Industrial Employment (Standing Orders) Act, 1946

Date: 31st March 2020

Author: Dr. Sachin Biraj


The Industrial Employment (Standing Orders) Act, 1946 (IESO) requires the employer to define and publish uniform conditions of employment. This is more than the HR policy, the code of conduct, or the handbook of an organization. It is essentially the terms of employment such as service conditions of employment, entry and exit to the premises, hours of work, rates of wages, shift schedules, leave and attendance, misconduct provisions, and the process of termination or separation.

The conditions of employment are binding on the employer and the employees from the date they become certified and operational.


An industrial establishment under IESO is an industrial entity defined in clause (ii) of the Payment of Wages Act, 1936, Section 2.

Section 2 (ii) of the Payment of Wages Act, 1936 stipulates that an industrial or “other establishment" means a:

    • Tramway service, or motor transport service engaged in carrying passengers, goods or both by road for hire or reward:
      - An air transport service other than such a service belonging to, or exclusively employed in the Indian military, naval or air forces, or the Civil Aviation Department of the Government of India.
    • A dock, wharf or jetty.
    • A mechanically propelled inland vessel.
    • A mine, quarry or oilfield.
    • A plantation.
    • A workshop or other establishment in which articles are produced, adapted or manufactured, for use, transport or sale.
    • Commercial establishments in which any work relating to the construction, development or maintenance of buildings, roads, bridges or canals, or related to operations connected with navigation, irrigation, development, or the maintenance of buildings, roads, bridges; the transmission and distribution of electricity or any other form of power is being carried out.
    • Any other enterprise or class of enterprise on whom the appropriate government may impose the need for protection of persons employed, and other relevant circumstances, specifically, by notification in the Official Gazette.



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