Standing Orders

Standing Orders - a tool to organise workforce• Systematic and regularized workforce is an essential

prerequisite for the efficient functioning of an organisation. From this stems the concept of Standing Orders.

• ‘Standing Orders’ is a formalized set of guidelines, rules and regulations formulated by an employee touching upon certain specific issues of employment like classification of employees, shift working, grant of leave, lay-off, acts and omissions that constitute misconduct and punishment for it, retirement etc.

• They govern the conditions of employment of workers. They specify the duties and responsibilities on the part of both employer and employees and also make them aware of their own limitations.

• They bind the employer and workers. However they may also govern the service conditions of other employees of the establishment who may not be workmen.

Objects• Standing Orders play a significant role in creating conditions

favourable to the attainment of industrial harmony. They ensure the existence of satisfactory employment and working conditions. Disputes, strikes, bitterness etc can be checked if the conditions of work and employment are clearly and properly defined.

• These orders generally regulate the conditions of employment, discharge, grievances, misconduct, disciplinary actions etc.

• Defined conditions of employment reflecting the current concepts and practices go a long way in protecting the employees from arbitrary and high handed treatment from employers. They also ensure the regular attendance of the employees and prevent dislocation of work.

Evolution of Standing orders

• The first legislative enactment to regulate the making of Standing Orders was in the Bombay Industrial Disputes Act, 1932.

• The Industrial Establishment (Standing Order)Act was enacted in 1946 with a view to regulate the conditions of recruitment, discharge, disciplinary actions and holidays of the workers employed in the industrial undertaking.

• This Act require employers in industrial establishments formally to define conditions of employment under them by issuing standing orders duly certified

• The schedule to the Act requires that following should be specified in Standing Orders – – (a) classification of workmen i.e. temporary, badli, casual, permanent, skilled etc.– (b) manner of intimating to workmen working hours, shift working, transfers etc. – (c) Holidays – (d) Attendance and late coming rules– (e) Leave rules (f) Leave eligibility and leave conditions– (g) Closing and reopening of sections of industrial establishment– (h) termination of employment, suspension, dismissal etc. for misconduct and acts or omissions

which constitute misconduct– (i) Retirement age – (j) Means of redressal of workmen against unfair treatment or wrongful exactions by employer – (k) Any other matter that may be prescribed.

Objectives of the Act…

• The object of the Act is to have uniform Standing Orders providing for the matters enumerated in the Schedule to the Act, and once the Standing Orders come into the force, they bind all those presently in the employment of the concerned establishment as well as those who are appointed thereafter.

• The objectives of the Act are – – Whereas it is expedient to require employers in industrial

establishments to define with sufficient precision the conditions of employment under them and to make the said conditions known to workmen employed by them.

– To have uniformity in working conditions with respect to workers, factories, and working relationship

– To ensure that the terms and conditions of the employment are known to the employee and thus to minimise exploitation of the workers.

– To promote industrial peace and harmony by promoting fair industrial practices.

APPLICATION of the Act• Section (1) of the industrial employment (standing orders) Act,

1946 stipulates that the Act applies to every industrial establishment wherein 100 or more workmen are employed or were employed on any day of the preceding 12 months. The Act requires the employers to define with sufficient precision the conditions of employment under them and to make the said conditions known to workmen employed by them.

• VOLUNTARY APPLICATION OF THE ACT• A Notification was issued vide G.O.Ms.No.5/2003/Lab/L dated

13.2.2003 and published in the Official Gazette No.15 dated 13.2.2003 for extending the Act to industrial establishments employing less than 100 workmen in which the employers voluntarily apply for certification of Standing Orders.

SUBMISSION OF DRAFT STANDING ORDERS• Within six months from the date on which this Act becomes applicable to an industrial

establishment, the employer shall submit to the Certifying Officer five copies of the draft standing orders proposed by him for adoption in his industrial establishment.

• CERTIFICATION OF STANDING ORDERS. –(1) On receipt of the draft under section 3, the Certifying Officer shall forward a copy

thereof to the trade union, if any, of the workmen, or where there is no such trade union, to the workmen in such manner as may be prescribed, together with a notice in the prescribed form requiring objections, if any, which the workmen may desire to make to the draft standing orders to be submitted to him within fifteen days from the receipt of the notice.

(2) After giving the employer and the trade union or such other representatives of the

workmen as may be prescribed an opportunity of being heard, the Certifying Officer shall decide whether or not any modification of or addition to the draft submitted by the employer is necessary to render the draft Standing Orders certifiable under this Act, and shall make an order in writing accordingly.

