As per the UP Govt Notification No. 2828 (LL)/ XVIII-450(LL) 50 dated 15.11.1950 published in the UP Gazette dated 18.11.1950, The Industrial Employment (Standing Orders) Act, 1946 shall apply to all the industrial establishments in the State employing less than 100 workmen. Further, vide Notification No. 5022(V)XXXVI-3-57/ SO (1)-72 dated 20.01.1978 (published in 1978 LLT Part V Page 80), the UP Govt has also directed that the Act shall apply to all establishments which were factories within the meaning of S.2(m) of the Factories Act, 1948.
I hope the matter is clear. If any assistance is required, I can be contacted on my mobile.
S. SENSHARMA, Industrial Law & HR Consultant, Meerut
7830718856
From India, undefined
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As per the UP Govt Notification No. 2828 (LL)/ XVIII-450(LL) 50 dated 15.11.1950 published in the UP Gazette dated 18.11.1950, The Industrial Employment (Standing Orders) Act, 1946 shall apply to all the industrial establishments in the State employing less than 100 workmen. Further, vide Notification No. 5022(V)XXXVI-3-57/ SO (1)-72 dated 20.01.1978 (published in 1978 LLT Part V Page 80), the UP Govt has also directed that the Act shall apply to all establishments which were factories within the meaning of S.2(m) of the Factories Act, 1948.
I hope the matter is clear. If any assistance is required, I can be contacted on my mobile.
S. SENSHARMA, Industrial Law & HR Consultant, Meerut
7830718856
From India, undefined
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Dear All,
I am working in a company in Rajasthan, Bhiwadi. Here, the number of workmen is more than 100. So, I wanted to know whether I need to have a certified standing order. Also, I have seen that to adopt the model standing order, the minimum number of employees required is 300. Can you please guide me on this? Additionally, what is the difference between a standing order and a model standing order, and which one should be adopted?
From India, Delhi
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I am working in a company in Rajasthan, Bhiwadi. Here, the number of workmen is more than 100. So, I wanted to know whether I need to have a certified standing order. Also, I have seen that to adopt the model standing order, the minimum number of employees required is 300. Can you please guide me on this? Additionally, what is the difference between a standing order and a model standing order, and which one should be adopted?
From India, Delhi
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