Industrial Employment Standing Orders Act 1946

Industrial employment means a form of employment which is prevalent in the manufacturing industries. It also represents a traditional form of division of labour in which workers are employed in factories or workshops and are separated from the owners who actually manage their activities. This kind of employment includes most production workers and sometimes even professionals because they used to do work that was industrial or manual in nature when they were independent practitioners.

You would be forgiven for thinking that industrial employment was a subject that was settled several decades ago, but unfortunately, many old practices have not been axed. Rather, they have become obscured by a veneer of respectability provided by an increasingly sophisticated and expertly managed carapace of management techniques. Those who run the companies and those who work in their factories must be aware of their obligations to each other when the spirit of industrial law intended by the government is followed.

In this information age, the practice of hiring daily wage material for industrial activity has been greatly misconstrued by employers. To many, as long as 10-12 hours of work are provided with day in and day out, obeying all the provisions laid down under the Industrial Employment Standing Orders Act, 1946 is important. But these guidelines should never be ignored by an employer at any cost in order to ensure a safe and healthy work environment.

Table of Contents

What is the Industrial Employment Standing Orders Act, 1946?

The Industrial Employment Standing Orders Act, 1946 is an act of the Parliament of India that provides a framework for regulating conditions of employment in certain industries. It was enacted as a part of the post-independence labour reform efforts. The Act applies to establishments employing ten or more workers and defines an 'industrial establishment' as one where at least 50 persons are employed at any time during the preceding 12 months.

A standing order is a rule made by an employer establishing a system or method of working or regulating any aspect of employment in an industrial establishment. The standards ensure that employees have access to safe working conditions, social security benefits, education facilities etc. These agreements must be registered with a labour officer, who can enforce compliance with them.

The Industrial Employment Standing Orders Act seeks to improve the living and working conditions of workers by providing better pay and benefits such as leave, health care, etc. It also aims to ensure that employers do not abuse their power by making unilateral decisions about wages, benefits or other conditions of employment without consulting workers' representatives (if any).

The Act provides for the establishment of a code of minimum wages and other conditions of employment for workers in factories and commercial establishments that employs the workers. The Code was originally enacted in 1946 by the Central Legislature as a result of the efforts of the labour movement led by the leaders of our nation to improve the working conditions of industrial workers in India.

Industrial Employment Standing Orders Act, 1946 – Features

The Industrial Employment Standing Orders Act, 1946 regulates working hours, holidays, wages and other conditions of service for workers employed in industrial establishments. It also prescribes procedures for the settlement of disputes between employers and employees and provides for arbitration machinery to deal with such disputes.

It was enacted to promote a better understanding between the employers and the industrial workers on matters relating to employment and payment of wages, hours of work, leave with pay, holidays with pay, termination of service rules etc.

The definition of the factory under the Industrial Employment Standing Orders Act includes not only factories but also workshops and mines established for extraction of coal or other minerals from the earth by means of machinery or otherwise than by manual labour; docks; railway wagons, aircraft and tramways whether propelled by mechanical power or otherwise; vessels navigated by steam or other mechanical power; electric light plants; cinematograph films showing apparatus or devices for exhibition or reproduction of pictures or images; cinemas and theatres; gas works; electric light works; textile mills, oil mills and sugar refineries.

The Industrial Employment Standing Orders Act, 1946 is an act of the Parliament of India which provides for the regulation of conditions of service of industrial workers in India. For each schedule within the Act, the Parliament of India issues the written instruction of standing orders which provide for minimum wages, maximum hours of work and working conditions. The main features of this Act are:

It applies to all factories, mines and other establishments where 20 or more workmen are employed or were employed on any day of the preceding twelve months
It provides for minimum wages, maximum hours and other conditions of employment, such as leave with wages, overtime allowance etc., to be determined by the appropriate Government by notification from time to time
It also provides for a provision of maternity relief and medical relief, and insurance cover against accidents for all the industrial workers covered by the Act
Due compensation will be furnished to the workers under the provision of this Act as per their defined shift timings between 6 am to 6 pm, respectively

Purpose and Significance of the Industrial Employment Standing Orders Act, 1946

The Industrial Employment Standing Orders Act, 1946 aims to provide for the fixation of minimum rates of wages, hours of work, holidays with pay and leave with pay in factories, workshops and other establishments or undertakings which employ ten or more workers.

It also provides for the regulation of facilities like medical aid and welfare schemes to be extended by employers to their employees.

It was enacted to monitor and regulate the terms and conditions of industrial employment in India. It made provisions for the security of employment and payment of wages by cash or through cheque etc. The Act also provides for machinery for adjudicating disputes regarding violation of such terms and conditions. A Standing Order is a document setting out terms and conditions of employment for workers in an industry.