(3) The Certifying Officer shall thereupon certify the draft standing orders, after making any modifications and shall within seven days thereafter send copies of the certified standing orders authenticated in the prescribed manner to the employer and to the trade union or other prescribed representatives of the workmen.

POSTING OF STANDING ORDERS

• The text of the standing orders as finally certified under this Act shall be prominently posted by the employer in English and in the language understood by the majority of his workmen on special boards to be maintained for the purpose at or near the entrance through which the majority of the workmen enter the industrial establishment and in all departments thereof where the workmen are employed.

Obligations in regard to standing orders

• The obligations of the employers are:– To submit draft Standing Orders with the required

information to the certifying officer for certification within the time limit set in the Act.

– To act in conformity with the certifying Standing Orders in day to day dealings with the workers

– To post prominently the text of the certified Standing Orders for all workers to see

• The Obligations of the Workmen are:– To work in conformity with the certified Standing

Orders– To comply with the provisions of the Act in so far as a

modification and interpretation of these orders are concerned.

Contents and matters covered

1. Particulars of the employees- The employees must be categorized as: (a) permanent; (b) temporary; (c) casual; (d) badlis7; (e) probationers; and (f) apprentices. The total number of all these categories must be mentioned. If the workmen belong to a particular trade union, the name of the trade union must also be stated.

2. Misconduct - Unruly behaviour from the workers of an organization may threaten the peaceful working of the establishment and adversely affect production. Thus provisions relating to “misconduct” - to systematically handle and overcome such occurrences, provision for a redressal mechanism to be adopted in case of misconduct and punishment to be imposed on the wrongdoer should be clearly stated. If a quarrel takes place between workmen outside working hours and away from the industrial establishment and if it threatens breach of peace in that area it may be brought within the scope of the “Standing Orders.”

Contents and matters covered

• Shift working - At the discretion of the employer more than one shift may be worked in a department or departments or any section of a department of the establishment. If more than one shift is worked, the workman may be transferred from one shift to another. No shift can be discontinued without one month’s written notice. However, such notice is not required in case of seasonal establishments where the work is carried on intermittently or when the closing of the shift is under an agreement or if the closure is due to circumstances beyond the control of the employer.

• Procedure for grant of leave - The procedure for taking leave, holidays, procedures and authority to grant them must be clearly spelt out. Different establishments follow different policies and types of leaves. Generally, the employee makes an application to the designated official in the human resource department. Number of leaves for each category and the method of calculating such number must be specified with utmost clarity along with the procedure for encashment

Contents and matters covered

• Provisions of termination and lay-off - Not all workmen of the organization can contribute efficaciously and the reasons can be non-performance, old age, mutation etc. The provisions of termination of employees are an essential requirement of the “Standing Orders” which should outline the procedure clearly. There should not be any confusion regarding dismissal due to misconduct and dismissal due to termination of employment by the employer. Provisions for lay-off, due to Business exigencies and emergencies, are contained in the Industrial Disputes Act, 1947. The situations under which lay-off can be effected and the amount of compensation to be paid thereafter put specifically in the “Standing Orders”.

• Establishments where workforce is below hundred (100) and not covered under the Act, the conditions and terms of service of the workmen need not be certified. The terms of service are governed according to the agreement, either direct or implied, between the employer and the employees or by practice prevailing in similar establishments.

Types of punishment under Standing Orders

• Censure or Warning – as a matter of caution a simple warning is issued

• Fines – this may be imposed on a worker but only after giving him a reasonable opportunity to explain his conduct

• Suspension – A worker maybe suspended till the enquiry is going on,. If he is under suspension, he has to be paid a subsistence allowance of a certain percentage for a stipulated time.

• Dismissal – He may be dismissed if the allegation against him has been proved to be of a serious nature and he shows no improvement.

Termination of employment• The Standing Orders provide for the termination of

employment of the service of an employee maybe due to:

a) Voluntary abandonment of service by an employeeb) Resignation by the employeec) Discharge of notice thereof given by employer

within a stipulated timed) Discharge or Dismissal by the employer as a

punishment for misconducte) Retirement on reaching the age of

superannuation.

Penalty• An employer who does not submit the “Standing Orders” for certification or makes

changes to the certified “Standing Orders” before the expiry of the period of sixty days from the date of certification and without the consent of the workers or the trade union or other representative body representing the workers, will be punishable with a fine of INR 5,000 There is an additional penalty of INR 200 per day on the employer if the offence is of a continuing nature. The penalty for contravention of the provisions of the certified “Standing Orders” is INR 100 and a further fine of INR 25 per day till the offence continues. This is a very nominal penalty for contravention and this leaves a lot of room for most organizations to deviate from their “Standing Orders”. However, with the increasing awareness among the Indian workforce it is important to adhere to the “Standing Orders” so that there is no scope for any unnecessary litigation. The Act also lays down that prosecution for an offence may not be instituted except with the prior approval of the appropriate government.

