Introduction of 'The Industrial Employment (Standing Orders) Central Rules, 1946'

Introduction: Earlier, the economic law of supply and demand in the labor market was existed between employers and workers as a mutually beneficial deal. The mutual bargain was treated as such grants, as the terms and conditions of employment for workers are being kept safe. They had an abiding confident in the unity of this law. But as the law work, their faith has proven incorrect. Workers later found that they have not adequately processed fair bargaining power to secure terms and conditions of their service; they organize themselves into trade unions and began to emphasize collective bargaining with the employer.

With the advent of trade unions and collective bargaining, new problems began create to maintain industrial peace and production for the society. Workers began to put forth their demands. The recognition that while, such raw a deal been presented to workers by employers , which was not able to define their terms of service, and was sure to be in a situation of industrial conflict, the Legislature stepped sought to introduce a Industrial Employment (Standing Orders) Bill, 1946. 

Statement of objects and reasons 

Experience has shown that ‘standing orders’ defining the conditions of recruitment, discharge, disciplinary action, holidays, leave, etc., go a long way towards minimizing friction between the management and workers in industrial undertakings. Discussion on the subject at the tripartite Indian Labor 

Conference revealed a consensus of opinion in favor of legislation. The Bill accordingly seeks to provide for the framing of ‘standing orders’ in all industrial establishments employing one hundred or more workers. In the first instance, the Act will apply to the categories of industrial establishments specified in clause (2}(e), which include, besides factories and railways, mines, quarries and oil fields, tramway or motor, omnibus services, docks, wharves and jetties, inland steam vessels, plantations and workshops. 

Government will be competent to extend the Act to other classes of industrial establishments or to grant exemptions where necessary, by notification. Within 6 months from the date on which the Act becomes applicable to an industrial establishment the employer is required to frame draft ‘standing orders’ and submit them to the Certifying Officer for certification. The draft should cover all the matters specified in the Schedule to the Act and any other matter that Government may prescribe by rules. The Certifying Officer will be empowered to modify or add to the draft standing orders so as to render them certifiable under the Act. It will not be his function (nor of the Appellate Authority) to adjudicate upon their fairness or reasonableness. There will be a right of appeal against the decisions of the Certifying Officers. 

Act 20 of 1946 

The Industrial Employment (Standing Orders) Bill, 1946 having been passed by the Legislature received its assent on 23rd April, 1946. It came on the Statute Book as The Industrial Employment (Standing Orders) Act, 1946 (20 of 1946). 

List of amending act and adaptation orders 

1. The Indian Independence (Adaptation of Central Acts and Ordinances) Order, 1948. 
2. The Adaptation of Laws Order, 1950. 
3. The Part B States (Laws) Act, 1951 (3 of 1951). 
4. The Industrial Disputes (Amendment and Miscellaneous Provisions) Act, 1956 (36 of 1956). 
5. The Industrial Employment (Standing Orders) Amendment Act, 1961 (16 of 1961). 
6. The Industrial Employment (Standing Orders) Amendment Act, 1963 (39 of 1963). 
7. The Central Labor Laws (Extension to Jammu and Kashmir) Act, 1970 (51 of 1970). 
8. The Industrial Employment (Standing Orders) Amendment Act, 1982 (18 of 1982).