Concept and Nature of Standing Orders

The concept of Standing Orders is integral to the regulation of industrial establishments, delineating crucial aspects of employment and fostering balanced employer-employee relations. Serving as a set of rules, Standing Orders aim to bring clarity and consistency to employment conditions.

The intricate nature of Standing Orders is marked by ongoing debates over their classification, oscillating between statutory and contractual dimensions.

Let’s understand the concept and nature of Standing Orders.

The Concept of Standing Orders

Standing Orders are essentially the rules that cover various aspects of employment in industrial establishments, particularly in coal mines.

These rules address matters such as the classification of workers, working hours, attendance, leave procedures, entry to premises, rights and responsibilities of both employers and workers during work stoppages and the termination or suspension of workers. The specific details are outlined in the Schedule of the Industrial Employment (Standing Order) Act, 1946.

What are the Objectives of the Standing Orders?

The main goals of Standing Orders are to establish consistency in employment terms, promote positive relations between employers and employees, ensure that work conditions are clear to workers and regulate various aspects of employment such as recruitment, discharge, disciplinary actions, leave and holidays in industrial establishments. It helps to define the concept and nature of Standing Orders in labour law.

Nature of Standing Orders

The legal status of Standing Orders is a topic that has sparked debates, with differing views on whether they are primarily statutory, contractual or resemble an ‘award.’

While some argue that the nature of Standing Orders is ambiguous and inconclusive, others contend that it cannot be definitively categorised as statutory, contractual or an award without strong supporting arguments.

Statutory Nature of Standing Orders

One argument supporting the statutory nature of Standing Orders refers to a Supreme Court case, The Bagalkot Cement Co. Ltd. Vs. R.K. Pathan & Ors., where the court emphasised the intention of the Industrial Employment (Standing Orders) Act to make employment conditions precise and definite. This decision has been relied upon in subsequent judgments, reinforcing the idea that certified Standing Orders are statutory.

In Tata Chemicals Ltd. And Ors. vs Kailash C. Adhvaryu, the High Court of Gujarat differentiated between statutory and contractual obligations, asserting that the certification of standing orders under the IESO Act creates statutory rights and obligations.

Another perspective supporting the statutory nature argues that the Certifying Officer, in certifying the standing orders, is engaged in a form of delegated legislation. The consultation process with both parties affected by the decision implies a rule-making role for the Certifying Officer, contributing to the overall statutory character of the process.

Arguments Against the Statutory Nature of Standing Orders

Counterarguments suggest that considering standing orders as statutory may contradict fundamental rights enshrined in the constitution, opening the possibility for challenges under Article 32 and Article 226.

Another counterargument is that industrial tribunals, under The Industrial Disputes Act, 1947, should not have the power to override provisions with statutory effect. Treating certified standing orders as statutory could limit the tribunal’s authority to modify terms or pass orders under standing orders.

Section 10(1) of the IESO Act, which allows changes to standing orders by agreement between employers and workers, is presented as conflicting with the concept of statutory orders, as statutes are typically not subject to modification based on agreements.

Lastly, it is argued that the Act imposes restrictions on employers’ bargaining power, limiting freedom of contract and emphasising compliance with model standing orders. The Act does not delegate legislative powers but instead obligates individual employers to create rules aligned with the schedule’s model standing orders. This, along with the limited judicial power of the Certifying Officer, suggests that certified standing orders are not delegated legislation and, therefore, not strictly statutory in nature.

Who Does the Industrial Employment (Standing Orders) Act Apply To?

The Industrial Employment (Standing Orders) Act applies to the entire country, covering all of India. Specifically, it applies to every industrial establishment where one hundred or more workers are employed or were employed on any day within the preceding twelve months.

Who is Exempt from the Industrial Employment (Standing Orders) Act?

The Act does not apply to industrial establishments where workers are covered by or subject to the following Rules or Regulations:

• Fundamental and Supplementary Rules;
• Civil Services (Classification, Control and Appeal) Rules;
• Civil Services (Temporary Service) Rules;
• Revised Leave Rules;
• Civil Service Regulations;
• Civilians in Defense Service (Classification, Control and Appeal) Rules;
• Indian Railway Establishment Code or any other rules;
• Regulations that may be notified for this purpose by the appropriate Government in the Official Gazette.

Conclusion

Standing Orders are rules governing industrial establishments, defining terms of employment and regulating relations between employers and workers. The concept and nature of standing orders revolve around establishing clarity and uniformity in employment conditions. The nature of Standing Orders is subject to debate, with arguments suggesting both statutory and contractual aspects.

While some judicial decisions lean towards their statutory nature, acknowledging the Industrial Employment (Standing Orders) Act’s intent to make employment conditions precise, others highlight contractual elements. The ambiguous nature stems from challenges in categorising them definitively as statutory, contractual or resembling an ‘award,’ making the characterisation complex and multifaceted.