This article is written by Pragaas Kaur Chugh of IILM Law School, an intern under Legal Vidhiya
Introduction:
Our civilisation has evolved with the passage of various periods, from being hunter-gatherers, feudalism to industrial revolution and many consequent revolutions which have altered the functioning of our civilisation. During the advent of Industrial Revolution, which was during the mid-18th century and early 19th Century was dominated by exploitation of coal and iron. In those times, the population was rising. There were too many workers and not enough jobs, which led to exploitation of labour and activities like Child labour etc.
In one of the famous plays of Charles Dickens, Christmas Carol, there have been instances showing the realities of the Industrial Revolution in the Victorian Era. One scene that related to the realities of the Industrial Revolution is when Ebenezers Scrooge told his worker Bob Cratchit to go back to stop clapping and get back to work. Another scene that relates to the aspect of Industrial Revolution is when Bob Cratchit tells his son about a job opportunity that he is available to work in.
This scene is similar to how the children during the Industrial revolution were given an opportunity to work at a very young age to help provide for their family. In another scene, Ebenezer Scrooge asks the ghost of Christmas present if Bob Cratchit’s youngest son will survive from his sickness. However, these children were often exploited by their employers. They were given lower wages for their work similar to how Bob Cratchit’s son was going to paid only three shillings.
In the current scenario, Amazon’s work environment has come under scrutiny. In 2015, New York Times published an explosive article which described an inhumane and intense working environment. The article described Amazon’s practice as “an experiment in how far it could push white-collar workers to get them to achieve its ever-expanding ambitions” Despite these controversies Amazon continued to climb the ladder of success. Till this date, many criticize that the cost of success is the well-being and happiness of its employees. Jeff Bezos, Amazon’s CEO, expressed his stance to the company’s work environment in a letter to the shareholders,
Stating that “at Amazon.com, you can’t choose between working long, hard or smart”. Henry Ford, who is known as the father of modern assembly lines, increased the wages of his workers and reduced their working hours. He famously said that “Coming together is the beginning. Keeping together is a progress. Working together is a success.” All these instances indicate the relevance of provisions like Standing Orders in a company. Writers, experts, and social activists have voiced a great deal regarding the dignity and treatment of working class and legal provisions like Standing Orders give substance to their social outcry.
Evolution of Industrial Regulations Act,1946:
The Industrial Employment (Standing Orders) Act, 1946, was enacted by the Indian government to regulate employment conditions in industrial establishments. The law requires employers to establish and publish standing orders that clearly state the terms and conditions of employment, including work hours, wages, leave, disciplinary procedures, and other benefits.
The Industrial Employment (Standing Orders) Act was introduced to address the widespread exploitation and abuse of workers in Indian industries, particularly during the pre-independence era. Prior to the enactment of this law, industrial workers had no legal protection or job security, and employers were free to exploit them in various ways. This law aimed to ensure that workers were treated fairly, and their rights were protected.
The Act applies to all industrial establishments that employ 100 or more workers, or those establishments that the government has declared to be “public utility services.” It mandates employers to draft and file standing orders with the certifying officer appointed by the government. The certifying officer then examines the orders to ensure they comply with the provisions of the Act and certifies them if they do.
The Industrial Employment (Standing Orders) Act has undergone several changes and amendments over the years to keep pace with the changing needs of workers and employers. In 1961, the Act was amended to include provisions for the adjudication of disputes between employers and workers regarding standing orders. In 1986, another amendment was made to require employers to display standing orders prominently in the workplace and to provide copies to workers upon request.
In 1995, the Act was further amended to include provisions for the simplification and codification of standing orders, making it easier for employers to draft and file them. The amendment also introduced a time limit of six months within which employers had to draft and certify their standing orders.
One significant change to the Act came in 2014 when the government amended it to allow employers to modify standing orders with the consent of workers. This change was aimed at providing more flexibility to employers and promoting a more collaborative approach to industrial relations.
