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Comparative analysis of amendment in schedule under the Industrial Employment

(Standing Orders) Act, 1946 and Industrial Employment (Standing Orders) Rules,
1946, vide notification dated 16th March, 2018.

Ref Existing Amended provision Analysis

provision

Item 1 of Item 1 of Item 1 of Schedule As per the amendment ”Fixed

Schedule in Schedule in in ‘Industrial Term Employment” has now
‘Industrial ‘Industrial Employment been introduced irrespective
Employment Employment (Standing Orders) of the industry of work.
(Standing (Standing Act, 1946’
Orders) Act, Orders) Act, ”Fixed term
1946’ 1946’ employment”.
”Fixed term
employment [point 2 of the
workmen in notification dated
apparel 16.03.2018]
manufacturing
sector”.

A fixed term
employment”
workman is a
workman who
has been
engaged on the
basis of a
written contract
of employment
for a fixed
period:

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Industrial No old Rule 3A. This newly added rule i.e. 3A,
Employment provision. ”No employer of an directs that no employer of an
(Standing industrial industrial establishment shall
Orders) establishment shall convert the posts of the
Central convert the posts of permanent workmen existing
Rules, 1946 the permanent in his industrial establishment
workmen existing in on the date of commencement
his industrial of the Industrial Employment
establishment on the (Standing Orders) Central
date of (Amendment) Rules, 2018 as
commencement of fixed term employment
the Industrial thereafter.
Employment
(Standing Orders)
Central
(Amendment) Rules,
2018 as fixed term
employment
thereafter”.

[point 3 (a) of the

notification dated
16.03.2018]

Industrial No old Item (6A) of Rule 5. In pursuit of sub-section (3) of

Employment provision. ”Number of fixed Section 3, an industrial
(Standing term employment establishment has to submit a
Orders) workmen”. statement giving prescribed
Central particulars of the workmen
Rules, 1946 [point 3 (b) of the employed along with the
notification dated submission of draft standing
16.03.2018] orders.
Therefore, with the insertion of
item 6A, detail regarding
number of fixed term
employment workmen shall be
included in the statement.

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Industrial No old Item 3A in sub In sub paragraph (a) of
Employment provision. paragraph (a) of paragraph 2 under Schedule I
(Standing paragraph 2 of i.e. model standing orders; the
Orders) Schedule I under establishments are required to
Central Industrial provide information with
Rules, 1946 Employment respect to classification of
(Standing Orders) workmen.
Central Rules, 1946. That is why, with the insertion
”Fixed term of a new term ‘fixed term
employment employment’ in the act,
workmen”. classification w.r.t fixed term
employment workmen shall be
[point 3 (c) (i) (A) of provided and hence Item 3A
the notification dated inserted.
16.03.2018]

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Industrial No old Sub paragraph (h) of Sub-paragraph (h) inserted
Employment provision. paragraph 2 of explaining the meaning of
(Standing Schedule I under fixed term employment
Orders) Industrial workman.
Central Employment As per proviso, there should
Rules, 1946 (Standing Orders) not be any difference between
Central Rules, 1946. fixed term employment
A “fixed term workman and permanent
employment workman w.r.t working hours,
workman” is a wage, allowances or any other
workman who has benefits and shall be eligible
been engaged on for all benefits available to
the basis of a written permanent workman in
contract of proportion to the period of
employment for a service rendered.
fixed period:

Provided that-

(a) his hours of work,

wages, allowances
and other benefits
shall not be less
than that of a
permanent
workman; and

(b) he shall be
eligible for all
statutory benefits
available to a
permanent workman
proportionately
according to the
period of service
rendered by him
even if his period of
employment does
not extend to the
qualifying period of
employment
required in the
statute’.

[point 3 (c) (i) (B) of

the notification dated
16.03.2018]

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Industrial Sub-paragraph Sub-paragraph (2) of As per the notification, there is
Employment (2) of paragraph paragraph 13 of no necessity on part of the
(Standing 13 of Schedule Schedule I under employer, to either serve
Orders) I under Industrial notice of termination or pay in
Central Industrial Employment lieu thereof to the temporary
Rules, 1946 Employment (Standing Orders) workman, whereas as per the
(Standing Central Rules, 1946. old provision, notice or pay in
Orders) Central “ Subject to the lieu thereof to the temporary
Rules, 1946. provisions of the workman was not required
No temporary Industrial Disputes only in case of termination.
workman, Act, 1947 (14 of Also, as per the new
probationer or 1947),- guidelines, even workman
badli entitled to employed on fixed term
any notice for (i) No temporary employment basis shall not
termination. workman, require to serve with the
probationer or badli notice or payment in lieu
Provided that entitled to any notice thereof, in case of non-
no temporary for termination. renewal of contract or
workman shall employment or on the expiry
be terminated ; and of contract period.
by way of
punishment (ii) no workman It means workman employed
unless he has employed on fixed on fixed term employment will
been given an term employment be served with notice, if there
opportunity of basis shall be service is terminated before
explaining the entitled to any notice the expiry of the contract
charges of or pay in lieu thereof, period.
misconduct, if his services are
alleged against terminated after over
him in the of the contract
manner period:
prescribed in
Paragraph 14”. Provided that the
services of a
temporary workman
shall not be
terminated as a
punishment unless
he has been given
an opportunity of
explaining the
charges of
misconduct alleged
against him in the
matter prescribed in
paragraph 14.”;

