The Industrial Employment (Standing Orders) Act, 1946, aims to standardize the terms and conditions of employment for workers employed in industrial establishments. In the context of Karnataka, here are some key points regarding the applicability and requirements of the Act:
Applicability of the Act in Karnataka
Threshold for Applicability: The Act applies to every industrial establishment employing 50 or more workmen. This threshold was initially set at 100 workmen but was reduced to 50 by a notification under the Act. Therefore, if your company employs 50 or more blue-collar employees, it is mandated to submit a standing order for certification.
Scope: The Act covers all industrial establishments, including factories, mines, plantations, and any other establishment as defined by the Act and recognized by the State Government.
Requirements under the Act
Draft Standing Orders: Employers are required to draft standing orders that define the conditions of employment, including classification of workers, holidays, working hours, wage rates, termination of employment, suspension or dismissal, grievance redressal mechanisms, and other relevant matters.
Submission for Certification: The draft standing orders must be submitted to the Certifying Officer, who is typically the Labour Commissioner or any officer appointed by the State Government for this purpose.
Consultation with Trade Unions: Before submission, employers must consult with the trade union representatives or, in their absence, elected representatives of the workers.
Certification Process: The Certifying Officer will review the draft standing orders, consult with both the employer and the employees, and may suggest modifications to ensure that they are fair and reasonable. Once finalized, the standing orders are certified and come into force.
Display of Standing Orders: Once certified, the standing orders must be prominently displayed in English and the language understood by the majority of the workers in the establishment.
Key Points to Note
Model Standing Orders: The Central Government has prescribed model standing orders that serve as a guideline for drafting. Employers can adopt these with or without modifications.
Modifications: If at any point the employer wishes to modify the certified standing orders, the same procedure for certification must be followed.
Legal Compliance: Non-compliance with the Act can lead to penalties, and disputes arising out of standing orders can be referred to labour courts.
Steps to Ensure Compliance
Assess Workforce Size: Ensure that you accurately count the number of blue-collar employees to determine if the Act applies to your establishment.
Drafting: Prepare a draft of the standing orders, ensuring they align with both the model standing orders and the specific needs of your establishment.
Consultation and Submission: Engage with worker representatives for their input, submit the draft for certification, and implement any changes suggested by the Certifying Officer.
Display and Implement: Once certified, display the standing orders prominently and ensure all employees are aware of their content.
By adhering to these requirements, your company will be in compliance with the Industrial Employment (Standing Orders) Act, 1946, as applicable in Karnataka.
