Extension of Industrial Employment Standing Orders to Commercial Establishments in Haryana
The Government of Haryana (“Haryana Government”) vide notification dated 24th July, 2019 (“Notification”) has come up the clarification governing the applicability of Industrial Employment (Standing Orders”) Act, 1948 (“Standing Orders”) on various establishments covered under the Punjab Shops & Commercial Establishments Act as applicable to Haryana. As a result of it, it has been clarified that the Standing Orders apply to every industrial establishment wherein 50 or more workmen (in case of Haryana) are employed or were employed or any day of the preceding 12 months.
Against the backdrop of notification dated 12th December, 2018 (“Erstwhile Notification”) the ambit of the Payment of the Wages Act, 1936 (“Wages Act”) was broadened to the shops and commercial establishment by virtue of the Haryana Government powers under the Wages Act wherein it was declared that all shops and commercial establishment are classified as “industrial or other establishments” on account of the Erstwhile Notification.
In view of the Erstwhile Notification by the Haryana Government, it has been clarified that the Standing Orders are applicable to all shops and commercial establishment in case it is employing 50 or more workmen in preceding 12 months. Further, in addition to the shops & commercial establishment in Haryana, the Notification intends to capture contractors under the Contract Labour (Regulation and Abolition) Act, 1970 (“CLRA”) having 50 or more workmen under its purview as an establishment.
It is noteworthy to mention that CLRA in itself is a comprehensive legislation covering the service conditions of the contractual employees. However, regardless of the CLRA being the widely acknowledged piece of legislation for the cushioning of the contractual employees and their service conditions, the provision of the Standing Orders are deeply rooted in the employment arena covering the service conditions in an appropriate manner and are more exhaustive in nature as compared to the CLRA.
Further, in line with the Notification, the Labour Commissioners in Haryana are directed to bear in mind the obligation entrusted with the new game plans as laid down by Notification while issuing registration certificates and licenses under the CLRA, Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979 and the Motor Transport Workers Act, 1981 etc.
MBG Comments
This significant move reflects the Haryana Government efforts to push employers to structure the formal working regulations in the form of the Standing Orders for the protection of the workforce from the irrational dealings by the employers. As a result of it, employers need to submit draft standing orders to the labour authorities for certification within 6 months from the date the Standing Orders become applicable, In this regard, companies who meet the threshold requirement of 50 workmen will need to prepare their Standing Orders and submit them for certification with the labour authorities. Failure to comply with the same will result in penal consequences which may range up to Rs 5000. Once the Standing Orders are certified, an employer is bound by the same, with any alteration to the Standing Orders being subject to the provision of the law. Contact us today for more information.
Last Updated: 16th August 2019
This article is contributed by:
Vineet Verma
Senior Associate, Legal