The Industrial Employment (Standing Orders) Act has played a crucial role in regulating the employment conditions in Indian industries and protecting workers’ rights. The law has helped to prevent the exploitation of workers and ensure they are treated fairly and with dignity. The Act has also helped to improve the working conditions in Indian industries, promoting a safer and healthier workplace.
However, despite the protections afforded by the Industrial Employment (Standing Orders) Act, some employers continue to violate its provisions, particularly in the informal sector. Workers in the informal sector, which employs a significant proportion of the workforce in India, are often not covered by the Act and have limited legal protection. Therefore, there is a need for continued efforts to strengthen and enforce the Act to ensure that all workers, regardless of their employment status, are protected.
In conclusion, the Industrial Employment (Standing Orders) Act, 1946, has undergone several changes and amendments over the years to keep pace with the changing needs of workers and employers. The law has played a crucial role in regulating employment conditions in Indian industries and protecting workers’ rights. However, there is a need for continued efforts to strengthen and enforce the Act to ensure that all workers are protected, particularly those in the informal sector.
Penalties and Provisions:
The Industrial Employment (Standing Orders) Act, 1946, provides a framework for the regulation of employment and working conditions in industrial establishments. This Act mandates that every industrial establishment employing more than 100 workmen is required to frame and certify its standing orders. The standing orders are rules and regulations that govern the conduct of the employees in the establishment and provide clarity on their rights and obligations. The act also prescribes penalties and procedures for non-compliance with the standing orders.
Penalties for Non-Compliance with Standing Orders
The penalties for non-compliance with the standing orders are outlined in the Act. If an employer violates any of the standing orders, the employer is liable to pay a fine of up to Rs. 5000. Similarly, if an employee violates any of the standing orders, the employee is liable to pay a fine of up to Rs. 50. The employer may deduct the fine from the employee’s wages, subject to certain conditions.
The Act also provides for a higher penalty of imprisonment for a term of up to six months, or a fine of up to Rs. 10000, or both, in cases where the violation is wilful and persistent. The employer may also face legal action for the non-compliance of standing orders.
Procedures for Enforcing Standing Orders
The Act also outlines the procedures for enforcing the standing orders. If there is a dispute between the employer and the employees regarding the interpretation or application of the standing orders, the matter can be referred to the certifying officer. The certifying officer is a government official appointed by the appropriate government to certify the standing orders of the establishment.
The certifying officer has the power to investigate the matter, and if necessary, hold a hearing. After considering the evidence and hearing the parties involved, the certifying officer may issue a decision on the dispute. The decision of the certifying officer is final and binding on both parties.
The Act also provides for the settlement of disputes through conciliation. If the parties agree to conciliation, they may approach the conciliation officer, who is also a government official appointed by the appropriate government. The conciliation officer will attempt to resolve the dispute through mediation and bring the parties to a mutually acceptable agreement.
If the conciliation officer fails to resolve the dispute, the matter can be referred to a labour court or an industrial tribunal. The labour court or industrial tribunal is a judicial body with the power to adjudicate on the dispute and issue a decision. The decision of the labour court or industrial tribunal is final and binding on both parties.
Case Laws:
Here are five important case laws relating to the Industrial Employment (Standing Orders) Act, 1946:
1. Management of Safdarjung Hospital v. Kuldip Singh (1993) 3 SCC 571
In this case, the Supreme Court of India held that the standing orders must be unambiguous, precise and clear in their scope and application. The court emphasized the importance of ensuring that the standing orders are drafted in a manner that can be easily understood by the employees. The court also held that standing orders cannot be modified unilaterally by the employer and any changes must be made through the prescribed procedure.
2. Delhi Cloth and General Mills Co. Ltd. v. Workmen (1959) Supp. 2 SCR 729
In this case, the Supreme Court of India held that the standing orders must be framed in a fair and reasonable manner and must not be arbitrary or discriminatory. The court also held that the standing orders cannot be used to restrict the fundamental rights of the employees.
