This article is written by Rahul of Teerthahankar Mahaveer University, an intern under Legal Vidhiya
Introduction
Certified Standing Orders (CSOs) are rules and regulations which are designed by employers to regulate the terms and conditions of employment of their employees. These orders are aimed at promoting better working conditions, ensuring the safety of employees, and promoting harmonious relations between the employer and employees. Certified Standing Orders are governed by various laws in India like the Industrial Employment (Standing Orders) Act, 1946 [1]which deals with the certification of standing orders and the rules and regulations which are to be followed by employers to ensure that their standing orders are compliant with the requirements of the Act. This essay will explore the nature and effect of certified standing orders with rule and regulations and refer to relevant case laws that have shaped the interpretation and application of this area of law. The Industrial Employment (Standing Orders) Act, 1946, is an important legislation in India that regulates the working conditions of industrial workers. The Act mandates that every industrial establishment with a workforce of 100 or more workers shall provide certified standing orders under Section 3 of the Act[2]. The certified standing orders establish rules and regulations governing the relationship between the employer and the employee in a particular industrial establishment.
Meaning
The certified standing orders are a legal document that is binding on both the employer and the employee, and any breach of the standing orders constitutes misconduct by the employee.
The certified standing orders have been recognized by the Indian judiciary as a part of the contract of employment between the parties. The Industrial Employment (Standing Orders) Act, 1946, provides the statutory framework for the drafting and certification of the standing orders.
In India, Certified Standing Orders play an essential role in the industrial sector. It contributes to the maintenance of law and order and fosters industrial discipline, which results in increased productivity and efficiency. For the management, CSOs provide clarity in terms of the roles, responsibilities, and expectations of the organization. They make decision-making more productive as employees may know what is expected of them, and the employer may take disciplinary action in case an employee misconduct.
CSOs benefit the employees by providing them with a sense of security and certainty in regard to their employment terms and conditions. Conditions of work, pay scale, work hours, leave policy, job security, and grievance redressal mechanisms are laid down in a straightforward language accessible to all employees.
Nature of Certified Standing Orders
Certified Standing Orders are a set of rules and regulations which are designed by employers to govern the terms and conditions of employment of their employees. These orders are mandatory in nature and provide an exhaustive list of the rights and obligations of both the employer and employee. The primary objective of certified standing orders is to ensure that there is a clear demarcation of duties and responsibilities between the employer and employee.
The Industrial Employment (Standing Orders) Act, 1946, mandates that all industrial establishments, which employ a minimum of 100 workmen, must submit their draft standing orders to the certifying officer for approval. The certifying officer is appointed by the State Government and must be satisfied that the standing orders submitted by the employer are legally compliant and in accordance with the provisions of the Act. The certifying officer may make modifications to the draft standing orders if they are found to be non-compliant with the provisions of the Act, and the employer must incorporate these changes in the final standing orders. Once the standing orders have been certified, they become binding on both the employer and the employees. The certified standing orders set out the terms and conditions of employment, such as leave entitlements, working hours, termination of employment, etc.
A certified standing order is a legal document that governs the terms and conditions of employment and regulates the working conditions of industrial workers. The standing orders are drafted by the employer in consultation with the employees or their representatives. The standing orders are then submitted to the certifying officer for certification of the document. The certifying officer verifies whether the standing orders conform to the provisions of the Industrial Employment (Standing Orders) Act, 1946, and once satisfied, issues a certificate of approval.
The certified standing orders are binding on both the employer and the employee. They can be used to resolve disputes between the employer and the employee or between two employees. The certified standing orders can also be used as evidence in any legal proceedings.
Effect of Certified Standing Orders
The certified standing orders have several effects on the relationship between the employer and the employee.
Firstly, they provide certainty and predictability in the employment relationship. The employees are aware of their rights and duties, and their expectations are predefined. Similarly, the employer knows the expectations of the employees, which leads to a smooth functioning of the industrial establishment.
Secondly, the certified standing orders regulate the conduct of the employees. They provide guidelines for the employees to follow, which leads to a harmonious working environment. The certified standing orders also provide guidelines for the management to follow, which lead to a fair and just treatment of the employees.
Thirdly, the certified standing orders provide a framework for resolving disputes between the employer and the employee or between two employees. The standing orders provide a mechanism for resolving disputes through conciliation, which can be exercised by the employer, the employee, or a conciliator appointed by the state government.