[point 3 (c) (ii) of the

notification dated
16.03.2018]

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Industrial No old Item (iiia) in sub In sub paragraph (a) of
Employment provision. paragraph (a) of paragraph 3 under Schedule
(Standing paragraph 3 of IA i.e. model standing orders
Orders) Schedule IA under for industrial establishment in
Central Industrial coal mines; the
Rules, 1946 Employment establishments are required to
(Standing Orders) provide information with
Central Rules, 1946. respect to classification of
”Fixed term workmen.
employment”. That is why, with the insertion
of a new term ‘fixed term
[point 3 (d) (i) (A) of employment’ in the act,
the notification dated classification w.r.t fixed term
16.03.2018] employment shall be provided
and hence Item (iiia) inserted.

Industrial No old Sub paragraph (da) Sub-paragraph (da) of

Employment provision. of paragraph 3 of Schedule IA i.e model
(Standing Schedule IA under standing orders for industrial
Orders) Industrial establishment in coal mines;
Central Employment inserted explaining the
Rules, 1946 (Standing Orders) meaning of fixed term
Central Rules, 1946. employment workman.
“ A fixed term As per proviso, there should
employment” not be any difference between
workman is a fixed term employment
workman who has workman and permanent
been engaged on workman w.r.t working hours,
the basis of a written wage, allowances or any other
contract of benefits and shall be eligible
employment for a for all benefits available to
fixed period: permanent workman in
proportion to the period of
Provided his working service rendered even if his
hours, wages, employment period is not as
allowances and per the employment required
other benefits shall in the statute to enjoy such
not be less than that benefits.
of a permanent
workman and also
eligible for all
statutory benefits
without any
restriction,
proportionately on
the basis of his
service period

[point 3 (d) (i) (B) of

the notification dated
16.03.2018]

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Industrial Sub-paragraph Sub-paragraph (b) of Sub-paragraph (b) of
Employment (b) of paragraph paragraph 13 of Schedule IA i.e model
(Standing 13 of Schedule Schedule IA under standing orders for industrial
Orders) IA under Industrial establishment in coal mines;
Central Industrial Employment inserted explaining the terms
Rules, 1946 Employment (Standing Orders) about termination of services.
(Standing Central Rules, 1946. As per the notification, there is
Orders) Central Subject to the no necessity on the part of
Rules, 1946. provisions of the the employer, to serve notice
”Subject to the Industrial Disputes of termination in case of
provisions of Act, 1947 (14 of temporary and badli workmen.
the Industrial 1947),- Further, workman employed
Disputes Act, on fixed term employment
1947 no notice (i) no notice of shall not be entitled for any
of termination termination shall be notice of termination or
required in case necessary in the payment in lieu thereof after
of temporary case of temporary the expiry of his contract
and badli and badli workmen; period.
workers. and
This means, if services of
If temporary (ii) no workman workman on fixed term
workman has employed on fixed employment is terminated, the
completed three term employment employer in that case required
months shall be : to serve the notice of
continuous termination of his services.
service, two If temporary
weeks workman has There has been no
termination completed three amendment in the proviso,
notice is months continuous which says that two weeks’
required, if it is service, two weeks notice is required to terminate
not in termination notice is the services of temporary
accordance required, if it is not in workman, if he has completed
with the terms accordance with the three months continuous
of the contract. terms of the service.
contract.
Provided that, However, reason of
when the Provided that, when termination in writing is
services of the services of required, if temporary
temporary and temporary and badli workman has not completed
badli workers, workers, who have three month’s continuous
who have not not completed three services.
completed three months continuous
months service are
continuous terminated, before
service are the completion of
terminated, employment, shall
before the be informed of the
completion of reason in writing.
employment,
shall be [point 3 (d) (ii) (b) of
informed of the the notification dated
reason in 16.03.2018]
writing.

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