Introduction to Standing Order - A Vital Component of Industrial Relations
Standing orders are essentially rules and regulations that govern the terms of employment. They outline the conditions of recruitment, responsibilities, work procedures, and rules related to termination, among other aspects. These are crucial in maintaining harmonious relationships between the employer and the employee.
Section 2(g) - Definition and Scope
According to Section 2(g) of the Industrial Employment (Standing Orders) Act, 1946, a "standing order" means rules relating to matters set out in the Schedule to the Act. The Schedule incorporates various matters such as classification of workmen, holidays, termination, and more.
Components of Section 2(g):
Classification of workmen: This includes categorization of employees based on their roles and responsibilities.
Manner of intimating to workmen: Procedures for communicating working hours, paydays, and wage rates.
Termination of employment: Rules regarding termination, layoff, resignation, or suspension.
Landmark Case - S.K. Seshadri Vs. HAL
The case of S.K. Seshadri Vs. Hindustan Aeronautics Limited (HAL) is seminal in interpreting Section 2(g).
Key Highlights of the Case:
Issues Addressed: The main issue pertained to the modification of standing orders and whether the changes were in accordance with the provision of Section 2(g).
Judgment: The court, in this case, clarified that standing orders must be in alignment with the principles laid out in the Act, and any modifications should follow the due process.
Impact: This ruling underscored the importance of adherence to standing orders and established that unilateral modifications by the employer without following the proper channel are untenable.
Significance of Section 2(g) in Modern Industrial Landscape
Fostering Transparency: Section 2(g) creates a transparent framework for employees and employers, minimizing ambiguities.
Legal Safeguard: It acts as a legal safeguard for employees, ensuring that arbitrary decisions are minimized.
Facilitates Industrial Harmony: By providing clear guidelines, it fosters a conducive working environment.
Conclusion: Standing Orders - Section 2(g)
Section 2(g) of the Industrial Employment (Standing Orders) Act, 1946, plays a pivotal role in shaping the dynamics between employers and employees in India. The provision fosters transparency, ensures legal protection, and facilitates industrial harmony. The case of S.K. Seshadri vs. HAL highlights the significance of adherence to this provision, cementing the importance of a lawful approach to modifications in standing orders. It serves as a robust framework that balances the rights and responsibilities of both parties, fortifying the fabric of the industrial relationship in India
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