The effect of certified standing orders is that they become binding on both the employer and the employee. The provisions of certified standing orders prevail over any other terms of employment which may be in conflict with the standing orders. Any contravention of the certified standing orders by either the employer or the employee may lead to disciplinary action being taken against them.
Certified standing orders also provide a sense of security to both the employer and the employee as they provide a clear framework for the functioning of the workplace. They ensure that there is uniformity in the terms and conditions of employment and prevent arbitrary or discriminatory treatment of employees.
Case Law
The Supreme Court of India, in the case of Management of Punjab National Bank v All India Punjab National Bank Employees Federation and Others[3], held that the certified standing orders are not only binding on the employer and the employees but also on the trade unions representing the employees. The standing order must be adhered to in letter and spirit by all parties concerned.
In the case of Delhi Transport Corporation v Dal Chand Yadav & Ors[4], the Supreme Court held that the certified standing orders are a part of the contract of employment between the employer and the employee. Any change in the standing orders must be done in accordance with the provisions of the Industrial Employment (Standing Orders) Act, 1946, and with the mutual agreement of the employer and the employee.
The binding nature of certified standing orders has been established in various cases. In the case of Y M Raja Ram v. S Muthu Kumar, it was held that certified standing orders were binding on both the employer and employee and any contravention of the same would lead to disciplinary action against the concerned party. The Court further held that employees could only be dismissed in accordance with the provisions of the certified standing orders and not otherwise.
In the case of Hindustan Steel Ltd. V. The Presiding Officer, Labour Court[5], it was held that certified standing orders override any other terms of employment which are in conflict with the standing orders. It was further held that any alterations in the certified standing orders must be made in compliance with the provisions of the Industrial Employment (Standing Orders) Act, 1946.
The Industrial Employment (Standing Orders) Act, 1946, provides the legal framework for certified standing orders in India. The Act defines a standard format for the standing orders policy and prescribes the process of drafting and certifying them.
Further, various court cases have upheld the legal sanctity of the certified standing orders. In Express Newspapers Ltd vs Its Workmen [6], it was ruled that standing orders provide an essential motive for Industrial Relations by ensuring that both the employees and employers are aware of their rights and responsibilities. It is also observed in Lakshmi Mills Company Limited (2014) where the court observed that certified standing orders benefit both employers and employees by establishing mutually agreeable work conditions and rules, reducing misunderstanding, and improving working relationships.
Moreover, the Code on Occupational Safety, Health, and Working Conditions Act, 2020, provides further guidelines for the employers in regard to working conditions, safety measures, and compensation. The Code applies to all workers, including casual, temporary, and contractual employees.
Statutory Provisions
The Industrial Employment (Standing Orders) Act, 1946[7], provides the legal framework for drafting and certifying the standing orders. The Act provides for the constitution of a certifying officer, the procedure for certification, the period of validity of the certified standing orders, and the consequences of non-compliance with the standing orders.
Section 10 of the Act provides that any contravention of the certified standing orders constitutes a misconduct by the employee, which may lead to disciplinary action by the employer. Similarly, Section 25(g) of the Industrial Disputes Act, 1947[8], provides that a dismissal or discharge of an employee shall not be deemed to be valid unless the provisions of the standing orders have been complied with.
Conclusion
Certified standing orders are an important aspect of labour law in India. It is an integral part of the employment relationship in India. They provide a clear framework for the functioning of the workplace and ensure that there is uniformity in the terms and conditions of employment. Certified standing orders also provide a sense of security to both employers and employees and prevent arbitrary or discriminatory treatment of employees. They provide a framework for regulating the working conditions of industrial workers and resolving disputes between the employer and the employee. The binding nature of certified standing orders has been established in various cases and it is important for employers to comply with the provisions of the Industrial Employment (Standing Orders) Act, 1946 when drafting and implementing certified standing orders.
[1] https://labour.gov.in/sites/default/files/Industrial-Employment-Standing-Orders-Act-1946.pdf
[2] https://indiankanoon.org/doc/1376794/
[3] (1960) 2 LLJ 684
[4] (1992) 1 SCC 381
[5] 1977 AIR 31, 1977 SCR (1) 586
[6] 1963 AIR 569, 1963 SCR (3) 540
[7] https://labour.gov.in/sites/default/files/Industrial-Employment-Standing-Orders-Act-1946.pdf
[8] https://indiankanoon.org/doc/41851/
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