• CONCLUSION The workforce of a particular organization is its backbone. A properly organized system can be established with perfect balance in the “Standing Orders” which enables the organization to achieve qualitative and quantitative work from the workers. The “Standing Orders” should be drafted with utmost care keeping in mind the interests of the workers as well as the organization and blending the two in a perfect proportion. This will help in keeping litigation involving employees at bay.

CODE OF DISCIPLINE

CODE of discipline• LABOUR policy in India has been evolving in response to the specific

needs of the situation in relation to industry and the working class and has to suit the requirements of a planned economy. A body of principles and practices has grown up as a product of joint consultation in which representatives of Government, the working class and employers have been participating at various, levels. At the apex of this tripartite machinery is the Indian Labour Conference set up to assist in the formulation of policies as well as their implementation

• The 15th Indian Labour Conference, held in July 1957, laid down certain general principles related to the discipline in Industry which were later considered and after certain modifications therein, the Code of Discipline was evolved.

• A Code of Discipline in Industry, which applies both to the public and to the private sector, has been accepted voluntarily by all the Central organisations of employers and workers and has been in operation since the middle of 1958. The Code lays down specific obligations for the management and the workers with the object of promoting constructive cooperation between their representatives at all levels.

Principles guiding code The 15th Indian Labour Conference, held in July 1957, laid down

certain general principles related to the discipline in Industry• There should be no lockout or strike without notice• No unilateral action should be taken in connection with any

industrial matter• There should be no option to go-slow tactics• No deliberate damage should be caused to plant and property• Acts of violence, intimidation, coercion or instigation should

not be resorted to• The existing machinery for the settlement of disputes should

be resorted to.• Awards and agreements should be speedily implemented• Any agreements should disturbs cordial industrial relations

should be avoided.

Contents of the CodeThe Code has various sections-• The first section defines the duties and responsibilities of

employers, workers and even of the government• The second section lists the common obligations of

management and unions• The third section deals with the obligations of the

management only• The fourth section deals with the obligations of the unionsThere are 2 annexures under the Code of Discipline• Annexure A – provides criteria for recognition of unions• Annexure B – deals with the rights of the recognised

unions

Chief features of the Code1. The Code is a government induced self imposed and

mutually agreed voluntary principle of discipline and relations between management and workers

2. It aims at preventing disputes through negotiations, conciliation, voluntary arbitration or adjudication

3. It restrains both parties from unilateral action but induces them to make the best use of the existing machineries for expedite settling of disputes

4. The Code compels people not to indulge in strikes and lockouts without notice and encourages mutual settlement.

5. It encourages constructive cooperation between workers and management at all levels without recourse to violation, coercion, discrimination etc or other unfair practices like go-slow, sit-down or stay-away strikes.

features of the Code-contd.

5. It encourages management to take prompt action for settlement of grievance and implementation of awards and agreements

6. Any action against the spirit of the Code should be avoided7. Both Central and state governments should rectify any

shortcomings in the machineries relating to labour laws8. Employers have to recognise the majority union in an

organisation or industry and set up mutually agreed grievance procedure ensuring full investigation of disputes leading to settlement.

9. In order to maintain discipline the Code also stipulates 1. Just recognition by employers and workers of the rights and

responsibilities of either party as defined by law and agreement 2. Proper and willing discharge of duties by either parties of its

obligations consequent on such recognitions.

Sanctions under the code Some sanctions incorporated in the Code of Discipline are:1. The central employers’ and workers’ organisations shall take the

following steps against their constituent units if they are guilty of breaches of the Code

1. Ask the unit to explain the infringement of the Code2. Give notice to the unit to set right the infringement within a specified

time3. Warn or censure (if very serious) the unit concerned4. Impose on the unit penalties open to the organisation5. In case of persistence violation disaffiliate the unit from membership

2. Grave, willful and persistent breaches of the code by any party should be widely publicised

3. Failure to observe the code would entail derecognition for a period of time

4. A breach will not be referred to adjudication if there is strike or lockout without notice or in breach of the Code.

Objectives of the code of discipline

• To ensure that employers and employees recognise each other’s rights and obligations

• To promote constructive cooperation between the parties concerned at all levels

• To secure settlement of disputes and grievances by negotiation, conciliation and voluntary arbitration

• To eliminate all forms of coercion, intimidation and violation in industrial relation

• To avoid work stoppages• To facilitate the free growth of trade unions• To maintain discipline in the industry.