3. State of Maharashtra v. Ramdas Shrinivas Nayak (1982) 1 SCC 700
In this case, the Supreme Court of India held that the certification of the standing orders is not a mere formality and must be done with due diligence. The court held that the certifying officer must ensure that the standing orders are in compliance with the Industrial Employment (Standing Orders) Act, 1946, and must be in accordance with the principles of natural justice.
4. Ahmedabad Textile Industry’s Research Association v. State of Bombay (1961) 1 SCR 719
In this case, the Supreme Court of India held that the standing orders must be reasonable and must not be in contravention of any existing law. The court also held that the standing orders must not be against public policy and must not violate the principles of natural justice.
5. Hyderabad Chemical and Pharmaceutical Works Ltd. v. State of Andhra Pradesh (1962) 1 LLJ 644
In this case, the Andhra Pradesh High Court held that the standing orders must be framed in a manner that takes into consideration the interests of both the employer and the employees. The court held that the standing orders must balance the interests of both parties and must not be oppressive or unjust towards the employees.
Conclusion
The Industrial Employment (Standing Orders) Act, 1946, provides a framework for the regulation of employment and working conditions in industrial establishments. The standing orders are rules and regulations that govern the conduct of the employees in the establishment and provide clarity on their rights and obligations. The Act prescribes penalties and procedures for non-compliance with the standing orders.
The penalties for non-compliance with the standing orders range from fines to imprisonment, depending on the severity of the violation. The procedures for enforcing the standing orders involve the certifying officer, conciliation officer, labour court or industrial tribunal. The parties involved may approach these bodies for the resolution of disputes regarding the interpretation or application of the standing orders.
In conclusion, the Industrial Employment (Standing Orders) Act, 1946, plays an important role in regulating employment and working conditions in industrial establishments. The act promotes a harmonious relationship between the employer and the employees by providing clarity on the rules and regulations governing their conduct. The penalties and procedures outlined in the Act ensure compliance with the standing orders and provide a mechanism for the resolution of disputes.
References:
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Delhi Cloth and General Mills Co. Ltd. v. Workmen (1959) Supp. 2 SCR 729, Indian Kanoon, https://indiankanoon.org/doc/1457428/, last seen on 17/04/2023
English: A Christmas Carol, Encyclopaedia Britannica, https://www.britannica.com/story/the-origins-of-a-christmas-carol, last seen on 15/04/2023
Hospital- Whether an Industry? , ipleaders.in, https://blog.ipleaders.in/hospital-whether-industry/, last seen on 17/04/2023
Hyderabad Chemical And…. Vs State of Andhra Pradesh and Ors
Industrial Revolution Definition: History, Pros, and Cons, https://www.investopedia.com/terms/i/industrial-revolution.asp, last seen on 17/04/2023
Inside Amazon: Wrestling Big Ideas In a Bruising Workplace, The New York Times, https://www.nytimes.com/2015/08/16/technology/inside-amazon-wrestling-big-ideas-in-a-bruising-workplace.html, last seen on 16/04/2023
State of Maharashtra v. Ramdas Shrinivas Nayak (1982) 1 SCC 700, legalauthority.in, https://www.legalauthority.in/judgement/state-of-maharashtra-vs-ramdas-shrinivas-nayak-anr-31595, last seen on 16/04/2023
The Industrial Employment (Standing Orders) Act, 1946, ipleaders blog, https://blog.ipleaders.in/industrial-employment-standing-orders-act-1946/, last seen on 14/04/2023
The Industrial Employment (Standing Orders) Act, 1946, ipleaders blog, https://www.indiacode.nic.in/handle/123456789/2257?sam_handle=123456789/1362, last seen on 15/04/2023
The Industrial Employment (Standing Orders) Act, 1946, Indian Kanoon, https://indiankanoon.org/doc/1376794/, last seen on 15/04/2023
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