(Standing Orders) Act, 1946 came into being because of necessity. It was a crucial milestone of India’s labour management relations and its growth. Before the passing of the said Act, conditions of employer-employee relations were in a state of pandemonium. There were no permanent and concrete basis of the terms and conditions of employment which were mostly passed on to the workmen orally. The terms and conditions because of being oral in nature seemed to be extremely vague in form too. Vague terms of employment coupled with the fact that workmen usually belong to a class below the employers in a socio-economic hierarchy of the society which is accompanied by illiteracy and ignorance, meant weak bargaining power.

The existence of unions had almost no impact on these problems because of lack of power and importance. These unions couldn’t grow to their full potential because of various political and socio-economic factors. The Industrial Employment (Standing Orders) Act, 1946 was hailed as a non-complex measure to solve these problems. The Act, broadly,  serves only one purpose and that is to bring uniformity in the terms and conditions of employment in industrial establishments. This uniformity was supposed to iron out and minimize industrial conflicts which plagued industries at the time.

The Act makes it mandatory for the employer engaging hundred or more than hundred employees to precisely define the terms and conditions of employment in clear manner. The Act also makes it compulsory for the employer to make those terms and conditions known to the workmen. To make sure that the standing orders fulfill all the legal obligations necessary, the draft of those standing orders are to be presented to the certifying officer for certification.

The draft of these standing orders should contain matters enumerated in the schedule and, as far as it is possible it should try to stick to the model format of standing orders issued by the government. The appropriate officer whose job is to certify the draft of the standing orders has to “adjudicate upon the reasonableness and fairness” in certifying those orders, as per Section 4 of the Act. The provision also makes it necessary that the officer hears both the parties concerned before certifying the draft orders.  The certifying officer, as per Section 5 of the Act can make required modifications or additions to the draft. The certifying officer’s decision is not taken as final. The aggrieved party can appeal to the appellate authority.

Section of the Act is the enabling provision. Employer and the workment may on agreement bring any needed modification in the certified standing orders after the lapse of six months, as specified in Section 10(1). Section 13 makes it a penal offence if an employer fails to submit draft standing orders as per the requirements mentioned under section 3. Section 13A provides remedies to the parties with regards to ‘application and interpretation of a certified standing order’ and Sections 14A and 15 specify delegation of power by appropriate government authorities along with framing of rules.