Standing Order Under Shop and Establishment Act

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Hi All,

Hope everyone is doing good.

Is Industrial Employment (Standing Orders) Act, 1976 is applicable for a Corporate Office which is registered under Shop and Establishment Act,1954

P.S: Company is a manufacturing Unit having Factory in a different state, registered under factories act and have a standing order for the same.

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Hi Manjot,

A few definitions from the Standing Orders Act are shared here below for better understanding to distinguish the governing rules and compliances:

The Industrial Employment (Standing Orders) Act is applicable to every industrial establishment wherein one hundred or more workmen are employed or were employed on any day of the preceding twelve months.

“employer” means the owner of an industrial establishment to which this Act for
the time being applies, and includes:

i. in a factory, any person named under 14[clause (f) of sub-section (1) of Section 7 of the Factories Act,1948], as manager of the factory;
ii. in any industrial establishment under the control of any department of any Government in India, the authority appointed by such Government in this behalf, or where no authority is so appointed, the head of the department;
iii. in any other industrial establishment, any person responsible to the owner for the supervision and control of the industrial establishment;

“industrial establishment” means
(i) an industrial establishment as defined in clause (ii) of Section 2 of the Payment of Wages Act, 1936, or
(ii) a factory as defined in clause (m) of Section 2 of the Factories Act, 1948, or
(iii) a railway as defined in clause (4) of Section 2 of the Indian Railway Act, 1890, or
(iv) the establishment of a person who, for the purpose of fulfilling a contract with the owner of any industrial establishment employs workmen.

The Schedule of the Standing Orders Act provides the list of matters that have to be covered under the Standing Order.

An extract of the Schedule given here below:

MATTERS TO BE PROVIDED IN STANDING ORDERS UNDER THIS ACT

  1. Classification of workmen, e.g., whether permanent, temporary, apprentices,
    probationers, or badlis.
  2. Manner of intimating to workmen periods and hours of work, holidays, pay-days
    and wage rates.
  3. Shift working.
  4. Attendance and late coming.
  5. Conditions of, the procedure in applying for, and the authority which may grant leave and holidays.
  6. Requirement to enter premises by certain gates, and liability to search.
  7. Closing and reporting of sections of the industrial establishment, temporary stoppages of work, and the rights and liabilities of the employer and workmen arising therefrom.
  8. Termination of employment, and the notice thereof to be given by employer and workmen.
  9. Suspension or dismissal for misconduct, and acts or omissions which constitute misconduct.
  10. Means of redress for workmen against unfair treatment or wrongful exactions by
    the employer or his agents or servants.
  11. Any other matter which may be prescribed.

Based on the location of your registered office, you would have already registered the establishment under the Shops and Establishments Act and the corporate office will be governed by the rules as prescribed under this Shops Act.

How will you get this clarified better?

For e.g., for the State of Karnataka,
The Karnataka Shops and Commercial Establishments Act and Rules shall apply to the shops and commercial establishments of Karnataka.

“Shop” means any premises where any trade or business is carried on or where services are rendered to customers and includes offices, storerooms, godowns, warehouses, whether in the same premises or otherwise, used in such connection with such trade or business, but does not include a commercial establishment or a shop attached to a factory.

“Commercial Establishment” means a commercial or trading or banking or insurance establishment, an establishment or administrative service in which persons employed are mainly engaged in office work, a hotel, restaurant, boarding or eating house, a café, or any other refreshment house, a theatre or any other place of public amusement or entertainment.

You have to refer to the above definitions and see where the establishments fit in and accordingly proceed with the required compliances.

For more reading:
The Industrial Employment (Standing Orders) Act,1946 (greythr.com)
Karnataka Shops and Establishment Act | Shop Act for Karnataka State (greythr.com)
The Karnataka Industrial Employment (Standing Orders) Rules, 1961 (greythr.com)

Hope the above helps.

Regards,
Bhuvana Anand

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Hi Bhuvana

Thanks a lot for the information. It really helped us a lot.

Regards
Manjot Singh

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