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The Industrial Employment Act, 1946

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Earlier the economic law of demand and supply in the labour market settled mutually beneficial bargain between the employer and the workman. It was taken as granted that such a bargain would secure fair terms and conditions of employment to the workmen. They had an abiding faith in the unity of this law. But the working of this law has belied their faith. Later workmen found that they did not possess adequate bargaining strength to secure fair terms and conditions of service, they organized themselves in trade unions and insisted on collective bargaining with the employer. The advent of trade unions and collective bargaining created new problems for maintaining industrial peace and production for the society. Workmen started putting forth their demands. Recognizing the rough deal that was being given to the workers by employers who would not define their conditions of service and the inevitability of industrial strife in such a situation, the legislature made an attempt to intervene by introducing the Industrial Employment (Standing Orders) Bill, 1946.

TATEMENT 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 Labour 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 was passed by the legislature and it received the 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 ACTS 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 Labour Laws (Extension to Jammu and Kashmir) Act, 1970 (51 of 1970)

8. The Industrial Employment (Standing Orders) Amendment Act, 1982 (18 of 1982)

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