In a clarification memo primarily directed to the Additional / All Deputy / All Assistant Commissioners, the Labour Commissioner, Haryana has clarified on aspects pertaining to applicability of the Industrial Employment (Standing Orders) Act, 1946 (“Standing Order Act”) on establishments covered under the Punjab Shops and Commercial Establishments Act, 1958 (“Shops and Establishments Act”) and the contractors engaged by any establishment.
Background:
In a Notification dated 12th December 2018, the Haryana Labour Department declared the applicability of the Standing Order Act to establishments covered under the Shops and Establishments Act in exercise of its powers under Section 2(ii)(h) of the Payment of Wages Act, 1936*. Therefore, in view of the 2018 notification, Standing Order Act is applicable to all shops and commercial establishments in case it is employing 50 or more workmen in the preceding 12 months.
Present position through the clarification:
- Establishments covered under the Shops and Establishments Act are coming under the scope of the Standing Order Act.
- Establishments employing workmen for fulfilment of a contract is also covered under the scope of the Standing Order Act. This has been clarified basis the definition of “industrial establishment” under Section 2(e)(iv) of Standing Order Act which defines it as “the establishment of a person, who for the purpose of fulfilling a contract with the owner of any industrial establishment, employs workmen,” Therefore, every contractor having 50 or more employees fulfilling a contract, is itself an establishment under the Standing Order Act.
The Department to ensure that an undertaking of the applicants in this regard must be submitted to the Head office.
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*”industrial or other establishment” means–
(h) any other establishment or class of establishments which the Central Government or a State Government may, having regard to the nature thereof, the need for protection of persons employed therein and other relevant circumstances, specify, by notification in the Official Gazette.
Source: Labour Department, Haryana