The Industrial Employment Standing Orders Act, 1946 sought to ensure that all employees receive benefits such as:

A minimum wage for every hour worked
Payment of bonus at certain intervals during the year
Provision of paid leaves
Provision of free conveyance to and from the workplace

The Industrial Employment Standing Orders Act, 1946 for the welfare of the industrial workers lays down general principles for the fixation of wages and working hours in factories and other industrial establishments. The minimum wage ceiling fixed by this law has been increased from time to time by way of notifications issued by the Government of India from time to time.

It aims to provide security of employment and to regulate the terms and conditions of service in factories, mines and other establishments engaged in any industry. The Act provides for the establishment of a Board for each state to exercise jurisdiction over matters relating to industrial employment.

The Central Government may make rules for regulating the wages and conditions of service of employees in any establishment covered under this Act. These rules are called 'Standing Orders', and they are issued by the Ministry of Labour & Employment. The Standing Orders contain minimum rates of wages and other conditions of service which employers must adhere to as per the provisions of this Act.

The Standing Orders also contain provisions for payment of bonus, provident fund and gratuity, leave facilities etc., which apply to all establishments irrespective of size or number of workers employed therein.

Why is the Industrial Employment Standing Orders Act, 1946, vital for the workers?

The Industrial Employment Standing Orders Act, 1946 was enacted to regulate relations between employer and employee in industrial establishments. It is based on the following premises:

The employment of workers in any industrial establishment should be regulated by a uniform standard applicable to all establishments throughout the country
There should be effective machinery for enforcing the observance of this standard
Wherever possible, disputes between employers and employees should be settled by conciliation or arbitration
The law applies to all factories, mines, oilfields and other industrial establishments employing 20 or more workers on any day in any one year or working 26 or more days in any one year

The Industrial Employment Standing Orders Act, 1946 (IESO) is important legislation that was enacted to ensure the rights and welfare of workers in industrial establishments. The Act lays down certain conditions under which the factories have to operate. It also provides for the fixation of minimum wages and other conditions of employment of workers in factories.

The main objective of the Industrial Employment Standing Orders Act is to ensure that there is no exploitation of workers by their employers or vice versa. The Act also ensures that workers get their due wages and other benefits like medical facilities, holidays etc.

Under this Act, every worker has a legal right to minimum wage. This is a statutory entitlement under the Industrial Employment Standing Orders Act, 1946, which forms part of the labour laws in India.

The Industrial Employment Standing Orders Act 1946 is vital for the workers as it protects their rights and ensures that they get fair wages for their labour. The Act requires employers to provide a safe working environment for their employees by maintaining good hygiene and sanitation standards at the workplace.

The Act provides for the constitution of local committees and appellate tribunals. It also provides for conciliation by these committees before referring disputes to arbitration by the Central Government.

Form I used in the case of the Industrial Employment Standing Orders Act, 1946

The Form I used in the case of the Industrial Employment Standing Orders Act, 1946 is a statutory form prescribed by the Ministry of Labour & Employment. It is a form which can be used by an employer to apply for registration as an industrial establishment.

This form must be filled in every three months, and it records all the wages paid to employees and other payments made by an employer. The purpose of the Industrial Employment Standing Orders Act is to ensure that workers are paid their wages on time and in full. The Form has to be filled out by both parties and given to the Labour Commissioner or his Deputy.

Also, if the employer of the industrial establishment requires an alteration in any of the working conditions, then as per the Act, they need to file the application form with the authorities of the government, which are called Standing Orders. Five copies of each of the records must be submitted to the officer to ensure that they're implemented.

It was enacted to provide for the regulation of conditions of employment of workers in certain industries, for the protection of workers in those industries and for matters connected therewith or incidental thereto.

Wrapping Up

In a nutshell, the Industrial Employment Standing Orders Act 1946 is beneficial in a number of ways. The Act applied uniformly across the whole of India to provide a basic framework for all industries. The industrial employment rules and regulations are regulated under the Industrial Employment (Standing Orders) Act, 1946.

In this chapter, we discuss the functions of the Establishment Committee, their responsibilities and their rights in an industrial establishment. However, all the notifications are enforceable or applicable to every establishment. They only serve as guidelines.

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Key Takeaways

Industrial Employment Standing Orders Act is a legislation of India which was passed in 1946. It provides for the fixation of minimum wages and other conditions of employment in industrial establishments.

The main objective of this Act is to provide for the regulation of wages and conditions of service in certain establishments or undertakings
The Act provides for the regulation of wages and conditions of service in certain establishments or undertakings, namely, factories, mines, oilfields or other works employing twenty or more persons or employing women
It regulates the safety standards, leaves, shift timings, facilities, benefits, and other conditions of employment in factories and other establishments
The industrial workers have a right to withdraw their labour if they feel that their basic human rights are being violated by their employers
The workforce is bound by a written contract that clearly states their rights and responsibilities and cannot be terminated without prior notice or without any reason at all
The workers employed are entitled to paid leave and paid holidays according to the provisions of this Act