Industrial Act

7/29/2019 Industrial Act

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The Industrial Employment(Standing Orders) Act, 1946


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Important Definitions

Standing Orders

The term StandingOrders means rules relating to matters set

out in the Schedule of the Act. An act to require employers inindustrial establishment formally to define conditions of

employment under them.

Appropriate Government: State Government, Central Government.

Certifying Officer: Means Labour Commissioner/Regional LabourCommissioner and includes any other officer appointed by theappropriate Government, by notification in the Official Gazette toperform such duties.

Employer: Owner of the establishment


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Object of the Act

To require employers to define the conditions of work

To bring about uniformity in terms and conditions of

employment

To minimize industrial conflicts

To foster harmonious relations between employers and

employees.

To provide statutory sanctity and importance to standing

orders


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Scope and Application

Extends to the whole of India

To every establishment wherein 100 or more workmen are employed

On any day preceding twelve months

Once applicable to the establishment then it continuous if the no. of

workmen employed gets reduced to less than 100

The appropriate Govt. can exempt any establishment from any of the

provisions of the Act


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Continuous..

It applies to railways, factories, mines, quarries, oil-fields, tramways, motor

services, docks, plantations, workshops, civil construction and maintenance

works. The Act has 15 sections and a schedule.

It applies to all the skilled or unskilled, manual, supervisory, technical,

clerical work.

The apprentices are also included.

The persons employed mainly in a managerial/administrative/supervisory

capacity drawing wages exceeding Rs.1600 are not covered.


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Employer Expectation

Employee should adhere the companys code of

conduct. If they avoids this then it leads toindiscipline/misconduct.

.


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FORM:

Disobedience

Theft, Dishonesty,

Will fall Behaviour,

Remain absent from work without leave etc


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CAUSES OF INDISCIPLINE Absence of Effective Leadership :

It results in poor management in areas of direction dui

dance, instruction etc. It leads to indiscipline.

Unfair Management Practices :

Payment of low wages, delay in payment, bad working

conditions. It leads to indiscipline.

Divide & Rule Policy:

Managers may often divide the employees into groups,

get the information from different groups about others. It leads to

indiscipline.


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CAUSES OF INDISCIPLINE

Non-Uniform Disciplinary Action:

Management has to treat all cases of indiscipline in a

fair & equitable wayif not it leads to indiscipline.


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PRINCIPLES OF NATURAL JUSTICE

AND DOMESTIC ENQUIRY

The principle of natural justice states that no man should be held

guilty without getting an opportunity to explain his point of view. It

states that the worker be given a fair chance :

To present evidence of his own choice.

To cross examine the managements evidence.

To explain his point of view without any pressure or fear.

Enquiry should be done by non-bias person.

Enquiry officer(manager) should not take any decision without

hearing both the parties.


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The changes made by the employer against the employee are explained to

the worker. If the worker agrees with the changes made against him, theenquiry is dropped.

The punishment should not be out of proportion to the misconduct of the

employee.


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DISCIPLINARY PROCEDURES

Issuing a Charge sheet:

Documents

Allegation not the conclusion. Specific

Date, Time, Venue of incident.

Show-Cause Notice:

It requires the worker to show cause why disciplinary action

will not be taken against him.

Give chance to employee

Time is given.


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Domestic Enquiry: Any explanation.

Explanation but not satisfactory to the management.

Domestic enquiry starts.

Notice.

Examination of Witness by the Enquiry Officer:

Right to cross examine the managements witness.

Right to give his view point.

Documents examined by enquiry officer.


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Closure of the Enquiry:

Sum-up all the arguments.

Signed. Finding of the Enquiry Officer:

Enquiry officer should provide his decision on the basis of

only evidence available & statement made by parties.

Punishment: Fine,

Stopage of increment

Demotion

Discharge/Dismissial from services

Suspension ets.


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Subsistence Allowance:

1st 90 days 50% of salary, more than 90 days 75% of salaryif delay.

Payment of subsistence allowance by an employer to a workman who hasbeen suspended by the employer and his investigation is pending

the allowance shall be at the rate of 50% of the wage for the first 90 daysof suspension

The allowance shall be 75% of the wage after 90 days if the investigation isdelayed due to employer


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Penalty

Any employer fails to submit draft standing orders or modifies it, shall

be punishable with fine which may extend to Rs. 5000.

In case of continuance of the above offence, fine up to Rs.200 perevery day.

Any contravention of Standing Orders is punishable by Rs. 100 fine .


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Conditions for certification of Standing

Orders

Must compile as per the Model Standing Orders

Fairness of the provisions shall be verified by the Certifying

OfficerAppealAny employer, workman, trade union aggrieved by the order of the

certifying officer may, with in 30 days from the date on whichcopies of the certified standing orders sent to them

Date of Operation of the ActOn the expiry of 30 days of the certification given by certifying

officer

Or

After the expiry of 7 days of the decision given by appellateauthority.